Chattanooga Housing Authority director quits; 30 more layoffs

The Chattanooga Housing Authority announced today that its executive director, Bob Dull, is resigning and the agency is cutting 30 more jobs to make up for a loss in agency funds over the past four years.

The layoffs announced today come after CHA cut 26 jobs in February to help offset a $4.5 million shortfall for the agency. CHA has been spending more than its revenues since 2004, according to CHA Chief Operating Officer Betsy McCright.

"As soon as we realized the enormity of our financial situation, we immediately notified the U.S. Department of Housing and Urban Development for assistance," said Ms. McCright, who will continue to be responsible for the agency’s day-to-day operations. "HUD is working with us to resolve this matter, and we have identified and implemented immediate actions to reduce expenses and bring them in line with current revenues. We expect CHA to return to full fiscal health by the end of 2009.”

CHA employees being laid off today will be offered a separation package similar to what was provided to displaced workers in February, Mrs. McCright said.

In January, CHA had a total of 206 employees. With the announcement of today’s workforce reduction, the agency will have 150 staff members.

To further cut expenses, CHA is reducing its pension contributions for employees and reducing all contract services by 25 percent.

See tomrrow’s Chattanooga Times Free Press for complete coverage.