A Milwaukee Housing Authority program that’s been deemed a fraud risk will be operated by an outside vendor under a new federal government mandate.
The authority has issued a request for proposals from vendors to operate its Section 8 Housing Choice Voucher Program. The program in 2023 administered around $42 million in rent assistance for people who are low-income, elderly or disabled.
That RFP , with a March 1 deadline, is part of “corrective action plans” ordered for the federally funded Section 8 program by the U.S. Department of Housing and Urban Development.
That’s according to a memo to city officials from the authority obtained by the Milwaukee Journal Sentinel.
The authority will continue to be the program’s administrator, with its staff working with the selected contactor, the memo said.
The contract will be for five years, with the authority having the option to extend that term for another three years, according to the RFP.
The cost to manage the voucher program cannot exceed 80% of the annual administrative fees the authority receives from HUD, it said. Those fees were expected to total $5 million in 2023.