Nogales Housing Authority director reports $31,000 HUD repayment, CMAP uncertainty; board approves director bank signature

Judy Armendariz, housing director for the Nogales Housing Authority, told the board on Oct. 1 that the authority repaid $31,000 after a HUD demand letter related to Section 8 overpayments and that the agency is working to resolve a late Comprehensive Management Assessment Program (CMAP) submission.

The board approved a resolution authorizing a bank-signature change to add the current housing director and remove the previous signer.

The payment: Armendariz said the authority repaid money that HUD identified as an overpayment to Section 8 tenants. “It was 31,000 that we paid back,” she said, and the repayment was made from a nonfederal Chase account that holds tenant rent payments. Armendariz said she sent documentation to the HUD representative and that the authority had confirmation the funds were paid but had not yet received a formal release from HUD.

CMAP and HUD contact: Armendariz said the authority had not turned in its CMAP by the May 30 deadline tied to the March 31 fiscal-year end and that she had not yet received formal direction from HUD on whether a late submission would be accepted. “Not all housing authorities have to do a yearly CMAP,” another participant said; Armendariz said she has asked Pamela White, the locally assigned HUD supervisor in Phoenix, to confirm whether the authority is required to submit this year. Armendariz told the board staff are finishing the CMAP so it can be filed if HUD allows a late submission.

Audit and schedule: Armendariz said auditors visited recently and raised questions about the IT system and prior write-ups; she told the board the audit work should be complete by mid‑ to late November and that auditors had said the report would be ready then. A board member asked that the audit be completed on schedule so it would not further delay the city audit.

Community buildings and waivers: Armendariz gave an update on two community-use buildings the authority operates—Centro Comunitario de Nogales and Circles of Peace—and said both groups routinely invite tenants to activities. She said the authority has drafted liability waivers for employees and nonemployees who use the gym or other buildings and is preparing memoranda of understanding, with liability insurance requirements, to govern recurring uses. Armendariz noted the city recreation department and the fire department plan to use the gym for training; the authority will require signed waivers for external users.

Occupancy and vouchers: Armendariz provided occupancy figures and program updates: public housing was at about 98% occupancy and the Section 8 program at about 91%. She said the authority has emergency vouchers available for people experiencing homelessness and that veterans receive priority on the waiting list; board members discussed a local veteran living in a vehicle and staff said they would follow up to help that applicant. On emergency vouchers, Armendariz said some vouchers are currently under lease and staff would review the applicant’s status the next day.

Bank-signature resolution and vote: The board considered Housing Resolution 2025-10-07, described in the meeting as “a resolution of the board of commissioners of the housing authorities of the city of Nogales approving the removal of previous bank signature Maritza Cervantes from the bank accounts of the Nogales housing authorities at JPMorgan Chase Bank and Wells Fargo Bank and adding the signature of the current housing director Judith Addermendaris.” A motion was made and seconded; the chair called for the vote and the motion passed. The meeting record does not list who moved or seconded, nor a roll-call tally; the chair announced “Motion passes.”

Board response and next steps: Commissioners thanked Armendariz for the presentation and for preparing the CMAP and waivers in case HUD or other parties require them. Armendariz said she would forward communications from HUD staff and would have the audit materials ready for the December meeting if the auditors complete work in November. The board offered help contacting HUD if needed. The meeting adjourned after the vote.