PITTSBURGH — Perry O’Malley, former executive director of the Butler County Housing and Redevelopment Authority, used funding from a line of credit from NexTier Bank to loan money to outside agencies, which was not permitted under the terms of the loan.

These loans, which went to entities such as the Redevelopment Authority of the City of Butler, could not be collected due to insufficient funds at those entities.

Stotler also testified that a project under O’Malley related to the federal Housing and Urban Development was an “unholy mess” due to concerns about the budget and project milestones.

This afternoon, authority solicitor Andrew Menchyk finished questioning her and O’Malley’s attorney, Paul Mazeski, began to cross examine her.

O’Malley of Cranberry Township, who was the executive director for 23 years, was placed on paid administrative leave in January while an investigation was done. After being terminated, he appealed to the state Civil Service Commission, alleging that he was fired because of his age and politics.

The hearing today is the third day of testimony before the commission. The first two hearings were last month.