Industry Leaders Oppose HUD Proposal to Cap Housing Authority Executive Salaries

The Council of Large Public Housing Authorities (CLPHA), the National Association of Housing and Redevelopment Officials (NAHRO), and the Public Housing Authorities Directors Association (PHADA) have serious concerns regarding the Department of Housing and Urban Development’s (HUD) recently announced proposal to cap and regulate public housing authority (PHA) executive employee compensation packages -— a far-reaching policy of questionable fairness and practicality. On June 5, HUD announced that it is “proposing to align compensation with the tiers of the federal government pay system,” capping the use of federal funds for salaries of the highest paid PHA executives by unit size. This policy aims to address a need that is not suggested by the survey results on 2010 compensation paid to PHA employees that HUD released at the same time. The data show — and HUD acknowledges — that the “vast majority” of PHA executives are not over-compensated, with 97 percent of top-earning housing officials earning less in total cash compensation (inclusive of base salary and bonuses) in 2010 than the $155,500 salary-only cap -— an amount arbitrarily established in the 2012 HUD appropriations act. In fact, 93 percent of all housing directors earned less than $125,000 annually.


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