'Seems like we are floating them a huge loan': HACM owes City of Milwaukee $4.1 million

MILWAUKEE (CBS 58) — The Milwaukee Common Council has discovered the city's troubled housing authority owes more money than previously thought.

CBS 58 previously reported that the Housing Authority of the City of Milwaukee, or HACM, misused $2.8 million in federal money, leaving primarily older residents in unlivable conditions.

On Monday, CBS 58 learned the housing authority also owes the City of Milwaukee $4.1 million.

"It seems like we are floating them a huge loan that if they don't pay back, it's less money that the city has to use for its citizens," said Jose Perez, Common Council president.

Common Council President Jose Perez refers to the $4.1 million the housing authority owes the city.

"It was obvious from the comptroller's report that there is little oversight of this reimbursable fund," said Perez.

This unpaid money is in addition to the $2.8 million HACM improperly used to cover its administrative costs and payroll.

Perez called a meeting on Monday to get clarity on HACM's financial state.

"We want to rebuild trust in our community," said Sharlen Moore, District 10 alderwoman.

HACM is on the brink of bankruptcy after misusing federal dollars between 2019 through 2023.

"In asking the comptroller, 'Hey, did they spend the ARPA funds appropriately,' he found that there were many other funds that were owed to the city by HACM," Perez explained.

HACM's new leadership is frantically working to find solutions.

"There needs to be entities on both ends that need to be put in place so that we don't get to this place. We have to protect the city," said Moore.

Alderwoman Sharlen Moore, who is also one of multiple new appointees to the HACM board, says it's unclear why the city had previously not invoiced HACM for that money.

Perez says he does not know where the money to pay back the city will come from.

"That's a question that we are going to have for the budget process moving forward. We have to work with our budget office and figure out how we are going to collect, does it go to collection," said Perez.

This money HACM owes the city is a separate issue from its past misuse of federal money.

The housing authority's new leadership now faces a second significant financial challenge.

Perez says they plan to work with HACM to figure this out.