After Schwarzenegger's office and Lowenthal raised concerns about the $200,000 pay level, the board scaled it back to $175,000. The sum is higher than that of the lieutenant governor, secretary of state and state treasurer.
Courson chaired the compensation committee, and his board approved the raise. At the time, Courson was CEO of the Folsom-based Central Pacific Mortgage Co., which had sold the housing agency 73 loans totaling $15.8 million. The agency often buys loans that private mortgage companies give low-income families, paying the lender up to 1.5% of the loan amount and taking over the financial risk.
Courson did not return calls for comment. But he said during one board meeting that the issue could have been handled better.
"We've thoroughly investigated all specific allegations and, while finding them legally groundless, did decide that we could and should make some specific improvements," he said.
State personnel Director David A. Gilb raised questions in writing about giving a significant raise to someone nearing retirement, especially since pension payments are based partly on the highest salary earned.
When officials are given big pay increases just before retirement, it raises questions about whether the primary purpose is to hike pension benefits, he said.
"This practice, called 'pension-spiking,' is always portrayed negatively by the press and held up as an example of government excess at taxpayers' expense," he wrote to Schwarzenegger's office.
He recommended that Parker not get a pension based on the higher salary until she had worked three years with that salary in place. The board rejected his proposal, making Parker eligible this year for the higher pension.
With the pay raise, her pension could be $25,000 a year more than it would have been otherwise.
The board's action on Parker's compensation pushed John Morris, a Los Angeles real estate manager and former vice president of the State Bar of California, to quit the board in frustration last month.
"I had huge problems with how CalHFA was governed," he said.
"I felt that the spirit of the law was violated."
Morris said he particularly holds Courson responsible.
"Clearly there were totally inappropriate acts on his part as it relates to his chairmanship of CalHFA," Morris said. "If I was doing business with the agency, I would not have served as chairman of the compensation committee."
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patrick.mcgreevy@ latimes.com
