[UPDATE: Welcome, Instapundit readers.]
I paraphrase: the HUD actually indicated that ACORN had taken a lot of money from the government, hadn’t properly accounted for how it was spent, and that its ‘replacement’ AHCOA needs to make things right before it gets any more funding. ACORN’s/AHCOA’s response? “Well, we took a bath from to the fallout from that underage El Salvadoran brothel sting operation thing last year, so we shouldn’t have to pay back any of that money that we spent on election fraud. Err, low-income housing assistance.”
PS: If HUD is inclined to take this argument seriously, may I remind HUD that, starting next January, Rep. Darrell Issa is unlikely to be merely the Ranking Member of the Oversight and Government Reform Committee?