Springfield Housing Authority designated “troubled” after HUD audit

SPRINGFIELD, Mass. (WWLP) – The Springfield Housing Authority (SHA) has received a failing grade after an audit by the U.S. Department of Housing and Urban Development (HUD).

According to a letter from HUD to the SHA’s Board of Commissioners, the SHA received a “troubled” designation due to several issues related to financial and management oversight and policies. The audit found failures in the preparation and filing of financial statements and maintaining acceptable occupancy, among others. There was no mention of issues involving the health and safety of SHA residents or properties.

22News spoke with SHA Executive Director Denise Jordan. She said that the audit results are due to the SHA not submitting a report by a mandated deadline. Jordan said that SHA decided not to submit the report because of issues with their software and they were not comfortable with the data being converted from the old to new software. Corrective action has already been taken with data updates and reports being submitted to HUD. She said that HUD was in Springfield in June and was aware of the situation.

Below is the letter from HUD to the SHA Board of Commissioners:

Mayor Sarno states, “This news is both shocking and troubling.  I am deeply concerned and have communicated to the SHA Executive Director and Board of Commissioners that on behalf of the tenants and our residents, the City of Springfield needs answers.  We must protect the integrity and the ability of the SHA to provide adequate housing for our most vulnerable and needy citizens. I will accept nothing less.”

“In addition, I call on the SHA Board of Commissioners to conduct a thorough review of this situation and report to me in writing their findings within 14 days.  I assure you; I will take every action necessary within my authority to ensure that the SHA is operating in a professional, efficient and legal manner in accordance with all the regulations and laws of HUD and the Commonwealth of Massachusetts.”

Jordan says she contacted Mayor Sarno’s office Friday morning to discuss the audit. She said that the software issue does not impact the day-to-day operations of the SHA or residents.

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