EVANSVILLE, Ind. (AP) — An audit of Evansville's public housing agency found that it failed to comply with federal guidelines during an upgrade of hundreds of apartments.

The U.S. Department of Housing and Urban Development's inspector general's office examined the Evansville Housing Authority's handling of improvements to 559 apartments to address maintenance problems.

The Evansville Courier & Press reports the audit found the housing agency came up short in three ways, including failing to have a HUD-approved, independent third party inspect the units under housing quality standards.

The inspector general's office says the problems occurred because the housing authority "lacked a sufficient understanding of HUD's requirements for housing quality standards and conflicts of interest" and also "lacked an adequate quality control process."

Evansville Housing Authority officials say they disagree with those conclusions.

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Information from: Evansville Courier & Press, http://www.courierpress.com