Fayetteville Housing Authority board approves budget, takes on commissioner vacancy

NWA Democrat-Gazette/STACY RYBURN Housing Authority Board Chairman Mike Emery (right) listens to Commissioner Chris White speak Thursday during a Housing Authority Board meeting at Fayetteville City Hall.
NWA Democrat-Gazette/STACY RYBURN Housing Authority Board Chairman Mike Emery (right) listens to Commissioner Chris White speak Thursday during a Housing Authority Board meeting at Fayetteville City Hall.

FAYETTEVILLE -- The Housing Authority has received a significantly low amount of money from the federal government to cover capital expenses and is looking at a budget shortfall for operations, its executive director said Thursday.

The authority will receive $184,391 in capital money from the U.S. Department of Housing and Urban Development. That amount is almost $55,000 less than what it received in 2016.

By the numbers

Capital money awarded to Fayetteville Housing Authority

• 2017: $184,391

• 2016: $239,360

• 2015: $265,125

• 2014: $264,727

• 2013: $279,858

• 2012: $252,177

• 2011: $291,303

• 2010: $331,165

• 2009: $331,842

• 2008: $357,929

Source: Fayetteville Housing Authority

Executive Director Deniece Smiley said the fund won't begin to cover some of the major projects the authority wants to take on, such as replacing the sewer and water pipes at Hillcrest Towers. The authority has applied for an emergency federal grant to cover the estimated $3 million cost.

"HUD really wants to get rid of public housing," Smiley said. "To me, that's just demonstrating that."

Operationally, the authority is looking at a nearly $218,000 shortfall, Smiley said. Reserve money will have to be used, plus it's possible the projected expenses may not be as high as anticipated, she said.

Included in the budget is a 3 percent raise for Housing Authority staff. The Board of Commissioners on Thursday approved the public housing operating budget and the raises.

The board also approved 2018's project-based rental assistance budget. Its total operating revenue is $402,152 with expenses at $212,760, Smiley said.

In other business, commissioners selected Fayetteville architect Elizabeth Stinnett to fill a vacant position on the board. However, the city's Nominating Committee, made up of half the City Council, voted to appoint south Fayetteville resident Melissa Terry to the position on Wednesday.

The Housing Authority board has five members. In the July meeting, Chairman Mike Emery announced a commissioner was stepping down for family reasons.

A state statute says if a board doesn't make a selection within 45 days of a vacancy the governing body, in this case the City Council, can make an appointment. Emery said the definition of when that 45-window begins is ambiguous because the board can't start interviewing candidates until it receives applications from the city.

The full City Council will vote on the nominee, who will serve through the end of the year.

Terry has led an effort to keep residents living in public housing at Willow Heights, 10 S. Willow Ave., from being moved to a proposed expansion at Morgan Manor, 324 E. 12th Place. The Housing Authority has said the move is necessary because of crumbling infrastructure at Willow Heights and waning federal money.

Terry attended Thursday's meeting but declined to comment on the status of the board vacancy.

In a lengthy Facebook post just before the meeting, Emery expressed disappointment in the City Council's actions, both with how the board vacancy was being handled and an appeal made by Council Member Sarah Marsh to reconsider Morgan Manor's expansion plan.

The Planning Commission previously approved the development plan for Morgan Manor, which would add 58 units to the already existing 52. Marsh appealed the decision on behalf of Terry and the council tabled the item during its Sept. 19 meeting when no representatives of the Housing Authority showed up.

The council will take up the appeal again on Tuesday.

NW News on 09/29/2017

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