Texas town shocked to discover it has housing agency from federal auditors concerned about fraud

Kyle, Texas, has a housing agency it did not know existed
(Image credit: CC by: Mike Rastiello/Flickr)

Kyle, Texas, is a town about 20 miles south of Austin with a population of 34,000 — and a government housing agency that its mayor and city council were shocked to discover existed, receives federal funding, and has apparently had no real city oversight since maybe its launch in 1977. Mayor Todd Webster learned about the Kyle Housing Authority in a Nov. 2 letter from the San Antonio office of the federal Housing and Urban Development Department (HUD), listing several problems at the agency that suggested gross mismanagement, the Austin American-Statesman reports.

The local HUD office had audited the agency in March, and its report found poor maintenance of the federally subsidized units, undocumented expenses and paid absences, and a serious lack of oversight, including a doubling of the Kyle Housing Authority's executive director's HUD salary from 2012 to 2015 without any outside approval. Under Texas state law, the mayor is supposed to appoint the board of commissioners that oversees the agency, but the last board appointments were approved in 2007 by longtime Executive Director Vickie Simpson. Webster also told the American-Statesman that the housing authority apparently hasn't submitted any annual reports, as required by law.

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.