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Augusta Housing Director Resigns Over Mismanagement Scandal

The Augusta Municipal Building, site of recent housing department controversies.

News Summary

Hawthorne Welcher, the Housing and Community Development Director of Augusta, has resigned following serious allegations of mismanaging over $6 million in federal rental assistance funds. These funds, intended for helping individuals avoid eviction during the COVID-19 pandemic, were not utilized properly. The Augusta Commission is now undertaking an audit to investigate these financial practices amidst ongoing scrutiny and federal investigations which have also involved the FBI.

Augusta Housing Director Resigns Amid Federal Grant Mismanagement Controversy

Augusta’s Housing and Community Development Director, Hawthorne Welcher, has resigned after being suspended for over a month due to serious allegations of mismanagement involving over $6 million in federal rental assistance funds. These funds, which were intended to help individuals avoid eviction during the COVID-19 pandemic, were neither used for their intended purpose nor returned on time when requested by the federal government.

The issues surrounding the federal grant money, which was earmarked for crucial COVID-era programs, emerged after a lengthy period of inaction. City officials only became aware of the mismanagement several months after the funds had gone unutilized. Consequently, the Augusta Commission was compelled to use city funds to repay the federal government the full amount of $6.5 million on April 1, after determining that the funds had not been spent by the mandated deadline.

Audit and Investigation Initiated

In light of these events, the Augusta Commission took decisive action by initiating an audit of both the Housing and Community Development Department and nine related programs. This audit aims to closely examine the financial practices and management of these departments in the aftermath of the federal grant mismanagement.

Notably, the FBI’s involvement has added another layer of complexity to the situation. Shortly before Welcher’s resignation, FBI agents were seen at the Augusta-Richmond County Municipal Building conducting unspecified activities related to law enforcement. Despite active investigations, Augusta Mayor Garnett Johnson has categorized the situation as a personnel matter, refraining from offering specific details about the FBI’s inquiry or any potential connections to Welcher’s resignation.

Timeline of Events

Reports indicate that Welcher was aware of the federal grant refund request as far back as November 8 but failed to inform his superiors of the situation until March 21. This delay in communication raised additional concerns among city officials, contributing to the eventual decision to suspend him.

The decision to return the unspent grant funds to the U.S. Treasury has placed significant financial strain on the city’s resources, as it required a transfer from the general fund. Furthermore, correspondence regarding the matter revealed that Welcher’s department did not have sufficient available funds to cover the required refund, underscoring the depth of the financial issues at hand.

Ongoing Scrutiny and Legal Matters

Welcher’s resignation comes at a time when the city of Augusta is under increasing scrutiny from federal authorities regarding its financial management practices. The financial hardships caused by the improper handling of federal funds will likely necessitate further evaluations of how the city’s housing and community development programs are managed going forward.

Additionally, the city is currently dealing with legal challenges, as Wells Fargo Bank has filed two lawsuits against Mayor Garnett Johnson and his wife. At this time, it remains unclear whether these legal matters are interconnected with Welcher’s recent resignation and the broader issue of financial mismanagement within the city’s departments.

The outcome of the audit and the ongoing investigations will determine the future direction of the Housing and Community Development Department, as well as the measures that will be put in place to prevent similar issues from arising in the future.