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HACM OKs $800,000 in change-order authority for four contractors to support scattered-sites repairs
Summary
The Housing Authority approved increasing contract reserves by $200,000 each for four general contractors so HACM can respond to uncertain repair needs at scattered site homes, bringing available authority to $1.5 million overall; work will use HUD capital funds and require Executive Team approval before spending.
The Housing Authority of the City of Milwaukee approved a change-order authorization on Oct. 8 that increases spending reserves across four contractor contracts by a combined $800,000 to support repairs at scattered-site properties.
Allison Wisnicki, HACM vice president of construction and Treveaux vice president, told commissioners that HACM awarded four contractor agreements in 2023 and initially set aside $700,000 across the contracts ($175,000 each). She said staff is requesting $200,000 additional authority for each contract — AJ Development Group LLC, Insulation Technologies Incorporated, Lakeside Remodeling LLC and Integral Construction and Development LLC — so HACM has funds available “on demand” if inspections or urgent repairs require it.
“The 700 has been exhausted,” Wisnicki said. “This would be a new $800,000 split equally between the four contractors. That again gives us the spending power if necessary, not saying that we’re going to utilize that.”
Ken Barbot, acting secretary and executive director, said the funds will come from HUD capital funds in HACM’s 2024 allocation. He stressed that any scope of work will undergo further review before HACM commits funds, and that staff will require estimates and approvals prior to proceeding because many repair costs cannot be known until work (for example, siding removal) reveals underlying conditions.
Commissioners asked about oversight and prior use of the original dollars; Wisnicki said the initial $700,000 has been exhausted and contractors previously tracked hours and materials but will now be asked to provide round estimates and seek approvals before starting work.
The board approved the resolution by roll call vote. Chair Hazlett, Vice Chair Gotzler, Commissioner Moore, Commissioner Burrell, Commissioner Pez Clasen and Commissioner Nelson voted in favor.
Wisnicki emphasized that the change order provides availability rather than a guaranteed expenditure, and that the executive team will review each proposed work scope before funds are committed.
