When the Shawano County Housing Authority came under scrutiny for renting to a family with a household income of more than $100,000 a year, county leaders went out of their way to declare that they have nothing to do with the public housing agency.
Then members of the County Board made a surprising discovery: They appoint the board of directors that oversees the housing authority.
The realization has prompted county leaders to temporarily halt new appointments to the housing authority while simultaneously considering various options for clarifying their role in the agency — or perhaps distancing themselves from it.
Among the options being discussed is asking the housing authority to change its name so that it sounds less like a part of Shawano County government. At the same time, however, county officials are coming to grips with the fact that they have perhaps the ultimate involvement in the housing authority: deciding who runs it.
Given that everybody serving on the housing authority board was put there by the county, some supervisors wonder whether the county can truly assert that it has no responsibility for what goes on in the agency.
“That’s a good question,” Supervisor Bonnie Olson said. “How can you separate the two?”
Nobody really felt a need to parse the complex machinations of the housing authority until a report published last summer showed that the agency was renting public housing to a family whose household income totaled $108,000 a year — far more than would be permitted with a new tenant.
The report by the U.S. Department of Housing and Urban Development listed thousands of similar situations nationally, highlighting a need for tougher enforcement of income limits on families whose salaries increase after they have qualified for taxpayer-funded housing.
A second family in Shawano County public housing has since been reported with a six-figure household income.
The Shawano County Housing Authority board has decided to take no action for the moment, instead awaiting new guidance from the federal government on how to deal with the issue.
With angry taxpayers locally demanding an explanation, county government leaders took the opportunity publicly and privately to let it be known that the housing authority is not a county government agency and, as a result, they have no control over what it does.
County Supervisor Kevin Conradt now is among those suggesting that the housing authority should change its name to something that sounds less county-like.
“It’s very misleading,” Conradt said. “Why should Shawano County’s name be on it?”
Headquartered at 1259 Engel Drive in Shawano, the housing authority is an independent organization created by the state and funded by the federal government to provide housing for low-income residents in Shawano County. The agency manages about 200 housing units of various sizes to accommodate individuals and families in need.
With a budget of $900,000 a year, the authority is overseen by a five-member board that comprises community volunteers who are nominated by the housing authority itself and confirmed by the County Board.
John Wartman, executive director of the housing authority, said state law mandates county approval of the housing authority’s board of directors. Wartman said he was surprised to hear that some county officials were questioning the arrangement.
“I don’t know why all of a sudden that came up,” he said. “My god, it’s been like that forever.”
At its regularly scheduled meeting last week, the County Board balked at a proposal to reappoint two housing authority board members, Clarence Natzke and Mike Hille, each to another five-year term. Several county supervisors questioned the County Board’s role in the appointments and also expressed lingering discomfort with the issue surrounding the family earning $100,000 a year.
The board voted 17-6 to postpone action on the appointments and to direct county staff to approach the housing authority about the underlying issues, including a possible name change.
Supervisor Thomas Kautzka joked that the name perhaps should be “the Hundred-Thousand Dollar Club.”
Kautzka later said he, too, was unaware that the County Board had appointment power over the housing authority board. Given the recent issue with the family earning $100,000 a year in public housing, Kautzka said the county should possibly have more input into the authority’s operations.
“There seems to be a grey area there that a lot of us don’t really seem to understand,” he said.
Wartman said although it has not been an issue before, the County Board for years has had authority to determine who serves on the housing authority’s board. If county supervisors rejected a nominee, Wartman said, the authority would propose someone else.
After the County Board postponed action on the two current re-appointments, Wartman said, he and county officials discussed possibly appointing a county supervisor to the housing authority. There are currently only four board members, so the supervisor would fill a vacancy unrelated to the pending re-appointments.
On the name change issue, Wartman said he would ask his board Feb. 19 to consider a name along the lines of the “Housing Authority of Shawano County” to make clear that it is not a county government agency. The housing authority manager said he was unclear on whether the issue was being raised because of the controversy surrounding the family earning $100,000 a year.
Referring to the supervisor’s remark about “the Hundred-Thousand Dollar Club,” Wartman said: “I don’t know where he’s coming from.”