Chicago Housing Authority Paid Severance to Questioned Leaders

More than $787,000 in separation payments were awarded to nine senior Chicago Housing Authority officials over the past five years, including some who left under questionable circumstances, the Chicago Tribune reported.

All nine departing leaders received at least two months of severance pay at their final salary levels, the outlet reported, citing public records. Six of those agreements were signed between August and March, a period marked by a leadership shakeup featuring the departure of former CEO Tracey Scott.

One recipient, longtime COO Eric Garrett, received about $87,000 in severance despite receiving a written warning for violating CHA ethics rules and allegedly failing to take action against an employee who cost the agency $19,000.

Another, former general counsel Ellen Harris, received more than $63,000. Harris resigned last August. Records later revealed she was the subject of repeated employee complaints over a “toxic” workplace culture, including allegations of public berating, inflexible schedules and retaliation. Multiple vacancies went unfilled under her tenure.

Both Garrett and Harris had been formally reprimanded by Scott before their exits. Scott herself received nearly $129,000 upon her departure in November. She was the only one of the nine whose agreement was pre-negotiated in her employment contract.

The agency defended the agreements as standard legal tools used across the public and private sectors, but Alderman Matt Martin, who chairs the City Council’s ethics committee, called the payouts “concerning.” He questioned the financial logic of paying employees tens of thousands of dollars to leave, particularly those with performance concerns.

The number and scale of payouts suggests a deeper internal problem at the CHA, Ralph Martire of the Center for Tax and Budget Accountability said.

Martire acknowledged that separation payments are increasingly common due to political pressures and job difficulty, but emphasized that payouts tied to poor conduct or negligence should be closely scrutinized.

The agency maintained that the severance agreements were paid from its personnel budget and did not affect services for residents. It said it’s undergoing “a period of renewal” to improve accountability and efficiency.

In addition to its workplace struggles, the CHA is entangled in a lawsuit brought by former property manager The Habitat Company, which claims the agency botched its legal defense in a lead poisoning case that cost the agency $24 million. The firm is now seeking damages for breach of contract and malpractice.

— Judah Duke