Manhattan Housing Authority is in a state of “substantial default,” according to a letter from the federal government obtained by The Mercury.

U.S. Department of Housing and Urban Development officials say MHA, which oversees federally subsidized low-income housing, is in default “with respect to the covenants or conditions to which the public housing agency is subject.”

In 2018, MHA received a low score on its routine assessment and was required to show substantial improvement on subsequent annual assessments.

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