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Texas

Hays County hires contractor for plagued $6.9M rental assistance program

The county has had to return millions of federal grant money since receiving the funds eight months ago

Ernesto Aguilar, chief executive officer, Ardurra Group (Ardurra Group, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Ernesto Aguilar, chief executive officer, Ardurra Group (Ardurra Group, iStock/Photo Illustration by Steven Dilakian for The Real Deal)

Eight months after receiving a $6.9 million grant to help residents cover rent and utility bills, Hays County has tapped Ardurra Group to take over its Emergency Rental Assistance Program.

Ardurra, a multidisciplinary services firm with offices in Austin and San Antonio, was awarded the contract on Tuesday, according to the Austin American-Statesman.

Just a few days ago, the county announced it would have to return $1.7 million in federal money, in addition to the $772,791 recaptured by the federal government in December due to lack of distribution.

The final price tag of the contract has not yet been disclosed, but county staffers were expected to negotiate the terms this week. Ardurra was selected from a pool of four firms bidding on the contract, according to county documents.

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“There were some good responses, and there were some that completely missed the mark of the program,” Commissioner Walt Smith said. “It was very disappointing.”

After receiving the grant in 2021, the county solicited bids from third parties for management of the program, but decided to proceed with an internal management team instead. The proposals were costly and would have eaten into money available for residents, said the program’s previous manager, Wesley Matthews.

Matthews resigned less than a month ago after his proposal to increase the staff by six more full-time employees at a cost of $64,205 over a four-month period was denied by commissioners due to an alleged lack of funds.

According to a budget performance report found by the Austin American-Statesman dated January 31, the county budgeted $325,000 for staff salaries, but has only spent about $73,000, leaving more than $251,000 unused.

As of Friday, $1.2 million has been distributed to landlords, utility companies and hotels. About $259,000 was authorized by the county for disbursement this week.

[Austin American-Statesman] – Maddy Sperling

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Rental Assistance