The Department of Housing and Urban Development is reviewing the use of federal money.  The review questions hundreds of thousands of dollars in loans, given out to people or businesses associated with some city officials.  One loan, awarded to a Columbia Councilwoman's mother is causing controversy.  And a second councilman is also named in the HUD review.  However he says it's not factually correct.

On Wednesday, Columbia City Councilwoman Tameika Isaac Devine responds to a Housing and Urban Development report that raises questions about her mother's use of a federal loan.

"I think this has been blown out of proportion because I'm a member of city council," said Isaac Devine.

According to the report, Veronica Isaac received a $280,000 loan in mid-April from the Sumter-Columbia Empowerment Zone Program.  She used the money to buy a commercial building on Richland Street; which now houses her daughter's law firm.

"As I understand it, it doesn't indicate there is any wrongdoing on her part or my part," said Isaac Devine.

The requirements for the loan include starting a new business and creating new jobs.  The Councilwoman says the money is being used to do that despite questions raised by the HUD review.

"She's also been in discussion with other start-up businesses who also want to rent space from her, and that will create jobs," said Isaac Devine.

"I've requested a meeting," said Councilman Daniel Rickenman.  "I've left five messages and I have not gotten a return call about having a meeting."

Rickenmann is looking to get to the bottom of things as well.  His name also appears in the report.

"The loan in question is not my loan," said Rickenmann.

The report addresses a January 2008 loan intended for the purchase of Rickenmann's former restaurant "Birds on a Wire."

"The biggest thing is there is a real dispute in the facts," said Rickenmann.  "And I think we have all the documents to clear it up."

Columbia's Community Development Director, Tony Lawton, was unwilling to talk about the issue.

City Council received the HUD report on Tuesday, with plans to review it in the near future.