Here’s what we heard at the recent meeting of the board of directors of Housing Opportunities of Salem, Inc. (HOSI), the not-for-profit arm of the Salem Housing Authority (SHA)—a meeting that revealed some persistent gaps between HOSI’s responsibilities and its practices.
For those keeping track: HOSI’s board is identical to SHA’s board, and HOSI’s leadership is largely drawn from SHA as well. That kind of overlap makes transparency and accountability even more important—because when governance structures blur, oversight has to sharpen.
Meeting Regularly Should Not Be Aspirational
The board began, as boards do, by approving minutes from its last meeting—held September 3, 2025—and acknowledging minutes from its January 11, 2023 organizational meeting.
There’s just one problem: HOSI should meet at least quarterly, per its own attorney’s recommendation. Instead, it met once in 2023, once in 2024, and twice in 2025.
The explanation offered—that “transitions” made it difficult to meet—did not hold up. The board had the ability to meet; it simply chose not to.
For an entity that is poised to take control of housing and public resources that affect tenants’ daily lives, basic governance—like meeting regularly and reviewing finances—should not be optional. It should be the floor, not the ceiling.
Governance Concerns: Small Details, Big Implications
The election of officers raised additional eyebrows.
The board formally elected Romell Kidd, SHA’s treasurer, to serve as HOSI’s treasurer. A Certificate of Change of Directors or Officers had already been filed with the Secretary of the Commonwealth last October, naming him as treasurer, despite no recorded election at the time.
Similarly, Mr. Kidd already had signing authority on HOSI bank accounts before the board formally voted to appoint him. (Minutes 36:00-38:00 of the recording.)
None of this may have been ill-intentioned—but good governance isn’t about intentions. It’s about process, controls, and public trust. When filings, financial access, and formal votes don’t line up in sequence, that’s not just a clerical issue—it’s a governance issue.
And governance issues matter most when public funds are involved.
To round things out: the board re-elected Cathy Sheehan as President, a role she has held since HOSI’s inception. She also serves as Clerk automatically, by virtue of being SHA’s executive director. The Board created the new position of Vice President and elected Patti Morsillo to that role. (Already, earlier in the meeting, Ms. Morsillo had spoken eagerly of reviewing HOSI’s policies. We liked that!)
Financial Transparency: Still a Work in Progress
When it came time to review financial statements for the quarter ending March 31, 2026, the board… didn’t.
Instead, the statements were tabled due to an error in reported administrative fees.
We look forward to seeing corrected numbers—but more importantly, we look forward to seeing a board that reviews them regularly, as a matter of routine rather than exception.
Meanwhile, expenses raised additional questions. HOSI spent approximately $2,000 on website services in 2025—and yet it still has no website.
This is more than a cosmetic issue. A functioning website is one of the easiest, most basic ways to ensure transparency: posting meeting minutes, financial statements, policies, and legal documents where tenants and the public can access them. For tenants, a robust website would mean that basic information about decisions affecting their housing could be found easily.
Right now, that transparency doesn’t exist. It should.
Moving Forward on Conversion of 39 Federal Units to Vouchers
On a positive note, the board did move forward on preparations to transfer 39 units of public housing into HOSI ownership, even though the closing has not yet been scheduled due to limited federal capacity. (HUD has a severe shortage of closing attorneys.)
Unfortunately, because of the delayed closing, tenants will need to recertify their eligibility for the new project-based vouchers they will receive after the conversion. That’s not a small administrative step—it’s a significant burden, particularly for residents already navigating complex systems to maintain housing stability.
Priorities: Building Inside vs. Investing Outside
In one telling moment, the board considered whether HOSI might contribute funds to the City to support a local veterans’ housing project—funding that could help unlock state grant money by allowing the City to participate financially.
The idea was quickly dismissed by the HOSI president in favor of preserving funds for HOSI’s own future projects or potential capital improvements.
That may be a defensible position. But it also underscores a broader point: decisions about public resources are being made in a small circle, or by even just one person, with limited visibility and limited input.
If HOSI is going to position itself as a major housing actor in Salem, these choices—and the reasoning behind them—should be more fully aired and explained. What we do know is that, so far, the lion’s share of HOSI’s spending appears to flow back to SHA in the form of payments for “services”—a dynamic that only reinforces the need for clearer reporting and oversight.
The Bottom Line
At this moment, HOSI is transitioning from a relatively quiet not-for-profit entity into a central player in Salem’s affordable housing landscape.
That transition raises the stakes.
Tenants, residents, and the public deserve:
A board that meets regularly and reliably
Clear, consistent financial practices
Transparent documentation available to the public
Thoughtful consideration of tenant impacts
Governance processes that build trust—not questions
Right now, HOSI is not there yet.
The good news? None of these issues are difficult to fix. But they will require a shift in mindset—from minimal compliance to proactive accountability.
Because when it comes to housing—especially publicly-rooted housing—good governance isn’t a technicality.
It’s the whole point.