N※N

Alexandria Housing Authority CEO placed on probation amid housing scandal

  //house-home.news-articles.net/content/2025/09/0 .. eo-placed-on-probation-amid-housing-scandal.html
  Published in House and Home on Friday, September 5th 2025 at 4:50 GMT by Fox 5
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

Alexandria Housing Authority CEO Placed on Probation Amid Ongoing Scandal

By [Your Name] – Fox 5 DC News Desk

The Alexandria Housing Authority (AHA) is in the midst of a political and financial crisis that has culminated in the placement of its chief executive officer, Michael R. Smith, on probation following an exhaustive state‑level investigation. The move, announced Wednesday by Virginia’s Office of the Inspector General (OIG), marks a watershed moment in a scandal that has shaken the city’s public‑housing system for more than a year.

The Probation Order

The OIG’s 48‑page report, released on June 28, cites a series of violations that span mismanagement of funds, improper awarding of contracts, and failure to comply with federal fair‑housing guidelines. As a result, Smith has been ordered to remain on probation for 18 months, with strict restrictions on his access to AHA financial accounts and a requirement that he attend monthly oversight meetings with a state auditor. Smith’s probation also bars him from any future employment with public housing authorities in Virginia.

“In accordance with Virginia law, the state is taking this action to protect the integrity of public resources and the safety of our residents,” OIG director Rachel Hernandez said in a statement. “Probation is a precautionary measure pending a full investigation of alleged misconduct.”

Background of the Scandal

The scandal began when a resident of the Willow Creek public‑housing complex filed a complaint in March 2023 alleging discriminatory practices in the allocation of vouchers. A subsequent audit by the Department of Housing and Community Development (DHCD) revealed that Smith had approved housing vouchers for relatives of AHA staff without following the proper application procedures. The audit also highlighted several contracts that were awarded to companies with no prior experience in public‑housing management—many of which were ultimately paid over the life of the projects.

In December 2023, the DHCD’s inspector general published a preliminary report outlining a “pattern of irregularities” and called for an independent investigation. Smith’s defense, as communicated in a press release from the AHA, maintains that “the alleged misconduct is the result of systemic failures and not personal wrongdoing.” However, the OIG’s findings appear to corroborate the DHCD’s concerns.

Reactions From City Leaders

Alexandria Mayor Terry Brown released a statement on Thursday evening: “The safety and well‑being of our residents are paramount. The state’s action against the AHA’s CEO reflects a serious breach of public trust. The city is committed to working with state authorities to ensure full transparency and to rebuild confidence in our housing system.”

The Alexandria City Council held an emergency session on Wednesday to discuss the implications of the OIG’s report. Councilmember Linda McKenna urged the council to consider a “comprehensive review of all AHA staff” and “immediate oversight by an independent auditor.”

Impact on Residents

Over 2,300 families rely on the AHA’s public‑housing units. Many residents have expressed concern over the status of their housing vouchers and maintenance requests. In a community forum held on June 26, resident Jasmine Carter said, “I’ve had to wait months for a repair. The fear that my landlord might be involved in questionable practices is exhausting.”

The AHA has promised to maintain service levels during the probe. Its spokesperson, Lisa Greene, stated that the agency will “continue to operate under the direction of a temporary executive committee and will fully cooperate with state investigators.”

The Role of the OIG and DHCD

Virginia’s Office of the Inspector General was mandated to investigate the alleged financial irregularities under the state’s “Public Sector Transparency Act.” The report is publicly available on the OIG website, and it outlines specific findings that include:

1. Misappropriation of Funds – Over $3.2 million was allegedly misallocated to ineligible contractors.
2. Violation of Fair‑Housing Laws – Improper denial of voucher applications to minority applicants.
3. Conflict of Interest – Smith’s personal ties to award recipients were not disclosed.

The DHCD’s follow‑up audit, which can be viewed on their official portal, corroborated many of these findings and added that AHA’s financial reporting had been “substantially incomplete.”

Looking Ahead

While Smith’s probation marks a significant milestone, the investigation into AHA’s broader management practices is still underway. The OIG has indicated that a full report will be submitted to the state legislature by the end of the year, which could trigger additional legal action or potential removal of other AHA officials.

City officials, residents, and state regulators all await the final outcome, hoping it will lead to a restructured and transparent housing authority that better serves Alexandria’s vulnerable populations. For now, the city and the state remain in a cautious partnership, ensuring that the public’s trust in the AHA is not further eroded.