Ousted Philadelphia housing chief's nonprofit unraveling amid scrutiny

Shortly before he was fired as the Philadelphia Housing Authority's executive director in September, Carl R. Greene was hard at work building his newest nonprofit, the Pennsylvania Association of Public Service Agencies.

It had the laudatory, but vague, mission of helping the region's public agencies save money through shared services and best practices.

Now it is unraveling as federal auditors examine PHA's books and officials at the U.S. Department of Housing and Urban Development say federal money appears to have been misspent.

Greene, fired for failing to report a series of sexual-harassment claims against him, is PAPSA's president.

He was joined at the top of the organization by three powerful lawyers who served on the boards of PAPSA's constituent agencies, and whose law firms have earned big fees from PHA.

John Estey, chairman of the Delaware River Port Authority and a partner at Ballard Spahr, was PAPSA's treasurer. In his role as chairman, he was one of the three DRPA officials who approved a $90,000 payment to PAPSA for association "dues."

Robert L. Archie, chairman of the School Reform Commission and a partner at Duane Morris, was PAPSA's secretary. The school commission had budgeted $35,000 for membership in PAPSA but withheld payment as Greene's troubles gained public attention.

Patrick J. O'Connor, Temple University's board chairman and vice president of Cozen O'Connor, was PAPSA's vice president. Temple did not contribute dues.

PHA contributed $50,000 in dues, and the Philadelphia Parking Authority chipped in $25,000, although it is asking for its money back.

Despite its short life, PAPSA provides a glimpse of how Greene raised money by tapping loosely regulated public entities, including PHA.

Under its agreement with the member entities, PAPSA could have lobbied for them; it held a small-business fair at the Convention Center this year to educate local firms about doing business with PAPSA members and other agencies.

"It certainly does show how good old boys can funnel public dollars to nongovernmental agencies," said Barry Kauffman, executive director of Common Cause Pennsylvania. "They're just working the system."

Zack Stalberg, president of the Committee of Seventy watchdog group, said PHA and other state-related agencies typically "make their own rules."

"It's the Wild West," said Stalberg, noting that state-related entities often have little oversight.