I believe this is only about the Northwest Co-op between 5th, NJ, O and N Streets NW, not the NW Co-op in Truxton Circle. They both have nearly the same name and so there could be some confusion.
The usual Shaw activists have given an audit report put out by HUD's Inspector General ( see http://www.hudoig.gov/Audit_Reports/2012-PH-1005.pdf ) some pixels on the Shaw listserv pointing out a few features of the report pointing out some of the flaws of the system regarding subsidized low income rental housing and oversight. According to the report HUD's IG got a complaint from their hotline regarding the NW Co-op's failure to identify and remit excess income and the Co-op's problem with nepotism.
The audit found that the Co-op was undercharging rent and not paying much attention to occupants' household income, which in some cases is well above what I and the Help, and a couple of people on the Shaw listserv make. I really want to go off on a tangent of how we assume the poverty of some people and the wealth of others, but I won't.
On page 10 of the report, the annual income ranges for the sample of 25 Co-op members ranged from $39K to $127K. On page 19, the last page, of the report there is a table listing the incomes of the 25 (no names), what they paid in rent and what they should have paid in rent. I found this very shocking. Even what HUD believes they should pay is horribly low. Somebody please explain to me why someone making $129,905 should only have to pay $691 a month in rent! I'd love to see the formula of how one of the lowest incomes audited of $39,185 was to pay $759 a month. What they actually paid was $495 or $592. In all, calculating the years 2006-2010, the Co-op owes HUD $192, 977.
Then again it is a co-op, and co-ops (regardless of being subsidized) are different. Are these people part owners of the co-op or straight renters? If their agreement with HUD is that they should charge a certain amount based on income in exchange for a favorable interest rate or other subsidies, they should have done it.
I'm not even going to bother touching the neopotism thing.