Housing Authority Wrestles With $5.7M Deficit

by Allan Appel | October 24, 2007 7:50 AM | | Comments (15)

IMG_2893.JPGThe housing authority took initial steps Tuesday to tackle a $5.7 million deficit caused, in the view of board Chairman Bob Solomon, by a “wrecking ball” from Washington.

Solomon and the other Housing Authority of New Haven (HANH) commissioners voted measures at their monthly meeting to save more than $100,000 on office supplies next year and to reduce paperwork and increase efficiencies.

That will hardly put a dent in the $5.7 million deficit with which HANH finished its 2007 fiscal year. The real culprit, said Solomon, is not even in New Haven. It’s the policy of the Bush administration, he said soberly, “which is using its total lack of support for subsidized public housing just as if they were wielding a wrecking ball.”

One of the biggest expense overages, not surprisingly to anyone who lives in a house or apartment, was electricity, a $1.2 million hit. Solomon and other commissioners (David Alvarado and Reverend Jason Turner, pictured with him above) also were contending with, on the revenue side, HANH’s persistent number of vacant units, between 160 and 200. In 2007 that caused a loss of rent revenue and operating subsidies to the tune of $2.7 million.

IMG_2894.JPGAccording to the year-end report of HANH’s executive director, Jimmy Miller, finding remedies for turnover and filling the empty units are going to be crucial because Congress is unlikely to increase any operating subsidies. To that end, the commissioners also approved other steps, seemingly small, but critical.

For example, Chief Operating Officer Karen Dubois-Walton (pictured in background below, behind acting Chief Financial Officer Diana Smith) was approved to spend $50,000 on “vacancy property security systems,” or VPS. These supplant plywood boarding up of damaged or units under renovation. Why? Since June, she reported, there was significant vandalism with several units broken into, requiring rehabbing up to six times.

IMG_2897.JPGSolomon expressed concern about VPS’ cost. Dubois-Walton argued that it’s of greater long-term cost to HANH’s bottom line and to tenants when people, who expected to move in, must be delayed by weeks and months due to vandalism. The measure was passed with the proviso that staff report to the commissioners on a regular basis about VPS’s effectiveness.

Ed The Tree Man

And so it went: approvals for $260,483 for replacement entrance doors for the Valley Townhouses, $25,000 more for Ed the Tree Man’s tree pruning services on all HANH properties on the west side of the city. Like any homeowner, HANH has to watch out for hazardous overhanging trees, especially during these high wind days. HANH properties are regularly reviewed and inspected, especially as its seven-year, 2000 - 2007 MTW (Moving to Work Demonstration Program) designation is up for renewal next year.

There’s the rub, which brings us back to Commissioner Solomon. This MTW federal designation, which gives HANH budget flexibility to move its Section 8 funds around to cover the annual operating deficits, is due to disappear, Solomon fears. Refunding MTW is not in the current federal budget. “That means we have one last shot,” he said. “In next year’s federal budget. I guarantee you that unless MTW is refunded, you will see more and more of our units, especially the older ones, boarded up.”

To that end Jimmy Miller and the mayor have lobbied the legislators on the importance of including an extension of HANH’s MTW designation in the next appropriations bill. HANH principals and tenants are keeping their fingers crossed. In the meantime CFO Diana Smith’s contracts department, which produces a lot of paper, will now be putting that material on CDs.







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Comments

Posted by: Fedupwithliberals | October 24, 2007 8:38 AM

Please stop blaming Bush for every problem under the sun! You want to know why you have a deficit? You're willing to pay top dollar for scatter site housing in places like East Rock, spend twice what the property is worth to put it up to code for tenants who have no semblance of responsibility for most of their lives, and rehab what you've already gut-rehabbed 3 years ago because said tenants destroyed property which has no value to them because it was paid for by someone else, and you're wondering why you run a deficit? How much is ever enough for you?

Yeah, look at your office supply costs as the reason you're broke! Just stay out of my pocket!!

Posted by: Ned | October 24, 2007 10:50 AM

Bush can take credit for bankrupting the country, but, nice try Bob, not the HANH. So $2.7 million of the $5.7 million deficit is a direct result of mismanagement. Also, why are they blowing an extra $100,000 on office supplies? Apparently the increase in electric rates was a surprise to HANH, otherwise, I'm guessing, HANH might have been reducing their consumption (oh, what's that word - conservation?). "rehabbing up to six times" LOL - yeah, it would be a real shame if these units had to be demolished - and never rebuilt - just imagine the constituency the mayor, social workers, ministers, aka charlatans, and some members of the Board of Aldermen would lose. So why does more money need to be thrown into this bottomless pit?

Posted by: robn | October 24, 2007 1:24 PM

FUWL is full of it if he can't see that Bush and his war profiteer buddies have eviscerated all things associated with social services. He should check his other pockets and see if his sense of mercy and compassion are still there.

that being said...

HAHN might be full of it too...a quick check on their webpage shows that Valley Townhouses only has 40 units. If they spent $260,000 on entrance doors, thats $6,500 per door. Hmmm? I've got a deal for HAHN...how about if I come over and replace a couple of doors (I promise I'll do a high quality job) and then in return, the city can return the exorbitant property taxes I paid.

Posted by: New Haven Tea Party | October 24, 2007 5:31 PM

How can an entrance door cost $6500??? This can't be right, can it? Bob Solomon..say it ain't so.

Posted by: fairhavener [TypeKey Profile Page] | October 24, 2007 7:23 PM

(You may not get this but...) This will never end until NO ONE can profit from public housing. NO ONE.

Posted by: WEBbloger 1 | October 24, 2007 8:19 PM

Here we have a Federal Public Housing Authority which consumes a significant amount of tax free city land, and is going broke! If any city taxpayer were in debt to the tune of 5 thousand in taxes, forget 5.7M, we would have long ago been in forclosure.

Solomon has to answer to; why each day HANH is contracting out almost all of the maintenance work while laying off or buying out many of the regular maintenance staff, at the same time continuing to build vacancies?

Solomon also needs to explain how and why did he provide 3.1 million in section 8 non movable subsidy to Becker & Becker for the Shartenberg site just this past July. He knew then that the authority was in deep financial straits. Go ahead Solomon use Bush as the abush excuse.

Wake up Jimmie Miller.

Posted by: Fedupwithliberals | October 24, 2007 8:54 PM

Hi Robn!

Time to change flavors of Kool Aid!

Posted by: Dean Moriarty | October 24, 2007 11:04 PM

Hey, think I can get Ed The Tree Man to prune some trees on my property? Oh wait, I forgot, I own my own home, so I don't get the freebies. It's sweet to be cutting your grass in 90 degrees August heat, and look down the street at HA cutting a Section Eight property while the residents enjoy a cool brew in front of "their" residence. The real kicker though, is knowing that I'm also paying for their services.

And by the way, why does Housing Authority need to contract this out? They most certainly have the equipment and manpower. $25K isn't much in the larger scheme of things, but I sure would feel better seeing our doubled taxes spent otherwise.

Posted by: robn | October 25, 2007 10:04 AM

FUWL,

Man thats funny. "Kool Aid"...it the classic, joking, vapid right wing smear..a reference to crazy Rev Jim Jones. Tell you what pal..If I'm crazy because I can read a federal budget, then I'll stay crazy ...and continue to speak the truth.

Posted by: fairhavener [TypeKey Profile Page] | October 25, 2007 2:30 PM

""rehabbing up to six times" LOL"

"they spent $260,000 on entrance doors, thats $6,500 per door."

"How can an entrance door cost $6500???"

"Solomon has to answer to; why each day HANH is contracting out almost all of the maintenance work while laying off or buying out many of the regular maintenance staff, at the same time continuing to build vacancies?"

"why did he provide 3.1 million in section 8 non movable subsidy to Becker & Becker for the Shartenberg site"

"And by the way, why does Housing Authority need to contract this out?"


Like I said:

"(You may not get this but...) This will never end until NO ONE can profit from public housing. NO ONE."

(Except people who really need a home.)

Posted by: New Haven Tea Party | October 25, 2007 7:21 PM

It's very interesting thread - HANH looking at multi-million dollar deficit and making no substantive changes to operating policies. City of New Haven looking at multi-million dollar deficits and making no substantive changes to operating policies that will curb spending. And the band plays on. If they don't change their ways, I hope they have another $6 million in building permits they'll be able to book in the last week in order to balance the books. We'll probably be preposting 2010 construction projects in order to get the money in the door.

Posted by: robn | October 25, 2007 9:11 PM

NHTP brings up an interesting point. Enron was brought down by fiscal shinnanigans like preposting profits and hiding debt. Has the NHI (the hardest working "paper" in the biz) considered a story on the city's accounting practices to tell its readers if the budget is on the up-and-up????

Posted by: jasmine | October 26, 2007 11:12 AM

Thats why it so hard for people to get public housing there is no funds???!!!Thats crazy rent is too high for people that is living in povery !please fix this problem someone!

Posted by: R. Chaser | October 30, 2007 8:22 PM

Here's a suggestion: how about cutting the unjustified, inflated salaries of the execs at HANH (and the recent pay raises of other certain directors). There is no justification for giving "certain" execs raises and at the same time lay off dozens of employees. Jimmy's and Diane's is now over $140K and others are also so NOT worth it. There's such an imbalance in salaries, under-qualified employees who are promoted based on their dealings and "relationships" with Commissioner Alvarado, there's no employee or management development, no positive reinforcement or incentives for employees (a simple "great job" recognition would suffice). There are coarse, disgraceful improprieties going on everyday at HANH.

HANH has the potential to change New Haven. Jimmy Miller probably has the potential to transform HANH if it weren't for his lack of respect for human beings. Potential with no true leadership however means nothing and will yield nothing good. It's just a sad, sad place. HANH execs have lost the mission of housing (or don't know it). It isn't about them and how much money they can make or how much power they can achieve. Power, egos, money is what drives them and it is pitiful. The restructure that's going on should be starting from the tippy top!!

For the sake of New Haven residents and communities, I hope all the best for HANH and hope it bounces back from its constant scandals.

Posted by: Beyond Damaged | November 1, 2007 7:34 PM

New Haven Housing Authority seriously needs to be audited. I would suggest a surprise audit and an investigation of hiring practices. Why is a
Commissioner so directly involved with line staff? That is simply a conflict of interest. They just had layoffs and now there will be more. Yet they continue to hire and give sporadic raises to those who are not worthy of receiving anything. I think Bob Solomon needs to open his eyes because if word gets out to the right individuals, things can get ugly.

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