PHILIPPI — Alderson-Broaddus University has announced the resignation of its Board of Trustees Chairperson Rebecca A. Hooman, who last month wrote an online letter detailing the school’s financial difficulties.

Hooman’s resignation became official on Friday and she will be replaced by James E. Gavin, who worked most recently with the West Virginia Department of Transportation, Division of Highways.

Last month, Hooman wrote a detailed letter about the university’s financial struggles on Alderson-Broaddus’ webpage, and in her resignation announcement she said, “As Board Chair, I have become a distraction to the good work being done by AB’s administration.”

“While I deeply appreciate the many statements of support and gratitude I continue to receive for my service,” Hooman said. “I don’t want to be an obstacle to progress. I, therefore, resign as Chair and member of the Board effective Friday, June 30.

“It has truly been an honor to serve my alma mater both as an Alumni Council member and a trustee over the past 18 years. I appreciate the many statements of support and gratitude for my service. I leave knowing that the Board is in capable hands as AB continues to navigate a challenging time in higher education.”

Following a review of “financial solvency concerns” within the university’s reports, the West Virginia Higher Education Policy Commission announced Wednesday that it postponed its planned vote on granting provisional reauthorization of Alderson-Broaddus University.

The postponement is reportedly to allow HEPC members extra time to review updated enrollment and financial information provided by Alderson-Broaddus.

In Hooman’s online letter, she said around 2012 the university faced a financial crisis and had only two choices, borrow from endowment funds or close. To avoid closure at that time, she said the board voted to borrow the bulk of the endowment, which totaled around $14 million.

Hooman wrote that COVID-19 created new financial burdens in 2020, and in 2022 when the school was once again on the verge of closing, leaders decided to borrow heavily from its endowment fund.

In Hooman’s online letter, she wrote that when Rick Creehan became AB’s President in 2011, he was informed the school had $4 million more in debt than he had known.

“This was not due to any financial malfeasance, just to the inadequacy in the business office,” she wrote.

“To avoid closure at that time, the board voted to borrow the bulk of the endowment, basically $14 million,” Hooman wrote. “… In addition, to house the larger student population and provide a stadium for the multiple sports teams, a municipal bond in the amount of $37 million was issued in 2013, at over 7% interest. The rate was not quoted until near the end of the process, and the Board felt pressure to move forward to have housing and a sports stadium ready for the following fall as enrollment was already growing quickly.”

Hooman continued, “Given the continued unbalanced budget, AB defaulted on the Municipal Bond in early 2015 and began working to find a buyer for it over that summer and fall. In October 2015, AB signed a standstill agreement with the Bondholders to stop further action by them to seek payments or seize the campus.

“AB began working with USDA in 2016 to apply for a USDA rural development loan to buy out the bond and fund the Optometry school. In 2017, USDA declined full funding of this request but suggested we re-apply for funding just to buy out the bond, which we did in 2018,” she wrote.

“Later that year, the 30-year loan was approved, and the bondholders accepted a buyout of $27 million using the proceeds of the loan in that amount approved by USDA, with an interest rate of just over 3%.”

Hooman wrote that, “in the Spring of 2022, the Board voted to make an additional borrowing from the Endowment of $540,000 per the Endowment Use Policy developed in 2012. The Board was unaware until late Fall 2022 that donors had not been notified of this action. At both times of borrowing from the endowment, the only other option was to close the school.”

Hooman’s replacement, Garvin, graduated with honors from Alderson-Broaddus College with a Bachelor of Arts in Sociology in 1975. He went on to earn a Doctor of Jurisprudence from West Virginia University College of Law in 1982. Other than working for the WVDT, Garvin also once served as the state’s Assistant Attorney General.

Alderson Broaddus College was formed in 1932 and the institution was named a university in 2013.