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| | | | The mission of the Housing Authority of the City of Milwaukee (HACM) is to foster strong, resilient and inclusive communities by providing a continuum of high-quality housing options that support self-sufficiency, good quality of life, and the opportunity to thrive. | | | |
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| | | | Call to Order
Minutes note: Meeting called to order at 3:41 p.m. | | | |
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| | | | Roll Call | | | |
Roll call
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| | A. | | APPROVAL OF THE CONSENT AGENDA | | | |
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| | | | CONSENT AGENDA – ITEMS RECOMMENDED FOR APPROVAL
(All items listed under the Consent Agenda will be enacted by one motion unless a Commissioner requires otherwise, in which event, the item will be removed from the Consent Agenda and considered separately.) | | | |
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| | B. | | REPORTS AND DISCUSSION ITEMS | | | |
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R13557
| 0 | 1. | Housing Authority Resolution | Resolution approval of the proposed Public Housing Assessment System Recovery Agreement with the U.S. Department of Housing and Urban Development
The Board may receive a motion to convene in closed session pursuant to Section 19.85(1)(e) deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session, regarding the Recovery Agreement and Sustainability Plan. The Board may then reconvene in open session concerning any such item following the Closed Session.
Minutes note: Dena Hunt, HACM’s Chief Operating Officer – Real Estate and Public Housing, explained that the Public Housing Assessment System Recovery Agreement with the U.S. Department of Housing and Urban Development (HACM) is the Housing Authority of the City of Milwaukee’s first step toward moving forward and out of a Troubled status. HACM meeting the benchmarks listed in the Recovery Agreement related to scoring and performance requirements, which would take place over the next two years, would recover the agency to a standard performer.
Ms. Hunt stated that the second component of the agreement with HUD is the Sustainability Plan which works in tandem with the Recovery Agreement. The Sustainability Plan is a working document with a more detailed plan of action with tasks and targeted deadlines that are divided into four categories: Governance and Oversight, Financial Management, Physical Asset Management and the Capital Fund. HACM has already begun the work – some Governance items have been addressed and internal assessments are being done.
HACM’s next steps are to continue working with a firm that is helping to develop Standard Operating Procedures, to continue working with HUD to establish attainable deadlines as HACM reviews draft documents that have been started to keep the agency on track, to seek and incorporate resident and community feedback as the draft for the Sustainability Plan is updated, and to break down the goals into manageable tasks and assign the tasks to responsible parties - holding them accountable to meeting deadlines and goals.
HACM believes it can achieve all the requirements of the agreement.
| ADOPTED | Pass | 5:0 |
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R13558
| 0 | 2. | Communication | Update on Financial Status
Minutes note: Brad Leak, HACM’s Chief Financial Officer, explained that HACM has been unable to receive an unmodified audit opinion for the fiscal year 2022 due to $2.5 million of unreconciled cash balances. These unreconciled differences had also been identified by the Quality Assurance division of the U.S. Department of Housing and Urban Development (HUD). The variances remained unreconciled at the agency as of December 2024.
Mr. Leak explained that once the books were reconciled to the associated bank balances, it became clear that the Central Office Cost Center (COCC), which is where most overhead and administrative costs are incurred for the organization, appeared to owe the Section 8 fund approximately $2.8 million. It appears that during the years 2019 to 2022, Section 8 funds were transferred to the COCC to cover administrative payroll and other expenses because the agency was encountering cash issues.
Also, during this time, the costs related to Housing Development activities at Travaux, Inc., an instrumentality of HACM, increased due to rising construction costs and supply chain issues. HACM needed to cover the associated excess costs.
After determining the reason for the unreconciled difference, HACM now has a correct general ledger of cash balances and shows an amount due from COCC to the Section 8 program. This will allow HACM to receive an unmodified audit opinion for the calendar 2023 audited financial statements. However, the result of the correct entries reveals that HACM has significant cash and liquidity issues.
Ken Barbeau, HACM’s Acting Secretary-Executive Director, stated that immediate actions have been taken to reduce the organization’s expenses to stabilize the agency’s financial position over the next few months: the workforce has been reduced by 20 people, the agency has instituted a hiring freeze, staff are being realigned to meet agency needs and to better serve residents, and nonessential expenditures are being eliminated.
Chair Hayslett, on behalf of the HACM Board of Commissioners, apologized to HACM’s residents and thanked the agency’s stakeholders and Common Ground for uncovering the issues and giving voice to the voiceless. She reaffirmed the Board’s commitment to being resident-focused, transparent, and accountable. She stated that with the right leadership, the right team and assistance from the stakeholders, the residents and the community, that the Housing Authority of the City of Milwaukee could not only get back to Standard, but could achieve a High Performing designation.
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| | | | Adjournment
Minutes note: There being no further business, Vice Chair Gotzler made a motion to adjourn the meeting at 4:38 p.m. Commissioner Yepez Klassen seconded the motion. There being no objections, the motion carried. | | | |
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| | | | Upon reasonable notice, efforts will be made to accommodate the needs of persons with disabilities through sign language interpreters or auxiliary aids. For additional information or to request this service, contact the Housing Authority ADA Coordinator, Marquetta Treadway at 286-5100, (FAX) 286-3456, (TDD) 286-3504 or by writing to the Coordinator at 650 West Reservoir, Milwaukee, WI 53212. | | | |
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| | | | Persons engaged in lobbying as defined in s. 305-43-4 of the Milwaukee Code of Ordinances are required to register with the City Clerk's Office License Division. Registered lobbyists appearing before a Common Council committee are required to identify themselves as such. More information is available at http://city.milwaukee.gov/Lobbying. | | | |
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| | | | Be hereby notified that three (3) members of the Crucible, Inc. Board of Directors may be present at the meeting of the HACM Board of Commissioners, as some members serve on both boards. While a quorum of the Crucible, Inc. Board may be present at the HACM meeting, they will not exercise the responsibilities, authority, or duties vested in the Crucible, Inc. Board of Directors. | | | |
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