IFA paid $4 million in sexual harassment claims with money for state housing programs

Settlement money paid to two women who say they were repeatedly sexually harassed by Dave Jamison, the former Iowa Finance Authority director, came from a fund used to support state housing programs, state officials said at a legislative hearing Thursday. 

Debi Durham, who oversees the finance authority and the Iowa Economic Development Authority, told lawmakers she previously "didn't do a good job explaining" the source of the $4.1 million in settlement funds.

Durham last week said the settlements would "not be funded by a program or taxpayer dollars."

More:Debi Durham will lead Iowa Finance Authority 

The funds will come from the authority's multifamily restricted housing fund, a revolving loan that aids developers' efforts to preserve or build new affordable rental housing units. 

"It’s either going to come from us or it comes from the treasury, and either way it has an impact," Durham said at a joint House and Senate economic development appropriations subcommittee. "I’m not going to say it doesn't."

State Auditor Rob Sand has said the state should seek restitution from Jamison, a matter that he said Thursday remains under review.

Sand complimented Durham for clarifying that her earlier comments were in reference to state general fund dollars but “acknowledged that the funds being used belong to the IFA, a public entity.”

More:Auditor: $4.1 million in sex harassment payouts still taxpayer money

The Iowa Appeal Board last week approved $4.1 million for two settlements to two women who say they were repeatedly sexually harassed by Jamison. Gov. Kim Reynolds fired Jamison in March after female employees accused him of brazen workplace sexual harassment.

A state audit released in December concluded that IFA misspent at least $549,399 over the past two years. 

"That is not how Iowans want their direct or indirect taxes to be spent," Rep. Kirsten Running-Marquardt, D-Cedar Rapids, said at Thursday's hearing. "I'm very concerned about that. I would like you to tell me that you are making sure that is not happening at IFA anymore."

IFA is classified as an authority with an ability to take on debt independently — a distinction Durham emphasized during her presentation at the Capitol. 

But Running-Marquardt said the agency needed more state oversight. 

"And we can't have those things happen," she said.

"I agree," Durham answered.

The Iowa Finance Authority has waiting lists for two of its programs: the Home- and Community-Based Services Rent Subsidy and its Military Homeownership Assistance Program.  

"It's hard to hear. We're sending this money in for mistakes that were outrageous things that never should have happened," Running-Marquardt said, adding: "We see waiting lists for housing."

More:Iowa Finance Authority misspent $550,000, new audit shows

Cindy Harris, chief financial officer of the finance authority, said the settlements come from uncommitted funds in the revolving loan fund, but those funds can be used at the IFA board's discretion. 

"The board approves all of our projects and our funding," Harris told the Des Moines Register. 

The revolving fund has about $9 million, though the numbers fluctuate frequently as developers pay back loans and interest.

Durham assured lawmakers she was putting the entire agency under the microscope, examining each program and expense.

"Everything is under review," she said. "And everything is on the table on how we can do things differently."

She said IFA staff members were experts at the programs they oversaw and will help her build a better office culture. 

"We’re going to get there," she said. "I have no doubt about it because of the team we have. You’ve got people, again, who are really good at what they do."

Jamison made almost $129,000 a year as director of IFA. He now works as an employee of Contemporary Services Corporation, which is contracted to provide support personnel for Iowa State University football and basketball games.

The former IFA director has occasionally been assigned as a parking attendant and usher as part of his work with CSC, university spokesman John McCarroll said Thursday. CSC event staff are paid between $9 and $11 an hour, according to information posted on glassdoor.com, the job listing site. The university announced Thursday that he will no longer work at Iowa State games.

More:Accused harasser Dave Jamison will no longer work at Iowa State games