In 1999, the City of San Francisco issued a $50,000 federal grant to a nonprofit organization led by Charlie Walker to purchase a Hunter's Point property. The property was later sold to a Nation of Islam organization and used as a mosque.
The U.S. Department of Housing and Urban Development reviewed the purchase last year and ruled that it violated laws against using federal funds for religious purposes. The city was ordered to pay back the market value of the property, which is about $400,000.
The mayor's office has responded to the order, saying that it is unfair that the HUD should profit from the situation at the expense of a faith-based organization that has made positive contributions to the neighborhood. The city has offered the original grant amount of $50,000 to HUD in an attempt to resolve the debt.
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