PORTSMOUTH (AP) -- A defunct Portsmouth housing nonprofit's spending of federal funds is being reviewed by the U.S. Attorney's Office.

A spokesman for Commonwealth's Attorney Earle Mobley tells The Virginian-Pilot that the local prosecutor's office requested the review.

The Center for Community Development Inc. used $313,000 in federal funds that it received from the city to renovate three properties.

The city had to repay the money to the U.S. Department of Housing and Urban Development because the projects weren't completed under the federal HOME program.

The center closed in December 2012.

Founder Maury Cooke says the nonprofit sought a federal investigation of the city's practices in giving it funding nine months ago. He says he believes it's a victim of racial discrimination.

City Manager John Rowe declined to comment on any investigations.

Information from: The Virginian-Pilot,

AP-WF-07-16-13 1142GMT

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