Housing Authority Delays on Privatizing Voucher Management

Southlawn housing complex, part of the Housing Authority of the City of Milwaukee. Photo by Jeramey Jannene.

Common Ground Southeastern Wisconsin got its wish, at least for now.

After public pushback, including a press release from Common Council President José G. Pérez, the board of the Housing Authority of the City of Milwaukee (HACM) delayed any action on outsourcing management of its housing voucher program.

During a meeting Wednesday that was routinely interrupted by Common Ground members and featured an approximately hour-long closed session discussion, the board voted to hold off on approving a HACM-recommended contract with Florida-based CVR Associates. But acting chair Brooke VandeBerg said she would work to hold a special meeting to review the contract before the board’s regularly scheduled November meeting.

Following a federal audit that found HACM’s internal practices “at risk for serious fraud, waste and abuse,” a corrective action plan from the U.S. Department of Housing and Urban Development effectively requires HACM to outsource the voucher management. Section 8 is a federal assistance program that provides cash payments (vouchers) to private landlords to provide housing for qualifying low-income households.

VandeBerg said the board was holding off action because member Darian Luckett was absent.

“I respect the board’s decision to hold it,” said HACM head Willie Hines, Jr. during Wednesday’s meeting. But he also encouraged the board to keep moving. “We are up against a calendar year deadline that we have to be cognizant and mindful of.”

The board is authorized to have seven members, but currently has four, including VandeBerg who is serving on an expired term. Chair Sherri Reed Daniels has not been in person at either of the last two meetings and her virtual participation consists solely of saying yes, no or present. That included when the board secretary, a HACM staff member, read a line that Daniels would pass the authority to VandeBerg to chair the meeting.

Common Ground members repeatedly disrupted the meeting in an attempt to ascertain if Daniels has a health issue and to get a determination from the City Attorney’s Office about whether the board has a legal quorum. A response was not provided for either matter.

In advance of the meeting, Common Ground and Pérez said they opposed the board moving forward given its state.

“It is wrong to privatize public services, waste taxpayer dollars, and lose out on local jobs all because you failed at managing Section 8 in the first place,” said Common Ground organizer Kevin Solomon in a statement emailed to the board and other city officials. His email advocated for one of the other six bidders, Milwaukee County, to be given the contract.

Pérez also drew a line in the sand.

“If the Board votes to grant this contract, I will explore all options to undo a decision I believe will have been made by a legally deficient body – a body lacking the two statutorily-required resident members.” Daniels is the lone resident member.

Perez, who has four appointments pending for review by the council he oversees, said he’s working to review Mayor Cavalier Johnson‘s nominees.

“It is well known that the current Board has several vacancies and, crucially, has only one of the two HACM residents required by state statutes. Much has been made of the importance of placing new members on the board yet, despite this, the current leadership seems intent on moving forward. For the record, it was my intention to schedule all four nominees at the September 30, 2024, Steering and Rules Committee meeting, but two of the four were unavailable. Currently, all four are slated to be heard over the next two Steering and Rules Committee meetings,” said Pérez.

The fourth board member, Irma Yépez Klassen, attended the meeting in person and approved the hold.

For more on the potential contract, which could pay CVR $4 million annually, see our coverage from Tuesday.

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