Federal report outlines persistent issues at Milwaukee’s public housing authority

Milwaukee’s public housing authority is still failing to manage its finances or maintain its properties adequately, according to a federal report.

The report from the U.S. Department of Housing and Urban Development states the Housing Authority of the City of Milwaukee, or HACM, is “unable to provide accurate financial reports” to its own oversight board.

It also said HACM’s physical maintenance and inspection program fails to provide “safe, decent, and sanitary housing” for its residents.

HUD first warned of the agency’s mismanagement in December 2022, when it found “serious” fraud risk in its rental assistance voucher program. The program was outsourced to a private contractor last month.

HUD’s latest report reached city officials on Oct. 18, not long before Milwaukee’s Common Council confirmed new mayoral appointees to four long-vacant seats on HACM’s oversight board.

The city agency released a copy of the HUD letter following the first public meeting of the newly constituted board on Dec. 11.

In a statement to WPR, the HACM board called the issues outlined in the letter “serious” and said they “require immediate action for the Milwaukee Housing Authority to rebuild trust with its residents, partners, and the public.”

HUD did not respond to a WPR request for comment.

Letter echoes resident complaints, criticizes HACM governance practices

HACM residents have been vocal about conditions in Milwaukee’s public housing, complaining of rat infestations, broken windows, drug dealing, and unresponsive maintenance staff.

HUD’s letter said that, though HACM has a plan for regular property inspections, the agency “could not demonstrate that the inspections were being conducted.”

It said managers have no structure in place to review maintenance staff’s work, and that the program “relies on tenant complaints” for flagging inadequate maintenance work. It also said the agency hasn’t completed a “Physical Needs Assessment” since 2014.

In terms of governance, the HUD team’s review of reports supplied by HACM to its oversight board raised “significant concerns about the information being
provided to the board.”

It said HACM staff had provided the board with “misleading financial information,” complicating oversight.

In its statement, the board said it is preparing a “Recovery Agreement” with “HUD and other stakeholders.” It promised “regular updates” to the public as it makes “critical improvements.”

The board also wrote that it is “committed to establishing clear performance standards and timelines for HACM leadership.”

Release of letter a good sign, says housing organizer

Kevin Solomon learned of the HUD letter’s existence in November. His organization, Common Ground, represents many HACM tenants. It began filing public records requests to release the letter.

“They, in their actions, have shown transparency,” Solomon said of the board’s release of the letter. “That’s a huge step, we supported them in getting appointed, it feels very much like we can work with them.”

Common Ground has been critical of HACM Executive Director Willie Hines and had been calling for his departure. Hines announced last week during an interview with the Milwaukee Journal-Sentinel that he would be retiring this month. As recently as September, he had insisted he was “here to stay.”

“We need new people who know how to do this,” Solomon said of Hines’s retirement. “This HUD report certainly validates that.”