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Muskegon, Mich. (WZZM) There is an update to a "13 On Your Side" investigation into the Muskegon Housing Commission. The Federal government is withholding funds to the commission until it responds to the feds demands. The tax dollars are used to pay employees and subsidize rent at the Hartford Terrace apartment building

We first told you about problems at Hartford Terrace in a 13 On Your Side Watchdog Report earlier this week. Employees, like security Guard Phil Kelley, have not been getting paid. "Some of them have had to borrow money to pay bills," he says referring to co-workers trying to make ends meet.

On Friday some of those employees received one paycheck covering the unpaid time. The payroll problem can be tracked back to two financial accounts the U.S. Department of Housing and Urban Development will not let the Muskegon Housing Commission make withdraws from. HUD says the housing commission, which runs the Hartford Terrace apartment building, missed numerous financial deadlines and requirements.

13-On Your Side has learned HUD officials recently conducted an on site assessment of the Muskegon Housing Commission. That visit resulted in a four page financial assessment citing "major concerns". In it HUD says the housing commission had a habit of paying invoices 90-days late. it also says the commission missed HUD deadlines and sent HUD incomplete documents. The housing commission, HUD says, lacked sufficient records, and has outdated financial systems.

The HUD report says there's a possible lack of monitoring by the housing commission board. Earlier in the week the housing commissions executive director and the board chairperson resigned.