2 On Your Side confirmed today the FBI is now investigating the Niagara Falls Housing Authority (NFHA).
The Buffalo FBI office refused to confirm or deny the existence of any on-going investigation.
The Niagara Gazette was first to report the federal probe. It told readers yesterday the authority had been "served with a number of federal subpoenas."
2 On Your Side has learned FBI agents first arrived at the agency's door last Thursday. This happened as the housing authority's board of commissioners was meeting in a special session. It was at this meeting that long-time executive director Stephanie Cowert was placed on administrative leave. Cowert will continue being paid her $140,000 salary while she is away from her job.
NFHA board chairman Jeff Paterson said last week refused to say why Cowert had been placed on leave, only describing it as a "personnel matter".
The city's housing authority serves many of the city's poorest residents, overseeing 900 units of housing. Its annual operating budget is close to $6,000,000.