TORONTO

Toronto Community Housing lost its head Friday and Mayor Rob Ford blew his top.

Gene Jones — the embattled CEO of the affordable housing corporation — “left the organization by mutual agreement” with $200,000 in severance along with some benefits and costs.

Jones’ exit was announced by TCHC chairman Bud Purves after a more than three-hour, closed-door board meeting at its headquarters.

The news comes just days after Toronto Ombudsman Fiona Crean’s report described how senior TCHC staff ran the organization “like their own personal fiefdom” and broke the corporation’s own human resources rules.

Purves said it was time to move on.

“There was an agreement with Mr. Jones that the best way forward in the company is for a change in leadership and that was the decision,” Purves said. “He resigned and received a settlement.

“Both Gene and the board agreed it is time to move forward with a new form of leadership.”

Purves delivered the news with several board members standing behind him at TCHC’s Rosedale headquarters but the room quickly descended into chaos as upset residents — who wanted Jones to stay at the helm — began to chant “Shame!” at the board members.

The board announced Greg Spearn, vice-president and chief development officer for TCHC, will act as interim president and CEO. Spearn refused to speak with reporters Friday.

Ford — who begged the board a day earlier not to dump Jones — briefly attended the meeting and promised that if he’s re-elected on Oct. 27, he would be working to hire Jones back the next day.

“It’s unbelievable,” Ford said. “For him to resign, it really, really bothers me. You’re never going to get another person like him.

“The poor tenants at Toronto Community Housing, it is going to go right back to square one.”

Ford tapped Jones’ photo on the wall as he left the TCHC boardroom.

“Best guy we’ve ever had,” Ford said.

Ford admitted he tried to speak with every TCHC board member by phone on Thursday to urge them to keep Jones.

“The ombudsman, she’s the one who should resign, she’s the one who is political,” Ford said. “This is one of the worst days, one of the worst days in Toronto’s history losing a man of this caliber.”

The mayor told Jones to “hang in there” and fight earlier this week.

“He said, ‘If they don’t want me, I’m not going to keep fighting,’” Ford recalled.

“I just can’t wait until Oct. 27 because on Oct. 28 I’m going to do everything in my power to get him back here and you want to clean house, we’re going to see what cleaning house is all about.”

Jones — who was hired back in 2012 — made $270,581.79 last year along with $9,568.39 in taxable benefits.

Employment lawyer Soma Ray-Ellis — who represented Jones — couldn’t say Friday if the ex-CEO who came to the city from the United States will be staying in Toronto.

“Mr. Jones is pleased to report that the parties came to a mutually agreeable financial terms late last night,” Ray-Ellis said.

Crean offered no opinion on the board’s decision.

“That has nothing to do with me,” she said.

There may be more turmoil to come at TCHC.

The board meets again next week to deal with further issues from Crean’s report.

In a press conference at City Hall, Deputy Mayor Norm Kelly supported Jones’ exit.

The city is ready to assist TCHC over the next few months and predicted the next council may have to deal with the size and complexity of the corporation, he said.

“It is a large, awkward, difficult corporation to govern,” Kelly said, adding all options should be put on the table.

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