Feds require Milwaukee Housing Authority to outsource one of its largest programs, Section 8 Housing

Outside agency will 'manage and operate the entire Housing Choice Voucher program'

Photo by: AP Photo

The City of Milwaukee

By: Jenna Rae

Posted at 11:50 AM, Jan 26, 2024

and last updated 5:13 PM, Jan 26, 2024

MILWAUKEE, Wis. — For the last year, the Housing Authority of the City of Milwaukee (HACM) has been under review by the U.S. Department of Housing and Urban Development (HUD).

HUD reports in December 2022 and April 2023 showed HACM was at risk for fraud and abuse and allegedly mismanaged millions of dollars. In May 2023, HUD deemed some of HACM's programs, including its Section 8 Program, 'troubled'.

"We pay our rent, we deserve better, you know, better treatment," one HACM resident said.

Now, HUD is mandating HACM to hire an outside agency to run its multi-million-dollar Housing Choice Voucher (HCV) division, which includes Section 8 housing. In an email, a HACM spokesperson said this includes nearly 6,000 voucher households.

"First thought is thank god," HACM resident, Teddi Minor said.

"I was quite shocked and excited because I think it's needed," Betty Newton echoed.

It's a change that's welcomed by these two women who live at Becher Court, a property run by HACM.

Documents show the outside firm will "manage and operate" the entire program.

"That's a good idea because Willie Hines is doing nothing for us. We constantly ask him about certain things, he brushes it off as if we don't matter," one resident explained.

Hines is HACM's president. He has repeatedly turned down Jenna Rae's requests for an interview.

A week after that meeting, Rae sat down with Mayor Cavalier Johnson, who appointed Hines to the HACM board. He stood by Hines at the time.

Rae requested to talk with the mayor again Friday, now that an outside agency will run Section 8 in the city.

In an email, the mayor's spokesperson accused Rae of extreme bias writing he would "be happy to set up an interview with any other TMJ4 News reporter on this matter. I am not willing to arrange time for you."

So, Steve Chamraz asked the questions in Rae's place.

"Do you ever want to see the federal government come in and put a corrective action plan over one of your city agencies?" Chamraz asked Mayor Johnson.

"Well look, in relation to the housing authority, there have been some issues. Myself and the leadership at HACM, we have been in touch and in constant communication with the Department of Housing and Urban Development, and taking into account some of the recommendations that they put forward, including this one here," Johnson answered.

The 40-page Request for Proposal (RFP) requires the vendor to create a management plan that addresses several issues, including "improving program performance and compliance" and "improving customer service with applicants, participants, landlords, the HACM Board of Commissioners, the City of Milwaukee, The U.S. Department of Housing & Urban Development (HUD), other stakeholders, and the public."

The RFP lists a number of vendor responsibilities including managing the wait list of tenants and new admissions, recertification of tenants, portability, process moves for tenants, inspections, landlord and tenant services, accounting, quality assurance and quality control, a customer service call center, program compliance and more.

"There definitely needs to be some oversight because I sent an email, a group email, I sent a petition letter from residents, I sent a second letter, and Willie Hines has never communicated with me," Newton explained. "To me, it's just a lack of respect. If you're the highest paid person in this city, as far as being in a government capacity."

HUD is requiring the new, hired company to go through every single participant in the Housing Choice Voucher program and make corrections if needed.

The RFP states the new firm that takes over will be in an initial five-year contract, with the option to extend an additional three years.

An internal email between HACM and city officials, which was obtained by TMJ4, states that HACM will continue as the administrator of the program.

"It is anticipated that there should be little to no effect on the nearly 6,000 voucher households that HACM serves within the City of Milwaukee. We believe these actions will enable us to house a greater number of people through our voucher program," HACM's Marketing and Communications Officer, Amy Hall, said in the email.

We did reach out to HACM for an interview with President Hines Friday. We got a statement in return.

"HACM to complete corrective action plans for our Section 8 Housing Choice Voucher program. HACM has implemented several components of both plans and will continue to partner with HUD to complete the identified actions. One requirement outlined in the plans is the issuance of a Request for Proposal (RFP) to engage qualified vendors for the operation of HACM’s Section 8 program. To comply with this requirement, the RFP [hacm.org] was released on Friday, January 19. HACM will continue as the administrator of the program, with a designated HACM staff liaison collaborating closely with the selected contractor. HACM is committed to ensuring a seamless transition throughout the process. It is anticipated that there should be little to no effect on the nearly 6,000 voucher households that HACM serves within the City of Milwaukee. It is believed these actions will enable HACM to house a greater number of people through its voucher program."

In addition to HACM's president and the mayor, we reached out to Aldermanic President Jose Perez too.

Here's what he has to say about the outside agency takeover:

"This is another layer of problems brought to our attention only because our constituents do not feel served by either HACM or HUD. This request-for-proposals raises more questions than answers, and some involved seem to be trivializing how serious this is, the impact it will have on our residents, and how broken this system has become. Because of the Common Council’s limited oversight of HACM, our best opportunity for implementing substantive change is through the HACM Board. I expect whoever is nominated to the board is prepared to put in the hard work necessary to achieve the desperately needed reform. Nothing less will earn my vote for confirmation. HACM residents deserve better."

Link to article here.