MILWAUKEE, Wis. — Monday morning, city leaders detailed just how much money the Housing Authority of the City of Milwaukee (HACM) owes the city itself.
It's another thorn in the side of the disgraced agency that was left in financial ruins after its former executive director, Willie Hines, stepped down at the end of 2024.
In January, TMJ4's Jenna Rae broke the story about internal emails showing $2.8M of Section 8 money was being used to pay HACM employees.
In those emails, HACM's chief financial officer detailed even more money owed to different entities, including the city.
"Is that what triggered your questioning to the city and to the comptroller about where the funding was being used," Rae asked Common Council President José Peréz.
"Yeah, it was exactly why," he responded.
Peréz said he wants to know four things:
1. If HACM appropriately spent COVID money given by the federal government.
2. If the agency was correctly paying into the retirement system.
3. If HACM was paying its share of money in lieu of taxes.
4. If there were any outstanding payments owed in general.
Watch: Housing Authority owes about $5M to city, leaders say
"We've been told over and over again that HACM is a separate entity, separate from the city, and every turn I feel that it's tied to the city, and we should have more oversight," Peréz explained.
It's oversight comptroller, Bill Christianson, is recommending after he found HACM owes the city about $5M.
Some of this money isn't owed now, but $3.6M of it is, according to Christianson.
Christianson said since at least 2015, the city has paid for several HACM employment positions listed under Milwaukee's Department of City Development (DCD). He said HACM has to pay DCD back.
"When does that happen," Rae asked Christianson.
"There's no specific point at which it would happen other than when that amount is deemed to be uncollectable," Christianson said.
If that happens, he said that $3.6M would fall back on the city's general fund to cover.
"What was your reaction to finding that out," Rae asked Peréz.
"My reaction was how? It was obvious from the comptrollers report that there is little oversight," Peréz said. "It seems like we're floating them a huge loan that if they don't pay back, it's less money that the city has to use for its citizens, and we're concerned about that."
Aldermen are now blaming HACM's former administration and leader, Willie Hines.
"It has to fall on somebody, and it's definitely not the current leadership, it's the folks that were previously running the administration," Alderwoman and HACM Board Commissioner, Sharlen Moore, said.
Hines stepped down at the end of 2024 and retired. He's raking in $11,000/month in pension payments from the city.
"You have to know these things. You have to know if anything was misused, co-mingled. If he didn't know, he should know," Peréz said.
"Does being retired get him off the hook," Rae asked Peréz.
"No, not at all," Peréz responded.
It’s about time to watch on your time. Stream local news and weather 24/7 by searching for “TMJ4” on your device.
Available for download on Roku, Apple TV, Amazon Fire TV, and more.
