Mismanagement, cost overruns, delays cited by McCain study

WINDOW ROCK

After the Arizona Republic published a series of articles earlier this year, U. S. Sen. John McCain, R-Ariz., asked his staff to investigate allegations of mismanagement by Navajo Housing Authority outlined in the series.

That investigation has now concluded and Navajo Nation President Russell Begaye and Speaker of the Council LoRenzo Bates issued a response Thursday.

Last month, the two tribal leaders sent out a joint release saying that based on the findings in the Republic articles, the CEO of the agency, Aneva Yazzie, as well as other top management should be replaced.

According to the findings, within the past 10 years NHA has received more than $803 million in Indian Housing Block Grants but built only 1,110 new homes. The findings also point to NHA’s mismanagement of federal funds that resulted in cost overruns and schedule delays involving hundreds of homes. Findings also address NHA board members using income generated from NHA rental properties for travel to Hawaii and Las Vegas.

Based on the findings of the investigation, McCain’s recommendations include the following:

• Congress should reduce the Navajo Nation’s Native American Housing Assistance and Self-Determination Act allocation;
• NHA and the nation should streamline the process for acquiring land and permitting;
• replace NHA Board of Commissioners with professional board members;
•  increase the number of NHA site visits by HUD;
• NHA and HUD should provide annual performance reports with clear data on how many houses have been serviced on a yearly basis with expenditures categorized per house constructed or modernized and according to rental versus home ownership; and
• the Navajo Nation Council consider recommendations to restrict NHA to managing its 1937 Housing Act rental units and designate a new program for new home construction.

The recommendation for a new board has already been carried out with the new board expected to hold its first meeting next Wednesday.

Begaye and Bates said they were concerned about McCain’s recommendation to reduce funding for Navajo housing, pointing out the many Navajo families that desperately need housing.

One of the new board members, Kris Beecher, said the NHA board understands the serious nature of the investigation’s findings. Beecher said the NHA Board has prioritized addressing the issues presented.

“The Navajo people are depending on the board to create a new vision and leadership standard for NHA,” he said. “We own this challenge and are 100 percent committed to meeting it head on. The Navajo people deserve nothing less.

“We look forward to working with all levels of our government to ensure an expedient and effective change for the betterment of the Navajo people,” he said.

McCain’s investigation concluded that his office has no reason to doubt the skills and professional ability of NHA executives and staff but that the findings indicate “NHA lacks both the plan and capacity to achieve it’s goal of providing 34,000 homes to Navajo tribal members.”

As for a response from NHA management, the new board has directed that any statement must first be cleared by it.

---