Some fear Chelsea slipping back

“I have two words: It’s nuts,’’ said Santagate. “I am shocked by it.’’

Ash, who succeeded Santagate in 2000, said yesterday that he was unaware of McLaughlin’s salary, even though he appoints four of the five board members who oversee the authority. But Ash said he has no direct financial oversight over the agency, an assertion confirmed by state officials, and pointed out that the City Council approved all his nominations.

Ash called on the three remaining board members to resign - two quit earlier this week - and proposed more city oversight of the authority yesterday.

“We have all failed,’’ Ash said. “From my perspective, I was going on the reports from other levels of government that the housing authority was high performing.’’

But yesterday, critics said that Ash and others should have scrutinized the authority more closely, given the concerns about McLaughlin.

First elected to the House of Representatives in 1970, McLaughlin was later caught on a wiretap talking to a convicted mobster. Later still, he was subpoenaed amid questions about the Middlesex County Commissioners’ attempt to sell the East Cambridge courthouse to a developer at a below-market price. He was never sanctioned in either case.

McLaughlin acknowledged in an interview this week being investigated for political corruption, but said that “everyone who ran for office in Middlesex County was investigated.’’

Gladys Vega, executive director of the nonprofit Chelsea Collaborative, said she lobbied against McLaughlin because of concerns over his past performance. She said she received many calls yesterday from city residents upset about the salary.

“I can say I told them so,’’ she said. “I said it was a step back, the wrong call, in hiring him.’’

Though the city does not have direct oversight over the housing authority, former councilor Roy Avellaneda said he holds Ash responsible because he named members to the board.