The Housing Authority of the City of Milwaukee is at risk of filing for bankruptcy after the misuse of Section 8 funds.
The news comes after TMJ4 News obtained an internal email that details the dire financial situation the Housing Authority, also known as HACM, faces.
Here is what you need to know.
What happened?
An email obtained by TMJ4 states that unreconciled cash balances in the agency’s audits show that since 2019, $2.8 million in funds were removed from the Section 8 program to cover agency salaries and benefits to make payroll.
This was not reported to the U.S. Department of Housing and Urban Development, which oversees the Housing Authority.
Additionally, the documents showed the Housing Authority does not have funds to meet payroll.
The latest turmoil comes after years of residents asking for change and reform and the Housing Authority failing its last corrective action plan.
What does this mean for residents?
It means that the Housing Authority has to make some changes in order to stay afloat.
According to Amy Hall, the marketing and communications officer with the Housing Authority, “HACM’s Board of Commissioners and leadership team have taken immediate action to ensure the agency’s financial stability while minimizing any impact on residents.”
The action includes: reducing the workforce from 238 people to 218 people; instituting a hiring freeze; realigning staff to meet the needs of the agency; and eliminating nonessential expenditures.
Reaction from HACM residents
Leaders of Common Ground, a group that has been working with HACM residents to hold the Housing Authority accountable, said the latest wave of bad news proves they were right to be concerned all along.
In a news release, the group said former HACM leaders Willie Hines and Fernando Aniban “should be held accountable. We need to understand the extent to which their financial mismanagement cost residents and would-be residents.”
How will this affect HACM residents?
Hall said: “At this time, there should be no impact on residents. The new board and leadership are keeping residents front and center and acting swiftly to address the financial challenges.”
But Cornelius Sawyer, president of Highland Gardens and a Section 8 voucher holder, said he is concerned, adding he doesn’t want less funding going to resident leadership.
“We have done our part and will continue to do our part to make sure things get better for other residents,” he said.
For more information
You can look at the Housing Authority website to read the entire recovery plan agreement.
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