Navajo housing scandal:
NHA under fire for lack of new homes, unspent funds
The president of the Navajo Nation has joined other tribal leaders in sending a letter calling for top managers at the tribe’s housing agency to resign or face removal, but the agency says that letter was never officially received.
Navajo Nation President Russell Begaye and other leaders have issued a joint letter calling for the tribal housing agency’s top managers to resign or face removal, but a spokeswoman for the Navajo Housing Authority said the letter was never officially received and the president’s demands were not immediately clear.
The missive from Begaye, Tribal Council Speaker LoRenzo Bates and Delegate Alton Joe Shepherd requests the “resignation and/or removal of the managing officers” at the NHA. It alleges that the Housing Authority board has demonstrated “complete and blatant disregard for the Nation and its people” through extravagant spending on travel.
The letter, dated April 13, does not indicate which managers are being asked to quit, or how removal would occur if they refused.
Nevertheless, six NHA commissioners responded Thursday with a scathing rebuttal that says the president’s request is “completely out of line, outrageous and simply wrong.”
The conflict comes just four months after an Arizona Republic series described nearly two decades of failed projects, mismanagement, fraud and other financial issues at the NHA. The Navajo Nation has received $1.66 billion in federal tax dollars for housing since 1998, yet records show few homes have been built, completed projects were abandoned, and the NHA accumulated an unspent backlog of nearly $500 million.
In the aftermath of that report, U.S. Department of Housing and Urban Development officials visited the tribe last month to investigate.
Meanwhile, criticism of the NHA swelled within the tribe. In February, Begaye signed legislation requiring the agency’ s eight commissioners be
replaced by a board of five members who must meet new qualification standards. That measure includes a screening and appointment process, and calls for the new board to be seated by midJune.
It was not immediately clear how the exchange of letters may relate to that legislation. But Begaye on Thursday said 40 applicants have submitted letters, and “we are expediting processing so they (appointees) can begin their service as early as next week.”
Abbie Fink, an NHA spokeswoman, said confusion is compounded because Housing Authority administrators “have not officially received the letter” or other communication from Begaye’s office. Fink said her bosses learned of the correspondence indirectly last week and issued a statement.
That statement did not address whether the NHA’s managers intend to step down, nor did it respond to allegation in the letter of “wasteful misappropriation” of funds. Instead, it stressed the agency’s dedication to providing “quality, safe and affordable housing” to tribal members.
Mihio Manus, a spokesman for Begaye, insisted that the letter requesting resignations “definitely was sent” to the NHA. He declined to say what steps would be taken if NHA officials ignored or rejected the request.
“The Office of the President and Vice President does have plans in place to address the issue,” Manus added. “This is just the first step. We will be addressing details within a week.”
The letter calling for NHA resignations or removals did not mention NHA failures outlined in Republic reports. Instead, it focused solely on the agency’s “extravagant use of discretionary funds” to send board members and employees to seminars. That criticism was spawned, at least in part, by attendance last year at a National American Indian Housing Council conference in Hawaii.
The letter said “reckless” spending has created distrust and anger among tribal employees and members, derailing the NHA’s mission and causing “a complete lack of confidence” in its leadership.
In a separate news release, Begaye’s office said the NHA, which receives more than $80 million annually in HUD funds, completed just 26 new dwellings in 2016 while desperate Navajos had waited years to get homes. “We cannot continue building homes this way,” the president said. “Our people are buying and living in storage units. Our existing homes are overcrowded. … This type of treatment of our people must stop.”
The response from NHA board members said more than 500 housing units have been built since 2012, including 119 last year.
“We are offended that Navajo leadership would blatantly criticize our trust without taking the time to discuss with us your concerns,” commissioners wrote. “It is unthinkable that the Navajo leadership would go to the media justifying their defamatory, libelous and unfounded statements before we ever received a copy of the letter.”
In a statement issued later Thursday, Begaye expanded his criticism. He said the NHA had a $301 million surplus last year despite the tribe’s need for 34,000 new dwellings. “That is completely unacceptable to the Navajo Nation and the people living in dilapidated homes,” Begaye said. “It brings serious question to the competency of the staff. If this competency is not there, then like any company out there, these people should be replaced.”