NEWARK -- In an about-face, the Newark Housing Authority has agreed to give every employee a salary increase and reverse forced furlough days announced three months ago as a necessary step to cut costs.

The Board of Commissioners on Thursday approved up to $1.7 million in retroactive raises to five unions and all non-represented employees. The unions still have to ratify the agreements, they said.

In April, then-executive director Keith Kinard, announced 12 furlough days to save $1.2 million amid decreased federal funding. At the time, Kinard said the NHA receives about 85 percent of federal funding it's supposed to receive per the housing formula. That's a $7.5 million cut, Kinard said.

But Kinard left the agency earlier this month after the board agreed in March not to renew his contract. Kinard, an 11-year veteran of the agency who helped improve the agency and build more than 1,000 new units of housing, opted to leave in July even though his contract expired in September, Commissioner Charles Bell told NJ Advance Media.

The NHA is the state's largest housing authority and also operates as a redevelopment agency.

Bell said the NHA found money in its redevelopment projects that allowed it to rescind the furlough days and offer the first salary increases since 2014.

"I wish we could have given more," he said. But he added that the already "bare-bones" staff of about 340 employees would likely suffer from further staff reductions in the future.

"There will be some layoffs in the future," he said, adding that bumping wages would "grossly impact the staffing."

Bell said of the 12 mandated furlough days for all employees announced in April, only two were served before the board rescinded them.

On average, the collective bargaining agreements call for an average 1 percent increase for 2015, a 1 percent increase for 2016 and a 1.5 percent increase for 2017, Bell said. The increase would take effect in August.

Marvin Bowman, vice president of Local 617, said his union would vote on whether to ratify the contract soon.

"All this money, where did it come from?" Bowman asked. "You go from broke" to offering raises, he said, but added that any increase came as a much-needed relief.

The board has also hired a national search firm to help find a new executive director. Bell said the firm, Gans, Gans & Associates, had recommended three candidates, but he declined to name them.

Bell said he hopes to have a new director in place by September.

Karen Yi may be reached at kyi@njadvancemedia.com. Follow her on Twitter at @karen_yi or on Facebook.