BY ROGER SMITH
MOUNTAIN CITIZEN
WARFIELD — A HUD audit initiated recently of Riverside Apartments management Winterwood and the Martin County Housing Authority uncovered HUD capital funding of $96,000 left over from 2022, unbeknownst to management. Winterwood representatives and housing board members briefly discussed the audit in the Oct. 11 housing board meeting. They also discussed the Martin County Fiscal Court’s loan program for current Riverside Apartments tenants to assist with utility deposits.
The Martin County Judge/Executive’s office and Winterwood, the Lexington-based housing manager at Riverside, are working out the details of the tenant loan program and will alert residents on the next step via letter. Winterwood representative Jennifer Amburgey told housing board members that her company would not handle the loan program or collection of loan payments. However, she said the judge’s office could install a lock box at the Riverside office and pick up the payments as often as they choose.
Amburgey said she would draft a letter advising Riverside tenants on the procedure if the judge’s office provided her with the pertinent information. Housing board chairperson Eric Mills requested Amburgey work out the details with the judge’s office by next month’s meeting.
The housing board, Amburgey and Winterwood’s manager at Riverside, Michelle Stapleton, briefly discussed the HUD audit that started in mid-August and the $96,000 left over from 2022.
“I think everything is straightened out as to what we have, what we don’t have,” Amburgey stated. “There was some confusion. We had some leftover money from 2022, and we weren’t really sure—was that there for us to use? Was it not? HUD system said one thing; ours said the other. I believe that is all straightened out now.”
Mills wants to discuss the HUD audit in detail in the November board meeting.
“I know there were some capital funding questions,” Mills commented, “And that’s where the discrepancies happened?”
Amburgey replied, “Correct.”
Mills continued, “It was more a recordkeeping thing than it was an issue with funds?”
Amburgey answered, “I could be wrong. Don’t quote me on this. I believe there was a change in the accountant for this property. Somebody left Winterwood, and somebody new took over who wasn’t really familiar with the system. He’s learned it now. HUD has kind of worked with him on it. We had that meeting and went over it, and the funds were actually there.”
Amburgey said the $96,000 had been sitting in a HUD account. She reported the authority now has $167,736 in capital funds for Riverside Apartments.
“It would be good to get that explained for the record,” stated Mills.
In other business, Mills noted that utility costs at Riverside have “stabilized.” In September the electricity cost was $3,216 while water and sewer came to $4,907. The August bills were not included in the information provided to the newspaper. However, the last reported bills—for the month of July—showed electricity cost at $2,987 and water and sewer at $5,567.
Mills questioned Amburgey and Stapleton about lost income of $5,200 due to vacancies in September.
“We’ve had around seven empty units,” Mills said, addressing Amburgey and Stapleton. “Is that what’s driving that vacancy loss?”
Both Amburgey and Stapleton confirmed.
“Have we got those repositioned with HUD to be able to get them into ‘mod’?” asked Mills.
Amburgey replied, “Negative. HUD wanted the financials straightened out, figured out before they would put those into mod.”
Mills commented, “Well that doesn’t help us with our financials tonight, but so that everyone is on the same page and for our folks watching when we put a unit into mod [moderate rehabilitation), HUD will continue to pay us rent even though there is not a tenant there. So we won’t be losing that rental income. It would be justified only because there is some major renovation needed for the unit. That would justify them continuing to pay us, and they’re not going just to leave it indefinitely.”
Amburgey said two vacant apartments are ready to rent, but recent applicants failed background screenings.
“That’s the biggest struggle here, the background screenings,” she said. “People are not passing.”
The board adopted new bylaws and elected officers. Mills will serve as chairperson and Marlena Slone will serve as vice-chairperson.
Before the meeting closed, Amburgey announced the Department of Housing approved an application for shortfall funding. The first round tier I will be $77,375, while the second round will be $52,737. This is in addition to the $167,000 capital funds the authority already has.
The housing board will conduct a special meeting at 3:30 p.m. Nov. 8.