Iowa housing agency to cover $4.1M cost of harassment deals

DES MOINES, Iowa (AP) — The agency that runs Iowa’s affordable housing programs will reimburse the state $4.15 million for payouts to victims of sexual harassment by its former director.

The Iowa Finance Authority board voted Wednesday to grant Gov. Kim Reynolds’ request to reimburse the general fund for the cost of the settlements.

The state agreed Monday to pay $2.35 million to one former employee, and $1.8 million to a current employee to settle claims stemming from their harassment by former Iowa Finance Authority director Dave Jamison. Reynolds says the state is considering whether to seek restitution from Jamison, a former ally whom she fired last year.

The authority board voted to amend its $54.6 million budget for the year that ends June 30 to cover the $4.15 million cost. Most of the budget comes from non-state funding such as revenue from bonds and loans.

Agency director Debi Durham says the payment will come out of a reserve fund that contains interest on investments and the diversion will not affect its programs or services.