New Orleans’ Guste Homes $1.5M Water Bill Could Cause Shutoffs

This article examines a financial dispute impacting Guste Homes, a public housing complex in New Orleans. A looming water shutoff could threaten tenants if a $1.5 million delinquency is not resolved.

The Sewerage & Water Board (S&WB) has warned that disconnections will proceed unless a payment plan is agreed. Housing authorities are negotiating, and a forensic audit is underway to clarify billing and operating costs.

Guste Homes at a Crossroads: Unpaid Bill and Water Service in Jeopardy

The total bill had climbed to about $1,527,682 as of January 23. The S&WB indicated it would withhold disconnection only if a down payment of $753,076 is made within 45 days.

Despite the debt, service has remained on while HANO negotiates a 12‑month repayment plan. The utility has already reduced charges by more than $436,000 in the past two years and would consider additional adjustments where applicable.

Details of the proposed plan

The plan hinges on tenants remaining current on future bills while the 12‑month repayment is arranged. S&WB officials would appear before the HANO Board to discuss next steps.

The authority says protecting tenants and preventing any immediate threat of disconnection remains a top priority. The arrangement seeks a sustainable path to resolution that avoids jeopardizing public housing operations.

Who Holds the Levers: Stakeholders and Positions

Key players include HANO, the S&WB, the Guste Homes Resident Management Corporation, and HUD. HANO argues the priority is tenant protection and averting service shutoffs.

The S&WB is pressing for a concrete payment solution. Resident leadership questions the charges and the economics driving them, all within the broader context of federal oversight.

Resident perspective and management concerns

Cynthia Wiggins, president of the Guste Homes Resident Management Corporation, disputes the charges, pointing to spikes such as a $75,000 bill in one month in 2021 and insisting inspectors found no leaks.

She notes that the resident-led management company, which handles daily operating costs, will not pay the bill until billing issues are thoroughly investigated. Wiggins believes HANO should not shoulder the burden either.

• Billing disputes—Residents contest spikes and seek independent verification of charges.
• Operational costs—The resident management group argues it bears day‑to‑day costs and needs transparency before any payment is made.
• Role of HANO—Call for accountability in how charges are calculated and billed to the housing authority and tenants.

Oversight, Occupancy, and the HUD Threat

HUD has signaled serious concern about Guste High Rise, a 12‑story building within the complex, noting its occupancy at about 77%—well below HUD’s 88% requirement—and labeling it “distressed.”

Willman and HANO say they will contest any closure. A forensic audit of the management company’s finances and operating costs is underway with a focus on Guste due to its high operating expenses.

Agency and oversight response

The audit aims to establish clear accountability and determine whether billing practices, cost controls, and occupancy strategies align with federal expectations.

S&WB officials are slated to present to the HANO Board, outlining the proposed payment plan and the path forward while protecting vulnerable tenants who rely on affordable housing.

Implications for Public Housing Management and the Way Forward

This case highlights the balance between utility billing, occupancy benchmarks, and governance in public housing.

The outcome could affect how bairro-level housing authorities handle financial obligations and work with utility providers.

It could also shape how authorities conduct reviews to restore transparency and financial stability.

• Financial transparency—Independent review of billing and operating costs is important for trust and accountability.
• Tenant protection—Maintaining essential services is a top priority for HANO and residents.
• Public housing viability—Strong occupancy rates and good financial management help preserve subsidized housing.

 
Here is the source article for this story: After public housing complex racks up $1.5M water bill, hundreds of residents could face shutoffs