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February 8, 2012

CITY COUNCIL: Housing Authority’s crisis packs the house

571,050 bailout of local voucher program passes first reading, 6-1.

GOSHEN — Mayor Allan Kauffman’s request to provide the beleaguered Goshen Housing Authority with an emergency infusion of $571,050 was passed by the City Council in an initial step toward approval, but there is much more discussion expected before a final vote.

After two hours of impassioned pleas and debate, council members approved the request by a 6-1 vote.

A final vote could come as soon as two weeks.

The lone opposition came from Council President Tom Stump, who said he remains open to the idea of helping, but said he doesn’t believe the city should foot the entire bill.

Democratic Councilman Jeremy Stutsman urged the council to unanimously support Tuesday’s vote, thus giving the council more time to investigate the issue.

Kauffman wants to tap into the city’s Rainy Day Fund, which he said currently has $4.7 million.

“We happen to be fortunate that we have set aside some reserves and can afford to step in and do something about it,” Kauffman said. “I just don’t want to see a disaster happen.”

Kauffman and other city leaders learned last week that the U.S. Department of Housing and Urban Development believes the Goshen Housing Authority has a shortfall of $571,050 in its reserve fund and wants the federal funds returned. To accomplish that, the only alternative — other than an infusion of $571,050 by council or the community — is to reduce the number of vouchers.

Goshen qualifies for 320 vouchers, but because of apparent mismanagement over the years, the agency has been serving nearly 100 fewer than it should have.

Housing officials warned again Tuesday that the loss of 100 vouchers would start a downward spiral that could result in the closing of the agency within two to three years. Part of the problem is the loss of administrative support from HUD and the funding schedule used from year to year by the federal agency.

Officials also warned that there is no other alternative such as a partial level of support.

Without the money, the housing agency is expected to run out of money within about two weeks, according to Wayne Kramer, vice president of the Goshen Housing Authority’s board.

Among those speaking on behalf of the proposal were social service agencies and voucher recipients, including Monica Anderson, a single mother who said she’s the “face behind the statistics.”

“Why should my children and myself have to suffer because somebody else misappropriated funds?” Anderson said to the council. “If I am displaced, what do I do with my children?”

Very few spoke in favor of flatly rejecting the entire idea of contributing some level of support, but many were critical of the housing agency’s lack of record keeping and the growing belief that some of the ongoing troubles may be considered fraudulent.

“I think a lot of people are frustrated,” said Republican councilman Jim McKee, of the 1st District.

McKee suggested other parts of the community, including possibly churches and other organizations should pitch in to fund the agency.

“I think the general public has lost a lot of confidence in us being able to do that, and rightfully so because we missed the road signs,” McKee said.

Republican Dixie Robinson, 3rd District, also called on more support from the community.

Kauffman said the urgency to provide the money does not allow for time to conduct fund raising, but did say an area resident wrote a check for $571 and urged the mayor to call on others to do the same.

Kauffman said he thought the idea was a bit far-fetced at first, but was impressed that the man took the first step by contributing.

“He put his money where is mouth is,” Kauffman said. “I don’t know if there’s going to be ten more people who will do that or … if some philathaper is going to do that. There could be some of those things that could happen.”

He added that any private gifts could go toward offsetting any expenditure by the city.

Democrat Julia Gautsche, 4th District, said the current economic conditions, including an 11 percent jobless rate, make it even more crucial to support the measure.

She said housing assistance is an “economic engine” that not only keeps people in homes, but returns money back into the community through landlords.

Gautsche pointed out that she and her husband own two rental properties that are involved in the section 8 voucher program.

A representative of the Goshen Ministerial Association spoke and said 32 representatives signed a letter of support calling for the city to make the expenditure.

Goshen Chamber’s public policy committee voted in support of city support for the housing agency, but Chamber President Dave Daugherty said ultimately, the chamber chose not to endorse the recommendation.

Daugherty, though, said he believes council will make the right decision.

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