Housing authority board approves nearly $90,000 in tenant account write-offs after debate on evictions and collections

The Michigan City Housing Authority Board voted June 25 to approve Resolution 2026-09, authorizing the write-off of delinquent public-housing tenant accounts totaling approximately $89,938.46. The vote followed extended discussion about how large tenant balances accumulated and what collection or prevention policies the authority should adopt.

Commissioner Benson moved to accept the resolution, and Commissioner Ross seconded; a roll call was taken and the motion passed. The resolution covers tenants who are no longer participating in the program and whose balances staff have deemed uncollectible for fiscal reporting purposes.

Commissioners pressed staff and counsel for details about the largest balances, asking how an account can grow into the tens of thousands. The Executive Director and counsel explained past bookkeeping gaps, the timing of enforcement and efforts to work with tenants on repayment agreements. "When we do the write-off it's just to help our financial status," the Executive Director said, adding that the underlying debt remains and may be recorded in HUD's 'debts owed' system so other housing authorities will see outstanding balances.

Finance Manager Tammy Cook and counsel described recent operational changes intended to reduce future write-offs: tighter rent-collection follow-up (generally taking action after two months of nonpayment), more use of HUD's EIV income-verification tools during recertification, and procedures to place debts into HUD's centralized tracking when families leave the program. Counsel also indicated the authority can pursue judgment collection and garnishment where appropriate.

Several commissioners proposed setting a policy threshold to trigger earlier enforcement and prevent balances from growing unchecked. One suggestion was an upper-limit policy (for example, a dollar threshold such as $10,000) that would require more aggressive collection action or eviction referral before balances escalate; staff discussed that thresholds should consider low monthly rents where a large balance may take many months to accrue.

Staff and counsel noted this is the authority's second round of write-offs this fiscal year and that some of the large balances stem from underreported income discovered during recertifications rather than continuous nonpayment. They also said the authority has taken steps to increase tenant payments and to place completed debts in HUD's systems, which can affect future eligibility at other housing authorities.

The board passed Resolution 2026-09 and did not reverse the write-offs. Commissioners asked staff to report back on current in-program balances and on recommended policies to limit future large arrears and to clarify collection prospects on written-off accounts.

Next steps: staff will provide more detailed reporting on current tenant arrears still in-program and bring policy recommendations on thresholds and collection procedures to a future meeting.