WASHINGTON, D.C. (WUSA) - The man DC Mayor Gray has nominated to head the city's housing department is leaving a similar job in Philadelphia under a cloud.

Michael Kelly resigned from office after staffers complained that he was having an improper affair with a staffer. But Mayor Gray is sticking with his nominee to head up Housing and Community Development.

When he resigned from his job as top administrator for the Philadelphia Housing Authority last week Michael Kelly cited personal reasons--

It turns out that staffers there had accused Kelly of having a consensual sexual affair with a female staffer he had appointed to a senior staff position and then approving her pay raises.

Mayor Vincent Gray says he nominated Michael Kelly to head the DC Housing Authority because of Kelly's past work in DC and a HUD investigation which Gray says cleared Kelly of any wrongdoing in Philadelphia.

Kelly maintains a home in DC where his wife and children live. His nomination to head the DC Housing and Community Devlopment Department must be confirmed by the DC Council:

Michael Kelly resigned from the DC Housing Authority three years ago in a dispute with the Adrian Fenty administration. Before the sex scandal, he was credited with bringing some stability to the Philadelphia Housing Authority.

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