DC AG in Lawsuit Against Ex-H Street Housing Director

The former director of a D.C.-based nonprofit housing group is facing increasing legal pressure over alleged theft.

D.C. Attorney General Brian Schwalb joined a lawsuit Monday against Kenneth Brewer Sr., former executive director of the H Street Community Development Corporation, the Washington Post reported. The lawsuit alleges Brewer misappropriated over $1.2 million in funds meant for affordable housing initiatives.

Brewer, who served as director from 2010 until his retirement in July 2023, “improperly” transferred money from the nonprofit to its for-profit subsidiary, H Street Investment Corp., which he also directed, to finance unauthorized personal bonuses, according to the lawsuit.

Brewer violated a “legal duty” his nonprofit had to use its money to serve the public, Schwalb said in a statement. Brewer diverted money intended to “support the H Street small business community to pay himself lucrative bonuses.”

Between 2017 and 2023, Brewer circumvented proper approval processes for performance reviews and bonuses by submitting requests directly to the subsidiary’s board without informing HSCDC’s board, according to the lawsuit. He allegedly authorized the sale of HSCDC property and used proceeds to fund bonuses.

This comes after HSCDC itself sued Brewer last March for abuse of authority and misappropriation of funds. The Attorney General’s office joined the lawsuit following an investigation prompted by the initial allegations. Both parties have been engaged in mediation, with another hearing scheduled for next month.

Brewer has denied all allegations in previous court filings. Attempts to reach him for comment by the Post were unsuccessful, and his attorney did not respond to requests for comment.

The nonprofit was established to develop and maintain affordable housing for low-income District residents. The Attorney General’s office reports that due to the $1.25 million in unauthorized bonuses paid to Brewer, HSCDC faces “significant financial challenges.” Schwalb’s office is working to recover the full amount for the nonprofit.

Brewer grew up in public housing in Southwest Washington. In a 2020 Washington Business Journal essay, he wrote about preparing his children to be “good citizens” amid racial unrest and what he described as “destructive hate and fear-mongering by the highest levels of government.”

— Holden Walter-Warner