CHICAGO -- Negotiations over bailing out a housing complex in Chicago that defaulted on its federally backed mortgage in 1990 will restart now that the project's owners have agreed to repay the federal government $1.16 million of mis-spent funds.

Dale Chouteau, HUD's regional inspector general in Chicago, said on Wednesday that the Habitat Co., the holding company for the real estate partnership that operates Presidential Towers, has agreed to pay the money back to the Department of Housing and Urban Development.

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