Photo by Tom Jenz
Ken Barbeau
In 2004, Mayor Tom Barrett warned Milwaukee residents of a looming housing crisis: a shortage of subsidized units for the city’s most vulnerable citizens. More than two decades later, the crisis has not completely abated. The Housing Authority of the City of Milwaukee (HACM), the agency tasked with managing affordable housing, still struggles to meet the need.
HACM oversees more than 5,200 units of affordable housing, including 4,300 subsidized units across 22 developments, along with nearly 400 scattered-site homes. Federal data show that roughly 90 percent of its residents are people of color. Many are elderly or live with physical disabilities, while others have developmental challenges or are veterans. For them, stable housing is not simply a matter of affordability, but survival.
Yet tenants and advocates have long complained that HACM falls short of its mission. Persistent financial problems, deferred maintenance and bureaucratic missteps have deepened mistrust. Earlier this year, the agency announced it would trim its 238-person staff by 20 employees, a cost-cutting move that critics say could further diminish services.
At the center of this difficult period is Ken Barbeau, 66, HACM’s interim secretary-executive director. A longtime staffer with decades of experience inside the agency, Barbeau assumed the top job nine months ago. His mandate is clear: stabilize an institution often defined by controversy and restore confidence among residents and policymakers.
To hear about the progress, I had a conversation with Barbeau at the Hillside Family Resource Center, a hub of public housing life just north of downtown. He spoke candidly about HACM’s shortcomings, the difficult choices behind financial management and staff changes, and what it will take to restore trust.
You have an impressive educational background. How did you get interested in government work, and what has been your career path up to this point?
I grew up in Menomonee Falls. My dad was a traveling salesperson. My mom was a receptionist in a dental office. I was accepted into Harvard University and graduated in 1981. After college, for a year and a half, I cared for my grandmother who suffered from dementia. I earned a second college degree from UWM in Accounting. I worked for the Ernst & Young Accounting Firm in Milwaukee for six years. Then, I moved to Boston and worked for an international healthcare organization, and I traveled to many countries in Africa and Asia. I stayed at that job for nine years, then returned to Milwaukee to look after my mom, who had health issues. I took a job at the Housing Authority in 1999, and I’ve been here for 26 years in various capacities.
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In December of 2024, the Housing Authority of the City of Milwaukee’s Board of Commissioners appointed you as interim secretary-executive director. What does HACM do and what are your responsibilities as interim director?
HACM’s basic mission is to provide affordable housing and supportive services for low-income residents. We manage subsidized public housing and also market rate housing, which is not subsidized. Subsidized housing is where people pay 30% of their income as rent. We also have a voucher program where residents can get a voucher to rent housing from private landlords. Currently, there are 5,700 vouchers.
In the voucher program, do you subsidize these private landlords?
Yes. The tenant pays 30% of their income as rent, and the Federal government gives us money to pay the landlord the additional 70%. Last year, we budgeted $55 million for that private housing assistance.
We are a troubled organization. My interim responsibility is to focus on our sustainability plan—two corrective action plans for our voucher program and a recovery agreement plan for our public housing. My job is to keep the staff motivated and focused to achieving our goals.
Over the past few years, there have been some financial missteps at HACM. For instance, HACM improperly diverted $2.8 million from its Section 8 voucher program, the restricted federal funds intended for tenant assistance, to cover central office expenses like payroll and benefits. This happened between 2019 and 2022, and was discovered by HACM's new Chief Financial Officer, Brad Leak, in December 2024. Give my readers an update on this matter.
Brad Leak went back in time and discovered that the $2.8 million was improperly switched to a different program than it was intended for. But we still owe the $2.8 million to HUD, the Federal Housing and Urban Development department. An outside firm has audited the voucher program, and HUD will examine what we can afford to pay and will set up a payment plan for us that is affordable. It’s kind of like a mortgage.
Last February, City Comptroller Bill Christianson identified $5 million in unpaid expenses the city incurred on behalf of HACM. This raised legal and policy questions about the relationship is between the general city government and HACM. Can you explain how this happened and what is happening now?
We get services from the city. In the 1990s, a good chunk of our staff were city employees, and HACM utilized their services. Since then, that number has been reduced, and we now have only three city employees. But basically, over the years, we were not paying the city back for using their employees. We owe that money to the city, and we are in the process of working out a repayment agreement.
Where will you get the money to make back payments to the entities you owe, HUD and the city of Milwaukee?
From our non-federal funds. It will take us time to make the repayments, but we will do so.
From an accounting standpoint, HACM is separate from the city. Right?
Yes. We are not included in the consolidated city financial statement.
HACM posted a $1.7 million loss in 2024 for its public housing program. Why did this happen?
Our income comes from two sources: 67% comes from our operating subsidy and the capital repairs funds, and 33% comes from tenant rents. But if we have a large amount of account receivables because tenants have not paid their rent, that impacts our budget. If repairs cost more than we budgeted for, that also has an effect.
What is HUD, the U.S. Department of Housing and Urban Development, and does HUD provide funding to HACM in order to help with your Milwaukee recovery plan?
HUD manages a lot of housing programs nationwide. They fund housing authorities in every state. Every tiny town has a housing authority with private landlord vouchers and a couple units of public housing.
When you say, “fund,” what does that include?
If you examine the Milwaukee area, we serve people who are earning less that area medium income. HUD calls it “Extremely Low Income.” For them, there is a shortage of affordable housing. Currently, a lot of people pay more than 50% of their income as rent. That leaves them little income for food, medicine, clothing and gas. If those folks get into affordable housing, they can make ends meet. Subsidized housing provides houses at a rate of 30% of resident income. About 33% of people in our area are classified as “extremely low income” and live in subsidized housing. But 67% are still paying more in than 50% of their income in rent. They could be renting from landlords who don’t take care of the buildings. If they complain, the landlord might evict them. HUD funds subsidized housing but also fair housing through the Metropolitan Milwaukee Fair Housing Council. HUD also provides funding for homeless services. And HUD funds certain FHA loans for middle class people.
Sounds like a lot of bureaucratic paperwork.
Sometimes, we have to explain to our residents why we need the paperwork filled out. This can be invasive to people’s privacy, but that’s because of government funding requirements.
Of course, the ultimate issue is this. Have things improved for public housing residents in the past eight months? Are there less complaints from residents?
We still get complaints, but the complaints have gone down for our public housing and voucher programs. In the past, we had a number of complaints about property management and our maintenance program. Complaints are now fewer, and some of the residents who used to complain now like their new property managers. We are making sure that our staff are treating residents with respect. Residents are our customers. But just so it’s clear, if you are a resident, you have the right to complain.
One of the complaints by residents in the past was public safety, unsecured entrances and loitering on properties. Does HACM get involved with public safety for its residents?
Yes. We have a fairly new chief of public safety, Marlon Davis. He has been targeting buildings where there are complaints about entrances and loitering. Entrances are locked and secured, but we are finding that loiterers tend to follow residents inside to get access. We are installing more security cameras, and we have added a private security guard firm to fill in where we need them. As a result of all this, we are having fewer complaints.
HACM is overseen by a board of seven commissioners. Is the board now fully staffed with those seven?
Yes, the board is now fully staffed, and the members all ask good questions, which is what they should do. Most are new members.
What is the job of the board of commissioners?
They set the policy and approve any changes, which are partly dictated by HUD. They also approve any properties we are selling. They make sure that none of our employees have a conflict of interest.
What has been the HACM budget this past year and is it enough money to do the job?
The 2025 budget is $118 million. $63 million is the money that flows through HACM in our housing, public safety, resident service programs, and property renovations. The other $55 million comprises our payments to landlords.
What is the current average monthly rent for tenants, eg. for 1-and-2 bedroom apartments?
Somewhere between $300 to $400, but that depends on if a resident is a senior living on Social Security or a resident with a job and children. In the typical one-person household, that resident is earning $12,000 to $16,000. Multi person households might make $18,000 to $20,000. Roughly 45-50% of our residents are employed.
Let’s suppose I am interested in living in public housing. How do I qualify?
First, you need to get on the wait lists. Getting accepted is not always easy. You sign up by going to our website - waitlist.HACM.org - the blue button. And it is important to keep your information up to date.
Last year in 2024, a group of tenants under the umbrella of the nonprofit, Common Ground, lodged complaints about some of the residences having infrastructure problems including faulty plumbing, mold, water leaks, rats, and unresponsive residence managers. Have those complaints and problems been addressed?
We are doing a better job of following up on work orders to take care of these issues. We do keep the lines of communication open to Common Ground and to MICAH, (Milwaukee Inner-City Congregations Allied for Hope) because they sometimes represent complaints from residents. But we are ultimately responsible to our residents.
Will you someday take “interim” off your title and become the secretary-executive director of HACM?
No, I will not, but I will stay on board to help the new Director settle into the job.
For public safety issues, residents should call 9-1-1 for emergencies and HACM Public Safety at 414-286-5100 for non-emergencies. For property management complaints, residents should contact their property management office. For all other complaints, residents can call 414-286-5824.
