HUD Declares Little Rock Housing Authority in Substantial Default, Initiates Possession
Action Builds on Secretary Turner’s Commitment to Hold Public Housing Authorities Accountable for Mismanagement
Washington – The Department of Housing and Urban Development (HUD) today declared the Housing Authority of the City of Little Rock, operating as the Metropolitan Housing Alliance (MHA), in Substantial Default for failing to meet the terms of its federally mandated Recovery Agreement. HUD has now taken full possession of the MHA’s programs, operations, and assets and dissolved its locally-appointed governing board of commissioners, effective immediately.
This action reflects Secretary 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 interest of the American people.
“Federal housing programs come with clear obligations to residents,” said Secretary Turner. “When those obligations are not met, specifically after formal recovery measures are put in place, HUD will make it right with a hands-on approach.”
“Under Secretary Turner’s leadership, HUD will continue to act where warranted to uphold our responsibility to the residents who rely on federal housing programs and the taxpayers who fund them,” said Assistant Secretary for Public and Indian Housing Benjamin R. Hobbs. “HUD is grateful for the efforts of the House Financial Services Committee and Chairman French Hill (R-AR) for shining a light on PHA mismanagement and the need for strong accountability."
HUD’s determination is based on the agency’s failure to satisfy material performance requirements established under its 2024 Recovery Agreement, including required occupancy benchmarks and mandated corrective actions for underperforming properties. Despite clear deadlines, MHA did not achieve the required 96 percent occupancy rate for its public housing program, reporting approximately 89 percent occupancy for calendar year 2025. The agency also failed to implement a required third-party management intervention for properties that did not meet performance standards.
HUD’s assessment is based on objective performance measures established in the Recovery Agreement. Those requirements were not met within the agreed timeframe.
These failures follow a sustained pattern of performance concerns. MHA has received a Troubled or Substandard designation under the Public Housing Assessment System for nearly a decade, with deficiencies persisting despite federal oversight and formal recovery planning.
HUD will maintain control of MHA until it determines that the housing authority has achieved sustained compliance and is ultimately capable of operating independently in accordance with federal standards.
Read the Determination of Substantial Default letter here and the Letter of Possession here.
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