The U.S. Department of Housing and Urban Development recently labeled Little Rock’s housing authority “troubled,” based on criteria assessed through Dec. 31, 2022. The report was expected to be discussed at a commissioner’s meeting Thursday, but that meeting was canceled 20 minutes before its start.
The Metropolitan Housing Alliance in Little Rock is tasked with administering federal subsidized housing. With a five-member board of commissioners and nine staff members, the agency provides housing assistance to about 8,000 Arkansans.
Executive Director Ericka Benedicto announced the meeting cancellation via email Thursday, though she didn’t offer an explanation on the last-minute change of plans. Questions about the meeting were deferred to the commission’s chairperson, Lee Lindsey, though he has not yet explained the confusion either.
The MHA has a problematic past, which includes the turnover of several executive directors in recent years and reports of unnecessary spending, bypassing a federal approval process and potential conflicts of interests within the commission. In May, Little Rock Director Joan Adcock recommended city officials investigate the practices and members of the housing authority. Her request came after tenants at the troubled Big Country Chateau apartment complex voiced issues with finding temporary housing, which the MHA was expected to help with.
HUD completed the MHA assessment on Aug. 9. The group was judged on a variety of federal standards, called the Public Housing Assessment System. Categories include physical, which measures whether public housing is decent, safe and sanitary; financial, an assessment of the agency’s monetary records; management, an analysis of how efficient and effective the staff is; and “capital fund program,” which examines how quickly funds are put into action by occupying housing units.
MHA brought in zero points for both financial and management, which were based on its failure to meet required financial submissions. The group earned five points for the capital fund category, a passing grade. The highest score, 35/40, was awarded in the physical category. No points were deducted for lateness.
Together, the scores bring the total MHA grade to 40/100, which is where the “troubled” label comes in. Check out the full report here.
Anthony S. Landecker, HUD’s public housing director in Arkansas, on Wednesday sent a note to Little Rock Mayor Frank Scott Jr., Benedicto and the MHA commissioners about the audit results.
“It is critical that the Agency assess its current situation to determine if recovery is feasible or if alternative options for affordable housing should be considered,” the letter stated.
It goes on to offer a list of actions the MHA board can use to self-diagnose its deficiencies and propose solutions. Landecker noted the group “should take immediate action” to identify problems and implement a recovery plan.
MHA needs to send a proposed recovery plan within 30 days of the letter, which will then be reviewed to determine whether HUD needs to step in with further assistance or action. HUD is also executing a “binding Recovery Agreement” with MHA to ensure the agency can continue, according to Landecker’s letter. If given the OK to continue, MHA must also improve by at least 50% on its next assessment, a year from the “troubled” designation, and score at least a 60 in the next fiscal year.
