The new New London Housing Authority Board of Commissioners recently found out they have a $150,000 investment in a new controversial affordable housing project.
Severalboard members tell NBC Connecticut they're surprised to have this kind of financial stake.
The current board -- which is strapped for cash -- learned the previous board voted to contribute $150,000 to help purchase the $600,000 Edgerton School property. The plan is to use it as replacement housing for Thames River Apartments; a 124-unit highly subsidized housing complex plagued by rodents, mold and a troubled rented boiler system.
"This was a judgment call made by the then executive director and the board of commissioners," said acting New London Housing Authority Executive Director Lee Erdmann.
Erdmann found the resolution, passed April 1, 2016, with no dollar amount attached. So he did some digging.
"I don't know what the standard operating procedure here is at the Housing Authority. I can certainly say that in my experience as a town and city manager, I would always include the dollar amount," he said.
The Edgerton housing project has been met by pushback. It's currently stalled after zoning adjustments were rejected.
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Erdmann said he wanted the Board of Commissioners to be aware of the financial investment. It was authorized and approved 4-0 by the previous board under former Housing Authority Executive Director Sue Shontell.
Shontell mutually agreed with the Housing Authority to terminate her employment in November.
The only member still on the board is now Chair Betsy Gibson who said the details on the agreement are hazy since that April meeting was one of her very first. She said she doesn't remember the monetary amount agreed on.
"I don't remember offhand if there was one discussed," Gibson said.
The amount was approved in a special executive session because the board had little time to act. This details on the discussion were not disclosed in Housing Authority Board of Commissioners meeting minutes. Shontell tells NBC Connecticut the monetary investment was discussed with the previous board.
Gibson said she wants to see the project move forward and plans are still being considered.
Affordable Housing and Services Collaborative and Peabody Properties are on board for the project. AHSC formed the F.W. Edgerton LLC.
The New London Housing Authority is still looking for its new executive director. Currently its accepting applications. But they're also exploring the feasibility of contracting with another city's Housing Authority to share services, for example, executive director services, Erdmann said.
Currently the board is in talks with Wallingford and New Haven. Both were recommended by HUD for being well-rounded housing authorities, he added.
Erdmann steps down from his post at the end of the week. Starting Wednesday Jan. 4, former New London City Manager Marty Berliner steps into the acting Housing Authority Executive Director role. He plans to only fill the job for a few weeks, according to Erdmann.
Berliner served as city manager from 2006-2010.
