Housing Agency Shuffle Criticized Governor Replaces 8-Year Veteran Mittleider With Conservative Beck

Democrats are upset that Gov. Phil Batt dumped the highly regarded chief of the Idaho Housing Agency solely because the official supported Batt’s campaign opponent.

“This was a political appointment,” said Senate Minority Leader Bruce Sweeney, D-Lewiston. “The IHA is recognized as one of the best-run agencies of its kind in the United States.”

The IHA is a quasi-governmental agency that handles millions of dollars in home mortgages, rental assistance and other housing programs each year. Its chief serves at the pleasure of a board appointed by the governor.

Last week, former state Sen. Rod Beck, R-Boise, took over the nearly $100,000-per-year job from A. Wayne Mittleider. Beck is an outspoken conservative and former Senate majority leader.

Though Mittleider was widely praised for his handling of the agency during his eight years as its head, he also is a longtime Democrat who donated $500 to the unsuccessful gubernatorial campaign of Democrat Larry EchoHawk. In a meeting with Batt in early March, Mittleider agreed to step down and to help with the transition to a new chief.

“I have an opinion that important people in the Batt administration should be people who supported me and have faith in me,” Batt said in an interview. “I had that in Rod Beck. I think he’s well-qualified.”

Beck has an extensive real estate background, though he has not worked in finance and has no college degree. Batt said Mittleider did well at the agency, but said he feels Beck’s qualifications are just as good. Mittleider, too, was a political appointee, the governor contends.

A former aide to Democratic Gov. Cecil Andrus, Mittleider worked as a financial consultant and securities broker and held several state posts before being appointed to the IHA.

“He’s Mr. Democrat,” Batt said.

IHA board member Wayne Olin, a retired Blue Shield president, said Mittleider’s performance was “extremely outstanding. He did a tremendous job there.”

Olin said he wished the IHA, which is “really not a state agency,” could avoid politics. But he added, “I’m not much of a politician. I really don’t know.”

During his four terms in the Senate, Beck pushed for restrictions on abortion and for laws to limit the power of the state teachers’ union, which helped defeat him in 1990.

But, he said in an interview last week, “That’s all behind me.”

“I’m looking forward to a positive and productive tenure as the director of the housing agency.”

Mittleider said he’s proud of his record at the IHA, and that he left the agency “in excellent shape.”

“When a governor calls you and tells you it’s time to move on, you respond professionally,” he said.

The self-supporting IHA has won top financial ratings, and has never had to draw on the state sales tax money that guarantees its bonds.

The agency issues bonds to finance housing for low-income Idahoans. It offers low-interest home mortgages and low-cost financing to build or remodel affordable housing, and administers federal funds that subsidize rent for poor and disabled people and shelter for the homeless. It is the state’s fourth-largest financial institution.

Beck says he doesn’t expect his belief in limited government and states’ rights to conflict with his IHA work. He is hoping the federal government will deliver money to the IHA as block grants. Then the agency could be more creative in finding ways to move its aid recipients toward self-sufficiency.

“Those philosophies have begun to develop within the agency already,” he said.

Beck said he dealt with many housing issues in his nearly two decades as a real estate agent. He opened his own firm in 1983, and it grew to include more than half a dozen agents. Beck attended Ricks College and Brigham Young University, though he earned no degree.

He also lists some personal investment counseling experience in dealing with his real estate clients, and experience as a landlord dealing with rent subsidies.

“My whole life’s work has been involved in housing and real estate,” Beck said from his expansive fourthfloor office at the IHA’s recently completed Boise office building.

Beck will supervise more than 80 employees, including five branch offices. The IHA has net assets of more than $80 million and an annual operating budget of more than $5 million.

Batt said he’s confident in Beck’s ability to handle the job, particularly after working with him back in Batt’s legislative days on complicated retirement fund reforms.

“He dealt with high finance to a great degree,” Batt said.

Mittleider worked as an aide to Andrus during Andrus’ first term and when Andrus served as U.S. Secretary of the Interior. He said he thought he was perceived as a political appointee because of those ties, but that the IHA board selected him after a search because of his financial and securities background. He has a bachelor’s degree in business administration from Boise State University.

Sweeney said he thinks Beck probably will do a good job at the agency, despite the political nature of the appointment. “Rod could do it if he puts his mind to it,” Sweeney said. “He doesn’t have the financial background, I don’t think. But he’s certainly smart enough to do it.”

State Sen. Mary Lou Reed, D-Coeur d’Alene, said she wishes Beck luck. “He is a politician, and I hope that he will resist further politicizing the appointment,” she said. “I just hope that he … gives up politics and really takes up banking.”