Members of Little Rock's housing authority board again took a hard look at the agency's finances Thursday and delayed filling the agency's top position.
The agency has a 2019 budget of more than $25 million, about a 6% increase from 2018.
For months, commissioners have been questioning the Metropolitan Housing Alliance's spending -- they quashed two of former executive director Rodney Forte's attempts to allocate $266,000 in employee bonuses last year.
Finances have often been the focus of subsequent meetings.
Board chairman Leta Anthony said she had "reasonable skepticism," about the agency's finances. She cited a federal report, released in 2017, that criticized earlier bonuses.
During Thursday's meeting, which lasted about two hours, the five commissioners questioned staff members about expenditures and revenue.
"I'm sure that you've gathered that the board has a lot of concerns over the financial health of the agency," Anthony said. "And we are concerned."
In response to commissioners' concerns, interim director Anthony Snell suggested that a meeting in July focus on finances, once the year is half over. That, he said, is the best time to review budget decisions. The board approved the 2019 budget in December.
The executive director position has been vacant since Forte resigned in November. Forte had sought to leave at the end of January, but the board pushed him to depart immediately.
The Metropolitan Housing Alliance, which provides rental assistance for close to 8,000 low-income people, has had two interim leaders since then.
The first, Marshall Nash, resigned abruptly in April. He also headed the human resources department. Soon after his departure, the board appointed Snell, the deputy executive director of real estate, to the interim position.
The position has since been vacant while the board considers two finalists for the spot.
The finalists are Nadine Jarmon of Deerfield Beach, Fla., and Kimberly Adams of Houston. The two, along with a third candidate who has accepted a job elsewhere, were interviewed in April in closed meetings that skirted the state public-records law.
Anthony originally said the goal was to have a new executive director by the first of May. Now, pending revisions to the executive director contract, Anthony said she hopes to have someone hired within 30 days.
"We are working feverishly," she said.
The board went into a private session Thursday for close to 20 minutes with Snell, saying it was to discuss the executive director position.
Anthony announced afterward that no action was taken during the session.
Forte worked for the agency for about six years and made $133,000 annually. In addition to hiring a new director, the board said the agency needs a human resources director to replace Nash and a compliance auditor.
Anthony said the timeline for filling those positions will depend on the agency's financial situation.
Discussion on Thursday ranged from the costs of a transition to new data collection software while there is still data on the old system, an upcoming audit of major agency programs and the authority's Elm Street property.
The Elm Street property, where residents pay a portion of the total rent that's based on their incomes, will need repairs to the drainage system, said Margaret Maher, the director for LEDIC Management Group, which is contracted to manage the property.
"It's not something that's just happened. It's come to light because of the way the building has been built," Maher said.
The north end of the building will need a new drain and waterproofing system, she said. Up to four households in the 51-apartment building could be affected. The first bid for the construction work was for $28,157.
"This is a sizable project, and not something that needs to be taken lightly," Maher said.
Anthony also asked for Maher's recommendations on collecting residents' rents more efficiently because the property has been operating under a deficit.
"That's a major concern that we've brought to staff," Anthony said.
The agency has had similar problems before at other properties, she said, and has generally been able to solve them.
Maher said she thought it was about having the "right person" in the office to collect the money.
"It's a delicate balance of having that kind, gentle relationship, but still being able to hold that line," Maher said.
Near the end of the meeting, the board voted to accept a $748,987 federal grant for its Rental Assistance Demonstration program capital funds. The federal demonstration program allows local agencies to partner with private companies to renovate aging public housing.
The program has gained popularity under President Donald Trump, and the Little Rock housing authority is moving nine of its properties to the program. Six projects are underway.
The U.S. Department of Housing and Urban Development's office of the inspector general released a report at the end of last month saying that the agency didn't comply with federal rules during the shift.
Some of these, the report alleges, resulted in project delays that meant work had to be redone, which cost more money. Other predevelopment costs weren't properly documented, the report says.
Snell and an official response from the agency have disputed many claims in the report.
"We have done that on numerous occasions -- at least two times -- and have gotten approval from the [HUD] field office for those expenditures," he said in a previous interview.
BKD LLP, a third-party auditor, is scheduled to examine the agency's finances and the results of the federal report in the next couple of months. The final report from BKD is due in September.
"As we move forward, the first thing that we are responsible for as a board is the viability of the agency, and if the agency is losing money and not bringing in money, then that's why we need clarity on every expense and everything that's going on with the Little Rock housing authority," Anthony told staff members during Thursday's meeting.
Metro on 05/17/2019