NEW YORK, NY November 22, 2008 —The head of the New York City Housing Authority is leaving to take the helm of Samaritan Village, a substance abuse agency he worked for in the past.

REPORTER: Tino Hernandez has been the authority's chairman for seven years. He leaves during a time of job cuts, which authorities blame on a lack of federal funds. The agency is also closing 18 community centers. City councilwoman Rosie Mendez chairs the public housing committee and says more challenges are in store for the next Housing chief.

MENDEZ: We are just concerned because at this point the housing authority is going to be transitioning all of their social services and community and senior centers to other city agencies so that's a big job.

REPORTER: The Housing Authority's general counsel, Ricardo Morales, will serve as interim chairman. A national search is underway to find a permanent replacement.

In addition to the Housing Authority's budget woes, the agency has been struggling to keep its elevators working safely. Recently a five year old died at a public housing development after trying to escape a stalled car.