The governing board of Little Rock's public housing agency voted unanimously Tuesday to suspend the executive director with pay until the conclusion of a self-authorized investigation into allegations of "gross misconduct" that the director levied against the board last week.
The Metropolitan Housing Authority board of commissioners took the vote at a special meeting a day after board Chairman Kenyon Lowe contacted the U.S. Department of Housing and Urban Development, requesting an investigation into the variety of misdeeds Executive Director Nadine Jarmon alleged in a 161-page memo to the federal agency and Little Rock Mayor Frank Scott Jr. on June 23.
Jarmon requested the removal of the entire board, which is self-appointing but subject to approval by the Little Rock Board of Directors and mayor.
Her suspension includes a ban from entering any housing authority buildings or properties until the investigation is complete. The board spent an hour in executive session before taking the vote publicly.
Lowe said the board believed the suspension was necessary to provide "an air of impartiality" during the investigation.
"That way she can't do anything, and she can't say that the board did anything, because neither one of us would be involved," Lowe said.
The board will still conduct its regular meetings and votes, and Lowe said this is permissible because "we're not judge and jury."
The executive director's access to a variety of documents, including personnel records, could inject bias into the investigation if Jarmon were to work closely with the investigator, Lowe said.
Jarmon told the Arkansas Democrat-Gazette that she believes her suspension was "unfair, unwarranted and retaliatory."
"I love my job," she said. "I love what I do, and even though they suspended me with pay, that doesn't lessen the fact that it makes it appear as if I did something wrong. I did nothing wrong. I will state that a million times for the record."
The Metropolitan Housing Alliance has seen four directors in the past three years. Anthony Snell, the executive director before Jarmon, left the post in July 2020, writing in his resignation letter that the board had harmed and micromanaged the agency. Jarmon served as interim director until the board chose her to fill the post officially in April.
Arkansas law allows housing authorities "to conduct examinations and investigations."
Jarmon said Monday that Lowe's request for a federal investigation seemed like a "diversionary tactic," and she said Tuesday that the internal investigation is likely the same.
The board enlisted attorney Leon Jones Jr. to run the investigation. Jones previously served on the Fayetteville Housing Authority board of commissioners, including a stint as board chairman, and has led the Arkansas Department of Labor and the Arkansas Fair Housing Commission. He resigned from the Fair Housing Commission earlier this year when he announced his candidacy for the Republican nomination for attorney general in 2022.
Lowe said this is not the first time the board of commissioners has invoked state statute to authorize an investigation of a personnel matter. The board sought an investigation into "allegations of impropriety" in 2012, Lowe said. He did not disclose the outcome of the investigation.
On Tuesday, the board also unanimously chose Andy Delaney, the agency's financial director, as the acting executive director for the duration of the investigation. Commissioner Leta Anthony recommended Delaney because "most of what we're dealing with are financial issues," and Delaney would already have to work closely with Jones, she said.
Delaney initially asked the board if he could think about the offer, but he agreed when the board urged him to take on the role. Lowe said Delaney "didn't have a dog in the fight" between Jarmon and the board, so he will not have undue influence on Jones' investigation.
Jarmon's allegations against the board include unnecessary spending, the sidestepping of necessary federal approvals, and conflicts of interest for commissioners and parties involved in transactions with the housing authority. Jarmon submitted a collection of emails, bank statements, board minutes, board resolutions and other documents as evidence.
A regional spokesperson said last week that the federal department is examining Jarmon's complaint and supporting documents. The agency will try to substantiate the claims before initiating an investigation, which could include the inspector general's office, the spokesperson said.
A group of anonymous Metropolitan Housing Alliance employees sent a letter to the mayor's office in June 2020 with the same request to remove the board of commissioners. The Little Rock Housing and Urban Development field office also expressed "serious concerns" about the board last year.
The anonymous letter was not sent to federal housing authorities, and Scott said last week that it lacked supporting documentation, making it difficult to investigate.
After receiving the letter last year, Scott said he would move to dissolve the board of commissioners, but it remains in place. He changed his mind because overseeing and disciplining the housing authority is within the federal housing department's purview, not the city's, Scott's spokeswoman, Stephanie Jackson, said Tuesday.
Scott arranged a Freedom of Information Act training workshop for the board last year "in an effort to remedy some of the problems that people were telling him existed," Jackson said.