HUD No. 04-052
June 2, 2004
HUD MOVES TO TAKE OVER RIVIERA BEACH HOUSING AUTHORITY
WASHINGTON ? Today the U.S. Department of Housing and Urban Development began the process to take over the management of the Riviera Beach Housing Authority (RBHA). Based upon its poor financial management practices and numerous other factors that are preventing the agency from providing the citizens of Riviera Beach with safe, decent and sanitary living conditions, HUD has declared the housing authority in substantial default.
"The residents of Riviera Beach deserve safe and sanitary homes," said HUD Assistant Secretary Michael Liu. "HUD's assuming management will assure that and create the first steps toward permanent change at the housing authority. Receivership is our final option when all else has failed."
RBHA was first notified of its financial problems in August 2001. However, the agency's performance continued its downward spiral and was declared a troubled housing authority February 2002.
The housing authority failed to keep accurate financial records and to maintain a system of internal controls. Additionally, RBHA has failed to implement a cost allocation system and as a result, has further contributed to the poor financial condition of its public housing and voucher programs. The housing authority's financial records are so incomplete, HUD cannot identify how it is utilizing HUD funding.
Recently the agency was cited for its poor management of its public housing and Housing Choice Voucher Program, formerly known as Section 8 and, the physical condition of the Ivey Green Village public housing development has also fallen into a state of disrepair.
HUD's Miami Field Office has worked closely with the RBHA over the past three years, identifying specific deficiencies and requiring the agency to reach benchmarks to improve performance. Despite these efforts and the agency's own self-imposed corrective action plan, the agency continues to perform poorly.
HUD's action today is the first in a series of steps required for HUD to assume control of the RBHA. The housing authority has 10 days to respond to HUD's default determination. After the 10 days, HUD will appoint a receiver to manage the daily operations of the housing authority and expects the RBHA will be fully recovered within a one-year period. If more time is required, HUD will continue its control until the Department deems RHBA ready to be returned to local control.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.