A long-running issue between the Taylor Housing Authority, the Mallard Run and Taylor Sunset housing development corporations may soon affect low-income residents if the federal government issues threatened sanctions, officials said.
A March 23 email from the Department of Housing and Urban Development to THA Executive Director Shae Goltzman said upcoming penalties may include a loss of federal funding or even closure of the Taylor offices.
Goltzman said the worstcase scenario of losing the local housing authority could result in fewer new units being added and a halt to improvements at existing properties.
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It will be catastrophic for generations for the city of Taylor.”
— Shae Goltzman, Taylor Housing Authority “If this goes to another city, they’re not going to have that heart and that drive to add more vouchers for the residents in Taylor, which are desperately needed,” Goltzman said.
“If the local entity that advocates for and has the right to open windows and doors for our extremely low, all the way to our moderateincome people leaves Taylor, which is a possibility, it will be catastrophic for generations for the city of Taylor,” Goltzman added.
Mayor Dwayne Ariola said he is hopeful the controversy can be resolved.
“More than a year ago, THA underwent a significant transition in both leadership and governance. I appointed an entirely new THA board, which has provided the oversight needed to move the organization forward,” Ariola said. “Under the leadership of (Goltzman), THA has implemented a coordinated strategy to address the remaining audit findings and strengthen compliance.”
The HUD judgment stems from an Office of the Inspector General investigation that began in 2014 when HUD looked into a report THA had lost control of $2 million in low-income housing properties.
The properties, Mallard Run Apartments and Heritage Oaks Apartments, had been legally transferred over to Mallard Run Housing Development Corp. and Taylor Sunset Housing Development Corp. sometime around 2001.
Mallard Run and Taylor Sunset were created as subordinate entities to THA, according to records. Texas law allows housing authorities to authorize these types of subordinate nonprofit instruments to manage properties owned by the housing authority. The subsidiary agencies are intended to operate as public nonprofits, subject to public transparency and oversight by the housing authority.
OIG probe
According to federal investigators, the problem arose in 2008 when, under direction from a former THA official, the two entities voted to remove themselves from THA oversight and partnership yet keep the properties.
This allowed the entities to take control of the apartment complexes and their rental cash flow with no compensation to THA and no public control over the assets, according to reports.
As cited by the 2014 OIG investigation, the official’s actions did not follow HUD’s requirements and did not create adequate internal controls.
“Consequently, the (THA) lost control and possession of a $255,000 property it owned, lost control of two component units with net asset values of more than $1.7 million and incurred $392,059 in questioned costs” which included commingling of federal and non-federal funds, the report said.
Corrections and legal tussles
The OIG created a list of findings it instructed THA to correct.
Chief among them: regain ownership of the property deeded to the no-longer-subordinate entities. The final deadline to make these corrections was October 2025.
Goltzman said all other issues have been met. The property issue is the sole barrier to resolving the OIG findings.
THA has been making sustained efforts to regain the property including negotiation, litigation and federal reporting. In 2015, THA filed a lawsuit to resume control of the disputed property, which was denied.
Goltzman approached the corporations with a proposal to reintegrate them into THA, but she said it did not go anywhere. She has filed additional legal actions and is working with law enforcement agencies.
Messages left for Mallard Run and Taylor Sunset housing development corporation President Ed Komadasky and Executive Director Deanne Torres were not returned at press time.
Petition drive
As noted by Ariola, the city has expressed its strong support for the Taylor Housing Authority and its ongoing efforts to address and resolve the outstanding audit findings and compliance matters identified by HUD.
Community members have also been supportive of THA’s mission to reintegrate the housing complexes.
Taylor resident Tom Mowdy has asked the Williamson County District Attorney’s Office to look into what he describes as irregularities in how the organizations’ boards operate.
A Vietnam veteran who saw combat as an assault helicopter flight leader, Mowdy holds leaders to the standards of government he and fellow combat veterans fought for. He blames the THA board, current and prior, as well as City Council members and mayors dating back to when the problem began.
“If imposed, those sanctions will be the very harmful result of a failed city of Taylor government,” Mowdy said.
THA has created an online petition to return Mallard Run and Taylor Sunset to public oversight under the housing authority.
The petition can be found at change.org/p/ restore-public-oversightto- rogue-housing-intaylor.
Goltzman said she hopes the petition doesn’t fall on deaf ears at Mallard Run and Taylor Sunset.
“I need those board members to see this is an important issue and the citizens of Taylor want their properties back under oversight of the Taylor Housing Authority,” Goltzman said.
