HACM Moves To Outsource Vouchers, Common Ground Blasts Plan

By Jeramey Jannene - Oct 8th, 2024 05:36 pm

After its internal practices were deemed “at risk for serious fraud, waste and abuse” by the federal government, the Housing Authority of the City of Milwaukee (HACM) is moving to outsource its housing voucher program.

But Common Ground Southeastern Wisconsin, the coalition that has led public pushback against the agency, is asking the HACM board to pause the plan before it votes to approve a five-year, multi-million dollar contract at its Wednesday meeting.

Outsourcing management of the Section 8 Housing Choice Voucher Program would replace HACM personnel with a private contractor for the administration of a federal assistance program that provides cash payments (vouchers) to private landlords to provide housing for qualifying households.

In 2023, according to a January request for proposals, the agency was responsible for administering $42 million in vouchers and expected to receive $5 million in administrative fees. The vouchers cover approximately 7,800 housing units, of which 1,700 are HACM-owned. The majority of the vouchers go to private sector housing used by lower income residents who qualify for the vouchers.

The housing authority received six bids and wants to move forward with Florida-based CVR Associates. It previously contracted with the firm to improve its voucher program.

Common Ground doesn’t want any decision made until the citizen-led HACM board has a full complement of seven members. It currently has four members, with one serving with an expired term. The Common Council has not acted on Mayor Cavalier Johnson‘s nominees, with Council President José G. Pérez previously saying the council will conduct a thorough review.