Allegations of Mismanagement Follow HUD Contract Termination

The Southern Nevada Regional Housing Authority terminated a $10 million contract with Lutheran Social Services of Nevada (LSSN) on September 30, 2025, amid allegations of mismanagement. The contract was awarded in August 2024 to assist 235 households relocating from Marble Manor, a low-income public housing complex scheduled for demolition and redevelopment. After paying LSSN nearly $600,000 in taxpayer funds, the Housing Authority cited “convenience” as the reason for the contract’s termination.

Tim Bedwell, CEO of LSSN, stated that the organization was “absolutely” meeting the contract terms. However, Natasha Samuel, a former program director at Marble Manor, has raised concerns about the nonprofit’s handling of the HUD grant. Samuel, who was hired in October 2024, claims that she was fired in June 2025 for refusing to add a full-time administrative assistant to her team, a position not approved by the U.S. Department of Housing and Urban Development (HUD).

Upon joining LSSN, Samuel reported that the program was already struggling. Her team lacked essential resources, including computers and desks, until the Housing Authority provided funding for office equipment. “We had minimal supplies. I had minimal staff. It was very hard,” Samuel said, recalling that her team eventually grew to seven members. She emphasized that although they met their deliverables for the grant, they operated under significant constraints.

Bedwell refuted Samuel’s claims, stating that the oversight of HUD grants involves rigorous monitoring by both the Southern Nevada Regional Housing Authority and LSSN’s finance office. He declined to participate in a follow-up interview for this article.

Funding and Staffing Challenges

The funding issues escalated over the course of the contract. Emails obtained by the Las Vegas Review-Journal revealed tensions regarding reimbursements between LSSN and the Housing Authority. In December 2024, Karen Schnog, director of the Choice Neighborhood Initiative, expressed the Housing Authority’s frustrations over incomplete invoices for expenses incurred since the grant’s inception.

Bedwell communicated a critical need for reimbursement to maintain basic operations, noting that $70,000 had been spent on salaries and equipment for the Marble Manor program. As the nonprofit’s focus intensified on Marble Manor, other services suffered. Mary La Barbera, a former employee, described a drastic reduction in staffing from 33 employees to just 13, which left her overwhelmed when tasked with managing all social services for the organization.

La Barbera’s resignation in January 2025 highlighted the lack of training and support she received for her role, which she felt was inadequate to meet the demands of the position. “I am not qualified to be a case worker,” she stated in her resignation letter.

Controversial Payments and Community Impact

Amid budget challenges, LSSN continued to pay substantial sums to Bedwell’s wife, Michele, for marketing services and to a business partner for consulting work. Payments of $8,500 per month were made to Michele for her company, Hi-Tek Media, while another $8,500 was allocated to Adam Kent’s business, Invictus Consulting.

Concerns regarding Michele Bedwell’s business practices have surfaced, as her previous company filed for Chapter 7 bankruptcy in 2016. Although she maintained that she had only received $2,500 over the past five months from LSSN, the ongoing payments raised questions about financial priorities within the nonprofit.

Samuel reported that the nonprofit failed to provide consistent food support to Marble Manor residents, forcing her team to seek assistance from other community food pantries. Bedwell countered that LSSN had sufficient resources to support the residents, but former employees described ongoing struggles to meet the needs of vulnerable populations.

The Housing Authority’s decision to terminate the contract has left many Marble Manor residents without clear access to essential services. Clark County Commissioner Tick Segerblom assured that the $50 million in HUD funding for the overall revitalization project remains secure, and the Housing Authority will now handle case management for Marble Manor residents.

As uncertainty looms over the future of social services for Marble Manor households, resident Unique Parker expressed her frustrations. “Honestly, [we’ve received] none,” she remarked, reflecting on the lack of community support since the contract’s termination.