HUD Could Force PHA Board's Hand

PHILADELPHIA - Board members at the Philadelphia Housing Authority are still refusing a request from federal housing officials to step down.

But the Department of Housing and Urban Development may soon have the ability to act to make the board's resignation a fact.

On Friday, officials at HUD called for the entire five member PHA board to quit, but board members refused to go, saying the request was unwarranted.

Fox 29s Dave Schratwieser talked with Philadelphia Mayor Michael Nutter (who is not on the board) for reaction to the board's refusal to go.

On the face of it, the mayor sounds like he believes the board members should do what HUD asked and quit, but he would also like to know more from HUD about why they made this request.

"It seems to me the board members have to be responsive to their sole funder and I think again not knowing the reasoning behind it, but I cannot imagine that HUD took this step lightly," Nutter said.

Nutter said he was "trying to get a little more up to date information in terms of what if any next steps will happen."

Former Mayor John Street is chairman of the PHA board. He has promised to say more later this week.

HUD says the board should be gone to clear the way for changes at the embattled agency.

Executive director Carl Greene was fired after the board learned he secretly settled almost a million dollars in sexual harassment lawsuits.

HUD, the FBI and a federal grand jury are investigating the FHA.

Nutter appoints two members to the board, City Controller Alan Butkovitz appoints two and the fifth member is chosen by the board.

Butkovitz was out of town and did not comment on Monday.

But HUD does have the power to remove the board under certain circumstances.

HUD officials can make the board quit it has "due cause" and they have removed boards, including one in Louisiana just last week.

A HUD spokesman told Fox 29 two reports from the inspector general's office are due any day, and a private forensic audit team arrived in Philadelphia on Monday.

They could give HUD all the due cause it needs to take legal action to remove the board members, depending on the results of those investigations.