New London — A mix of disabled, elderly and those with low or fixed incomes packed a small community room at Gordon Court on Tuesday in an emotional protest of what one person called a “disgusting” move by some board of commissioners members to privatize the Housing Authority, displace residents, raise rents or lay off Housing Authority employees.

The gathering, which included many of the Housing Authority’s employees, was the result of the board of commissioners considering the option of a private management company to run the authority. A draft request for qualifications was on the night’s agenda.

But it was the spread of false information that led to the panic and outrage, said Betsy Gibson, chairwoman of the board, who appeared very emotional when addressing the crowd of more than 75 people, many of them angry, alarmed and confused.

“There’s been no talk about laying off employees. It’s all nonsense,” Gibson said. “I don’t want any of you going home tonight and be alarmed that you’re going to be thrown out of your place, that you’re going to have no place to go, that your quality of life is going to change.”

Housing Authority Executive Director Roy Boling, hired eight months ago, challenged the assertion, however, and said Gibson’s plan was to “gut this place” and leave a skeleton crew of employees. He said he found it “professionally insulting” to be left out of the conversation about seeking a private management company.

“I was sat down and told directly, with no ambiguity, directly, that we are going out and outsourcing the operations of this authority,” Boling said.

Boling said the financial position of the Housing Authority “has never been stronger” and spent several minutes praising the good work of his employees.

Gibson, in an interview prior to Tuesday’s meeting, said the board must plan ahead for the day when the 124-unit, federally subsidized Thames River Apartments is empty and the Housing Authority loses the federal funds and rents associated with it. The commission has applied for Section 8 vouchers and is expected to move residents out by the end of the year.

“There are a lot of unanswered questions and it will come down to dollars and cents," Gibson said. "We’ll do whatever we have to do to protect the residents.”

Gibson said a move to seek out qualified management companies to run the Housing Authority was a logical part of the planning process.

With Thames River Apartments gone, the authority will be managing about 310 units in four different rental complexes, which will be down by more than 425 units from less than a decade ago. The Carabetta Organization previously redeveloped and took over management of more than 300 rental units from the former Bates Woods and Briarcliff complexes.

Boling, prior to Tuesday’s meeting, said the Housing Authority had 18 employees and was authorized for 23.

The alarm among residents on Tuesday appeared to have been generated in part by notices distributed to Housing Authority residents about expected layoffs. It is unclear who circulated the notices. A petition also was circulated and Commissioner Kathleen Mitchell fanned the flames on her community Facebook page, criticizing Gibson and urging people to attend the meeting.

Mitchell said that Gibson and Commissioner Shannon Heap were the only commissioners initially privy to the information about seeking a private management company. Mitchell, often at odds with her fellow board members, said it was part of ongoing decisions being made without the knowledge of fellow commissioners. She also has criticized Mayor Michael Passero for his involvement in the decision-making process.

The one thing made clear by residents on Tuesday was that they appreciate Housing Authority employees but there remained a lot of confusion about exactly what the board of commissioners was doing.

“The staff has always been fantastic for me. I don’t know what is going on with this privatization thing,” resident Mevalene Hart said. “I am fearful we are going to be thrown out on the street.”

The meeting was ongoing as of print deadline. The board later voted 3-1 to solicit qualifications from management companies, with Mitchell's as the sole opposing vote. Gibson, Heap and Commissioner Jeanette Parker voted in favor.

g.smith@theday.com