A Baltimore housing authority board member cited by federal auditors for conflict of interest in the agency's $25 million no-bid repair program has quietly resigned.
Larry E. Jennings Jr. said Thursday that his Nov. 1 resignation as one of five members of the authority's Board of Commissioners was "not at all" prompted by the auditors' criticism. Mr. Jennings said he resigned because of the demands of a new financial advisory business he started and because he wants to spend more time with his family.
"I've been totally scaling back all of my activities not directly related to my family and my business," he said.
In September, an audit by the regional inspector general of the U.S. Department of Housing and Urban Development noted that the housing authority "entered into a series of contracts for rehabilitation and lead testing with the father and sister of an authority board member. These contracts exceeded $1.2 million."
The audit cited these contracts -- as well a separate $3.5 million contract given to the husband of an authority employee -- in concluding that "authority regulations regarding conflict of interest issues are inadequate." It recommended that the authority "immediately obtain conflict of interest filings from key employees/agents."
The audit did not mention Mr. Jennings by name, but he was clearly one of the board members to whom it was referring. In April, The Sun reported that Elias Contracting Corp., a company owned by Mr. Jennings' parents, Larry and Vergie Jennings, received contracts for renovation work. Also, it was reported that Environmental Protection Co. Inc. -- a firm owned by Mr. Jennings' sister, Georgia M. Page -- received contracts for lead-paint testing.
At the time, Mr. Jennings said his position as a board member played no role in the awarding of contracts. "I don't think anyone received preferential treatment or anything like it," he said.
Thursday, in a brief telephone interview, Mr. Jennings, 31, declined to comment on the audit's conflict-of-interest findings, other than to say he had received a letter from Mayor Kurt L. Schmoke thanking him for his service.
But Baltimore Housing Commissioner Daniel P. Henson III again blasted the auditors' report while praising Mr. Jennings.
Mr. Henson said that there was nothing in federal, state or city regulations prohibiting relatives of board members from receiving contracts and that Mr. Jennings had "nothing to do" with the awarding of the contracts. He said he had no intention of complying with the auditor's suggestion on conflict-of-interest filings.
"I think the suggestion is stupid," he said.
Mr. Henson said he tried to persuade Mr. Jennings to remain on the authority's board, saying he thought that his youth and impoverished childhood provided useful perspectives.
"I strongly encouraged him not to leave, but at a point I had to listen to him," Mr. Henson said.
Last month, Mr. Jennings resigned his position as one of three managing directors in the public finance division of Legg Mason, a Baltimore-based brokerage and investment company. He immediately formed his own company, Carnegie Morgan Partners, which will provide financial advice to governments, nonprofit groups and private companies.
He is being replaced on the authority's board by Connie Caplan. Ms. Caplan is president of the Time Group, a downtown real estate management and development company. She has previously provided advice to the housing authority on maintenance and served on a committee to restore the Washington Monument.