African Americans could benefit from the Philadelphia Housing Authority’s recent decision to end its practice of hiring provisional workers.

While Interim Director Kelvin Jeremiah made it clear that the decision to eliminate the practice was purely financial, it could pry open the city’s trade unions to Black workers — largely because Jeremiah plans to enforce the agency’s requirement that employees live in the city.

“I am mindful of the fact that by having the requirement that we have … and that by so doing we could have more African Americans, Blacks and browns, minorities getting union positions in the city. I think that’s an added benefit,” said Jeremiah.

Despite the possibility of pressure from the city’s politically influential trade unions, Jeremiah said he would rigorously enforce the residency requirement.

“The requirement for residency is not one I’m willing to waive,” he said, adding that provisional workers who choose to make the change to permanent PHA employees would be given six months to move into the city.

“If they, for whatever reason, choose not to, that means they will not be a PHA employee,” he said.

Earlier this week, Jeremiah told the Tribune that he planned to lay off 335 provisional workers. They are union workers initially hired on a temporary basis, some of whom, under former director Carle Greene, stayed as long as a decade. They will all be laid off effective Sept. 1. \

According to Jeremiah, 225 may then be rehired as permanent PHA employees, provided they meet PHA standards — which includes the residency requirement. Though he lacked hard numbers, Jeremiah estimated that roughly 50 percent of them lived outside the city limits.

Whether the move will actually open union ranks to African Americans remains to be seen.

Provisional employees who are laid off on Sept. 1 will have the opportunity to return to their jobs as in-house employees at PHA.

“So, it depends on what the unions want to do with replacing those guys,” he said. “We want to work with them. Our job is not to destroy the unions.”

Jeremiah said most of the city’s trade unions have been open to the change, realizing that PHA could not continue to pay the roughly $10 million extra in benefit costs caused by the arrangement.

So far, Jeremiah said, the majority of the city’s trade unions have embraced the idea, with the exception of the carpenters’ union — the Metropolitan Regional Council of Carpenters

of Philadelphia & Vicinity.

“They want to see if [I] will go ahead and lay off 335 employees,” he said. “I would bet on … me.”

Carpenters union business manager Edward C. Coryell did not return several calls this week seeking comment. Sam Staten Jr., president of the Laborer’s Union, Local 332, could not be reached for comment either.

“With the other unions, I was amazed,” said Jeremiah. “I surprised by the willingness of the union leadership to cooperate. They understand the impact on the agency.

The plan, part of a larger reform agenda, has the support of the Department of Housing and Urban Development.

“We know that change doesn’t sit well with everyone,” said HUD spokesman Jerry Brown. “But, the things that we’ve seen have been fair thus far. There has to be changes made to the PHA, that’s why it’s under receivership, to right the ship.”

The move to eliminate provisional workers will allow the agency to cut its benefit costs, in most cases by as much as 49 percent.

As an example, Jeremiah pointed to the agreement with the carpenters’ union, where, between April 2011 and April 2012, 21 “in-house” carpenters cost PHA $1.3 million in wages and an additional $547,000 in benefits — a 42 percent wage to benefit ratio. For 91 provisional carpenters, the agency paid out a $6.1 million in wages and $5.4 million in benefits — a ratio of 89.2 percent. Those additional benefit costs were paid directly to the unions.

By converting those employees from provisional to in-house, PHA stands to save about $3 million annually.

In total, PHA has spent $28 million over the last year on provisional employees — $15 million in wages and $13 million in benefits. The total savings in converting them to in-house employees is expected to be around $10 million annually.

In the late 1990s, Greene apparently reached a deal with the city’s major trade unions that established the practice of using provisional employees to bolster PHA staff for short periods when extra help was needed.

“Greene had some arrangements with the various unions, to provide laborers … to come to PHA in an effort to augment PHA staff,” Jeremiah said. “The benefit was that we would have skilled laborers working at PHA.”

However, the concept was soon perverted. It remained in place under Greene’s successor Michael Kelly, who left the agency in June under the cloud of his own scandal.

Jeremiah said the move was just a part of a larger reform agenda he would be implementing over the next few months.

“PHA has had a culture of splurge, of excess,” he said. “I’m going to [cut] across the agency until I’m confident that we’re not wasteful in the resources that we have.”

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In a move that is expected to save the embattled Philadelphia Housing Authority roughly $10 million a year — and slaughter a cash cow for some of the city’s powerful trade unions — the agency’s interim director is eliminating the PHA practice of hiring “provisional employees.”

“I recognize that it’s going to make a lot of people uncomfortable. I understand that,” said Kelvin Jeremiah, interim director of PHA. “But, I remain undeterred. For me to continue to do that would have been derelict, financial suicide.”

Jeremiah told The Tribune in an exclusive interview Wednesday morning that he planned to eliminate the longtime agency hiring practice of using provisional employees, intended to be temporary, who were then allowed to stay on for years, more than doubling PHA’s benefit costs.

Under current practice, employees hired to work at PHA, some for periods as short as three months, have stayed for more than 10 years.

“It’s unheard of,” said Jeremiah.

At the moment, the PHA has 335 provisional employees, but they will all be laid off effective Sept. 1. According to Jeremiah, 225 may then be rehired as permanent PHA employees, provided they meet PHA hiring standards — which includes a requirement that they reside in the city, a move that will allow the agency to cut its benefit costs by as much as 49 percent for that group.

As an example, Jeremiah pointed to the agreement with the carpenters’ union where between April 2011 and April 2012, its 21 “in-house” carpenters cost PHA $1.3 million in wages and an additional $547,000 in benefits — a 40 percent wage to benefit ratio. For 91 provisional carpenters, the agency paid out $6.1 million in wages and $5.4 million in benefits — a wage to benefit ratio of 89.2 percent. Those additional benefit costs were paid directly to the unions.

By converting those employees from provisional to in-house, PHA stands to save about $3 million annually.

In total, PHA has spent $28 million over the last year on provisional employees — $15 million in wages and $13 million in benefits. The total savings in converting them to in-house employees is expected to be around $10 million annually.

So far, Jeremiah said, the majority of the city’s trade unions have embraced the idea, with the exception of the carpenters’ union — the Metropolitan Regional Council of Carpenters 

of Philadelphia & Vicinity.

“They want to see if [I] will go ahead and lay off 335 employees,” he said. “I would bet on … me.”

Carpenters union business manager Edward C. Coryell could not be reached for immediate comment on Wednesday.

“With the other unions, I was amazed,” said Jeremiah. “I was surprised by the willingness of the union leadership to cooperate. They understand the impact on the agency.

Jeremiah said he was uncertain exactly when the practice of allowing provisional employees to linger on the payroll started, but he estimated that it was at least 10 years ago, during the reign of former housing czar Carl Greene, who was fired two years ago amid a far ranging sex and financial scandal that is still playing out in court.

In the late 1990s, Greene apparently reached a deal with the city’s major trade unions that established the practice of using provisional employees to bolster PHA staff for short periods when extra help was needed.

“Greene had some arrangements with the various unions, to provide laborers … to come to PHA in an effort to augment PHA staff,” said Jeremiah. “The benefit was that we would have skilled laborers working at PHA.”

However, as with many other practices under Greene, the concept was soon perverted. It remained in place under Greene’s successor Michael Kelly, who left the agency in June under the cloud of his own scandal.

Jeremiah said the move was just a part of a larger reform agenda he would be implementing over the next few months.

“PHA has had a culture of splurge, of excess,” he said. “I’m going to [cut] across the agency until I’m confident that we’re not wasteful in the resources that we have.”

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Michael P. Kelly, administrative receiver of the Philadelphia Housing Authority, resigned Friday, which he said is due to family responsibilities.

“Franky, I’ve been thinking about this for a while,” Kelly told the Tribune Friday afternoon. “Believe me, it has nothing to do with politics, or with the public officials and the citizens of Philadelphia. Mayor Nutter has been very gracious, and I’ve had positive experiences with city council. I’m thankful for my time here in Philadelphia, and I’m grateful for the opportunity. The Tribune has been especially gracious and fair with us, and I really appreciate the support we’ve gotten from the community.”

Pressed on the reason for his resignation, Kelly said he won’t elaborate, but promises more information next week.

“It really was a personal, painful decision for family reasons,” he said. “I know that sounds like a typical politician’s line, but it happens to be true.”

Karen Newton-Cole of the U.S. Department of Housing and Urban Development accepted Kelly’s resignation Friday during the monthly board meeting.

Additionally, HUD announced that Estelle Richman, a senior adviser to the HUD secretary, would replace Cole and return to her role as the one-person authority board commissioner and receiver. Richman served as the PHA board when HUD took control over the agency last year.

“It has been my pleasure to serve you as the commissioner of the Philadelphia Housing Authority,” Cole said.

Kelvin Jeremiah, PHA’s current director of audit and compliance, was appointed by Cole to be the provisional executive director of PHA. Janea Jordan will have Jeremiah’s position.

“We are going to launch a national search in terms of identifying an executive director,” Cole said.  

While at the helm of PHA, Kelly was credited for many sweeping reforms. He re-established the Office of General Counsel — which manages PHA’s legal affairs, and he created the Office of Internal Audit and Compliance to ensure business transitions were compliant.

Kelly headed PHA’s Transition Plan — which aims to establish a culture of respect, accountability and transparency at the agency. A zero tolerance policy was instituted, and employees were held to new ethic policies and procedures.

Under Kelly, PHA reached a new contract agreement with Building and Construction Trades Council regarding workers pensions. He is also given credit to his ability to maintain focus and provide uninterrupted service at PHA during the Greene controversy.

In 2008, accusations of sexual harassment against PHA director Carl Greene surfaced. Greene was fired in September 2010 after the board of directors discovered that Greene used approximately $900,000 of federal funding for multiple harassment settlements.

Using his architecture, urban planning and 30-year housing authority experience from other cities like San Francisco, New Orleans and Washington, D.C., Kelly arrived to PHA in December of 2010 in the midst of the internal turmoil.

As the interim executive director, Kelly was on loan to PHA from the New York City Housing Authority, based on agreements that he serve both roles while maintaining duties as general manger of NYCHA. It wasn’t until August 2011 that Kelly was named permanent executive director at PHA.

HUD asked the five-member PHA board to quit, thus gaining control of the agency. Philadelphia City Council member Jannie Blackwell, Philadelphia AFL-CIO President Pat Eiding, Debra Brady, wife of U.S. Rep. Bob Brady (D., Pa.), tenant leader Nellie Reynolds, and former Philadelphia mayor John Street eventually stepped down from the board.

“Mr. Kelly came to PHA at a very difficult time and he immediately focused on getting back to basics in property management and resident services and making PHA accountable and transparent in business practices,” Richman said in a press release. “We will miss his energy and his ability to connect with the community.”

“I do love this work,” Kelly said. “I do love this housing authority. I do love the residents that I have been honored to serve. I love the colleagues that I had an honor to serve with.”

Celebrating the official opening of a 101-unit public housing development in West Philadelphia, federal, state and city officials gathered at Mantua Square in West Philadelphia this week for a ribbon cutting.

The $28.1 million Philadelphia Housing Authority development, which replaced Mantua Hall, a notorious 18-story tower at 35th Street and Fairmount Avenue, was lauded as an example for the city and the nation.

“This is our future right here,” said Jane Vincent, regional administrator for the U.S. Department of Housing and Urban Development. “We consider this a very successful model of what can be done.”

The stark contrast to the crumbling and dangerous Mantua Hall, built in 1960 and demolished in 2008, caught everyone’s attention.

“This is a very, very different place,” said Mayor Michael Nutter as he looked over the tidy square in one of the city’s poorest neighborhoods.

In an attempt to give the development a suburban feel, each of the red brick units is set behind a small lawn on the street side and faces an interior courtyard that houses parking and a small park at the center of the court.

“You feel like you’re in the suburbs and you’re in the heart of Mantua,” said Councilwoman Jannie Blackwell, who represents the district.

In addition to one-, two- and three-bedroom units ranging from 725 to 1,441 square feet, the complex includes 10,000 square feet of commercial and community space.

But, it was the green features that caught the attention of the officials gathered for the grand opening.

Each unit has energy saving appliances, the park enhances natural drainage and 793 solar panels.

“You don’t even see solar panels in Chestnut Hill,” joked Sen. Vincent Hughes, who noted that construction of the complex involved 250 jobs and the new, friendlier complex could help renew the neighborhood.

“That’s what this is all about, the revitalization of the neighborhood,” he said.

The official opening of the project comes at a time when Congress is trying to cut funding for public housing. So, in addition to the grand opening, officials announced that October is Housing America Month, a month dedicated to raising awareness of the importance of public housing.

“This is not a time to disenfranchise our nation’s most vulnerable citizens by reducing funding,” said John Bohm, director of congressional relations with the National Association of Housing and Redevelopment Officials, who went on to note that 1 in 6 Americans lived in poverty in 2010.

In an interesting side note, Blackwell told the assembled crowd that she hoped to return to her position as housing authority board member.

“I’m hoping one day to get back,” she said in a remark that received more than polite applause.

Blackwell has long been known as a housing advocate and served on the PHA board for nine years.

She stepped down last year in the wake of the Carl Greene scandal, a move that paved the way for a federal take over of the authority. At the time she told reporters that she was stepping down in an effort “be part of the solution.” Her departure, the first, spurred the other board members to follow her lead and eventually all resigned and the agency was placed in the hands of a federal receiver.

Blackwell said as she resigned that she hoped to return when the feds once again returned the agency to local control. Officials at HUD have said they hope to relinquish control by March.

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It’s been a year since the federal takeover of the Philadelphia Housing Authority and reform efforts are nearly completed — setting the stage for a return to local control, said Michael Kelly, executive director and federal receiver.

“Things are going good,” Kelly said. “Accountability and transparency are key words.”

Kelly, who steered PHA through the darkest days of its turnaround, is in the midst of a sort of goodwill tour on the anniversary of a takeover by the Department of Housing and Urban Development.

Last month, the city, PHA and HUD signed a yearlong cooperation agreement that leaves the beleaguered agency under federal control — essentially Kelly and Commissioner Karen Newton-Cole — for another year.

Though the agreement has a one-year term, Kelly said it could be terminated before that, which he expects.

“I think it will be less than a year,” he said, noting that federal and internal audits of the agency are substantially complete, except for audits of legal expenses, the release of which has been blocked in court by former director Carl Greene. “Only a court can [release them] and it’s still tied up within Carl Greene’s other lawsuits as well. When that gets resolved, this other domino could probably fall.”

Greene has a wrongful termination suit pending. A judge is expected to hear it within the next three months.

PHA has undergone a radical restructuring in the 18 months since Greene’s firing in August 2010 and the subsequent resignation of the board the following spring.

Kelly ran through a list of changes that directly addressed concerns raised by the Greene scandal. PHA has created its own legal department and hired a general counsel attorney, eliminating the use of outside attorneys, a practice established by Greene.

“We are not dependent on outside counsel at this point,” he said.

It created its own human resources department. Under Greene, there wasn’t one.

An audit department has been created to conduct annual internal audits. Greene refused to open the agencies’ books.

Kelly said the housing agency has also put new procurement and contract rules and procedures in place. In addition, PHA has restructured its budgeting procedures and moved to make sure its subsidiaries are operating legitimately.

The lion’s share of reform is done, Kelly said. But, the federal government is unlikely to hand control back to the city until the investigations, audits and lawsuits that surrounded Greene are concluded, and the state has voted on a new governance proposal now in the legislature.

“We need to see how all that plays out,” he said.

As HUD looks to cede control back to the city, Kelly added that he hoped to wait until new commissioners could be trained for their new role.

“It’s not good enough just to name these folks,” he said. “It’s important to have a rigorous training period so that when the keys do get turned back, they get turned back to folks who know what their responsibilities are so the executive director can’t pull one over on them — or they can’t do things that are outside the box.”

Meanwhile, Kelly is focusing on the future, improving the quality of life for tenants and helping them prepare to enter “the real world.”

PHA, which provides housing for 80,000 people, has a waiting list of 100,000 families.

“We’ve got a responsibility to provide the tools to these families to better compete in the private market,” he said. “So that apartment is available to people who are having a tougher time competing in the private market.”

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Fifty new officers are being added to the Philadelphia Housing Authority’s police force, officials announced Thursday — more than doubling the size of the force over the next year.

The expanded force is part of a shift in the agency’s policing — a move to community policing.

“This is an initiative that we believe is responsive to the many complaints and issues that have been raised by our residents over the last few months regarding safety and security,” said the agency’s interim director, Kelvin Jeremiah. “One of the things I’ve been hearing since I came to PHA is: ‘We need more police officers. Crime is on the increase. We’re concerned about our safety.’”

With the additional officers, the total number of full-time police officers on the force will rise from 28 to 78. New officers could appear in just a few weeks.

Jeremiah said the agency expected the larger force to cost between $5 million and $6 million a year. He said that by ending contracts with three private security firms, contracted with the agency to the tune of $30 million, the agency will be able to cover those costs. In addition to expanding its police force, PHA plans to spend $8.5 million to add security cameras and access controls at its properties.

The decision to expand the force came after PHA conducted a resident survey “that was alarming to us,” Jeremiah said.

“Most folks who responded are concerned about their safety,” he said. “We have a fundamental obligation to provide for the safety and security of our residents.”

Complaints ranged from robbery, assault, and drugs to gun violence.

According to PHA Police Department Chief Ben Walton, the authority will change the way it deploys new officers.

PHA is adopting a community policing model, meaning that police officers will patrol the same areas in an effort to get to know residents — and the patterns and habits of the area they patrol — in an effort to curtail crime.

Officers will patrol all PHA developments — but with a special emphasis on Norman Blumberg Apartments, Hill Creek Apartments, Raymond Rosen Manor, Wilson Park, Westpark Plaza and Abbottsford Homes.

“We picked the five developments that have the most problems. They’ll be there every day,” he said. “That’s where the trust factor comes into play.”

Walton lauded the change, noting that PHA police officers have the same powers that city police officers do, something that private security guards lack.

“These officers will have the powers of arrest,” he said, adding that they also have greater powers when it comes to investigations.

This will also strengthen the relationship with local city police, Walton said, “We want a relationship with the residents - and the Philly PD.”

All of the new officers will be members of the housing authority’s police union. The union and the authority have been at odds for years. In April, the police union signed a new contract after years of confrontation.

The additional officers pleased union officials.

“The union is very excited about this move,” said Angela Rice-Warthen, president of the Fraternal Order of Housing Police. “We’re here to serve our residents. Our morale is up, too.”

News of the hiring was the latest of several changes announced since Jeremiah took the helm in June after former director Michael Kelly resigned in the wake of the news that he was having an affair with a subordinate.

He had followed long-time director Carl Greene, who was forced out in 2010 amid charges of financial misconduct and serial sexual harassment.

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Greene says Inquirer, Daily News ruined his career

Fired housing authority director Carl R. Greene has lobbed a grenade at local media giant Philadelphia Media Network, filing a libel suit in which he accuses the news organization of ending his career.

“Mr. Greene’s reputation as a housing authority administrator has forever been destroyed,” charged a lawsuit filed Sept. 16. This “amounts to commercial disparagement and trade libel.”

Greene’s attorney, Clifford Haines, said Greene was seeking unspecified monetary damages.

“We believe his losses reach into the millions of dollars,” said Haines, adding that Greene, who is now living in Georgia, would return to Philadelphia for the case, which he expected to come to trial within the next two years.

The suit, filed against the papers’ parent company and its former owner, Philadelphia Newspapers LLC, alleges that its “relentless attack” on Greene ended his “hard fought and brilliant” career.

It goes on to say that the media company ran the stories on Greene in an effort to shore up flagging finances as it prepared to go to auction as part of its bankruptcy proceedings.

“The Inquirer and Daily News were in crisis [and] suffered from declining circulation and readership, dwindling revenues, several missed debt payments … defaulted on over $400 million,” said court filings. “In a desperate attempt to make the newspapers relevant and attractive to auction bidders and to generate much needed readership and revenue [PMN] set their sights on Carl R. Greene.”

The company’s general counsel Mike Kuritzkes referred inquiries to a one line response printed in Wednesday’s Inquirer: “The lawsuit has no merit and we intend to vigorously defend ourselves.”

In an effort to prove Greene’s point, court filings note that the Inquirer and Daily News ran 246 stories on him between September 2010 and September 2011. That compared to just 18 the prior year.

In them, the papers detailed everything from his personal financial problems to allegations of sexual harassment, misuse of federal funds, employee intimidation and using a non-profit for personal gain.

Saying the stories were “devoid of fair and balanced reporting” and amounted to the “most pernicious form of malicious and groundless defamation,” Greene charged the paper with “hit or miss investigative reporting without regard to the accuracy or quality of content.”

Court filings also take a jab at former chairman of the PHA board, John F. Street — implying that the board knew about three claims of “purported” sexual harassment — and used the papers’ coverage as an excuse to fire Greene.

“Street … declared retaliation against Mr. Greene for a perceived slight surrounding the reporting of Mr. Greene’s personal financial problems and a lost opportunity for Street to appear in the press, orchestrated Mr. Greene’s termination.”

Street said that was untrue.

“Carl Greene was fired only after the board did an investigation, issued a report, considered it at a duly advertised meeting during which we adopted the resolution terminating Mr. Greene,” said the former mayor in an email. “The board was publicly criticized by the papers, and many others, for not acting sooner.”

The suit is the latest in a series of suits Greene filed after his firing.

In an action that was eventually dismissed, he first sued the PHA for damages for wrongful dismissal. Greene followed that with a suit against Street personally for defamation. That suit too was dismissed.

He has also been at the center of at least 10 suits against PHA. So far, the housing authority has spent around $1 million settling sexual harassment claims against Greene.

The controversy surrounding Greene’s alleged misconduct started when the Inquirer broke a story about Greene owing more than $300,000 in back property taxes. In the wake of the story, the scandal grew to include at least four sexual harassment cases and stories about wild parties that included belly dancers and lavish party favors, all given during Greene’s tenure, some allegedly at his insistence. Ultimately, the controversy forced the PHA board to resign and as the federal government pushed the agency into the hands of a receiver. It is now overseen by one commissioner, Estelle Richman. 

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Housing authority commissioner Estelle Richman announced this week that she was stepping down, turning over control of the troubled agency to another official at the U.S. Department of Housing and Urban Development.

Richman announced on Thursday that she would hand the reins to Karen Newton-Cole, acting chief of human resources at HUD.

Newton-Cole could not be reached for comment.

Richman has been the sole overseer at PHA since March, after being appointed board commissioner, as part of a federal takeover of PHA. She held the position along with a job at HUD where she was chief operating officer. However, after receiving a promotion last month at HUD, she was forced to give up her role at PHA because it created a conflict of interest.

As deputy secretary, her new title, she would have been her own boss.

She told residents at the board meeting that she planned to stay involved.

“I live in Philadelphia, so I get to keep an eye on everyone,” Richman told the Daily News.

Richman, who has a long history of public service with the city and strong ties to former Mayor John F. Street and former Gov. Ed Rendell, led the agency during a particularly troubled period. During her tenure she opened up the agency making public its $1.1 billion budget.

The move was a sharp reversal from the secrecy made famous by former director Carl Greene who was fired in September 2010 in the wake of allegations of sexual harassment and financial misconduct. Ultimately, the scandal surrounding Greene also brought down the board, led by Street, who, along with every other member of the board, was forced out in February because of fears that the agency’s scandals would endanger federal funds, which make up the majority of PHA revenues.

HUD is expected to return oversight of the agency in March 2012.

Mayor Michael Nutter and officials with the Department of Housing and Urban Development are expected to sign an agreement this week keeping the Philadelphia Housing Authority under federal control for the near future.

“For a variety of reasons PHA, HUD and the Nutter administration believe that we should continue in the same mode for some period of time to come,” said Mark McDonald, Nutter’s spokesman, citing the fact that PHA remains at the center of several ongoing investigations, and legislation regarding its governance remains pending in Harrisburg. “There are a variety of investigations and studies being done by the federal government, and consequently, this isn’t the moment.”

Nutter is expected to sign the agreement Wednesday.

Unlike the previous agreement, which placed PHA under the authority of a federal receiver and ceded authority to HUD for a year, the new agreement is expected to allow HUD to remain in control for a period of months.

McDonald was unsure how long.

Director Michael Kelly said the agency is on firm footing and should revert to local control “soon.”

The scrutiny generated by Carl Greene’s departure has ultimately strengthened PHA, he said.

“We may be one of the strongest agencies in the whole country right now,” he said. “Because we spent the last year revising our systems and procedures. It’s the kind of improvement most housing authorities don’t think about, because they’re not under the kind of heavy scrutiny that we’ve been put under.”

In the 18 months since Greene’s exit, PHA has created a legal department, eliminating the use of outside attorneys, a practice established by Greene; created an audit department and put in place new procurement and contract rules and procedures.

But, Kelly said he was most proud of the less tangible changes at the agency.

“I feel very strongly about a very profound cultural shift of how people interact with each other around here, interact with clients and interact with our stakeholders,” Kelly said. “I’m most proud of the things you can’t see.”

PHA was placed under Kelly’s authority as federal receiver and a HUD commissioner – one person who replaced the previous board of five local members – last March after the board resigned to facilitate a federal takeover of the scandal plagued agency.

Since the takeover, two commissioners have overseen the agency.

Currently, Karen Newton-Cole, acting chief of human resources at HUD, administers the agency. Prior to her appointment, Deputy Secretary of HUD, Estelle Richman served as commissioner. She resigned in September, after receiving the promotion to deputy secretary.

The takeover was the result of a series of shakeups that started in August 2010 when news broke that Greene, the former director who was fired in September 2010, had been accused of sexual harassment on at least four different occasions, and used PHA money to pay for out of court settlements, all unknown to the board.

The fallout generated by the scandal prompted at least three investigations: by the FBI, the U.S. Attorney’s Office, and HUD - and numerous audits, one of which is expected to be made public next month. Kelly said three investigations remain open.

In addition, it raised questions in Harrisburg and resulted in two bills proposing new governance for the agency.

At the moment, the mayor picks two board members, the city controller selects two and those four choose a fifth member who is required to be PHA resident.

Under one of the proposals, now before the state Senate, the mayor would appoint nine commissioners, three of whom would subject to city council approval. In the second proposal, now in the House, the mayor would appoint five commissioners; city council would choose two and PHA residents elect two.

McDonald said the administration thought it wise to allow PHA to remain under federal control until some of those outstanding issues are resolved.

“While a lot of great things have occurred, you still have outstanding questions,” he said.

Among the things McDonald listed was a significant cultural shift under Kelly’s leadership.

“He has done a good job. There is no longer the kind of fear and worry that existed under the old regime,” said McDonald. “Its just that they’re not to a point where anybody wants to change the current status.”

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State Rep. W. Curtis Thomas is making sure the Philadelphia Housing Authority’s new leadership confronts the issues facing residents, especially in light of what Thomas believes are the failings of past PHA directors to connect with residents.

Thomas set up three community meetings with PHA Interim Executive Director Kelvin A. Jeremiah. The third meeting took place from noon to 2 p.m. Thursday at the Warnock Community Center, 2862 Germantown Ave. Previous meetings were held at the John F. Street Center and the Althea Gibson Education and Tennis Center.

“It’s unfortunate the last two PHA directors didn’t feel it was important enough to talk directly to residents. They had advisory council structures, which they used to talk to the people, but never talked to them directly,” Thomas said, referring to former directors Carl Greene and Michael P. Kelly. “The purpose of these meetings are to meet the new director and get updated on where PHA is, which is important because the budgeting process resolved the issue of board reorganization — with the board being expanded from five members to nine.

“The mayor will appoint 7 people,” Thomas continued,” who will have to be confirmed by City Council in the next 60 days.”

Thomas, whose district contains an assortment of PHA and other low-income housing, has several ideas on how PHA can improve its standing with residents.

“Even with the board being reestablished, I’m advocating that the receiver, Estelle Richmond, stay in place and resolve all issues surrounding Kelly and Greene. There are all kinds of audits and investigations in regard to finances with PHA, and I think the receivership would have to deal with those issues without a new board worrying about them,” Thomas said. “Also, there should be no elected officials on the board — they have to take the politics out of it. And PHA should not deal with any landlords – either with Section 8 or other housing vouchers – if they have outstanding issues with city.”

Thomas also intimated that since PHA is a creation of the commonwealth, the state needs to be more of a partner to the process. To that end, Thomas praised the recent settlement of a national class-action lawsuit that resulted in Pennsylvania receiving $12.5 million, which has been earmarked specifically to address various housing issues.

“We were able to get the governor and General Assembly to agree to put that money into the Department of Treasury, going to the Pennsylvania Housing Finance Agency to be used for affordable housing, which would include PHA,” Thomas said. “It would deal with rising mortgage foreclosures, housing restoration, emergency rent, and in some cases, deal with new homes.”

Thomas knows that no matter the influx of dollars, PHA’s network of low-rent dwellings will never succeed if residents don’t feel safe leaving their homes.

“My district is probably the worst district in the city when it comes to crime and violence,” Thomas said, noting that crime and lawlessness is particularly high at Harrison Plaza, Spring Garden Apartments and Fairhill Apartments. “Carl Greene thought PHA should not have its own police department, and that residents should look to the Philadelphia Police Department. Greene was only interested in protecting assets and new homes, but you need more than that.

“Especially with Norris Homes,” continued Thomas. “You have Temple Police right there, across the street. At Tenth Street, on the east side of Norris is the Philadelphia Gas Company police force. Then you have the 22nd police district that covers Norris Homes, and then you have SEPTA Police right there, due to the station SEPTA put there. But you don’t have these four law enforcement agencies intersecting with each other for the benefit of the residents.

“Part of my recommendation is to develop interagency agreements to support one another in the protection of all residents, but especially PHA residents.”

Contact staff writer Damon C. Williams at (215) 893-5745 or This email address is being protected from spambots. You need JavaScript enabled to view it. .