Little Rock City Council discusses $6M loan to Metropolitan Housing Alliance amidst funding concerns

The Little Rock Board of Directors convened on June 3, 2025, to address pressing issues surrounding the Metropolitan Housing Alliance (MHA) and its financial challenges. A significant point of discussion was the proposed loan of $6 million to assist MHA, which has been struggling with operational deficits and potential receivership.

Director Baker raised concerns about the implications of the loan, questioning the financial viability and the potential impact on residents. He emphasized the need for transparency and accountability, noting that the city has previously committed funds to public safety and other essential services. Baker expressed skepticism about the likelihood of residents being displaced, arguing that fears of mass evictions were overstated. He highlighted the necessity for a thorough audit of MHA's financial practices, which have reportedly been lacking since 2018.

Director Miller acknowledged the city's efforts to negotiate the loan amount down from an initial request of $7.5 million to $6 million, framing the situation as a necessary intervention akin to government bailouts in other industries. He expressed optimism about the potential for repayment, citing the value of the property and the assets MHA plans to sell.

The board also discussed the legal framework surrounding the loan, with concerns raised about compliance with state statutes governing financial assistance to housing authorities. Director Hines pointed out the need for clarity on the conditions of the loan and the potential risks involved, urging the board to seek legal opinions to ensure compliance.

As the meeting progressed, the board members grappled with the balance between providing immediate support to MHA and safeguarding the city's financial health. The discussions underscored the complexities of public funding in housing and the critical need for strategic oversight in managing taxpayer resources.

The board is expected to continue deliberating on this matter, with a focus on ensuring that any financial assistance aligns with the city's broader goals of maintaining affordable housing while also addressing fiscal responsibility. The outcome of these discussions will have significant implications for both the residents of Little Rock and the future of the Metropolitan Housing Alliance.