JACKSONVILLE, Fla. — Action News Jax has learned that Nan McKay & Associates, the company hired by the Jacksonville Housing Authority to manage its Housing Choice Voucher program, has paid millions of dollars in federal fines.

In 2024, the U.S. Department of Justice fined Nan McKay $3.7 million as part of a settlement related to the company’s failure to comply with cybersecurity requirements in a federally funded contract. Another company, partnered with Nan McKay, faced a separate $7.6 million fine.

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Nan McKay is also currently being sued for millions by the San Francisco Housing Authority for breach of contract.

Back in June, Action News Jax first reported that JHA eliminated its entire Housing Choice Voucher program — cutting about 50 jobs — and outsourced the program management to Nan McKay.

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While Nan McKay said former JHA employees can reapply for their jobs, it remains unclear whether they will receive the same salary or benefits.

Action News Jax’s Ben Becker reached out for comment. The Jacksonville Housing Authority referred questions to Nan McKay. In a statement regarding the Department of Justice settlement, Nan McKay said:

“Nan McKay & Associates, Inc., (NMA) acts as the subcontractor to prime contractor Guidehouse, Inc., in the NYS ERAP program operated by OTDA. In about 2022, Guidehouse became engaged in an acrimonious dispute with a former employee who was not part of the NYS ERAP and was unknown to NMA. Among the various litigation strategies employed by Guidehouse’s former employee against them, was the use of a Qui Tam suit regarding the NYS ERAP. NMA, as subcontractor to Guidehouse, was named as a co-defendant in that suit. As required by statute, the US Department of Justice investigated the allegations in the Qui Tam. NMA made a decision, in the interest of economic efficiency, to settle that suit and did so on May 14, 2024, without any admission of liability whatsoever. Nan McKay and Associates, Inc., continues to serve OTDA and the NYS ERAP and in fact is in the process of negotiating a new contract.”

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Background on Nan McKay & Associates

CEO John McKay, speaking on behalf of Nan McKay & Associates, said “Nan McKay & Associates, Inc. (NMA) has partnered with housing authorities across the nation for nearly 45 years with thousands of happy customers, including training thousands of housing authority staff across the nation on program regulations each year. NMA administers nearly 100,000 housing choice vouchers for agencies across the US. There is a misunderstanding with one client in San Francsico, and we believe public data at the city and national level show the positive impact of our work. This is consistent with NMA’s unrivaled delivery of impactful solutions, and we continue to be proud of the work we delivered under the terms of the contact within which we operated. We look forward to partnering with the Jacksonville Housing Authority to provide quality housing services for all of the agency’s customers and stakeholders.”

Regarding ongoing litigation with the San Francisco Housing Authority, McKay said:

“Nan McKay & Associates, Inc. (NMA) NMA is the defendant in a suit brought by the San Francisco Housing Authority. The complaint involves allegations that NMA breached its contractual duties in relation to certain services that were not required by the original contract between the parties, all related to management of San Francisco’s Housing Choice Voucher program. NMA has substantial defenses and counterclaims, believes the facts identified during discovery will overcome the plaintiff’s claims and support NMA’s counterclaims, and NMA has and will continue to vigorously defend itself.”

Regarding Jacksonville’s employees:

“NMA extended offers to managers and line staff of the Jacksonville Housing Authority’s HCV program. For those that accepted the offer, NMA is providing on-the-job training to ensure that they have the knowledge required to effectively perform their job functions.”

Troubled agency history

This is just the latest challenge for the Jacksonville Housing Authority, which has experienced numerous board resignations, high turnover among CEOs, various inspector general investigations, and criminal charges against a former deputy CFO over the past 18 months.

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