Councilmembers call for an investigation of the Department of Housing and Community Development (DHCD)

January 28, 2012 The Advoc8te

I wrote a lot about the issues surrounding the Peaceoholics plans to open a group home at 1300 Congress Street SE in Congress Heights. As expected the community had a lot of concerns and almost as many questions surrounding the funding and operation of such a facility on a residential block with four or five others. I sat in on a lot of those meetings with the community, DHCD, DYRS, the Peaceoholics, and Councilmembers Brown & Barry and to say those meetings were "passionate" would be an understatement. Currently the building has been sold to a new owner (with a somewhat questionable past) and sits vacant.

Alan Suderman of the Washington City Paper just posted an article about the press release.

Go HERE to catch up on the saga of 1300 Congress Street SE. The community's battle against the oversaturation of social service facilities in Ward 8 is extensive and fierce.

MEDIA ADVISORY:

January 28, 2012

For more information contact: 202-724-8190

Councilmembers call for an investigation of the

Department of Housing and Community Development (DHCD)

Washington, DC-
I am deeply concerned by evidence that has been uncovered pointing to unethical behavior and possible criminal malfeasance and collusion between contractors and current and former employees of the Department of Housing and Community Development (DHCD).

Through my role as the Chair of the Council's Committee on Housing and Workforce Development, on Monday July 12, 2010, I convened a public oversight roundtable on the "Peaceoholics Construction Project at 1300 Congress St. SE". This roundtable was held to determine the circumstances that led the previous administration to award the Peaceoholics more than $4.4 million to acquire and rehabilitate several properties including the Congress Street site. The information provided from the roundtable left many questions unanswered, especially in relation to entities with little or no housing experience receiving these District housing funds. Despite additional inquires; these unanswered questions were never adequately addressed by the previous leadership of DHCD.

More recently, the current DHCD leadership has become a willing partner, and in cooperation with recommendations from my office, has instituted more stringent quality controls in the awarding of funds. Also, at my request, the DHCD has conducted new reviews of existing projects that are currently being funded. This review has uncovered evidence, we expect, will show the brazen abuse of authority from multiple employees at the agency to financially enrich themselves and outside entities. We believe this investigation has prompted administrative action against one high level DHCD employee yesterday and we expect additional personal actions to follow.

This alleged malfeasance by District government employees and the repeated instances of certain outside individuals and entities have surfaced on numerous property records dealing with land transfers. These property records show that certain individuals and entities have repeated appeared in several questionable sales, purchases and land transfers, including the 1300 Congress St. SE property.

This troubling situation has spurred me and Councilmember Jim Graham, who has also examined this issue, to request the Inspector General and the Attorney General to launch immediate investigations into this matter.

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