D.C.’s No. 2 Buildings Official Resigns After Being Caught With Secret Freddie Mac Job
One of the top officials overseeing D.C.'s building and construction regulations has resigned after she was caught working a separate, full-time private sector job in secret.
A D.C. government ethics probe found that Caroline Lian, the deputy director for the city’s Department of Buildings, had been working for Freddie Mac the entire time she was employed with the District, which she failed to disclose.
It also found that Lian underreported her salary for her separate position as a member of the Falls Church City Council and attended more than 10 council meetings while reporting a full day of work for DOB.
Rashee Raj, the general counsel for D.C.’s Board of Ethics and Government Accountability, told Bisnow in an email that a confidential complaint had prompted the agency to look into the matter.
Lian didn't respond to a request for comment.
BEGA fined Lian $25K in an Aug. 1 settlement agreement, a result of the investigation. She has resigned from her Department of Buildings position, a DOB spokesperson told Bisnow in an email. The Washington Post first reported her resignation.
“The Department of Buildings has accepted the employee’s resignation effective immediately and she is no longer employed by District government,” the DOB spokesperson said. “The Department of Buildings is committed to our mission of serving DC residents, businesses, and visitors, and will be taking additional steps to ensure that all employees follow required practices.”
Freddie Mac didn't respond to a request for comment but told The Washington Post that Lian was no longer employed there.
Lian was appointed deputy director in October 2023 after being hired by DOB a year prior as a chief operating officer. She most recently made $175K per year, according to BEGA.
During that time, she was also a full-time employee with Freddie Mac as a third-party risk management director. She had been working for the federal home mortgage company since 2015 and most recently earned a “six-figure salary,” according to BEGA.
Lian held down both jobs given her opposite in-office and telework schedules at each, BEGA found.
She worked in person at DOB Mondays and Fridays, while typically teleworking Tuesdays, Wednesdays and Thursdays. She did the reverse at Freddie Mac.
For her $25K fine, Lian was ordered to pay a lump sum of $17K by Aug. 2, with the rest deducted from her final paycheck and unused leave.
The D.C. Department of Buildings is a relatively new agency, created in 2022 when the city's Department of Consumer and Regulatory Affairs split into two offices, DOB and the Department of Licensing and Consumer Protections.
The agency regulates construction activity in the District, including operating permitting and reviewing construction documents for building code and zoning compliance. It also has inspection and oversight authorities. Brian Hanlon has led the agency as director since May 2023.
DOB launched a pop-up permit pilot program in April to speed up the permitting process for temporary tenants looking to inhabit vacant buildings downtown. It is also working with a new ANC caucus on a pilot program to track data on vacant properties and categorize which could be prioritized for more immediate activation.
