INDIANAPOLIS — The Indianapolis Housing Agency, which has been under scrutiny for several months, is facing a possible federal takeover of one of its biggest voucher programs after failing a federal audit from the U.S Housing and Urban Development Indianapolis Field office.
Call 6 Investigates has learned that the agency is unable to account for hundreds of thousands of dollars meant to help hundreds of families move from government subsidized housing and live on their own without government assistance.
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A recent audit by Indianapolis HUD investigators found IHA not compliant in a letter sent to the agency on December 2nd.
As a result of the audit findings, HUD may takeover, an unrelated, millions of dollars connected with IHA's biggest housing program known as Section 8 - which involves more than 7,000 people.
Section 8 gives people in need a voucher for housing. Those vouchers, supported by your tax dollars, can be used to pay full or partial rent, depending on the tenant's income.
The possible federal takeover comes as the Mayor of Indianapolis is conducting a search to replace the current leadership of the agency.
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Mayor Hogsett currently has no power to make any changes since the current board members are holdovers from the previous administration, but that will change in February when the mayor plans to appoint members to the IHA board.
As for the pending federal action, Mayor Hogsett says, "It's very concerning, and I am fully engaged as we speak."
Hogsett went on to say, "I am committed to doing what it takes to make any financial problems IHA has experienced are remedied and remedied effectively and any of the concerns from residents of the housing agency properties addressed in a meaningful way."
IHA is being allowed to appeal the findings.
A spokesperson told RTV6, "We are currently analyzing the findings of this report and will develop a strategy to respond to their findings."
The public affairs office for HUD out of Chicago could not comment to about this issue because the review is still underway.
It is possible we may know as early as next week what will happen next.
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