Wells Pleased with Next Steps to Recover Southwest Community House Association
January 3, 2012
Councilmember Wells Pleased With Next Steps to Recover Southwest Community House Association
DC Superior Court Places SWCHA in Receivership
(Washington, DC) - Over the holidays, District of Columbia Attorney General Irv Nathan announced that the Southwest Community House Association has been placed in receivership. The Superior Court of the District of Columbia appointed Lisa Burford, a D.C.-based consultant for nonprofit organizations, the receiver with the charge of recommending a "plan, if feasible, for returning [the association] to its nonprofit purposes of providing vital services to low and moderate income residents in the Southwest D.C. community."
According to a release from the Office of the Attorney General:
"Southwest Community House Association consented to the receivership, which the District requested in a civil complaint alleging that the association, after suffering a series of financial and legal setbacks, failed "to maintain a presence in Southwest D.C. for the benefit of the community it was established to serve, and historically did serve." The District said in its complaint that the association's access to grants - its primary source of funding - was cut off in 2006, after an audit of its finances showed irregularities.
In mid-2006, Southwest Community House Association sold its only asset, a building at 156 Q Street, S.W. Since then, the association has not maintained an office and has not engaged in or supported substantial charitable activity. The lawsuit followed an investigation by the Office of the Attorney General into the association's corporate management and finances.
The Attorney General is authorized by the District law to seek a receivership over a nonprofit corporation that continues to act contrary to its nonprofit purposes."
Councilmember Wells has worked closely with the Office of the Attorney General for nearly four years to investigate the circumstances surrounding the 2006 sale of the SWCHA property. On November 10, 2011, he announced that the Attorney General had filed a request for Receivership with DC Superior Court to put any SWCHA remaining resources back into the community through appointment of a receiver.
"I am hopeful this decision is the next step to ensure any funds remaining from the sale of the property are protected and will be put to good use to support families and those in need in Southwest," stated Wells.
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