Housing Authority in PBC fires director

Agency alleges financial misconduct

A Palm Beach County agency key to solving South Florida’s affordable housing crisis has fired its director, accusing him of financial malfeasance, mismanagement and ethics violations.

Palm Beach County Housing Authority Director Van Johnson was accused by his board of giving himself $230,000 in bonuses since 2015 without meeting financial milestones, accruing a $1 million budget deficit and awarding unnecessary and expensive consultant contracts while the agency struggled to make payroll.

Hired in 2011, Johnson earned $210,000 a year to lead the agency. He was fired Saturday.

A phone message and email left with Johnson were not returned Tuesday. During the meeting Saturday, he denied any wrongdoing on his part.

“As far as I am concerned, every accusation is false,” Johnson said. “I want to go on record stating that.”

Primarily funded by the federal Department of Housing and Urban Development, the agency handles rental-assistance programs and helps to build and renovate housing for the poor.

At the meeting, board members and senior staff painted a dire picture of the authority’s finances. One senior-level official said the agency was struggling to meet payroll, and he’d been having trouble sleeping.

Paul Dumars Jr., vice chair of the board, said the director withheld information about the authority’s finances from commissioners.

“The misrepresentation of the financial statements for the past six months to a year has come to the head where this agency has some real financial issues,” he said.

A forensic audit will be commissioned, noncritical consulting agreements will be discontinued and a reorganization will be instituted, according to a statement released by the Housing Authority. New housing developments will not be affected, according to the statement.

Palm Beach County Commissioner Melissa McKinlay has voiced concerns about the authority’s leadership. The county has no role in selecting members of the authority’s board, which is appointed by Gov. Rick Scott.

During a meeting in June, McKinlay criticized Johnson for not communicating with her office about a project to rehabilitate the 384-unit dilapidated Grand Lake housing complex in Belle Glade, which she said appeared to be failing.

Lauren Schenone, a Scott spokeswoman, said the governor’s office is aware of the termination.

“We will review any information sent to our office and will take appropriate action,” she said.

Darryl Madden, a spokesman for the HUD Office of Inspector General, said he could neither confirm nor deny whether his agency is investigating.

Lesleigh Varner, deputy executive director, will lead the agency as interim CEO.