He’s set to screw city again
Snafus at NYCHA, sex scandal in Philly
THE CITY hired a new general manager for NYCHA who was forced to quit his housing job in Philadelphia after admitting he had an affair with a young subordinate.
Michael Kelly abruptly resigned from the Philadelphia Housing Authority in June 2012 over an affair with one of his senior staffers, Audrey Lim.
An investigation concluded he had violated Philly’s ethics rules barring fraternization with subordinates, but found no evidence that he misused his position to give Lim favorable treatment.
In announcing Kelly’s hiring for the No. 2 spot at NYCHA, Mayor de Blasio on Wednesday acknowledged Kelly’s indiscretions but argued that his impressive résumé shows he deserves a second chance.
“He made a mistake in Philly — there’s no two ways about it,” de Blasio said. “He owned up to it. He was reprimanded for it. There was a full investigation. The investigation proved that there had been no negative outcomes from the mistake he made in terms of how the work was done. So, human beings make mistakes, but if they own up to it and if they don’t do anything that harms the work, I think it’s right to give someone another chance.”
The mayor said Kelly’s experience is “unparalleled in the nation and I think he’s going to help us continue to make NYCHA a better place.”
Kelly is a married father of three and a licensed architect who was NYCHA’s general manager from 2009-2011. He’s held top housing jobs in New Orleans, San Francisco, Philadelphia and Washington, D.C.
In 2012, staffers in the City of Brotherly Love complained to the U.S. Housing & Urban Development that Kelly had improperly promoted Lim, claiming she wasn’t qualified.
In subsequent investigations by the HUD inspector general and the Philly housing authority, both Kelly and Lim admitted to an “improper relationship” that began in October 2011 and lasted through April 2012.
Investigators looked at Kelly’s credit card and travel expenses and found no evidence that public money was misused. They also ruled Lim was qualified for her promotion.
At the time of the affair, Kelly was married. In an interview Wednesday, Kelly told the Daily News, “It was something that was a personal issue that I reconciled with my wife and my kids and I’m looking forward to working with the New York City Housing Authority again.”
Kelly was hired by former Chairman John Rhea as NYCHA’s general manager in 2009 to help implement Rhea’s effort to upgrade NYCHA’s management.
But under Rhea’s leadership, the agency was known for neglecting tenants with a massive backlog of repairs and deteriorating living conditions. For years, NYCHA failed to install security cameras, despite City Council funding, and the agency delayed spending nearly $1 billion in federal funds.
Asked why de Blasio — a big critic of Rhea — hired a Rhea appointee, NYCHA spokeswoman Jean Weinberg said Kelly has a long record of fixing troubled public housing that will support NYCHA’s “path to progress.”
In 2011, Kelly was tapped by the Obama administration to help run Philly while still on NYCHA’s payroll. The dual role continued through August 2011, when he moved full-time to Philly.
The 61-year-old Kelly took a huge pay cut when he resigned from his $225,000 Philadelphia job to take a $165,000 job to run the Department of Housing & Community Development for Washington, D.C. He left there in December.
Kelly, who is set to start next month, will replace Cecil House, who recently announced he was leaving as general manager after two years.