West Virginia flood program being investigated by federal officials

West Virginia Headlines

CLENDENIN, WV – JUNE 25: A truck lies in a hole amongst the mud after it was washed out of the driveway from the flooding on June 25, 2016 in Clendenin, West Virginia. The flooding of the Elk River claimed the lives of 26 people in West Virginia. (Photo by Ty Wright/Getty Images)

An official says a program that helps people rebuild homes that were damaged or destroyed in West Virginia’s 2016 flood has been under federal investigation.

A program director at the West Virginia Development Office revealed the investigation Monday to a Joint Legislative Committee.

Michelle Tharp Penaloza talked about the investigation by the U.S. Department of Housing and Urban Development in response to a lawmaker’s question about why the program had stopped making progress.

Penaloza said federal officials found a need for corrective action in August and those state officials now comply with federal standards.

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