The Peoria Housing Authority’s interim head and board chairman are trying to ease concerns surrounding the agency’s recent leadership transition that includes a criminal investigation.
Last week, the PHA announced it fired its chief financial officer after discovering financial funding discrepancies.
“While this is serious matter, we did act swiftly and responsibly,” Kadar Heffner, chairman of the PHA Board of Commissioners, said at a news conference Tuesday at the agency's office on Richard Pryor Place.
“The individual's employment has been terminated, and the matter has been referred to local law enforcement and is currently under investigation. We have and will continue to be fully cooperative with the authorities in this matter.”
Meanwhile, Damon Duncan has taken over as the interim chief executive officer after former CEO Armeca Crawford stepped away from the position in the past month to pursue a leadership opportunity with another housing agency.
“The Peoria Housing Authority exists for one reason, it’s to serve families of this community,” said Duncan. “We understand that trust has been shaken. We understand that emotions may be high. We also understand that when public dollars and vulnerable families are involved, expectations are higher, not lower.”
Heffner cited the ongoing investigation in saying he could not identify the former CFO by name, while Duncan noted the amount of money that was misappropriated was “less than five figures.”
“Upon discovery, the board acted immediately to secure records, initiate an internal review and to notify the appropriate authorities,” he said. “We take the stewardship of public funds very seriously.”
Duncan said the board has given him the authority to commission an independent review of internal financial procedures and that additional oversight measures are being put in place.
“We are reinforcing segregation of duties, separation of duties, enhanced reporting and executive level financial review,” he said. “Our goal is not only to address the issue, but to emerge stronger as an organization.”
Heffner reiterated that Crawford’s departure was unrelated to the financial discrepancies, saying she initially tendered her resignation in October.
“There had been some conversations about her staying on board, and rather than to make an announcement at that time, we wanted to see if it was possible for us to retain her services,” he said.
Heffner said a nationwide search will begin to find a permanent CEO. Duncan said it could take several months to complete that process, and that he has no interest in taking the permanent role.
“My company employs a number of people and we're involved in a number of housing authorities around the country, so it would not be responsible of me at this time,” he said. “But I am committed to doing my very best during this interim period and assisting the authority in selecting the best possible candidate for the authority going forward.”
Duncan took time to address media reports with tenants and former employees alleging broader misuse of funds and a poor workplace environment.
“We have no evidence that any tenant funds have been misappropriated,” he said. “Any allegation involving tenant funds we take very serious, and we will be implementing an independent financial review as relates to this matter, to provide full transparency.”
Duncan added the PHA has a “zero tolerance” policy regarding sexual harassment and inappropriate workplace behavior, and that a review of human resources complaint procedures is underway. He said they intend to establish a channel for people to anonymously report improper behavior.
“PHA is in the process of planning town hall meetings at each of its public housing sites where residents, stakeholders, community leaders can be heard and issues can be addressed and ultimately resolved,” he said.
Duncan said the U.S. Department of Housing and Urban Development [HUD] is aware of the transition at the PHA and the agency is committed to remaining in full compliance with federal requirements and standards.
He added officials do not anticipate any interruption of programs and services during the transition.
“If any resident believe that they are all they are owed funds or have concerns, we encourage them to contact the office directly. We will review every legitimate issue carefully, responsibly and respectfully,” said Duncan.
“Accountability is not optional. Transparency is not optional. Protecting public trust is not optional. This moment will not define the Peoria Housing Authority. What defines this organization is its mission, and that mission will continue. We will stabilize, we will strengthen and we will restore public confidence.”