Big payout for another exec’s exit pressures Chicago Housing Authority

Former exec’s severance brings “concerning” pattern to $868K since 2020

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Key Points

AI Generated.
This summary is reviewed by TRD Staff.

  • The Chicago Housing Authority has a pattern of severance payouts to terminated executives, totaling over $868,000 in the last five years.
  • Ann McKenzie, former chief development officer, was terminated in February and received approximately $81,000 in severance, becoming the 10th senior official to receive a payout since 2020.

The Chicago Housing Authority quietly handed out another five-figure severance package to a recently terminated executive, continuing a pattern of payouts topping $868,000 over the last five years.

Ann McKenzie, the CHA’s former chief development officer, was terminated in February and received roughly four and a half months of severance pay, about $81,000, the Chicago Tribune reported based on public records and her agreement. 

She is the 10th senior official to exit with a payout since 2020. No explanation was given for McKenzie’s dismissal, and CHA declined to comment to the outlet on specific personnel matters.

McKenzie worked at the CHA for eight years, according to LinkedIn, following about 15 years with multifamily landlord Habitat Company. That firm, a former development partner with the CHA, is suing the authority over alleged missteps and conflicts of interest related to a $24 million lead paint poisoning verdict.

CHA spokesperson Matthew Aguilar described the turnover as part of routine structural adjustments meant to improve operations, saying the agency is “committed to continuous improvement.” The payouts, which have gone to executives with documented disciplinary issues, sparked criticism from city officials and advocates questioning accountability at the agency.

Alderman Matt Martin, who chairs the City Council’s ethics committee, in April called the pattern “concerning,” especially in cases like that of former COO Eric Garrett and ex-general counsel Ellen Harris, who received large severance packages despite documented performance issues. 

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The agency is entering a pivotal leadership transition. Mayor Brandon Johnson is expected to announce a permanent CEO for the CHA in the coming weeks, following months of internal flux. The next chief will inherit a battered agency that oversees more than 21,000 public housing units and has lost eight top leaders since last summer. 

Interim CEO Angela Hurlock, who acknowledged CHA is undergoing a “significant transition,” has led the agency since former CEO Tracey Scott stepped down in November with a $129,000 negotiated exit.

The CHA is also still battling the fallout from the lead poisoning jury verdict and public backlash over the leasing of agency land for non-housing purposes, such as the Chicago Fire soccer club’s practice facility. Johnson opposed that deal and has pledged to direct CHA land toward housing.

The mayor’s decision will set the tone for the agency’s next chapter. Finalists reportedly include former CHA CEO Eugene Jones Jr. and Vice Mayor Walter Burnett Jr., as well as candidates from outside city government.

— Judah Duke

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