Rep. French Hill urges HUD acting inspector general Stephen M. Begg to investigate the Metropolitan Housing Alliance (MHA) due to longstanding operational issues. MHA has been plagued with mismanagement, failing to deliver audited financial statements since 2018, leading to $30 million in questionable expenses. Recent designations have labeled MHA a Troubled Public Housing Agency, with potential taxpayer liability of $7.5 million looming due to a foreclosure threat. Hill expresses deep disappointment and distrust in MHA's management and calls for immediate action to rectify these issues.
After years of broken promises, shameful mismanagement, and questionable expenditures—including multiple Corrective Action Plan findings by HUD and a Federal law enforcement raid—it is clear that MHA has lost both my and the public's trust.
Hill specifically cited the pending foreclosure against the Madison Heights apartment complex, which he said stems from defaults on questionable loans connected to CAHC from 2019.
In 2023, MHA was designated by HUD as a Troubled Public Housing Agency, and last year its noncompliance with the terms of its Federal contracts was so dire that HUD began the process to declare it to be in substantial default.
Should the foreclosure proceed, Arkansas taxpayers may be on the hook for a bailout to the tune of $7.5 million for the MHA to avoid foreclosure.
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