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What you Need to Know About HACM’s Hiring of Out-of-State Firm to Run Section 8 Program

November 16, 2024

Residents make their concerns known at a special board meeting of the Housing Authority of the City of Milwaukee on Oct. 11. (Photo by PrincessSafiya Byers)

By PrincessSafiya Byers

This story was originally published by Milwaukee Neighborhood News Service, where you can find other stories reporting on fifteen city neighborhoods in Milwaukee. Visit milwaukeenns.org.

Editor’s note: This story has been updated with comments from Amy Hall, marketing and communications officer for the Housing Authority of the City of Milwaukee.

As the Housing Authority of the City of Milwaukee finalizes a contract with Florida-based CVR Associates to manage its Section 8 housing voucher program, some tenants are criticizing the lack of input and transparency in the decision-making process.

Here are some things you need to know as the Housing Authority, also known as HACM, moves forward with its plans.

Background

Despite pushback and concerns regarding the contract, HACM’s board pushed it forward, citing urgency as one of many reasons the contract needed to be finalized.

But Cornelius Sawyer, president of Highland Gardens and a Section 8 voucher holder, questioned whether moving forward without public comment is illegal.

According to Amy Hall, marketing and communications officer for the Housing Authority, there was not a significant amendment to HACM’s agency plan that would necessitate a public hearing with 45-days notice.

“The selection of a vendor is a procurement decision and does not require a public hearing or 45-days notice. The board did offer a public comment period (different from a public hearing) at HACM’s October 30, 2024, board meeting,” Hall said in an email.

Sawyer contends that the Housing Authority has held no meetings allowing public comment.

He notes that according to the Department of Housing and Urban Development guidelines, public housing authorities are required to host a meeting for public comment with at least 45-days notice before concluding plans.

He said this issue, in addition to other HACM troubles, has him and others on edge.

In a news release, HACM Executive Director Wilie L. Hines Jr. praised the board’s “urgency” in awarding the contract to CVR.

“CVR is highly qualified, and we believe their expertise will help us complete the required federal corrective actions and return our Section 8 program to high-performer status,” Hines said in the statement.

Housing Authority troubles

HUD ordered the Housing Authority of the City of Milwaukee to outsource management of its $42 million Section 8 housing voucher program in January, after it was found that the HACM’s bookkeeping contained discrepancies and posed a fraud risk.

That wasn’t the first of the Housing Authority’s issues.

Over the last two years, the Housing Authority has been the center of controversy for alleged lost rent payments, poor management and maintenance problems. Hundreds of the authority’s residents have been a part of a campaign calling for an investigation into the agency.

The City of Milwaukee now oversees Housing Authority residents’ maintenance concerns. In addition, the Common Council approved $250,000 in funding in October of 2023, to enable the Housing Authority to accelerate maintenance and repair work and to make other improvements to its properties.

Most recently, five residents filed a lawsuit against the Housing Authority for chronic bed bugs.

In light of these continuous problems, some residents say they are having a hard time trusting the Housing Authority’s choices in general.

“Allowing the same people who created the mess to be in charge of leading makes no sense,” said Betty Newton, a Housing Authority resident of three years. “Especially when HACM still has an incomplete board.”

CVR Associates’ role

CVR Associates‘ bid was one of six submitted to administer the Housing Authority’s Section 8 vouchers, including Milwaukee County, which manages a smaller Section 8 program itself.

According to the Housing Authority’s news release, the goal of CVR is to preserve the program and improve service delivery for Section 8 participants.

The program will continue operating from HACM’s existing Section 8 offices at 5011 W. Lisbon Ave., ensuring no disruption of service, according to HACM’s news release.

CVR will be in Milwaukee throughout the transition to establish its local presence, with an estimated 46 full-time staff members employed to operate the program.

Residents’ concerns

Newton said it’s not that she doesn’t believe an out-of-state management firm can do a good job, but she just doesn’t think current HACM management is capable of making that decision.

According to Kevin Solomon, an organizer with Common Ground, major concerns are that shifting oversight could lead to longer response times, increased bureaucracy and decreased support to tenants and residents. Common Ground is a nonpartisan coalition that addresses community issues.

“Residents have a hard time getting a hold of their property management now,” Solomon said. “Would it be easier to get a hold of the county or a company not based in the city?”

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Popular Interests In This Article: CVR Associates, Housing Authority of the City of Milwaukee, PrincessSafiya Byers, Section 8 Housing Assistance

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