Amid repair backlog and reports of bad bookkeeping, ideas vary on how to fix Milwaukee housing authority

A.J. Bayatpour - 10/25/2023 CBS58

When it comes to the issues she's dealt with at her apartment, Teddi Minor says she will continue to be outspoken.

During an interview on Wednesday, Oct. 25, Minor was making dinner in her home at Becher Court, a south side property run by the Housing Authority of the City of Milwaukee (HACM).

Minor detailed issues she had with black mold that followed a ceiling leak in her bathroom. Then, leaks came though the light fixtures in the hallway and kitchen. She said the wet floors were especially challenging because she's in need of a knee replacement after a car accident.

"I already walk messed up. I step on some water that's slippery, I'm already off-balance, so it ain't gonna take much for me to lose footing," Minor said.

Teddi Minor shared video and photos documenting ceiling leaks and black mold in her apartment, which is owned by Milwaukee's housing authority.

HACM operates about 4,000 units across the city, which are home to more than 10,000 people, many of whom are elderly and/or low-income residents.

Common Ground, a collection of schools, neighborhood groups and businesses, has been advocating for HACM residents, who've complained about long waits for repairs. The organization has also been critical of the housing agency, which has been taken to task by federal officials over its shoddy bookkeeping.

"Every aspect of life in these properties is, in some ways, negative, bad, hurtful, painful," Common Ground Associate Organizer Kevin Solomon said. "And all of it traces back to who runs HACM."

Common Ground provided a review it conducted of work orders at Becher Court between January 2022 and this July. It listed 189 calls for plumbing-related problems, an average of nearly 10 per month.

The city has already moved to improve oversight of the housing authority. Last month, the Milwaukee Common Council voted to place HACM under the watch of the Department of Neighborhood Services (DNS), which already enforces building codes for everyone else in the city.

Mayor Cavalier Johnson said at a public appearance Monday he'd already taken executive action to give DNS the ability to enforce possible violations at HACM properties.

Johnson said he wanted to see the fine print of a proposed council budget amendment to spend nearly $120,000 on the creation of two new DNS positions dedicated to overseeing HACM buildings.

"I wanna see the details, and again, I've already [acted on HACM] using my executive authority," Johnson said. "I'd like to see the full [amendment] language when I'm able to see that."

The DNS funding is part of a broader budget amendment the council's finance committee is expected to vote on Thursday.

Ald. Bob Bauman is pushing an additional amendment that would redirect $2.5 million toward the creation of a new housing authority maintenance fund. The money would come from the city's share of federal pandemic aid.

Bauman said while he supported the dedicated DNS oversight positions, it wasn't enough.

"I completely support that, but you know, that doesn't repair somebody's sink," Bauman said. "That just results in an order being issued to repair a sink."

In a statement, HACM spokesperson Amy Hall said the agency was on board with DNS oversight, as well as Bauman's proposal to create a maintenance fund.

"We welcome additional tools that help strengthen our established processes and address maintenance needs," Hall said.

Sources at City Hall told CBS 58 on the condition of anonymity it was doubtful Bauman's amendment had enough support on the council to pass, but it was likely the council would approve and Johnson would sign off on the new DNS positions.

HACM's questionable bookkeeping

Solomon said he was skeptical more money would help HACM improve the maintenance of its buildings. He pointed to an April 2023 review by the U.S. Department of Housing and Urban Development (HUD), which picked apart HACM's financial practices.

"HACM financial records do not accurately reflect the true financial position," the HUD report stated.

The federal review outlined more than $3 million in "forced adjustments to the bank reconciliation" and noted HACM was even failing to track how employees used agency-issued credit cards.

The HUD report went on to conclude HACM's leadership didn't have the capability to get the agency's finances back in order.

An April 2023 federal review blasted HACM's financial reporting process.

"It appears that the expertise required to rectify the discrepancies...is inadequate amid the current staff," the review stated.

Hall said the agency has taken several steps to remedy those problems. Those include hiring an accounting firm to review HACM's finances, establishing staff training with a focus on better worker retention and increasing its use of third-party vendors.

"We are confident the agency will emerge stronger and more resilient," Hall said. "Which will enable us to better serve program participants while also ensuring regulatory compliance."

Solomon said he was bothered by the idea of HACM needing outsiders to re-establish the agency's financial reporting process.

"They're hiring expert pros with taxpayer dollars to come fix the mess that they can't fix," he said.

Looking for long-term solutions

Solomon said Common Ground still believed the housing authority won't truly be reformed until executive director Willie Hines, Jr. is gone.

Hines, Jr. served as an alderman from 1996-2014, and he was the common council's president from 2004-2014.

Solomon added Common Ground believed there were several other issues plaguing the housing authority. He said the group was digging into the security practices at HACM properties.

When asked if he trusted HACM's current leadership to make substantial changes, Bauman said, "Guardedly, yes."

Bauman, whose district includes downtown and the near west side, added he did not agree with the calls for Hines, Jr. to resign.

"I'm personally confident that he's doing everything in his power to deal with the maintenance and repair backlogs in these buildings," Bauman said.

When asked for her suggestions, Minor said she believed HACM's leadership team should be forced to temporarily live in some of the agency's units.

"I feel like if they had to live here for at least a month, to really understand what we go through, a lot more things would get changed a lot faster," she said.