The Milwaukee Housing Authority is taking significant steps to address financial challenges and improve housing conditions in the city. During a recent meeting, the board approved a resolution to write off $304,495.31 in delinquent accounts from former residents of Low Income Housing Authority developments for the fourth quarter of 2024. This decision, while necessary for accounting purposes, does not absolve the debts, as the city attorney's office will pursue judgments against evicted tenants, potentially intercepting their tax returns.

Brad Leek, the Chief Financial Officer of the Housing Authority, emphasized that the write-offs represent 11% of the total rental income for the period, which is below the HUD industry standard of 15%. He noted that the write-offs are a result of tenants misreporting their income, leading to significant retroactive rent adjustments. Leek highlighted that 50% of the evictions were due to unreported income, underscoring the challenges faced by the authority in maintaining accurate tenant records.

In a related resolution, the board also approved the write-off of $136,909.47 for delinquent accounts from tenants at Berryland, Northlawn, and Southlawn properties. This amount represents 8% of the total tenant revenue for the same quarter. Leek reiterated the importance of accurate income reporting, as tenants losing their Section 8 vouchers can face steep rent increases, leading to further evictions.

Additionally, the board approved the sale of a vacant single-family home at 3156 North 24th Place to Axe Housing for $1,000. This property, which has been vacant since 2017 due to extensive damage, will be rehabilitated and sold to an income-eligible family, aligning with the Housing Authority's mission to reduce neighborhood blight.

These resolutions reflect the ongoing efforts of the Milwaukee Housing Authority to manage financial challenges while ensuring that housing remains accessible to low-income residents. The board's actions are aimed at fostering recovery and improving the overall housing landscape in Milwaukee.