Consolidation idea resurfaces for three housing agencies

The on-again, off-again discussion about merging the valley’s three public housing agencies into a single “superagency” as a cost-saving measure is on again, this time being actively pursued by a couple of Clark County commissioners.

“Our financial times are much tougher, and my gut tells me it (consolidation) will save money,” Commissioner Rory Reid said. “Three agencies consolidated into one, there’s got to be efficiencies there.”

The housing authorities of Las Vegas, North Las Vegas and Clark County, which are charged with helping provide affordable housing to the poor, have for years bandied about the idea of consolidating or “regionalizing.”

The agencies collectively have a budget of about $109 million, and manage 3,170 public housing units and nearly 9,000 Section 8 vouchers. The vouchers can be used to rent housing anywhere landlords will accept them.

Many have long argued that combining the agencies would save money needed for housing by curbing staffing, paperwork and other costs.

But consolidation talks fell apart in the past amid questions about who would manage the combined agency, concerns about taking on the problems of fellow agencies and other issues.

“It’s time to stop making excuses, set aside what jurisdiction you’re in and show that the government is being efficient,” Commissioner Chris Giunchigliani said.

Both commissioners said talks are in the preliminary stages and acknowledged a merger would require approval from the U.S. Department of Housing and Urban Development and a legislative change at the state level. But they were confident about such a plan going forward.

Giunchigliani said she hoped the necessary changes would be addressed during the 2009 legislative session.

Nobody is sure exactly how much money would be saved by regionalizing public housing. Some argue it may not save any money at all.

“I’m not convinced it would be cost-saving,” said Tim O’Callaghan, chairman of the board for the Clark County Housing Authority. “We’ll still have the same amount of units, the same amount of vouchers. We’ll still have the same pie, and we’re already understaffed.”

O’Callaghan said talk of regionalization “sends fear down to our employees,” who worry their jobs may be in jeopardy.

At the same time, “as we look at the economy, we have the fiduciary responsibility to be responsible with the public’s money.”

The three agencies collectively have about 250 employees.

“We don’t need three directors and three sets of staff,” Giunchigliani said.

But, she added, if consolidation does eventually occur, “we’ll work with employees to make sure they’re not impacted in a negative manner.”

Reid said if there are labor reductions, “there’s a possibility they will happen through attrition or by leaving positions vacant.”

“We need to be sensitive to concerns of employees but do what’s in the public interest,” he said.

Reid said a single, more efficient housing authority would bring in more federal funding, thus “improving services to our most vulnerable citizens.”

He said the combined agency would be one of the largest housing authorities in the country.

All stakeholders agreed the issue of consolidation first must be studied regionally to determine exactly how much money it would save.

But the idea of conducting such a study also has been tossed about for years without moving forward.

The Rev. Dave Casaleggio, who serves as chairman of the board for the Las Vegas Housing Authority, said he would support consolidation if it proved to be advantageous to those the agency serves.

“I think it would be selfish for anyone to look at it any other way.”

But Casaleggio said it’s too early to talk about the nuts and bolts of the matter. Much must be overcome before a serious discussion can get under way.

“There are issues with politics, issues with egos.”

Larry Bush, a HUD spokesman, said his agency supports any plan that would “encourage effective management.”

HUD repeatedly has called into question the management of the North Las Vegas Housing Authority, the smallest of the valley’s three agencies.

In recent years, the North Las Vegas agency has run into financial and administrative problems and has been labeled a “troubled” agency by HUD.

A HUD audit released last year found that the housing authority failed to use $4.4 million in public money that was supposed to be spent to house needy people.

Bush also has criticized the agency for the makeup of its board. Four out of five board members, including its chairman, William Robinson, also serve as North Las Vegas City Council members.

Robinson could not be reached for comment on the consolidation issue.

Renewed talks about regionalizing come at a time when other big changes are afoot in the local public housing world.

Both the North Las Vegas and Las Vegas agencies have plans to demolish much of their public housing and replace it with mixed-income or Section 8 housing.

Such demolitions would force the relocation of thousands of people.

Critics of public housing say it traps families in a cycle of poverty.

Contact reporter Lynnette Curtis at lcurtis @reviewjournal.com or 702-383-0285.