Indianapolis Housing Agency’s Mismanagement Exacerbates Housing Crisis

Reports indicate that Randi Atwell’s rent should have been covered by the Indianapolis Housing Agency (IHA), a public housing body meant to assist low-income residents. However, Atwell faced eviction in July for unpaid rent due to the agency’s failure to fulfill its financial responsibilities. Atwell explained to the court that she fulfilled every requirement of her lease, yet was left facing eviction as the IHA fell behind on payments.

Landlord Dennis Brackenridge expressed frustration, noting considerable difficulties in contacting IHA for explanations or resolutions. IHA interim CEO, Greg Stocking, acknowledged a breakdown in communication, stating the agency did not receive necessary details from Brackenridge. The issues stem partly from a cybersecurity breach that compromised IHA’s financial operations in January, leaving landlords without payment for several months.

An investigation by Mirror Indy reveals extensive challenges impacting the IHA, illustrating systemic mismanagement prevalent over the span of at least two decades. Kate Walz, associate director of litigation at the National Housing Law Project, likened the crisis to a burning building, with authorities failing to intervene in time to prevent destruction.

The investigation, which involved interviewing 10 Section 8 voucher holders, landlords, housing advocates, and attorneys, along with analyzing over a thousand documents, found significant negligence and diverting funds within IHA’s operations. Misallocated voucher funds were reportedly used on staff salaries and travel rather than housing assistance.

As a result of the mismanagement, several tenants, including older adults and individuals with chronic illnesses, were thrust into homelessness. Atwell, while avoiding homelessness by staying with family, felt wronged. «We are being treated like trash and like we did something wrong,» she remarked.

Efforts to reform IHA have largely been unsuccessful, despite federal scrutiny and warnings over many years. Previous assessments by the Department of Housing and Urban Development (HUD) identified unlasting issues in financial management, urging for reform and indicating misuse of the federal vouchers.

Current initiatives by HUD including federal takeover aim to stabilize the agency, but many fear it may be too late to salvage its effectiveness. Mayor Joe Hogsett previously pledged to reform IHA’s management after federal officials highlighted the misuse of funds in a 2007 audit. Nonetheless, meaningful reforms have yet to materialize.

Paige Miller, another tenant, described living conditions in her IHA-managed unit as hazardous due to exposed mold, a feature detrimental to her child’s health, yet failed to receive any substantial response from the housing agency. Many residents echo similar grievances, finding little reprieve in the housing assistance they were promised.

Miller expressed her frustrations, noting the challenges faced while navigating IHA’s operations, «Honestly, the most miserable I have been is being on Section 8. I was happier struggling with bills.»

Efforts by the city to spur change appear insufficient given the gravity of mismanagement. IHA’s challenges underscore significant shortcomings in maintaining essential housing programs for Indianapolis’s vulnerable populations.