Insurer could pay $250,000 in Greene harassment charge

Greene said he was emotionally undone by the lien, filed in December, which froze his bank account and meant he could not pay the mortgage.

The Inspector General's Office of the federal Department of Housing and Urban Development has also opened an investigation into PHA's use of stimulus funds for renovating 340 scattered-site vacant houses.

The program audit, started last month, involves the spending of $31 million in federal stimulus dollars.

The inspector general has subpoenaed the Social Security numbers of 28 employees, an unusual move PHA is challenging. It is not clear why the information is being sought, but in an interview Friday, Greene said he considered it an invasion of the employees' privacy.

Grassley, the ranking Republican on the Senate Finance Committee, asked HUD Secretary Shaun L.S. Donovan why Greene's salary is $306,370 - about $100,000 more than Donovan himself earns.

Combined with a $44,188 bonus, that is more than the sum of Rendell's and Nutter's pay.

Grassley demanded to know if HUD "was aware of questionable financial activities" at PHA, and what complaints have been filed "by employees regarding problems at the Housing Authority."

He also wanted to know about $2.12 weekly payroll deductions nonunion employees at PHA are required to make to a nonprofit Greene established called the Pennsylvania Institute of Affordable Housing.

PHA has received about $127 million in federal stimulus funds it is using to build or renovate 1,200 units of housing.

Grassley said giving that much money to PHA was "alarming" and asked for "any evaluations, reviews, reports, or other materials prepared by HUD or a third-party contractor."

"What's been found emphasizes the concerns I've expressed this summer," Grassley wrote, "about the ability of federal housing officials to manage stimulus dollars in a responsible way."

Contact staff writer Nathan Gorenstein at 215-854-2797 or ngorenstein@phillynews.com.