Annapolis housing authority faces financial peril
The Housing Authority of the City of Annapolis finds itself navigating through a storm of financial instability. It’s a predicament brought on by a combination of factors: the city’s overly burdensome inspection processes and a subset of residents’ lack of financial accountability.
These elements have compromised HACA’s financial health and its capacity to operate effectively.
Since I began in 2019, I’ve consistently highlighted our challenges to all who would listen. Despite the hard work of our board of commissioners and staff, significant obstacles remain, bringing HACA ever closer to peril.
Annapolis is one of the few cities in the nation that, under local ordinance, imposes a repetitive inspection process for housing units. If the city’s process were efficient, a problem wouldn’t exist.
However, federal rules mandate that any residential units unoccupied for more than 30 days will lose federal funding. The city’s review process can extend to 120 days. This sluggish process not only delays necessary maintenance but also blocks federal aid from reaching HACA.
More than 240 housing units are awaiting review and HACA’s operations are suffocating. Additionally, a questionable “permission structure” was created because of COVID and more than 200 residents stopped paying rent during the pandemic.
Although many tenants continue to pay their rent, a significant portion has exacerbated the financial strain by amassing more than $740,000 in unpaid rent.
In response, we’ve implemented various administrative and operational strategies, such as selling assets, adjusting our workforce, imposing spending limits and freezing salaries. Despite these measures, they fall short of adequately addressing our financial deficit, emphasizing the critical need for additional support.
Specifically, HACA needs the city to fill the financial hole it created by earmarking funds so HACA can promptly prepare vacant units for occupancy and to pay for temporary housing for all residents forced to leave their homes because of the city’s process.
Addressing the financial loss caused by these vacancies will relieve HACA’s financial pressures and provide homes for rentready families. HACA also needs the city to finalize pending housing inspections within the next 30 days to avoid additional federal subsidy losses. With numerous units vacant and a growing number of families in need of housing, speeding up this process is critical.
Finally, and equally important, it’s imperative that all residents pay their rent. Regrettably, a significant portion of tenants are exploiting federal protections meant to assist them during the pandemic. They are betting on HACA’s inability to take action against them amid a backlog of eviction cases flooding the judicial system.
The burdens of forfeited subsidies and outstanding rent are driving HACA toward a financial cliff. Urgent collaboration between the city and HACA is essential to tackle these pressing issues swiftly.
Completion by the city of outstanding inspections and occupancy approvals within the next 30 days is crucial, not only to preserve federal subsidies but also to make housing available to more families eager to pay rent. Moreover, securing funding quickly to refurbish vacant units into habitable homes is vital, as it would markedly reduce the financial strain on HACA.
Equally important is the responsibility of residents to fulfill their rent obligations. This commitment is foundational to maintaining the stability of our housing community for everyone.
I believe that by joining forces and addressing these challenges head-on, we have the ability to navigate through and recover from this tumultuous period.
It’s about more than just overcoming immediate financial hurdles; it’s about strengthening our community and ensuring a stable, sustainable future for all residents.
Melissa Maddox-Evans is executive director/CEO of the Housing Authority of The City of Annapolis.