HUD Takes Charge of Housing Authority in Default

AP Photo/Evan Vucci, File

The U.S. Department of Housing and Urban Development (HUD) has had to take charge of monitoring a local housing authority in Kansas over substantial default on noncompliance. The agency emphasized that this is not a one-off problem, but one indicative of a need for reform across the nation.

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The Manhattan Housing Authority in Kansas might have an impressive name, but it sure does not have impressive leadership. HUD Secretary Scott Turner is faced with a monumental task of bringing accountability and transparency to the public housing system in America, which is immensely corrupt, and this new move is part of that effort.

The Manhattan Housing Authority is in Substantial Default for not complying with the terms of the Recovery Agreement, which the federal government mandates, according to a February 10 press release. Placing this authority under federal monitorship is part of an effort to ensure that Americans’ taxpayer dollars are not being wasted in public housing programs.

“HUD is restoring accountability to Public Housing Authorities (PHAs) nationwide,” said Deputy Secretary Andrew Hughes. “Gone are the days where mismanagement, waste, and dysfunction are acceptable. HUD will use this opportunity to restore trust with tenants of the Manhattan Housing Authority, offering the stability needed to succeed.”

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The press release noted:

HUD determined that the Manhattan Housing Authority repeatedly failed to correct identified deficiencies despite clear notice, extensive technical assistance, and multiple opportunities to achieve compliance. Based on these findings of noncompliance, HUD exercised its statutory authority to impose Monitorship and require direct federal oversight of the Housing Authority’s operations.

Now that Manhattan Housing Authority is under HUD Monitorship, the federal agency has appointed Cure Monitors to oversee operations and to track the necessary remedial actions. This will ensure that the Kansas authority meets recovery milestones.

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The letter to the Manhattan Housing Authority stated, “MHA is a troubled performer as designated by HUD under the Public Housing Assessment System (PHAS), having received an overall score less than 60 (of 100) points for its fiscal year (FY) ending December 31, 2018. As a troubled performer, MHA was required to show substantial improvement in its subsequent annual PHAS assessments; and execute and comply with a Recovery Agreement with HUD.” 

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In conclusion, in the press release, HUD added the following information:

Oversight includes enhanced reviews of all procurement activities, financial controls, and even program administration. Failure to demonstrate timely and sustained progress may result in further enforcement actions, up to and including full HUD possession. This action is corrective in nature and intended to restore compliance and operational integrity.

It may sound very dull and technical, but it is an example of how the Trump administration is working to prevent the waste of our taxpayer dollars, which is extremely important.

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