PHADA Registers Concerns About HUD Messaging to Small HAs

Dominique Blom
General Deputy Assistant Secretary
Public and Indian Housing (PIH)
U.S. Department of Housing and Urban Development
451 Seventh Street, SW
Washington, DC 20410

Dominique,

This follows our October 30 discussion at the “HUDle” regarding some recent field office communications on small HA repositioning. As I mentioned to you then, I had heard from a few housing professionals who felt unduly pressured to either convert to RAD or voucher-out their public housing. As an example, here is an excerpt of a relevant email I received from a member:

Is PHADA aware that HUD is contacting PHA’s with 50 units or less that they are going to reposition them and give the local cities the option of taking them over? Our [Little Rock] Field Office PHA Director is calling all small authorities and telling them that they want the City to take over their authority and will allow the city to purchase the authority from the PHA for one dollar and will give the cities vouchers.

When I spoke to the sender of this message, he/she conveyed how reasonable and measured HUD’s written material was compared to the phone call, which the person felt was quite intimidating. I have spoken to some of the state’s other executive directors, who echoed this same concern. PHADA strongly objects to such tactics.

We also question the accuracy of some field office messages on this matter. Below is an email from a HUD Oklahoma office staffer, which PHADA believes contains some incorrect and misleading information. For example, it cites “guaranteed funding” following a conversion. It also mentions that a converted property could now become “private property” and misleadingly minimizes the rules and regulations with which a converted HA would have to adhere. For example, the responsibilities and oversight of HAs related to income examinations and inspections are particularly understated. It also mentions HUD “transferring property” to an HA when it is not HUD’s property to transfer in the first place.

We understand the Department has a repositioning goal in place and wants to train HAs on their options. Indeed, we support RAD and other potential tools for all-size HAs, which may want to utilize these programs if they are workable and make sense at the local level. We appreciated having you and other headquarters officials outline these tools at PHADA’s September meeting (the tools are also referenced in your November 13 correspondence to HAs).

Still, HUD needs to make it clear that these are optional and voluntary methods that housing professionals may wish to consider. In addition, HUD should ensure field office messages and training are accurate, and not in any way intimidate local housing professionals who, for legitimate reasons, may not opt to pursue RAD or other Departmental objectives. To that end, it would be helpful if headquarters would communicate this point to the field offices sending the messages and leading the training sessions. We will certainly reiterate the voluntary nature of these programs to our members.

Thank for your attention.

Respectfully,
Tim Kaiser
PHADA
202-546-5445