Peter Schorsch
Ken Reecy has been named Interim Executive Director of the Florida Housing Finance Corporation (FHFC), according to a press release.
Cissy Proctor, Executive Director of the Florida Department of Economic Opportunity, announced the move on Friday. Reecy currently serves as the agency’s Multifamily Program Director.
“Ken has extensive experience and is committed to helping Florida families secure safe, affordable housing in communities all across our state,” Proctor said in a statement. “He has a strong understanding of the unique programs used to meet different needs for affordable housing in Florida and is a respected leader at the agency.”
The release added, “A national search for a permanent Executive Director is underway.”
Steve Auger, the previous executive director, resigned after a scathing audit of the organization, the steward of state and federal affordable housing money, disclosed lavish spending on events for lenders and board members.
Auger oversaw expenses for “a $52,000 dinner (for lenders) that featured filet mignon, broiled lobster tails and a bar stocked with deluxe brand liquors,” the audit revealed.
The agency also put on a board reception, spending “$300 for a bartender, $425 for a pork carving station and $420 for a Spanish charcuterie station.” It also awarded nearly $443,000 in bonuses to its employees.
Last year, federal prosecutors OK’d a criminal plea deal to an alleged $36 million housing fraud that involved the FHFC.
Prosecutors had alleged 70-year-old developer Lloyd Boggio of Carlisle Development Group and others defrauded the government out of millions that went through the FHFC.
They did so by padding South Florida affordable-housing projects to get federal tax credits and grants, then keeping the excess, according to case documents.
The audit also noted the agency “did not require sufficient documentation from underwriting agencies to support their denial of mortgage assistance to some applicants” and “did not take adequate steps to ensure that electronic fund transfers were going to authorized recipients.”
