Housing Authority of New Orleans faces audit over life-threatening safety failures

A federal audit by the Department of Housing and Urban Development (HUD) Office of Inspector General has identified significant safety failures within the Housing Authority of New Orleans (HANO) Section 8 inspection program. Federal inspectors found that 74 out of 75 recently inspected units failed to meet federal safety standards, despite previous reports from HANO’s private contractor claiming the homes were safe.

The audit revealed 591 total deficiencies, including 303 life-threatening issues such as electrical hazards and inoperable windows. The report criticized HANO for inadequate oversight of its contractor, McCright & Associates, noting that the contractor missed 37% of the deficiencies later identified by federal officials. HANO Executive Director Marjorianna Willman attributed the failures to the previous administration’s choice of contractor and stated that the agency has since terminated the contract with the Tennessee-based firm.

With over 18,000 low-income residents relying on voucher housing in New Orleans, the audit suggests that HANO could face costs exceeding $171 million over the next year to address units that fail to meet federal standards if these issues are not corrected.