Mayor Byron W. Brown insisted Wednesday that a development agency expanded its health insurance coverage without his knowledge, a move that allowed the woman living with a city commissioner to receive health benefits.

Brown told The Buffalo News that he learned of the change only two weeks ago and then made the decision to place all employees of Buffalo Economic Renaissance Corp. under the city’s health insurance coverage.

Late last year, the agency expanded its coverage to include nontraditional policies that included domestic partners of the opposite sex. Brian Reilly, agency president and Buffalo’s development commissioner, opted out of his city plan, which would have cost $3,730 this year, and enrolled in the domestic partner plan with the agency that costs $9,099.

Brown said that neither he nor other members of the agency board were aware of the changes in insurance coverage until recently. Brown said the changes were made as a result of an “administrative-level” decision that wasn’t brought to the board.

Since the 1980s, some Common Council members and other critics have branded Buffalo’s development agencies “shadow governments,” contending that they have far too much autonomy. Brown was asked whether the insurance situation bolsters arguments that more accountability is needed.

The mayor would say only that his finance commissioner is conducting a review of agency operations.

“We’ll be making statements as we identify issues and implement new policies and procedures,” Brown said.

When asked to comment specifically on the policy change that allowed Reilly’s girlfriend to qualify for insurance, Brown repeated that a review of agency policies is being conducted. The mayor said he won’t have any further comment until the review is completed.

Council President David A. Franczyk said he believes that recent controversies involving the agency and the Buffalo Urban Renewal Agency underscore the need for stronger “checks and balances.”

“It’s the people’s money, and you have to show how every nickel is spent,” Franczyk said.

Both agencies receive millions of dollars in federal funds that are channeled to cities to help fight poverty and promote economic development.

Reilly has not returned calls to discuss what, if any, role he played in the decision to expand insurance coverage. Reilly makes $127,233 from two separate pots of money. He is paid $91,162 through the city’s budget and an additional $36,071 from the development agency.

Finance Commissioner Janet E. Penksa isn’t the only city official reviewing agency operations. City Comptroller Andrew A. SanFilippo has been investigating the agency’s lending practices in the wake of a News investigation into One Sunset, a now-defunct restaurant that received agency loans and other assistance. Darryl McPherson, the city’s chief auditor, expects the review to be completed later this month or in early August.