News Summary
The Jacksonville Housing Authority has outsourced its Housing Choice Voucher program to Nan McKay & Associates despite the contractor facing $3.7 million in federal fines and ongoing litigation. This shift has led to significant job losses and raises questions about employee transition, salaries, and benefits. Nan McKay, also embroiled in a lawsuit with the San Francisco Housing Authority, claims to have substantial defenses. This decision follows a turbulent period for JHA marked by leadership changes and legal troubles, prompting community concern about future housing assistance.
Jacksonville, Florida – The Jacksonville Housing Authority’s (JHA) decision to outsource its Housing Choice Voucher program to Nan McKay & Associates is under intense scrutiny following significant federal fines and ongoing litigation against the contractor. In 2024, the U.S. Department of Justice imposed a $3.7 million fine on Nan McKay for failing to meet cybersecurity compliance requirements mandated by a federally funded contract.
Additionally, a partner company associated with Nan McKay was fined $7.6 million for separate compliance issues. The legal challenges don’t stop there; Nan McKay is currently being sued by the San Francisco Housing Authority for breach of contract based on allegations that it did not fulfill its contractual obligations.
As part of recent changes, JHA completely eliminated its
Housing Choice Voucher Program
in June 2024, resulting in approximately 50 job losses. The management and administration of this program have now been handed over to Nan McKay & Associates, despite the mounting concerns surrounding the company’s performance.Current and former employees of the JHA’s Housing Choice Voucher program have been given the opportunity to apply for positions with Nan McKay. However, there is uncertainty regarding whether these employees will keep their previous salaries and benefits. The JHA has directed all comment requests on these matters to Nan McKay.
Contractual and Legal Issues
Aside from the federal fines, Nan McKay has been active in its defense against allegations of incompetence. The company claims that it entered into a legal dispute with the San Francisco Housing Authority due to a misunderstanding regarding the services promised in the original contract. Although the lawsuit is ongoing, Nan McKay’s management asserts that it possesses substantial defenses and counterclaims, which they intend to present vigorously in court.
CEO John McKay emphasized that the company has over 45 years of experience collaborating with housing authorities across the nation, with nearly 100,000 housing choice vouchers currently administered. He maintains that public data reflects the effectiveness of their operations, contradicting claims made in the lawsuit.
Cyclic Challenges for the Jacksonville Housing Authority
The outsourcing to Nan McKay comes on the heels of JHA’s tumultuous management history over the past 18 months. The agency has experienced significant leadership turbulence marked by board resignations, changes in executive roles, as well as investigations carried out by the inspector general. Compounding the issues, criminal charges have been leveled against a former deputy CFO.
Despite these setbacks, Nan McKay plans to provide on-the-job training for the employees transitioning from JHA, helping them navigate the operational changes under the new management structure. However, the broader implications of relying on an external contractor with a troubled track record remain to be seen.
The JHA’s future performance in handling the Housing Choice Voucher program under the management of Nan McKay will be scrutinized closely, particularly considering the recent fines and legal challenges faced by the company. As this situation continues to develop, stakeholders and community members alike will be watching for updates regarding both the legal proceedings against Nan McKay and the impacts of the outsourcing on local housing assistance programs.
Deeper Dive: News & Info About This Topic
HERE Resources
Jacksonville Faces Leadership Changes at Housing Authority
Additional Resources
- WOKV: Firm Hired by Jacksonville Housing Authority
- Wikipedia: Housing Choice Voucher Program
- Action News Jax: Jacksonville Housing Authority Outsourcing
- Google Search: Jacksonville Housing Authority
- WOKV: Ben Becker Articles
- Encyclopedia Britannica: Housing
- Action News Jax Homepage
- Google News: Jacksonville Housing Authority
Author: STAFF HERE JACKSONVILLE WRITER
The JACKSONVILLE STAFF WRITER represents the experienced team at HEREJacksonville.com, your go-to source for actionable local news and information in Jacksonville, Duval County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Jacksonville Jazz Festival, Riverside Arts Market, and World of Nations Celebration. Our coverage extends to key organizations like the Jacksonville Chamber of Commerce and JAXUSA Partnership, plus leading businesses in logistics, healthcare, and entertainment that power the local economy such as CSX Corporation, Baptist Health, and VyStar Credit Union. As part of the broader HERE network, including HEREOrlando.com, HEREStPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
