The money has to be spent by the end of March
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SNP councillors have claimed that Dundee may have to hand back up to £1.7m in government grants for knocking down unpopular housing.
They believe there is not enough time to properly distribute the money which has to be spent by the end of March.
The cash was part of a £3.4m grant for projects in Menzieshill, Charleston, Lochee, Hilltown, Whitfield, Mill o' Mains, Douglas and Linlathen.
Dundee City Council has said it is confident the money will be spent.
SNP councillor Jimmy Black criticised the way the ruling administration had dealt with the housing problem.
He said: "They've had 14 months to spend this money, but they haven't done it.
"Now they're racing to find ways of spending £1.7m before the end of March. It's a very unsatisfactory way to proceed."
Mr Black also criticised the management of the demolition programme, saying that the council was trying to do too much at once.
He said: "Had we concentrated the £3.4m in one or two areas, the money could have made a real difference.
"Instead, the cash has been thinly spread throughout the city."
The council's housing convener George Regan believes the money will be spent on time.
However, he criticised the Scottish Government for not giving local authorities the flexibility of when they wanted to use the funding.
'Inevitable' delays
He said: "This council has a long and successful track record of demolishing unwanted properties to make way for new homes that people want to rent, freeing up land for new housing and regenerated communities.
"The huge improvements that we are instigating cannot happen overnight - they take careful planning and a huge amount of consultation with the people directly affected in our communities and with our housing agency partners.
"There will inevitably be delays in emptying properties because tenants have to be found new homes but Dundee is making excellent progress in its regeneration plans.
"You just have to look at communities across the city to see the tremendous improvements that are taking place.
"We have not selected one particular area of the city to concentrate on because we want people across Dundee to benefit from living in improved housing in regenerated communities."
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