Taylor Housing Authority warns of HUD sanctions tied to subsidiary entities, staff says federal sanctions could freeze funding

Taylor Housing Authority Executive Director Shay Goldsman warned the city council on April 9 that HUD has delivered a notice raising current and potential sanctions tied to earlier OIG findings regarding the separation of two housing development corporations from public control.

Goldsman said HUD’s field office emailed the authority on March 23 and that the issues date to an OIG investigation in 2014. The central concern, she said, is that Mallard Run Housing Development Corporation and Taylor Sunset Housing Development Corporation — and the properties associated with them (Mallard Run Apartments and Heritage Oak Apartments) — are no longer under the public oversight required when the entities were created under government code 3.92.

"There are current and looming, swift, and strict in red sanctions that will be coming to the city of Taylor through the Taylor Housing Authority," Goldsman told the council. She described sanctions the authority faces, including a freeze of federal funding and administrative fees that keep the local housing authority operating, a hold on new projects (she said the Avery project is on permanent hold), possible repayment requirements, and in the worst case, closure of the local authority and transfer of Section 8 voucher administration to another jurisdiction.

Goldsman said the situation stems from governance issues in which the subordinate entities were altered so that they no longer remained subordinate to the public housing authority as originally established. She said her office offered a proposal in the fall to restore public oversight while keeping existing employees; the entities rejected that proposal. She has pursued administrative remedies, asked HUD for an extension and engaged law enforcement and state and federal legislators in seeking a path forward.

Council members thanked Goldsman for the briefing and asked for updates. The council did not take action that night beyond receiving the presentation; the staff packet and Goldsman’s summary document are part of the record.

Goldsman urged public engagement and said she had circulated a petition and worked with the tax assessor, noting the entities have been filing under government code 3.92 and that the tax assessor has approved moving forward with property tax collection on those properties. She also said she had already received at least one formal sanction and is seeking an extension from HUD to October 2027 while pursuing a resolution.

The city said it will continue coordination with the housing authority and monitor any federal actions that could affect local programs, including vouchers and future developments.