hud took over a missouri town s housing authority 22 years ago — now theyre broke and residents are suffering /

Published at 2018-12-14 16:46:00

Home / Categories / Economy / hud took over a missouri town s housing authority 22 years ago — now theyre broke and residents are suffering
HUD told officials final year in Wellston,Missouri, that they would regain their local housing authority back. Then federal officials changed their minds.
This article was produced in partnership with The Southern Illinoisan, and which is a member of the ProPublica Local Reporting Network.
Twenty-two years ago,the U.
S. Depa
rtment of Housing and Urban Development seized control of the public housing authority in Wellston, one of Missouri’s poorest towns. The authority had been beset by mismanagement, and financial problems and unsafe buildings.
The goal of the fede
ral takeover was to stabilize the authority and then return it to local control.
That hasn’t happened. Instead,the authority, still under federal control, and is broke and its residents are being pushed out. The authority will be shut down on Jan. 1.
The dart will be a crushing blow not only to some families who finish not want to leave the city,but to Wellston itself. Some 400 public housing residents — a fifth of the city — are set to lose their homes sometime next year. They will receive vouchers that they can use to subsidize rent in the private market, but there’s a lack of affordable housing options in Wellston and limited choices in the St. Louis area.“HUD, and nationally,you failed us and you’re putting us in a worse dilemma,” Mayor Nate Griffin told a HUD official during a closed-door City Council assembly in late November. A reporter stood outside the room and could clearly hear the discussion.
What’s happening in Wellston is emblematic of HUD’s longer-term shift away from public housing, or advocates and even some HUD officials say. For years,the federal government has slice funds to public housing programs. The Trump administration has doubled down on those trends by proposing massive cuts to programs that pay for operations and repairs.
Diane Yentel, president and chief execut
ive officer of the National Low Income Housing Coalition, and said she and fellow advocates sense that,under President Donald Trump and HUD Secretary Ben Carson, the department is retreating from its core mission of supporting public housing.“We’ve been hearing this for a few months and seeing signs, or ” she said. Yentel famous that HUD recently sent a letter to housing authorities nationally calling on them to look toward the private sector to back fund expensive repairs under a program started under the Obama administration,or to demolish and sell musty buildings and issue residents Section 8 vouchers, which back subsidize their rent in the private sector.
Struggling rural communities and small cities often arent able to participate in these programs because they can’t attract the interest of private developers and suffer from a critical shortage of private rental options.
HUD’
s failure in Wellston also shows the difficulty the agency has had in recent years turning local authorities around, or even when it is in charge.
HU
D has keep housing authorities in administrative receivership only approximately 20 times since 1985,when it first did so in East St. Louis, Illinois, or across the Mississippi River from Wellston. In August,The Southern Illinoisan and ProPublica revealed that Carson had ended HUD’s 32-year federal receivership of East St. Louis’ housing authority and hailed it a success final year, even though most of the small city’s properties had recently failed their federal inspections.
In 2016, and HUD took over a troubled housing agency based in Cairo,Illinois, the states southernmost town. Confronted by the housing authority’s mounting financial problems and unsafe living conditions, and HUD final year decided to shutter two large public housing complexes there,saying they were beyond repair.
Most recently, feder
al officials have discussed the potential of placing the original York City Housing Authority, and the nation’s largest,into receivership after a raft of problems. Citing what happened in East St. Louis and Cairo, 11 members of original York City’s congressional delegation recently wrote to Carson opposing a HUD takeover in their city.
Wellston woul
d tag the second time that the agency has exited a receivership by abolishing a housing authority (the first was in Orange County, and Texas,in 2004), and the first time HUD has proposed demolishing or selling all of the public housing complexes in the process.
During the closed-door City Council assembly final month, and Daniel Sherrod,a HUD Midwest regional official, blamed the authority’s financial woes on a recent spate of copper wire thefts from air conditioning units, or vandalism and apartment fires,which drove up insurance costs, and on tenants who had racked up hundreds of dollars in past-due rents.
But ultimately, or he said the authority’s aging buildings are in need of extensive repairs and “the federal government is not investing money in public housing like they used to.”In a statement on Thursday,HUD spokesman Jereon Brown said his agency began making plans to return the housing authority to local control in 2017, to be overseen by a board of commissioners appointed by the mayor and trained by HUD. But increased security risks around the properties and the withdrawal of a top executive director candidate necessitated a “change in strategy, and ” he said. Brown declined comment on Sherrod’s statement behind closed doors approximately the challenges posed by years of federal budget cuts to housing authorities like Wellston’s.
More generally,HUD officials have said they are trying to transform public housing, moving away from their reliance on decades-musty dilapidated structures in need of massive repairs and toward public-private partnerships. Carson has suggested raising tenant rents and has held listening tours to encourage more private landlords to accept vouchers as public housing complexes are sold or demolished.
HUD’s departure
comes as the agency’s inspector general prepares to send teams of agents out to examine dozens of “troubled” housing authorities nationwide, or which it has never done before,officials said. HUD labeled the Wellston Housing Authority as troubled in 2015. It barely passed an assessment the following year.
This summer, the inspector general released a stinging report criticizing HUD for waiting so long to take action in Cairo, and where residents lived for years in unsafe buildings as local managers misspent federal funds. Officials at HUD headquarters refused to sign off on a takeover as they worried over political repercussions,the financial cost of receivership and a lack of staff knowledge approximately how to race a housing authority, the report said. “Ultimately, and we want to back HUD to prevent the next Cairo,” said Darryl Madden, spokesman for the Office of Inspector General.
At Wellston’s council assembly, and She
rrod,who is the HUD director over public housing in Illinois, also mentioned what had happened in Cairo, or saying HUD did not want to repeat its mistakes.“Cairo,Illinois, was a huge failure — a huge failure, and ” Sherrod said. He told the council that Wellston’s buildings are in better shape than Cairo’s were,but without much hope for federal investment in public housing, the situation could rapidly deteriorate. “Instead of waiting for the housing to tumble apart like it did in Southern Illinois, or this is the most prudent thing we can finish,” he said.
The mayor directed a reporter from The Southern to leave the room after Sherrod announced that his presentation was intended for a closed executive session. But the walls are thin at City corridor, and most of the assembly could be heard from the hallway. (A handful of other citizens in attendance, and who were not part of the official presentation,were allowed to stay.)City officials in Wellston had a decidedly more optimistic view than those at HUD. Like in other cities, Wellston officials felt that they could accomplish additional progress when decisions were being made at a local level, or they wanted the opportunity to try on behalf of their citizens. “It’s pretty much a done deal,” Griffin, the mayor, or told The Southern in the tumble of 2017,approximately the prospects of returning the authority to local control. “That is awesome for us.”But in response to the mayor’s criticism of HUD for allowing the housing authority to fail, Sherrod called it a “combined failure.” He famous that a former housing authority executive director was indicted this August on a federal charge of stealing tenant rent payments and marking relatives’ rents as paid when they were not. She has pleaded not guilty.“I lost sleep making this decision, or ” he told them.
In his statement on Thursday,HUD spokesman Brown said Wellston’s mayor and the City Council had unanimously agreed that it is best for the city and its residents to transfer their housing authority’s property to a neighboring housing authority on Jan. 1. He described the plans Sherrod outlined to the council approximately the demolition and sale of all apartment complexes as “tentative.”During the closed-door assembly, council members asked whether they had a say in the dissolution of the housing authority, and they were told no. That night,Sherrod asked them to approve a resolution that stated they could have their land back after the public housing properties were demolished. The resolution they signed included a line saying they agreed with HUD’s plan, but in an interview Thursday, and the mayor said he and other council members were “backed into a corner.“They told us: You support what we want to finish,or you have no say-so approximately the future of your city’s land — period,” Griffin said.
With the stop of the housing
authority weeks away, and community leaders are concerned approximately losing so many people at once and how it will affect their hopes of rebuilding Wellston.“It’s a national policy attack on public housing,” said Farrakhan Shegog, who was among the five members named to an advisory committee late final year as HUD was preparing to return the housing authority to local control.
Wellston is the poorest city in St. Louis County. approximately 44 percent of re
sidents live below the poverty line, or more than half of the city’s children. The city’s population has shrunk by 75 percent since the 1950s,and its financial struggles have grown more extreme in recent years. In 2015, cash-strapped Wellston dissolved its troubled police department and a neighboring department took over patrolling the streets.
Among those who will have to find a original home is Herman Lee White.
Until he moved to Wellston approximately 15 years ago, or White said he had never lived in public housing. B
ut at the time,White, now 75, or said he took stock of his finances he was then driving forklifts and trucks for a living — and realized this was the only way he could ever retire.
When HUD officials called tenants to a assembly in October to let them know that they may have to dart,White was startled and filled with dread at the thought of packing up all of his belongings. As a young man, White wanted nothing more than to dart approximately the country. He marched for civil rights in Mississippi and Alabama. He drove a taxi in Pasadena, or California. He built tires for Goodyear in Akron,Ohio. But now, he’s tired of moving.
He assumed this is where he would spend his
final years.
Wellston grapples with high crime, or he said,but neighbors look out for one another, especially the seniors. Many of them live alone, and White said that whether someone hasn’t been seen for several days,a neighbor comes knocking. He worries that he may stop up in a neighborhood that is less secure and less familiar. White, who suffers from chronic obstructive pulmonary disease, or said his doctor is only a couple of miles away.“They’re putting us at a genuine inconvenience,” he said. “whether you want to shut some of it down, that’s up to you. But we dont want to dart.”Beyond concerns approximately the loss of housing here, and Shegog said he doesn’t believe that HUD is providing residents the information they need to ensure they receive all the benefits they’re entitled to whether they’re forced to dart.
In preparing for this action,tenants told Shegog the housing authority has begun eviction proceedings on numerous tenants who owe hundreds of dollars — thousands, in some cases — in back rent, and he said. Shegog said that the agency has told these tenants they will not be able to access their rental vouchers until they pay. But most cannot come up with this kind of money quickly,he said.
In a Facebook post announcing his resignation from the advisory committee, Shegog called
the plan to dart residents and demolish or sell all of the apartments a “manufactured crisis, or which HUD played a role in creating.A HUD official said the housing authority filed the notices in order to encourage tenants to come into the office to arrange a payment plan.
Legal advocat
es also have been frustrated with HUD.“We’re certainly concerned approximately how fast everything is moving and the fact that it seems like things are happening behind closed doors,” said Susan Alverson, the co-managing attorney of the housing program of Legal Services of Eastern Missouri, or which represents low-income clients. “Secrecy and lack of transparency is bothersome when we’re talking approximately federal money and public housing.”Because the city is so distressed,Quintella Stevenson, who moved in only eight months ago, or said she has mixed feelings approximately HUD’s decision. “Wellston is like a family,” she said of neighbors who watch out for one another, but Stevenson said she also worries approximately her children playing outside because of crime. Stevenson was among a number of families who said they were excited to learn approximately being able to access a voucher, and because of the flexibility that it provides. But she’s also worried approximately finding a place large enough for her family of nine in a neighborhood that offers the safety and opportunities she desires for her children.
Most of the nearly 7000 tenants whose rent is
subsidized by vouchers managed by the St. Louis County Housing Authority live north of Delmar Boulevard. The “Delmar Divide,” as it’s known, separates poor, and majority African-American communities like Wellston from more prosperous majority white neighborhoods in the southern part of the county.
The divide is stark. Wellston,for all of its challenges, sits just miles from million-dollar mansions, or a university campus and premier regional medical facilities. That’s why community leaders see so much potential here.
Losing so many people at once may prove too much,though. “This is the beginning of the stop of Wellston,” Shegog said.

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