HUD Places Manhattan Housing Authority Under Federal Monitorship Following Substantial Default Declaration
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) announced that the Manhattan Housing Authority in Manhattan, Kansas has been placed under HUD Monitorship after being formally declared in Substantial Default for failing to comply with the terms of its federally-mandated Recovery Agreement. This action reflects Secretary Scott Turner’s commitment to staunchly enforcing accountability across the public housing system and ensuring that federal housing dollars are managed prudently and in the best interests of the American people.
“HUD is restoring accountability to Public Housing Authorities (PHAs) nationwide,” said Deputy Secretary Andrew Hughes. “Gone are the days where mismanagement, waste, and dysfunction are acceptable. HUD will use this opportunity to restore trust with tenants of the Manhattan Housing Authority, offering the stability needed to succeed.”
HUD determined that the Manhattan Housing Authority repeatedly failed to correct identified deficiencies despite clear notice, extensive technical assistance, and multiple opportunities to achieve compliance. Based on these findings of noncompliance, HUD exercised its statutory authority to impose Monitorship and require direct federal oversight of the Housing Authority’s operations.
Under the Monitorship, HUD-appointed Cure Monitors will oversee the Manhattan Housing Authority’s operations and track all required remedial actions to ensure compliance with recovery milestones. Oversight includes enhanced reviews of all procurement activities, financial controls, and even program administration. Failure to demonstrate timely and sustained progress may result in further enforcement actions, up to and including full HUD possession. This action is corrective in nature and intended to restore compliance and operational integrity.
Read the full letter notifying Manhattan Housing Authority here.
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