Arizona housing agency on Mexico border deemed 'troubled' by federal government
An Arizona public housing authority on the southern border was considered “troubled” after it received a failing score from the federal government for the 2022 fiscal year, according to a letter from the U.S. Department of Housing and Urban Development.
The Nogales Housing Authority manages 226 public housing units on the Mexico border, a major port of entry into Arizona. The authority received a 42 out of 100 on its Public Housing Assessment System score in February. This assessment is used to measure the performance in managing public housing authorities’ low-rent public housing programs.
In a letter dated March 8, HUD said the Nogales Housing Authority must make improvements to its public housing program and obtain a higher score on the next sequential fiscal year’s assessment.
“It is critical that the Agency assess its current situation to determine if recovery is feasible or if alternative options for affordable housing should be considered,” wrote Marta Duron, a portfolio management specialist with the federal Office of Public Housing.
According to Nogales Housing Authority Board commissioners, these problems are nothing new.
In 2018, the housing authority received a score of 70 and in 2019, an 82. From 2020 to 2021, HUD provided COVID-19 waivers from the assessments.
Authority got zero on financial score for not submitting audit
In the financial section of the assessment, the housing authority received a zero out of 25 for a late submission of its fiscal 2022 audit by the Dec. 31 deadline.
In a letter responding to HUD, the city cited miscommunication between the previous housing director and city auditors, as well as the auditors' lack of experience with public housing assessment audits.
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“The NHA auditors are in the final steps to complete the 2022 audit,” Interim Director Martin Jacquez said, in the letter.
The agency said it would undertake various steps to avoid receiving a failing score in the future. Some of these steps include training staff on audit procedures, having more than one person being able to perform the audit, and contracting with a new audit firm and meeting deadlines.
Maintenance of housing units also received low score
The agency also received a substandard score of 21 out of 40 points in the section measuring how public housing units are maintained. This assessment determines if units are following housing condition standards.
The Nogales Housing Authority said it lacks a maintenance supervisor and is actively looking to hire someone for that position. The department also admitted to not using capital funds adequately.
The department also has been in search of a new NHA director since March 16, after the previous director retired.
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HUD noted that when a public housing agency is considered physically substandard, it typically has either failed to prioritize capital funding or failed to correct deficiencies identified in inspection reports.
The largest point deduction in this section had to do with correcting inspection report deficiencies. These included trip hazards and missing handrails, which the agency added to its 5-year Capital Action Plan, Jacquez said.
Feds also took issue with how housing authority was managed
In the management section of the assessment, the housing authority received a score of 16 out of 25, due to not maintaining its occupancy level in its developments at the level required by the federal government.
To improve this score, the housing authority responded that it would assess new tenant intake policies, assess procedures to reduce move-out frequencies and work with the maintenance staff to improve the time it takes for vacant units to be leased, as well as evaluate units and take them “offline” to be updated and modernized.
Modernization includes upgrading the paint, flooring, kitchen cabinets, LED lighting, and bathroom fixtures, among other improvements.
Jacquez said the department also would look into its waiting list and assess any changes needed to facilitate tenants on the list in attempting to house them more quickly.
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Capital funds for maintaining, upgrading units not used in a timely manner
The agency received a score of 5 out of 10 for failing to obligate capital funds in a timely manner. The housing authority just recently obligated its final 2021 capital funding, according to Jacquez.
These funds are used to develop, finance and modernize public housing and for management improvements.
“NHA recently obligated its final 2021 capital funding and has begun capital improvements: painting in McNab Site, installing five evaporative coolers in Las Americas site, modernizing a bathroom at the Kitchen site, and replacing the gymnasium doors,” Jacquez said, in the letter.
According to HUD, the goal is to obligate 90% or more of capital funds no later than 2 years after funds become available.
HUD requested a recovery plan submitted by the agency and noted that the Nogales Housing Authority must meet two benchmarks after being designated as troubled.
The first benchmark is a 50% recovery of the assessment score on the first assessment conducted at least 12 months after the "Troubled" designation. The second is a score of 60 or higher on the next sequential fiscal year PHAS assessment.
Reach the reporter at sarah.lapidus@gannett.com. The Republic’s coverage of southern Arizona is funded, in part, with a grant from Report for America. To support regional Arizona news coverage like this, make a tax deductible donation at supportjournalism.azcentral.com.
This article originally appeared on Arizona Republic: Southern Arizona housing agency 'troubled,' federal government says
