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The news from Philly is not good for Michael Kelly, the mayor’s new pick to head the Department of Housing and Community Development.

The local ABC station is reporting that Kelly left his post as acting director of the Philadelphia Housing Authority “amid scandal” because he was having an affair with an underling while also approving her undeserved “large pay increases.” PHA staffers have complained, the station said, to the federal Department of Housing and Urban Development.

But only half of that story is correct, says a senior Gray official (who asked not to be named while discussing a sensitive matter). While being courted for the D.C. job, Kelly, who is currently married, told the Gray administration of the affair but said he’d not given the woman in question any raises or promotions, according to the official. The official added that the administration checked with HUD to verify Kelly’s version of events before making him an offer.

“For us, it’s a private matter,” the official says.

Kelly’s sex life sure is, but it’s also fair to question the judgement of any boss who has an affair with an underling, no? Especially one that winds up being referred to a federal agency.

Prior to the gig in Philly, Kelly, who could not immediately be reached for comment, served as director of the D.C. Housing Authority for nine years. LL is going to guess this probably isn’t how he imagined his big return.