Idaho Housing and Finance Association Announces Executive Reorganization, Departure of Executive Director

BOISE - In a move that will consolidate the responsibilities of its two top executives, the Board of Commissioners of the Idaho Housing and Finance Association (IHFA) today announced a reorganization of the Association's senior management. The reorganization positions IHFA for the future while giving the independent Association a structure that is in line with both private sector practice and with other state housing finance organizations.

As part of the reorganization, the Board announced the departure of Executive Director Rod Beck and the unanimous decision to appoint Gerald M. Hunter as the Association's President and Executive Director. Hunter immediately assumes the new responsibilities and will work with Beck over the next 30 days to ensure a smooth transition.

"These actions are a recognition of the Board's belief that the growing size, scope, and complexity of the Association's operations demand a more streamlined, professional management structure. Mr. Hunter has an enormous depth of experience in housing and finance issues. He understands the business we are engaged in, and he will continue to build this organization into the next century," said Mike McMurray, chairman of the IHFA Board of Directors.

Earlier this year the Board of IHFA retained a management consulting firm to help it analyze organizational structures. That analysis led to the reorganization decisions, and to a renewed emphasis on the importance of programmatic, professional housing experience in the executive director's position.

Gerald Hunter has been with IHFA for 11 years. He currently serves as the Association's chief operating officer. Hunter's extensive housing and finance background includes an undergraduate degree in accounting and a master's in business administration, both from the University of Utah. He is also a Certified Public Accountant.

Hunter assumes his new responsibilities at his current salary of $111,029. His annual compensation will be reviewed by the Board as part of its annual employee evaluation process which is currently underway.

The IHFA Board has sole authority with regard to the employment of an executive director. Beck had served in the position since April 1995. Under the terms of his employment agreement his appointment can be, and was, terminated without cause, and with 30 days notice. Consistent with his employment agreement, Mr. Beck will be paid, on July 13, 1998, severance compensation of $29,716.29, representing three months of salary and benefits.

"The Board expressed its appreciation to Mr. Beck. We wish Rod every success in the future, and thank him for his efforts on behalf of the Association," McMurray said.

"It is important to note that this reorganization is an acknowledgment of the need to have specific housing and finance experience in the top management at IHFA. Housing and financing issues are constantly changing as the complexity of the affordable housing business increases. The Board believe that by making these management changes at this time, we are better positioned to continue to grow and provide leadership on housing issues in Idaho well into the next century," McMurray said.

IHFA was created by the state legislature in 1972, but is not a state agency and receives no state funds. Under Idaho law IHFA operates independently under the leadership of a Chairman and a Board of Commissioners who are appointed by the Governor. The seven commissioners represent both political parties and various geographical areas of the state. Also by Idaho law, the executive director is selected by, and serves at the pleasure of, the Board of Commissioners.

Additional public oversight and assistance to the Board of Commissioners is provided by four legislative advisors, two each from the House and Senate, with equal representation of the political parties. Governor Phil Batt and the Association's legislative advisors have been advised of the reorganization and personnel changes.

The Association also reported today it will begin the process of creating a new position that will have responsibility for governmental and legislative affairs, and will report to Mr. Hunter. The salary and specific duties associated with that position are still being developed.

"We recognize the need for continuing and effective involvement in housing policy development at both the state and national level. This new position will enhance the Association's ability to address those needs, and again it is in keeping with private sector practice and with how comparable state housing organizations are structured," McMurray said.

During its 25 years of service to Idahoans, IHFA has created housing opportunities for more than 67,000 residents and invested more than $1.6 billion in single-family mortgages for first-time Idaho home buyers. During 1997 alone IHFA issued a record $255 million in Mortgage Revenue Bonds to finance 3,116 below-market rate mortgage loans for first-time home buyers.

IHFA is a fully self-supporting corporation that must generate all revenue necessary to cover its costs of operation. IHFA annually raises millions of dollars in national capital markets and forms partnerships with banking and lending institutions across Idaho. IHFA functions as an agent for the U.S. Department of Housing and Urban Development and performs a wide variety of tasks associated with financing, developing or managing affordable housing.