Butler County authority fires executive director amid controversy
Directors of Butler County's housing and redevelopment authorities did not know “the extent and the involvement” of former Executive Director Perry O'Malley's private businesses that they contend interfered with his agency duties, a board member said Friday.
“We didn't see that. We couldn't see that,” said Jerry Andree, Cranberry's manager. “In hindsight, it's a violation of public trust.”
The authorities' structure enabled the director to control information the board received, their solicitor Andrew Menchyk said.
The five board members overseeing the authorities, both operating under the rubric Housing and Redevelopment Authority of Butler County, fired O'Malley on Friday, accusing him of using public resources for “personal and private business endeavors” that conflicted with his duties.
He abused travel, travel expenses and leave time and neglected his duties at the authorities, according to a resolution read by board members. Neither Menchyk nor any board member would give details about the allegations.
“Obviously, I disagree with the board's decision. It's totally ludicrous,” O'Malley said, reached at the nonprofit Pennsylvania Affordable Housing Corp., where he is listed as president. “We'll be pursuing any legal options we have.”
O'Malley said he had not received specific allegations from the board.
The corporation provides “consulting services for the preservation and development of affordable housing, in partnership with public housing and redevelopment authorities, community development corporations and community-based nonprofit organizations,” according to its website.
The site lists O'Malley as president of the nonprofit Pennsylvania Housing Assistance Corp., which provides financing and development services, according to its website.
Tax records from the past several years show O'Malley said he did not receive a salary from the Affordable Housing Corp. The authorities paid him $128,435 annually.
As of Sept. 30, 2013, O'Malley was listed as a board member for the Pennsylvania Association of Housing and Redevelopment Agencies, according to tax records. His biography on the affordable housing corporation website said he's a member of the board of directors and first vice president of the Housing and Redevelopment Insurance Exchange, based in Scranton, a nonprofit insurance provider for housing and redevelopment authorities.
The federal Department of Housing and Urban Development in January said outside consulting work with other housing agencies caused O'Malley to miss deadlines for a federal program.
The board received information and placed O'Malley, head of the agencies for 23 years, on paid administrative leave Jan. 15, though Menchyk would not say who came forward or what information was passed along.
“The board's interim management team and legal counsel reviewed thousands of documents, conducted dozens of interviews, and provided due process according to the state Civil Service Commission regulations,” board Chair Margaret Clawson read from a statement. “The board members have carefully reviewed these findings, the responses from (O'Malley), and has made its decision to terminate the employment of the executive director.
“The board is extremely confident in the process that was followed according to the law.”
Menchyk said O'Malley can appeal through civil service. He expects O'Malley could keep his pension, though he did not know its worth.
Whether O'Malley should repay travel expenses is among “things the board will look at as we move forward,” Menchyk said.
The board chose Michael McNierney, executive director of Erie County and City of Corry Housing Authorities, as interim director. He'll be paid $67 an hour for about 20 hours a week until a permanent replacement is hired.
“I don't see anything that demands immediate attention above and beyond the day-to-day operations,” McNierney said.
The board rescinded leave for O'Malley's operations manager, Sandy Reges, who could not be reached. She had been on paid administrative leave since Feb. 20.
Butler County Commissioner Jim Eckstein has asked state and federal authorities to investigate the agencies. Menchyk would not say whether information was forwarded to any outside agencies. HUD spokeswoman Niki Edwards said the agency is not investigating.
County Controller Ben Holland said he would release more than $41,000 in state money he had withheld from the housing authority.
Bill Vidonic is a Trib Total Media staff writer. Reach him at 412-380-5621.
