HUD wants $195K for Section 8 snafu
The federal government is asking the Maine State Housing Authority to return nearly $200,000 in federal housing assistance payments that it says were used on ineligible housing units.
In an audit report released Monday surveying 61 houses in the Section 8 housing program, the U.S. Department of Housing and Urban Development found that nearly 85% of those homes did not meet the agency's housing quality standards, reported the Bangor Daily News.
In total, the state agency oversees distribution of 3,900 Section 8 housing vouchers in the state. Of those, 2,329 are managed by contractors.
The agency reported Tuesday that it has entirely stopped the use of contractors to administer the Section 8 program, has instituted regular training sessions for inspectors and established new communication channels with landlords and tenants.
Federal inspectors reported that 18 of 19 units administered by Avesta failed inspection, as did 11 of the 12 managed by Washington-Hancock Community Agency, 10 of 11 managed by Penquis, six of 10 managed by the Aroostook County Action Program and eight of nine that MaineHousing manages directly.
Investigation of problems at MaineHousing began in October of 2011 after a report by the Norway Advertiser Democrat uncovered Section 8 housing there that did not meet federal standards. Continued scrutiny ended in Dale McCormick, then executive director of MaineHousing, resigning in March. John Gallagher, the agency's new executive director, took over the top MaineHousing post today, the BDN reported.
The federal report also found problems with MaineHousing's procurement policy in paying $848,096 to an information technology consultant. HUD has asked the state agency to perform an independent audit on that spending.
Correction: A previous version of this story incorrectly stated that Sen. Collins called for the state to repay the $194,956 identified in the HUD report. A press release from Collins' office was instead relating the HUD report's recommendation.
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