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Beaumont Housing Authority says it has begun overhaul of Orange Housing Authority after alleged mismanagement
Summary
Beaumont Housing Authority (BHA) told the Orange City Council it took over operations of the Orange Housing Authority on July 7 after finding neglected units, unpaid invoices and possible misappropriation of funds; BHA described repairs, staffing changes and a plan for financial controls and support services.
Beaumont Housing Authority Chief Executive Allison Landrum told the Orange City Council on Aug. 26 that BHA entered a management agreement to take over operations of the Orange Housing Authority on July 7 and has begun repairs, inspections and financial controls.
Landrum said BHA found “significant issues with the conditions of the units” on arrival and completed a 100% inspection program and initial repairs, including work on 33 HVAC systems and replacement of damaged roofs at at least one property. She said the agency has contracted pest control and termite treatment and is bringing in social-service partners to connect tenants with job training, elderly and disability services and other supports.
The takeover followed what Landrum described as years of mismanagement. She told the council the Orange portfolio is substantial: BHA staff and the takeover team are managing more than 1,200 housing units and “nearly 2,000 Section 8 vouchers,” and that BHA’s team of about 66 employees manages a large regional portfolio.
Landrum said finance records showed hundreds of thousands of dollars in unpaid invoices and “evidence that funds have been misappropriated or possibly stolen.” To stabilize finances, BHA has contracted accounting firm BDO to serve as fee accountant and to establish internal controls. She said the authority vacated and refilled several positions, required reapplication, background checks and drug screening of staff, and is using existing BHA vendor contracts to expedite repairs and maintenance.
Landrum asked the city for help with public-safety patrols at troubled properties, support on grant applications and expedited permitting for any major capital repairs the authority pursues.
Mayor Larry Spears thanked Landrum and members of the Orange Housing Authority board and said the city is relieved those at-risk families were not left homeless while the takeover proceeded. Spears and other council members expressed appreciation for the work so far and said city leaders would meet with BHA soon.
No formal action or vote was taken by the council at the Aug. 26 meeting; the presentation was a progress update and a request for ongoing cooperation from the city.
