Retired Ald. Walter Burnett — Mayor Brandon Johnson’s pick to lead the Chicago Housing Authority — is no longer eligible to become the CHA’s CEO.The U.S. Department of Housing and Urban Development denied the CHA’s request for conflict waivers for Burnett on Tuesday, marking the end of a s even-month stalemate with the federal agency.Burnett’s apparent conflicts of interest were with his 30-year record on the Chicago City Council and longtime ownership of properties rented to housing voucher holders, according to the CHA and HUD. Burnett and his wife have collected more than $260,000 since 2007 as CHA voucher landlords.Burnett cannot be appointed CHA leader because the retired alderman exercised “functions or responsibilities with respect to CHA for approximately 30 years,” according to a copy of a Tuesday letter from HUD obtained by the Sun-Times.“CHA may not appoint Mr. Burnett to serve as the CEO within one year of his retirement from a position as a public official with the City of Chicago, or at any time while he or any immediate family member is participating as an owner in the” voucher program, wrote Todd Thomas, HUD’s acting deputy assistant secretary of public housing and voucher programs. Burnett retired in August 2025.Mayoral spokesperson Griffin Krueger said the mayor’s office is reviewing the HUD letter.“There is clear prior precedent for individuals with Burnett’s background to assume executive leadership positions within public housing authorities across the country. This communication reaffirms that reality,” Krueger said.Burnett and HUD didn’t respond to requests for comment.HUD’s letter, addressed to CHA Chair Matthew Brewer, is the latest development in what has been a tumultuous few weeks for Johnson and Brewer over the agency's future. Their public skirmish escalated earlier this month when the mayor said he removed Brewer from his board chair and interim operation chairman role. It’s unclear if the mayor followed the proper procedures to do so. Brewer argues the mayor hasn’t.Kruger said the mayor remains “committed to working with stakeholders to address the pressing concerns surrounding the anti-democratic procedure employed by the former Chairman which disenfranchised residents while stoking unnecessary confusion in this process.”The CHA board voted 7-2 last month to appoint Keith Pettigrew, executive director of the District of Columbia Housing Authority, as its new CEO for a four-year term. He will be tasked with righting a struggling agency that has been off course for well over a year.“CHA and its residents are ready for Mr. Pettigrew to hit the ground running on Monday as our new CEO," Brewer said. "The Board has spoken, residents have spoken and now HUD has spoken.”Meanwhile, the mayor has remained steadfast in supporting Burnett, a mayoral ally opposed by many CHA residents, as the CHA's next CEO.The agency's CEO selection committee — which included two representatives from the mayor’s team — recommended the mayor’s office interview three candidates, but the CHA was told the mayor wouldn’t schedule the interviews because he was recommending Burnett, according to Thomas’ letter.The search committee then granted Burnett a “courtesy interview,” even though the retired alderman “had not applied for the position nor participated in the screening process with the executive search firm,” Thomas said.“The Mayor’s Office was informed that Mr. Burnett was not selected as a finalist because of his limited operational experience managing” a public housing authority, Thomas said. “The selection committee also stated his background was inequivalent to the preferred finalists, resulting in the committee not selecting Mr. Burnett as a recommended finalist.”Thomas said the mayor’s office still asked the CHA to ask HUD for a conflict-of-interest waiver for Burnett.The CHA had been waiting on a final determination from staff at HUD’s headquarters in Washington, D.C. HUD’s letter said its regional office recommended that the waivers not be approved “because of failure to provide a good cause justification(s) for HUD to approve both waivers.”The Chicago Sun-Times reported in November that Burnett was unlikely to lead the CHA, as its board was moving forward with other candidates.The CHA, the third-largest housing authority in the country, had been without a permanent leader since former CEO Tracy Scott resigned on Nov. 1, 2024. The housing authority then launched a national search for its next chief executive, saying it would appoint a new leader come summer 2025.Housing advocates sued the CHA in Cook County Circuit Court last week over its decision to hire Pettigrew, alleging the board’s vote didn’t follow the Open Meetings Act, which dictates how government agencies should conduct public meetings. The housing authority has said it followed the law.Asked at a news conference Wednesday whether he feared further attempts to install Burnett will jeopardize CHA funding, Johnson said: “What I’m most concerned about is the fact that there is a lawsuit against the process that we just saw that was not transparent.”“That’s not responsible governance. I’m going to work hard to continue to make sure there is an open process that allows for the true vetting of candidates, whether that is Alderman Burnett or anyone else, to get a fair opportunity to present before the residents of this city and then a decision can be made from there,” Johnson said.Contributing: Fran Spielman Related Mayor Johnson looks to oust CHA board chair after agency votes in new CEO Chicago Housing Authority appoints Keith Pettigrew as new CEO Retired Ald. Walter Burnett’s jump to top CHA post stalled ...read more read less