Brian ChilsonThe Little Rock Board of Directors on Tuesday indicated they wanted Mayor Frank Scott Jr. to request the immediate resignations of commissioners at the Metropolitan Housing Authority.
If the commissioners do not comply, the board advised the mayor to send letters giving the housing authority board members a 10-day notice of a public hearing regarding their removal from office. Commissioners can be ousted this way, but having them resign immediately is speedier.
Scott said he would request resignations Wednesday and send the letters afterward, if needed.
The Metropolitan Housing Alliance, aka the Little Rock housing authority, has a five-member, self-appointing board of commissioners. City officials confirm or reject their selections, and two of the positions are up for a second term at the end of September. One position is vacant after a member resigned last month. Three of the active members are involved with the Central Arkansas Housing Corporation, a nonprofit organization created by the housing authority that is mentioned in some of the troubling reports.
Brian ChilsonDirector Lance Hines beat the drum for leadership changes at the Little Rock housing authority in the last few months. He suggested Tuesday that Kerry Wright, the newest commissioner and the only one not involved with the Central Arkansas Housing Corporation, not be replaced. In conversation with Wright, Hines said Wright noted he would step down “as a sacrificial lamb,” but he wanted to continue to serve.
Brian ChilsonScott debriefed city directors on Tuesday about a meeting he had with representatives from the U.S. Department of Housing and Urban Development earlier in the day. Anthony Landecker, HUD’s public housing director in Arkansas, recapped the recent troubles with the Little Rock housing authority and recommended the city work to get a “fully functioning, capable board in place who are ready, willing and able to navigate the oversight of [the identified issues], as well as provide accountability for the fiduciary responsibility of MHA funds.”
Recently identified trouble spots with the management at the Metropolitan Housing Alliance include a failure to submit financial statements since 2019, a “troubled” score from HUD in August and a report detailing nearly $30 million in “questioned and potentially disallowed” funds between the housing authority and the Central Arkansas Housing Corporation.
Brian ChilsonLast week, City Attorney Tom Carpenter predicted a receivership might be assigned to the housing authority, which would limit the power city officials have over its operations and shift the housing authority’s finances to a third party. Carpenter urged city officials to take action quickly to avoid that step. Carpenter also provided directors on Tuesday with 49 new pages of findings on problems with the housing authority.
Brian ChilsonHUD let the Metropolitan Housing Authority know in August that they must provide a recovery plan within 30 days. The clock has been ticking. Scott told city directors Tuesday the recovery plan would still be crafted and delivered by the Executive Director Ericka Benedicto and staff even if the commissioners were removed.
