Housing Authority Director Used Public Funds to Renovate His Personal Bathroom

A Bathroom Upgrade Funded by the Public

The former director of the Watertown Housing Authority agreed to return funds he stole and used to renovate his bathroom, after being charged with one count of wire fraud. The case reads like a cautionary tale about unchecked access to public money — and how even relatively small-scale theft can unravel a career built on public trust.

Under the terms of a Deferred Prosecution Agreement, Michael Lara, 41, of Norwood, agreed to repay over $6,200 stolen from the Watertown Housing Authority, resign from his current position as Executive Director of the Newton Housing Authority, and not commit a new violation of federal criminal law for six months. If he meets those commitments, the U.S. Attorney's Office may determine to withdraw the charge filed in court, which would avoid prosecution.

How the Scheme Unfolded

Lara served as Executive Director of the Watertown Housing Authority and president of both the Watertown Housing Development Corporation and WHDC Holdings, LLC from July 2019 to January 2025. In that role, he had access to the WHA's charge account with Home Depot as well as the WHDC's credit cards. Although the housing authority's policy permits use of its credit cards for official business, Lara used funds from the authority and development corporation for personal expenses beginning in 2022.

In 2023, Lara began a renovation of his master bathroom. He spent more than $3,000 at Moniques Bath Showroom and nearly $3,000 at Home Depot on four occasions for fixtures for his bathroom. Specific purchases included a robe hook, bathroom faucet, towel ring, vanity, mirror, bath faucets, and vanity lights.

Investigators Close In

The Massachusetts Office of the Inspector General began investigating Lara in 2024. When investigators sent the housing authority requests for information, Lara — in his capacity as WHA director — sent documents listing the credit card policy and employees with card access. He then removed some of the bathroom fixtures from his home. The move to cover his tracks, however, did not stop federal authorities.

After learning of the state investigation, Lara removed the fixtures he had purchased using the WHA charge account and WHDC's credit card. But during a federal search warrant executed at his residence in June 2026, investigators found that he had installed a new bathroom vanity, mirrors, shower fixtures, and sink fixtures — and had kept the vanity lights. FBI agents also spotted a ladder and sander he had purchased with WHA funds.

The Fallout and What It Means

The deferred prosecution agreement was filed by the U.S. Attorney's Office for the District of Massachusetts on August 27. As of shortly after the announcement, Lara was no longer listed as a director on the Newton Housing Authority's website. The case was prosecuted by the Public Corruption & Special Prosecutions Unit, a signal that federal authorities treat the misuse of public housing funds seriously — regardless of the dollar amount involved.

The case is a stark reminder of how positions of institutional trust can be exploited through seemingly mundane access — a charge account at a hardware store, a corporate credit card. Housing authorities exist to serve some of the most vulnerable residents in a community. When the people running them divert those resources for personal gain, the breach goes beyond the dollar figure. Lara's agreement requires full repayment, resignation, and clean conduct for six months — after which prosecutors may choose not to pursue the wire fraud charge further. Whether that outcome feels like justice may depend on who you ask.