HallFollowing a lengthy investigative report by The Washington Post today that several millions of dollars were wasted in the renovations of three buildings designated as housing for at-risk youths, the D.C. Department of Housing and Community Development said that one employee involved with overseeing the project has been let go, while another has been placed on administrative leave while the agency conducts its own inquiry.
The Post article, by Nikita Stewart and Debbie Cenziper, reported that the outreach group Peaceoholics, after taking possession of three buildings it intended to upgrade and convert into apartments for the families it serves, defaulted on a major loan, causing ownership of the buildings to revert to a Maryland developer with a history of bankruptcy and unlicensed operations. Under former Mayor Adrian Fenty, DHCD awarded Peaceoholics loans totaling more than $5 million to purchase buildings on Meigs Place NE, Oklahoma Avenue NE and Congress Street SE and convert them into apartments.
In a news release, DHCD’s current director, John E. Hall, said that both the District’s attorney general and inspector general have been asked to further investigate the Peaceoholics project. Earlier today, Councilmember Jim Graham (D-Ward 1), who chairs the D.C. Council committee that oversees the Department of Youth Rehabilitation Services, (which also had oversight of Peaceoholics’ efforts), issued his own statement on the matter.
Hall’s statement in full:
The Department of Housing and Community Development began an internal investigation into the Peaceoholics project in the past several months. In an abundance of caution, one DHCD employee has been terminated, and a second employee has been placed on administrative leave while the investigation is conducted. DHCD has already requested that the Office of the Inspector General (OIG) and the Office of the Attorney General (OAG) investigate this matter further.
Any improper behavior discovered by the OIG or OAG will result in the appropriate administrative action. Additionally, the District is currently evaluating options to determine the best way to accomplish the primary goal of this project and the agency—the preservation of affordable housing—while at the same time safeguarding taxpayer dollars.
