HUD Report Criticizes Milwaukee Housing Authority for Mismanagement

Milwaukee residents file lawsuit against city’s housing authority over unsafe conditions

The challenges facing Milwaukee’s public housing authority have grown more pressing, as shown in a recent federal report that highlights ongoing financial and maintenance issues. The report sheds light on the difficulties the Housing Authority of the City of Milwaukee (HACM) faces in managing its operations effectively.

The U.S. Department of Housing and Urban Development (HUD) has identified that HACM struggles to deliver accurate financial statements to its oversight board. Additionally, the agency’s maintenance and inspection program has been deemed inadequate, failing to ensure “safe, decent, and sanitary housing” for residents.

Concerns about HACM’s management are not new. In December 2022, HUD highlighted a significant fraud risk within the agency’s rental assistance voucher program. This program has since been outsourced to a private contractor.

The timing of HUD’s latest report, delivered to city officials on Oct. 18, coincided with the confirmation of new mayoral appointees to HACM’s oversight board, filling four long-vacant positions. Following the board’s first public meeting on Dec. 11, HACM released the HUD letter publicly.

In response to the report, HACM’s board has acknowledged the issues as “serious” and in need of “immediate action” to rebuild trust with residents and stakeholders. HUD did not provide a comment to WPR regarding the findings.

Resident Concerns and Governance Issues

Residents have voiced their frustrations regarding living conditions, citing problems like rat infestations, broken windows, and poor maintenance. Despite having a plan for regular inspections, HUD noted that HACM failed to demonstrate that these inspections were conducted. The agency relies heavily on tenant complaints to identify maintenance issues and has not completed a “Physical Needs Assessment” since 2014.

Furthermore, HUD’s review raised “significant concerns” about the information provided to HACM’s board, including misleading financial data that complicates effective oversight. HACM’s board is now working on a “Recovery Agreement” with HUD and other stakeholders, promising regular public updates and setting clear performance standards for leadership.

New Leadership and Transparency Efforts

Housing advocate Kevin Solomon, representing the organization Common Ground, has been pushing for transparency and was instrumental in obtaining the release of the HUD letter. “They, in their actions, have shown transparency,” Solomon said, emphasizing the positive step towards accountability.

Common Ground has been critical of HACM’s Executive Director Willie Hines, who recently announced his retirement. Solomon remarked, “We need new people who know how to do this,” pointing to the HUD report as validation for change.

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