HUD Returns East St. Louis Housing Authority to Local Control

HUD is returning the East St. Louis Housing Authority (ESLHA) to local control after more than 30 years of federal receivership. The agreement marks the end of the first and longest federal receivership of a local housing agency.

HUD took over operational control of the ESLHA on Oct. 28, 1985, following years of deteriorating physical conditions, financial mismanagement, and a lack of effective leadership. Under the terms of the Transition Agreement, the mayor will appoint a five-member Board of Commissioners and HUD will transfer ESLHA's assets, programs, and projects to local control. The Board will work with the housing authority's Executive Director Mildred Motley to oversee management of more than 2,000 public housing units as the local agency works to improve continuing physical and financial challenges.

As part of that agreement, HUD will designate an Oversight Administrator and a team of specialists to continue to provide support, manage HUD-provided technical assistance, and monitor ESLHA's performance in addressing ongoing and long-term challenges, including:

• Developing a long-term strategy to address the rehabilitation and/or replacement of aging developments and chronically vacant units;
• Sustaining operations within its means, building its reserves, and maintaining long-term financial health;
• Resolving any audit recommendations and developing strategies to effectively administer its programs; and
• Utilizing its Replacement Housing Factor grant to acquire and/or redevelop new public housing units.