This browser does not support the Video element.
Housing authority; feds issue scathing report
The U.S. Department of Housing and Urban Development wrote a scathing letter to Milwaukee's housing authority, saying the organization requires changes.
MILWAUKEE - The U.S. Department of Housing and Urban Development (HUD) wrote a scathing letter to Milwaukee's embattled housing authority, saying the organization requires changes, FOX6 News learned Wednesday.
The new vice chair of the Housing Authority of the City of Milwaukee (HACM) board said the issues are serious – and they have to take immediate action.
SIGN UP TODAY: Get daily headlines, breaking news emails from FOX6 News
Oversight falls short
The letter was written in October but not made public until Wednesday, when HACM's board held its annual meeting. HUD visited HACM sites and reviewed financial records in August, finding the board was "unable to meet its oversight role."
Housing Authority of the City of Milwaukee (HACM)
The letter went on to say: "HACM management is not providing high quality public housing, accurate financial reporting, or compliance with HUD program regulations."
One root cause, the federal review said, was the fact that HACM's seven-person board has not had seven members since 2019. The letter said it was a low priority for both current and prior mayoral administrations to fill it.
Inaccurate financial reports
The federal government said HACM's financial management is not meeting federal requirements and not providing accurate financial reports to the board, or HUD.
HUD also found what accounts call an "unreconciled variance" of $2.5 million. It said HACM is over-reporting cash balances, under-reporting accounts payable and under-reporting tenant accounts.
FREE DOWNLOAD: Get breaking news alerts in the FOX6 News app for iOS or Android.
The federal letter to the housing authority also criticized HACM maintenance for not fixing health and safety issues within the required timeframes. The letter said HACM doesn’t have a process to make sure supply inventory is tracked.
Next, HUD and HACM will have to agree to a recovery plan.
Willie Hines retiring, Milwaukee housing authority residents hopeful
For more than a year, tenants and activists demanded new leadership at the embattled Milwaukee housing authority. Willie Hines will soon retire.
Changes at the top
FOX6 News previously reported HACM director Willie Hines' plan to retire effective Jan. 1. Now, the board's chair resigned – effective Wednesday.
The HACM board then elected a new chair and vice chair.
"It’s also a time of opportunity. You all know the saying: Crisis creates opportunity," said Karen Gotzler, HACM's new board vice chair. "We are looking for every opportunity we can to improve the work that we do, to collaborate with residents, to collaborate with other stakeholders, to work with community organizations."