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Small-business contractor urges audit committee to probe months-long payment delays to city housing vendors
Summary
A contractor representing a minority-owned firm told the San Antonio Audit Committee that delayed reimbursements from Neighborhood and Housing Services and city finance have left firms with severe cash‑flow problems and asked the committee to investigate.
Betsy Spencer, chief operations officer of Holtz Adams Construction and Consulting LLC, told the San Antonio Audit Committee on May 13 that an 8(a)-certified minority-owned subcontractor the firm assists has repeatedly waited months for reimbursement from the city's Neighborhood and Housing and Community Development (NHCD) and finance offices.
"Every day costs our client more money," Spencer said, describing delays of "as long as 6 to 9 months" that at times have left the firm carrying "hundreds of thousands of dollars" across multiple projects.
The vendor provides single‑family home repairs and renovations to NHCD income‑eligible homeowners and, according to Spencer, has delivered those services for eight years. Spencer said the firm has been reluctant to raise the problem inside NHCD because of fear of retaliation but that payment delays are now threatening its business viability.
Spencer told the committee that late payments strain cash flow and increase payroll, interest and other expenses, and that the delays "impede your ability to provide a good quality service." She said her team had sought help from NHCD but had received only an email asking for more time.
The statement was delivered during the public‑comment period ahead of an item on gap funding for affordable housing. Spencer asked the audit committee to "consider investigating and assisting in resolving this issue." Committee members did not announce a formal referral at the meeting; Spencer's request was presented as public comment.
Clarifying details discussed in Spencer's remarks included: the vendor has provided services to NHCD for eight years; reimbursement delays cited ranged up to six to nine months; the cumulative outstanding balances described were characterized as "hundreds of thousands of dollars"; the underlying procurement and reimbursement process requires reviews by both NHCD and city finance, and Spencer said her team was unsure which office was causing the delays.
The comment adds context to ongoing discussions about the city's affordable‑housing delivery and the financial pressures faced by small and minority‑owned contractors who perform city‑funded rehabilitation work.
