Broken Promises: Failures of the Little Rock Housing Authority and the Impact on Residents

Benefits Fraud and Improper PaymentsHouse Financial Services Subcommittee on Oversight and Investigations · March 13, 2026 · 119th Congress
The House Financial Services Subcommittee on Oversight and Investigations held this field hearing in Little Rock, Arkansas, to examine years of financial mismanagement, alleged fraud, and failed federal oversight at the Metropolitan Housing Alliance (MHA), also known as the Little Rock Housing Authority. Begins at ▶ 0:17:48
Transcript
Highlights

Title

Mismanagement and recovery efforts at the Little Rock Housing Authority

Purpose

The House Financial Services Subcommittee on Oversight and Investigations held this field hearing in Little Rock, Arkansas, to examine years of financial mismanagement, alleged fraud, and failed federal oversight at the Metropolitan Housing Alliance (MHA), also known as the Little Rock Housing Authority. Lawmakers heard testimony from current MHA leadership, a city director, a housing commissioner, and a state attorney general's office representative about a $30 million accounting failure with the nonprofit Central Arkansas Housing Corporation (CAHC), an FBI investigation, and steps taken toward recovery. Begins at▶ 0:17:48

Who spoke

• Chairman (Subcommittee Chair, name not stated in transcript)▶ 0:17:48: Opened the hearing, described HUD's 2018 finding that MHA failed to document roughly $30 million transferred to CAHC▶ 0:19:14, and noted 2023 findings of improper payments and unauthorized credit card use plus an FBI search▶ 0:19:44; said the current HUD administration under Secretary Scott Turner is more engaged than the prior one▶ 0:20:44.

• Chairman French Hill (R-AR), Full Committee Chairman▶ 0:22:53: Said nearly $30 million in questionable or disallowed expenses put constituents at risk of losing housing▶ 0:23:08 and called the situation "a failure at multiple levels" — both MHA leadership and HUD oversight▶ 0:23:37; later pressed witnesses on RAD contract oversight and the ITEX-to-Gorman developer switch▶ 2:00:40▶ 2:01:07.

• Joan Adcock, Director, Little Rock City Board▶ 0:28:41: Described Madison Heights as a model mixed-income community meant to expose children to professional role models▶ 0:29:26; said 30–40% of MHA housing is vacant due to lack of repair funds amid a multi-year waiting list▶ 0:32:05; said the city board had no supervisory role and was unaware terminated staff remained on CAHC's payroll▶ 1:01:46▶ 1:02:10.

• Dr. Nadine Jarmon, Executive Director, MHA▶ 0:36:37: Said she was fired in 2021 after filing a 161-page whistleblower complaint▶ 0:38:17; described returning in June 2024 to find landlords unpaid for six months, four years of missing audits, over $600,000 owed to vendors, and $22 million in HUD non-compliance findings▶ 0:39:34▶ 0:40:04; said HUD swept MHA's $3.7 million reserve despite assurances it would not▶ 1:14:54; reported over 6,500 people on the waiting list▶ 1:24:22.

• Amanda Wentz, Senior Assistant Attorney General, Office of the Arkansas Attorney General▶ 0:42:38: Detailed the Big Country Chateau case, where owners owed roughly $71,000 in electric and $223,000 in water bills while diverting rent funds out of state▶ 0:44:02; said the property's owner, identified as Aaron Puritz, is now in federal prison for mortgage fraud▶ 1:29:01; noted the AG's office won an $11 million judgment but most assets were hidden▶ 1:34:47.

• Kerry Wright, Commissioner, Little Rock Housing Commission▶ 0:47:44: Said MHA had kept no reliable books since 2018 and multiple undocumented bank accounts▶ 0:48:39; said terminated CAHC officials blocked the board's access to records, passwords, and bank accounts▶ 0:56:18; cited a 53 FASS score in February 2026, placing MHA in troubled/default status on its rescue loan▶ 0:52:47; alleged board members wrote themselves checks (e.g., $40,000) and diverted appliances and vendor services for personal use▶ 1:27:50▶ 1:07:32.

• Chairman Tim Moore (R-NC)▶ 1:06:24: Asked how long the mismanagement lasted and about board self-dealing, including a CAHC president's taxpayer-funded birthday party and personal use of housing authority vehicles▶ 1:07:19▶ 1:07:27; asked for statutory recommendations, prompting Wright's call for board term limits▶ 1:08:44▶ 1:08:55.

• Chairman Bryan Steil / Subcommittee Chair Flood, R-NE▶ 1:13:05: Questioned MHA's financing to save Madison Heights from foreclosure, noting the debt-service coverage ratio was 0.89 at closing▶ 1:16:23; pressed on HUD work requirements and time limits for able-bodied residents amid the long waiting list▶ 1:44:45.

• Rep. Troy Downing (R-MT)▶ 1:18:33: Compared MHA to Montana's Richland County housing authority, which scored 1 out of 25 on HUD financial management▶ 1:19:03; asked Wright about red flags for vetting private developers, prompting Wentz's answer on strawman ownership structures▶ 1:49:00▶ 1:49:11.

Key moments

• HUD identified in 2018 that MHA failed to document up to $30 million transferred to its nonprofit affiliate CAHC▶ 0:19:14, and a 2023 review found improper payments and unauthorized credit-card use before the FBI executed a search of MHA and CAHC offices▶ 0:19:44.

• Jarmon said she was terminated in 2021 shortly after filing a 161-page whistleblower complaint against MHA's prior board, and was reinstated in June 2024▶ 0:38:17▶ 0:39:05.

• Wright testified that terminated CAHC officials, including a finance director named "Regina," blocked the reconstituted board from bank accounts and QuickBooks access for three to four months▶ 0:57:23▶ 1:04:54.

• Wentz detailed the Big Country Chateau case: over 1,000 code violations found in a joint inspection, tenants' utility bills unpaid despite being built into rent, and owner Aaron Puritz's later federal imprisonment for mortgage fraud▶ 0:43:38▶ 1:29:01.

• Jarmon said HUD swept MHA's $3.7 million reserve fund after telling the agency it would not, redistributing it to other housing authorities▶ 1:14:54.

• Wright alleged former board members wrote themselves checks (one for $40,000, another for $10,000–$20,000) uncovered during the FBI raid, and used housing authority funds and vehicles for personal benefit, including a birthday party▶ 1:27:50▶ 1:07:32.

• MHA's FASS score was 53 as of February 27, 2026 — below HUD's 60 threshold — placing the agency in default of its rescue loan agreement as of March 16, 2026▶ 0:52:47.

• Adcock said 30–40% of MHA units sit vacant due to lack of repair funds while the waiting list exceeds 6,500 people, and children have been left living in cars▶ 1:21:50▶ 1:24:22.

• Hill and Wright discussed MHA's shift from developer ITEX (which sought 60% fees) to Gorman (50/50) on the Madison Heights RAD project, leaving MHA in ongoing $1-million-plus litigation over the broken ITEX contract▶ 2:01:07▶ 2:02:15.

• Multiple witnesses said the prior HUD administration failed to act despite red flags dating to 2015 and 2019, with Wright speculating politics around a 2024 election year played a role, while the current administration entered a formal recovery agreement with MHA in November 2024▶ 1:40:11▶ 0:40:27.

Metadata

CommitteeHouse Financial Services Subcommittee on Oversight and Investigations
Chamber / CongressHouse · 119th Congress
DateMarch 13, 2026
TypeHearing
Witnesses
Ms. Amanda Wentz — Senior Assistant Attorney General, Office of the Attorney General
Mr. Kerry Wright — Commissioner, Little Rock Housing Commission
Dr. Nadine Jarmon — Executive Director, Metropolitan Housing Alliance
Ms. Joan Adcock — Director, Board of Directors
Videoyoutube
Transcript372 caption blocks · 17,693 words · 2:08:45 runtime
EventCongress.gov 119032