New London — The Housing Authority board of commissioners agreed Tuesday to hire former New London City Manager Martin Berliner as interim director while it continues to weigh options for permanent management of five subsidized apartment complexes.

Berliner will replace the current interim Director Lee Erdmann after Jan. 6. Erdmann was hired in November following the abrupt exit of former Director Sue Shontell — whose departure was what the authority has deemed a “mutual agreement.” Shontell had filed a discrimination complaint against the city and board of commissioners prior to her termination.

Erdmann, the former chief financial officer and city manager in Hartford, was hired with an agreement he would stay until Jan. 6 and run the authority while helping the board begin the process of moving the hundreds of tenants out of Thames River Apartments — a series of three federally subsidized high rises on Crystal Avenue that have fallen into disrepair.

The Housing Authority is under a court order to find the 124 families new homes, and plans for replacement housing recently hit a roadblock with the city’s Planning and Zoning Commission.

Earlier this year the Housing Authority came under scrutiny when the Department of Housing and Urban Development labeled it substandard because of perceived financial irregularities and physical conditions at Thames River Apartments and at the 99-unit Williams Park Apartments on Hempstead Street.

Housing board Chairwoman Betsy Gibson said a demolition disposition application with the U.S. Department of Housing and Urban Development, which is the means to obtain housing vouchers for the Crystal Avenue tenants, is set to begin. It is expected that the high-rises eventually will fall to a wrecking ball and residents will disperse to homes of their choice in and outside the city.

The board agreed Tuesday to hire Massachusetts-based TAG Associates Inc., at a cost of about $30,000, to start the application process. It is expected to take about 130 days before the application is filed.

Because of the complexity of the application, Gibson said the board is breaking into subcommittees to handle different tasks and has called on city officials for help. Jeanne Milstein, the city’s human services director, is working to identify new homes for the Thames River Apartment tenants.

Gibson said she has inquired with the mayor about appointing nonvoting members to the five-member board to fill in gaps. Passero has suggested the board call on the expertise of the Renaissance City Development Association Executive Director Peter Davis.

“The New London Housing Authority is grappling with where we want to be in the future. There’s a lot before us,” Gibson said. “This is a huge task for five people.”

Not all board members are convinced the immediate relocation of tenants is the only solution.

Board member Kathleen Mitchell said were other options, such as a development on the existing property, presented to the Housing Authority following the agreement reached at the outcome of the class-action suit filed by the Crystal Avenue tenants.

“No other options have been explored. We got the notice of substandard conditions ... and it just seems it went from there to (demolition disposition) without anything in between,” Mitchell said.

Mitchell is the liaison to TAG during the application process.

Passero expressed confidence in the board members to move the process forward.

“They have good leadership. They understand the goals and are working hard to develop a strategy to achieve those goals,” Passero said. “They’re moving full steam ahead on the most pressing issue, which is to get 124 families out of unsanitary, substandard housing. They understand that.”

One recent development is that the city is establishing a police substation at Thames River Apartments.

Gibson said that Berliner’s knowledge of the city will help for an easier transition. He was among people considered when the city initially looked for Shontell’s replacement.

“He knows the people ... and certainly knows New London and the (housing) developments and their previous issues,” Gibson said.

Berliner, who has a home in New London, worked 27 years as the town manager in Mansfield before retiring and coming to New London as interim city manager in 2006. He was later hired as the city manager and worked for the city until 2009.

Passero said that like Erdmann, Berliner is an experienced manager in the public sector. He said their roles are to “bridge the gap” until the Housing Authority finds a permanent replacement.

The director’s job is posted, though the board could yet decide to choose a different route and hire a professional management firm. Applications already have come in.

Gibson said Erdmann has managed to accomplish much during his short stay and “things are running smoothly.”

In addition to meetings with the mayor and city officials, Gibson said Erdmann has spoken to representatives from the state Department of Housing, Connecticut Housing Finance Authority and HUD.

Gibson said he also has had to handle water leaks that led to flooding, a fire, frozen pipes, boiler problems, broken elevators and a homicide investigation at some of the five housing complexes owned and managed by the authority.

She said she is encouraged by the growth of the partnership between the Housing Authority and the board.

g.smith@theday.com