RELATED VIDEO: Fayetteville moves forward with $450K homelessness proposal

FAYETTEVILLE, Ark. (KNWA/KFTA) — The Fayetteville City Council voted 6-0 on Aug. 5 to donate $200,000 to the Fayetteville Housing Authority to help the agency pay off debt and continue serving low-income residents.

The money comes from $450,000 the council set aside in July for homelessness initiatives.

The housing authority’s more than $200,000 debt stemmed from violations of U.S. Department of Housing and Urban Development rules when its development nonprofit used public funds to maintain privately owned properties.

The authority has repaid $18,000 but still owed more than $123,000 to its public housing program and about $60,000 to the federal government.

Mayor Molly Rawn said the donation will allow the auth

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