Housing Authority approves quarter‑end write‑offs, sells vacant house and adopts conflict‑of‑interest policy; board discusses nepotism probe, voucher contractor

The Housing Authority of the City of Milwaukee (HACM) board on Wednesday approved two fourth‑quarter 2024 resolutions to write off delinquent former resident accounts totaling $441,404.78, voted to sell a long‑vacant scattered‑site house for $1,000 and adopted a new conflict‑of‑interest policy after the authority released a third‑party investigation into personnel and nepotism concerns.

The board also authorized a closed session under Wis. Stat. 19.85(1)(g) for litigation strategy and heard staff reports on flooding damage to agency properties and continuing problems with the Housing Choice Voucher contractor that manages participant files.

Why it matters: The write‑offs remove old unpaid balances from HACM’s accounting records but do not cancel collection efforts; the board was told judgments may still be sought and unpaid accounts reported to the Department of Revenue. The conflict‑of‑interest policy change follows an independent investigation that identified questions about nepotism and gaps between HACM’s handbook and HUD requirements.

Accounting actions and board votes

• Fourth‑quarter 2024 public housing write‑offs: HACM presented $304,495.31 in write‑offs for public‑housing former resident accounts for the period Oct. 1–Dec. 31, 2024. Brad Kalik, HACM chief financial officer, told commissioners the authority’s 2024 rental income for the affected stock was about $2,700,000 and the $304,495.31 represents roughly 11% of that income. Kalik said the agency’s figure is below the HUD industry reference of about 15% for similar authorities. The board adopted the resolution (6 ayes, 0 no, 1 abstention).

• Fourth‑quarter 2024 write‑offs for Berryland, Northlawn and Southlawn: HACM presented $136,909.47 in write‑offs for those properties for the same Oct. 1–Dec. 31, 2024 period. Kalik said that portfolio collected about $1,700,000 in tenant revenue for the quarter and that the write‑off equals about 8% of that revenue. The board adopted the resolution (6 ayes, 0 no, 1 abstention).

Kalik explained that about…