The Ontario government has asked an independent third-party reviewer to examine the financial records of a provincial, non-profit social housing organization, CTV Toronto has learned.

The Housing Services Corporation will be investigated after a number of questionable expenses were flagged, including payments to a former CEO totaling about $262,000.

Lindsey Reed resigned as the head of HSC in April 2013 after approximately seven years as CEO. The ex-CEO was paid approximately $262,000 in that year for severance, unused vacation time and salary for four months worked in that year. In addition, she was also kept on as a special advisor for HSC, a gig that paid nearly $52,000.

According to the group's website, HSC is an independent, non-profit corporation that provides a number of services to social-housing operators, including buying natural gas and insurance in bulk to push down social-housing costs. The group says they don't receive regular funding from the province, or levy municipalities for their services.

"We sustain ourselves through the effective management of our core programs, new business lines and partnerships with other organizations," HSC says on its website.

In addition, the group also receives funding by charging municipalities service fees, CTV Toronto's Paul Bliss reports.

After learning about Reed's pay package, and other spending, Ontario's Minister of Municipal Affairs and Housing Ted McMeekin sent a letter to HSC last November demanding answers about the spending.

"The obvious option is to talk to HSC and say, 'What the heck is going on?' And once we got a handle on that, well, 'What the heck are you going to do about making it right?'" he told CTV Toronto on Monday.

A month after that letter was sent, the chair of HSC's board, Roger Maloney, suddenly resigned. Before stepping down, Maloney also provided consulting services to the social housing group -- a contract position that paid about $72,000 annually.

But documents show Maloney was compensated approximately $142,000 in retainer fees, billed HSC nearly $6,800 a month, and there were 15 invoices that didn't contain any specific detail about the work he had completed for the group.

Ontario Progressive Conservative MPP Ernie Hardeman says the spending at HSC appears to be out of control.

"It just boggles the mind," he said. "I don't believe anyone should be paid that much to run that type of organization."

HSC's current CEO, Howie Wong, has also recently come under fire for travel-related costs, including expensive meals, alcohol and trips to London. On one occasion, he booked a two-day trip for a 90th birthday party.

"It was one of those split second decisions which received all the necessary approvals," Wong said. "On reflection, I should have thought about it a bit longer and come up with a better solution."

Wong says he has since repaid HSC several thousands of dollars in expenses, and the organization plans to go to court to retrieve some of the money that was paid to Reed.

"What's happened is that after her departure in 2013, new information came to light which indicated that some of those payments perhaps shouldn't have been received by her so we’re in the midst of a litigation to recover a fair number of those payments at this time."

Wong adds he has also cut spending on salaries in half, and all expenses and compensations are now public information.

With a report from CTV Toronto's Paul Bliss