Housing receiver requested for Chelsea

November 08, 2011|By Maria Sacchetti, Globe Staff

CHELSEA - Several City Council members and community leaders urged Governor Deval Patrick yesterday to place the Chelsea Housing Authority in state receivership amid intensifying outrage over the ousted director’s $360,000 a year pay package.

In a letter, City Council president Marilyn Vega-Torres and others called for a full investigation of the agency, one that would go beyond former director Michael E. McLaughlin, whose pay, perhaps the highest for any public housing official in the United States, had been approved by the authority’s five-member board.

Many residents have complained about the authority’s maintenance record and sometimes harsh rent-collection policies, and some are now mulling a rent strike on Dec. 1, according to Vega-Torres and the other councilors.

“As present and past elected officials, community leaders,and affected residents, we are deeply concerned about the actions of the CHA,’’ the letter said. “The fact that this duty to the public good may have been intentionally mishandled is outrageous and unconscionable.’’

The letter was also sent to the attorney general and a state housing official.

Yesterday, the last three remaining members of the five-member authority’s board resigned, and city and state officials prepared to name an interim board to run the agency while state and federal investigations are underway. State housing officials also moved yesterday to secure documents at the housing authority.

Patrick, who had demanded that McLaughlin and the board resign last week, is reviewing the letter and did not comment on it, but he criticized the housing authority’s board last night after the members had all resigned.

“The glaring disregard they showed for their public responsibilities is inexcusable,’’ Patrick said in a statement. “Even though this is an independent authority, we must have transparency and accountability.’’

Also, the agency that oversees state pensions has ordered Chelsea not to pay McLaughlin’s pension until further notice. The 66-year-old former director had planned to retire this winter when he could have been eligible for the largest public pensions in Massachusetts history, $279,000 a year.

The Public Employee Retirement Administration Commission told Chelsea officials that here are questions as to whether McLaughlin should receive such a large pension, which is based on 80 percent of his salary.

“Should [McLaughlin] apply for a retirement allowance, you should accept his application,’’ state retirement officials wrote in their Nov. 4 letter to the Chelsea Retirement Board. “However, we are instructing you not to proceed with the calculation of such a retirement allowance until we inform you that you may do so.’’

Advertisement
Advertisement
|
|
|
|