The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General reviewed HUD’s receivership of the East St. Louis Housing Authority based on the length of receivership and issues identified during recent external audits. Our objective was to determine whether HUD effectively oversaw and managed the recovery and turnaround of the Authority during the three-year period ending in September 2011.

HUD did not effectively oversee and manage the recovery and turnaround of the Authority. Specifically, it did not have an adequate structure for its staff and did not develop a receivership plan specific to the Authority. This condition occurred because HUD did not have consistent leadership in its Office of Receivership Oversight (ORO). As a result, the Authority continued to be under receivership after 26 years and has continued to experience significant management and operational deficiencies.

We recommend that HUD develop and implement a receivership plan for the Authority that includes sufficient assessments, decision points, measurable goals, and accountability mechanisms. We also recommend that HUD improve its structure for managing receiverships, permanently fill the director position within ORO, and develop adequate accountability mechanisms for HUD staff whose primary responsibilities involve receiverships.