Bernard Glieberman, who said he has lost "a fortune" with the economic downturn, was appointed chairman by Gov. Jennifer Granholm last year, The Detroit News reported Monday.
Glieberman is also the chief executive officer of Crosswinds Communities Inc., which has unfinished projects and unpaid bills that have plagued residents of a Monroe, Mich., homeowners association.
Glieberman's companies have faced lawsuits totaling more than $100 million in various courtrooms across the country due to defaults on loans.
Glieberman said he is "doing things to put things right."
Nevertheless, Monroe resident Willie Hall said Glieberman's predicament was "a slap in the face not only to the residents here, but to the whole state of Michigan."
The Michigan State Housing Development Authority is an advisory board that sets policy for public-private partnerships to construct low-income housing. Positions on the board are unpaid. Glieberman also said none of his projects included MSHDA loans, the newspaper said.