MANHATTAN (KSNT) – National housing officials said on Tuesday the Manhattan Housing Authority is now under direct federal oversight for failing to comply with an established agreement.

The U.S. Department of Housing and Urban Development announced on Feb. 10 the Manhattan Housing Authority is now under HUD monitorship. This comes after the Manhattan Housing Authority was declared to be in substantial default for failing to comply with the terms of its federally-mandated recovery agreement.

HUD said this move reflects Secretary Scott Turner’s commitment to enforcing accountability across the public housing system in the country and ensuring that federal housing dollars are managed prudently and in the best interests of the U.S. population.

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“HUD is restoring accountability to Public Housing Authorities (PHAs) nationwide,” said HUD 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 determined the Manhattan Housing Authority repeatedly failed to correct identified deficiencies despite notices, extensive technical help and multiple chances to achieve compliance. HUD exercised its authority to impose monitorship and require direct federal oversight of the organization’s operations based on the noncompliance findings.

Aaron Estabrook, executive director of the Manhattan Housing Authority, told 27 News the designation of monitorship by HUD doesn’t suspend housing assistance, won’t impact the benefits of residents and doesn’t represent a federal takeover. he said it is a compliance and oversight system used by HUD to ensure corrective action is taken in a timely manner.

“Our Board of Commissioners and management team are fully engaged in this process, and HUD has been kept informed of ongoing improvements,” Estabrook said. “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 the Manhattan Housing Authority is actively working with HUD to address the issues it is experiencing. He said the following corrective steps are already being taken:

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 show progress.

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The Manhattan Housing Authority’s operations will be overseen by Cure Monitors, appointed by HUD, which will track all required remedial actions necessary to ensure compliance with recovery milestones. Oversight includes reviews of all financial controls, procurement activities and program administration.

HUD said failure to show timely and sustained progress could result in more enforcement actions, including full HUD possession. The actions taken by HUD on Feb. 10 are intended to restore compliance within the Manhattan Housing Authority along with its operational integrity. You can read the full letter to the Manhattan Housing Authority by clicking here.

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