The Peekskill Housing Authority is in the red with a half-million dollar deficit, thousands in unpaid rent and an $854,000 settlement from a federal lawsuit filed by their former executive director, the Journal News reports.
The Peekskill Housing Authority now has no reserve funds and may be forced to sell five private rental homes to make up for the deficit. HUD requires housing authorities to have four to six months of monthly reserves to cover operating expenses, however Peekskill has nothing set aside.
Patricia Croslan, a veteran housing official, was brought in last year to help the Peekskill Housing Authority dig out from their debt.
The authority had a $565,793 deficit when Croslan took over May 1, 2013, and a chronic problem with unpaid rent that had with some tenants owing more than $10,000.
According to the Journal News, "Croslan canceled a $161,000-a-year security contract, cut an after-school program and other services, and began going after overdue rents — reaching settlements with some tenants, evicting others. The moves cut the budget deficit by about $300,000, but it hasn't been enough."
On top of all the above mentioned funds the Housing Authority owes, they also owe former director Gheevarghese "Thomas" Thankachan $854,000. He won a $1 million dollar federal discrimination lawsuit in 2011 after he was abruptly fired in 2007.
To read the full article on the Journal News, click here.