Building on Broken Promises

Gallery

A Broken Promise

Companies owned by developer and former D.C. council member H.R. Crawford has received millions of public dollars in recent years to build and renovate housing complexes. The projects have been marred by delays and controversy. Crawford blames funding gaps, environmental problems and other challenges for the delays.

» LAUNCH PHOTO GALLERY

In 1976, he was fired from HUD for seeking consulting contracts from local housing agencies that had received HUD money. Crawford said he had announced that he would resign from HUD and that he had done nothing wrong; the Justice Department ended an investigation without action. In an audit four years later, HUD found that Crawford's property management company had misspent almost $134,000 in federal money on "excessive" management fees, political and social activities, and loans to employees. Auditors later lowered the figure, and Crawford repaid some of the money while denying wrongdoing.

When he was a D.C. Council member, a federal grand jury investigated Crawford's use of council and city funds and contracts awarded to his associates. One of Crawford's aides and a contractor pleaded guilty. Crawford denied wrongdoing and was not indicted.

In 1996, four years after leaving the council, Crawford laid out his vision for what would become Walter E. Washington Estates.

HUD had foreclosed on the 331-unit apartment complex a year earlier when the owner refused to make repairs. Tenants decided to buy the property themselves and found an appealing partner in Crawford, with his expansive résumé, thriving property management firm, key government contacts and experience as a developer.

According to early plans, Walter E. Washington Estates -- named after the District's first mayor under home rule -- would have dozens of townhouses and a community center. Several dozen homes would be set aside for the former tenants and priced in the $90,000 range.

"Sales are restricted to first-time homebuyers only. No INVESTORS!" an early proposal noted.

HUD agreed to support the development despite the 1980 audit that challenged Crawford's use of federal housing dollars. The agency sold the property for $1 to Crawford's company and the tenants association and contributed $25 million for construction.

HUD directed Crawford to put the first $2 million from the proceeds of the home sales into a trust fund to help low-income families with down payments and to support the new homeowners association. Any additional proceeds would be returned to HUD.

HUD also told Crawford to provide the original tenants with a rent-to-own option if they couldn't afford to buy, records show.

* * *

Smith, the tenant leader, eagerly signed on. She had raised her children in the complex and wanted to help her neighbors become homeowners.

"She felt honored that Crawford would come to her and want to work hand in hand with her," said her son, Charles. "To be able to do this for the community and the people that she lived with and worked for was extremely exciting."