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Fayetteville Housing Authority reports audit turnaround; council previewed $200,000 proposal to help clear HUD debt

Fayetteville City Council · July 29, 2025
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Summary

Fayetteville Housing Authority executive director Shonda Tapley reported the authority moved from repeated audit findings to an agreed-upon audit with no findings; the mayor previewed a proposed $200,000 low-income housing agreement to help FHA address HUD debts and make repairs, with FHA staff promising follow-up materials and plans.

The council agenda session included a lengthy update from the Fayetteville Housing Authority and a preview of a proposed $200,000 city contribution from a previously approved homelessness allocation.

Shonda Tapley, executive director of the Fayetteville Housing Authority, told council members she took the job in June 2024 and credited management and outside technical assistance for a rapid improvement in audit results. "We went from a disclaimer of opinion with over 20 findings to an agreed-upon audit with zero findings," she said, adding that the authority had submitted the audit to HUD and was awaiting HUD's review and any change in official troubled status.

Councilmembers asked for documentation and timelines showing progress and how a city contribution would be used. The mayor said the $200,000 proposal is intended to help the housing authority get out of debt with HUD, address deferred maintenance and unlock the agency's ability to pursue additional funding and repairs. Council members asked for an explicit plan tying the funds to deliverables and timelines, including when units currently offline (such as at Willow Heights and Lewis Plaza) will return to service. Tapley said she and her team are meeting this week with HUD's Special Applications Center and that, depending on approvals, demolition/disposition and relocation plans could begin within weeks; she emphasized the authority would not displace residents without assistance.

Council speakers praised the authority's progress but pressed for a formal presentation and documentation before the council votes on the grant. Tapley said she would provide audit reports, the HUD submission and an implementation timeline for council review next week. Council members said they appreciate the FHA board's work but wanted specificity on how city funds would translate to units brought back online and long-term stewardship.