INDIANAPOLIS — The City of Indianapolis and U.S. Department of Housing and Urban Development (HUD) will take over the Indianapolis Housing Agency.
This means the City and HUD will jointly work together to improve the agency. Previously, the IHA was responsible for paying its bills, issuing housing vouchers and more.
HUD says due to the agency’s serious failure to manage funds and records, it was time to take over.
HUD cited the following reasons as to why:
- IHA’s failure to maintain proper control over and properly use public housing HCV (housing choice voucher) grant funds.
- IHA’s failure to maintain, complete and accurate records and books of account in such manner to permit a speedy and effective audit.
- IHA’s failure to comply with federal procurement regulations.
The IHA serves 20,000 people. HUD found about 1,500 vouchers are currently not being used out of the 9,000 vouchers available. This means families that could be getting federal help, aren’t.
“Nobody wanted to do the hard work it takes to issue a voucher, set the rent, work with the landlords and inspect the units,” Richard J. Monocchio, HUD Principal Deputy Assistant Secretary, said.
WRTV’s Rachael Wilkerson asked how bad of shape the Indianapolis Housing Agency was in.
“Bad shape. I’m not going to sugar coat it,” Monocchio said. “This is the responsibility the government has to the people, and the government hasn’t kept that responsibility. I walk these buildings. It’s unacceptable.”
On Wednesday, Indianapolis Mayor Joe Hogsett and Monocchio signed a Cooperative Endeavor Agreement (CEA) between the city and the U.S. Department of Housing and Urban Development to jointly restore public confidence and accountability over the Indianapolis Housing Agency.
The agency will work together but the city, HUD says, will play a major role in supervising IHA.
HUD says there are three other incidents (New Orleans, Detroit and Gary, IN) where housing authorities reached a CEA, but described Indianapolis as the most unique situation.
"I don't think the level of cooperation between federal government and chief executive of a city like this has happened before," Monocchio said.
“What does this mean for residents?” WRTV’s Rachael Wilkerson asked.
"Nothing changes in terms of their lease or their contract with the landlord. Residents are going to be protected and the residents are going to see a better quality of life without question," Monocchio said.
TIMELINE:
- In December 2022, the city requested assistance from HUD for IHA.
- In September 2023, the city and HUD signed a letter for intent for the CEA (agreement announced).
- On March 29, 2024, HUD made the official determination that IHA is in substantial default pursuant to the U.S. Housing At of 1937 because it violated fundamental obligations of its federal public housing and Housing Choice Voucher programs.
- On April 10, 2024, HUD takes full possession of IHA in cooperation with the city.
IHA's board is also dissolved.
Kimberly Size, HUD Indiana Field Office Director, will serve as the only member of the IHA board. There will still be public meetings for residents, but Kim is the only member.
"How has your experience living here been?" WRTV's Rachael Wilkerson asked.
"It's been Hell on Earth. That's what it's been," Barton Tower resident Kathryn Lee said.
"So, now that the City and HUD is taking over, how does that make you feel?" WRTV's Rachael Wilkerson asked.
"I don't know yet. I gotta wait and let them take over and see what happens. I don't know if it's going to help me," Lee said.
One of the biggest challenges for residents is restoring trust back into the IHA community.
"Because they don't have it with me at all," Lee said.
As for the current cyber attack investigation of IHA's voucher system that is impacting some residents, the city says there is an ongoing criminal investigation and have no updates regarding the status.
