SPRINGFIELD — The Springfield Housing Authority (SHA) has been designated as “troubled” by the U.S. Department of Housing and Urban Development (HUD) following an audit that revealed significant deficiencies in financial and management practices.
According to a letter from HUD to the SHA’s Board of Commissioners, the SHA received failing scores in several areas: a financial score of 0 out of 25, a physical score of 33 out of 40, a management score of 10 out of 25, and a Capital Fund score of 10 out of 10. The overall score was 53 out of 100 for the fiscal year ending March 31, 2023. The financial score of zero was due to a Late Presumptive Failure for not submitting required financial statements on time.
HUD has urged the SHA to assess its current situation to determine if recovery is feasible or if alternative options for affordable housing should be considered. The SHA has been instructed to identify the sources of performance deficiencies and develop a recovery plan within 30 days.
(Photo Credit: U.S. General Services Administration)
In an interview with WWLP, SHA Executive Director Denise Jordan attributed the failing scores to issues with their software, which prevented the timely submission of reports. Jordan stated that corrective actions are underway, with data updates and reports now being submitted to HUD. She emphasized that the software issues did not affect day-to-day operations or residents.
Mayor Domenic Sarno expressed deep concern over the audit results, stating, “This news is both shocking and troubling. I am deeply concerned and have communicated to the SHA Executive Director and Board of Commissioners that on behalf of the tenants and our residents, the City of Springfield needs answers. We must protect the integrity and the ability of the SHA to provide adequate housing for our most vulnerable and needy citizens. I will accept nothing less.” Sarno has also called on the SHA Board of Commissioners to conduct a thorough review and report their findings to his office within 14 days.
HUD will also initiate a binding Recovery Agreement with the SHA, which will include recovery benchmarks to ensure the agency achieves and sustains acceptable performance.
For more details, the letter from HUD to the SHA Board of Commissioners is available below:
