Fingerpointing at JCHA as federal cuts pinch

Thursday, October 30, 2008
By PAUL KOEPP
JOURNAL STAFF WRITER

Wracked by federal funding cuts and an internal power struggle, the Jersey City Housing Authority has seen better days.

JCHA Executive Director Maria Maio says roughly $18 million in federal cuts to the JCHA's operating and capital budgets over the past five years has led to layoffs and a hiring freeze.

The federal Department of Housing and Urban Development used to fill the entire gap between the JCHA's revenue and expenses, but now only covers about 80 percent, Maio said.

Worse, a new federal model for public housing introduced three years ago called "asset management" came with a new funding formula that cut aid for 27 of the 82 housing authorities in New Jersey, including Jersey City's.

Maio and her board have hardly been a united front in fighting the latest of these cuts, an amount that could amount $430,000 in annual funding.

The JCHA filed a "stop-loss application" with HUD to stop the reduction. But earlier this month, the JCHA failed an independent review of its operations and the HUD cuts, which Maio is still fighting, were pushed though.

At a meeting held the same day the independent consultant gave JCHA operations a thumbs down, the JCHA board voted to strip Maio of her powers to hire and fire personnel because they felt she hadn't kept them updated on the back-and-forth over the federal cuts.

"(Maio) was not cooperating with the board," said Lori Serrano, who was removed as chair last week for failing to complete required courses. "That's why we pulled the power."

But Maio doesn't believe the board has the power to take away hers and the issue remains unresolved.

Maio said HUD first told the JCHA in September that it had passed the review, then said two weeks later that it had actually failed.

HUD's other cuts have exacerbated issues cited in the review, such as slow turnover of apartments for new tenants and problems with billing for maintenance, she said.