MANHATTAN, Kan. (WIBW) – The U.S. Department of Housing and Urban Development has placed the Manhattan Housing Authority under federal monitorship after being declared in Substantial Default.
Manhattan Housing Authority officials say the move by HUD doesn’t affect residents’ benefits and doesn’t represent a federal takeover.
According to HUD, the monitorship comes after the Manhattan Housing Authority failed to comply with the terms of its federally mandated Recovery Agreement.
“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 says the action reflects Secretary Scott Turner’s commitment to enforcing accountability across the public housing system, making sure that federal housing funds are managed prudently and in the best interests of the people.
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.”
As a result of the findings, HUD exercised its statutory authority to impose monitorship and require direct federal oversight into the Manhattan Housing Authority’s operations.
HUD has appointed Cure Monitors to oversee the Housing Authority’s operations and track all required remedial actions to ensure compliance.
The oversight also 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.
HUD says the “action is corrective in nature and intended to restore compliance and operational integrity.”
View the full letter notifying the Manhattan Housing Authority HERE.
WIBW reached out to Aaron Estabrook, executive director of the Manhattan Housing Authority who said: “This designation does not suspend housing assistance, does not impact residents’ benefits, and does not represent a federal takeover. It is a compliance and oversight mechanism used by HUD to ensure timely corrective action.”
Estabrook added that the Authority has been working with HUD to address the identified issues and that corrective steps are underway. Some of those steps include:
Implementation of a formal corrective action plan in coordination with HUD Strengthening internal controls and compliance procedures Increased third-party and HUD oversight on specific operational areas Additional reporting and documentation requirements to demonstrate progress
“Our Board of Commissioners and management team are fully engaged in this process, and HUD has been kept informed of ongoing improvements. The goal of the monitoring period is to ensure sustained compliance and long-term stability, and we are committed to meeting those benchmarks,” Estabrook said.
Copyright 2026 WIBW. All rights reserved.