Florida Housing chief reinstated by DeSantis after 'unsanctioned' suspension

TALLAHASSEE – The suspended head of Florida’s multi-billion-dollar affordable housing organization has been reinstated by Gov. Ron DeSantis, according to an email sent late Friday to employees of the Florida Housing Finance Corp. 

Michael DiNapoli, who was put on paid leave in July amid an inspector general’s investigation into his six-month tenure as executive director, is expected to report back to work Monday.

“Let’s continue to focus on providing opportunities for safe and affordable housing for the citizens of Florida,” said Angie Sellers, FHFC’s longtime chief financial officer, in her email to the corporation’s more than 130 employees.

“You are the backbone of our successful administration of our programs,” added Sellers, who served as interim executive director in DiNapoli’s absence.

The status of the inspector general’s probe was unclear. The governor’s office did not respond to requests for comments about DiNapoli’s reinstatement.

Politico reported that the DeSantis administration said "the inquiry into FHFC to date has found nothing to justify the placement of Mr. DiNapoli on administrative leave. Moreover, it is clear that FHFC’s administrative actions were unsanctioned..."

DiNapoli had been ordered to step away July 21 by the corporation’s Board of Directors Chair Mario Facella.  A Sept. 8 meeting of the board is scheduled in Jacksonville, during which the inspector general’s report was expected to be reviewed, although that may now be uncertain.

Several sources close to the situation had told the USA-TODAY NETWORK-Florida that the investigation was to focus on questions about DiNapoli’s management and accusations that he’d created a hostile work environment at FHFC.

The organization already has undergone dramatic turnover this year.

DiNapoli was brought on in February to replace longtime executive director Trey Price, who resigned after six years at the helm of the organization, charged with promoting home ownership and affordable rental housing in a state becoming prohibitively expensive for many Floridians.

FHFC uses close to $2 billion of state and federal funding to create almost $6 billion in economic activity, according to a 2021 study of the agency by Florida State University.

DiNapoli had caught the eye of the governor’s office after working five years for the Department of Economic Opportunity, which is now incorporated into the state’s newly created Department of Commerce, led since June by J. Alex Kelly, who served closely with DeSantis as his deputy chief of staff.

Kelly now is serving as DeSantis’ acting chief-of-staff while the governor’s previous chief, James Uthmeier, manages his presidential campaign.

DiNapoli was selected by the board in February after the governor urged then-Acting DEO Secretary Meredith Ivey to nominate him.

As Commerce chief, Kelly has a seat on FHFC’s board of directors.

DiNapoli stood out at DEO by guiding the state’s distribution of its share of the federal Homeowner Assistance Fund, which helped thousands of Floridians prevent mortgage delinquencies and defaults, foreclosures and utility shut-offs during the COVID-19 years.

The money came from the American Rescue Plan Act, pushed by President Biden.

John Kennedy is part of USA TODAY Network’s Florida Capital Bureau. He can be reached at jkennedy2@gannett.com, or on Twitter at @JKennedyReport.

This article originally appeared on Tallahassee Democrat: Florida Housing chief DiNapoli reinstated by DeSantis after suspension