KPRC 2 Investigates is looking into allegations that the Houston Housing Authority (HHA) is out of money to support low-income Houston families in paying rent. In February, HHA President and CEO David Northern informed Houston Mayor John Whitmire that there were no funds left to provide vouchers to housing applicants. However, Investigative Reporter Amy Davis has discovered that just weeks later, Northern approved substantial pay raises for his executive team.
Voucher program explained
The Housing Choice Voucher Program, essentially Section 8 in Houston, allocates money from the U.S. Department of Housing and Urban Development (HUD) to HHA. These funds are distributed as rent vouchers to low-income families, with landlords accepting the vouchers to cover a portion of the rent.
Now, HHA reports that voucher funds have run dry, leaving more than 18,000 applicants waiting for assistance.
Impact to Houstonians
A 62-year-old stage three ovarian cancer patient, whom we’ll call Jessica, fears losing her home. Despite having benefits cover her medication, she worries about rent. Jessica’s only income is a monthly disability check, which barely covers her rent, and her rent increases annually.
Jessica applied for a housing voucher in 2016, following a bout with kidney failure. Since then, she’s endured a kidney transplant, cancer diagnosis, and diabetes, rendering her unable to work. Eight years later, she’s still on the waitlist.
Funding concerns and executive pay raises
Despite the urgent need, HHA President David Northern claimed in February that the rising cost of rent had depleted funds, forcing a freeze on the voucher program. Yet, a month later, Northern authorized notable salary hikes for his executive staff:
- Jay Mason, Director of Real Estate Investment and Development: 21% increase from $123,240 in 2023 to $149,700 in 2024.
- Na’Shon Edwards, Strategic Advisor: 26% increase from $95,000 in 2023 to $120,000 in 2024.
- Khadija Darr, Senior VP of Administration: Increase from $176,000 to $200,000.
- Corey Franklin, VP of Asset Management: From $102,000 in March 2024 to $150,000 by June.
- Jennine Hovell-Cox, General Counsel: 28% increase from $156,000 in 2023 to $200,000 in 2024.
Na’Shon Edwards position was eliminated November 13th. Corey Franklin left HHA over the summer.
Following KPRC’s investigation into questionable contracts signed by Northern, HHA’s Board of Commissioners placed him on paid administrative leave in late October, appointing Hovell-Cox as interim President and CEO. An HHA spokesperson stated via email, “The voucher program is not connected to the HHA employee pay.”
For applicants like Jessica, the only increase she experiences is in her rent. She recently renewed her lease, which rose by $50. As her rent continues to climb, she fears she will need to find a more affordable place by January.
Board chairman responds
When asked if he was aware of the substantial salary increases, HHA Board Chairman Jody Proler said Northern had assured him there had been no compensation increases in years. Proler expressed anger upon learning the truth.
MORE: Catch up on the entire KPRC 2 Investigation into the Houston Housing Authority here.
The Houston Housing Authority responded to KPRC 2 Investigates questions below
Q: I have interviewed a woman who said she has been on the waiting list since 2016. She called today to confirm that and was told that she is still on the list. Why?
A: Due to privacy of the clients, we serve, the HHA cannot discuss or disclose any details on individual files.
Q: In 8 years, a 62-year-old ovarian cancer patient can’t get any assistance from HHA?
A: Due to privacy of the clients we serve, the HHA cannot discuss or disclose any details on individual files.
Q: How many people are on the voucher wait list & what is the average wait?
How many people receive housing vouchers each month from HHA?
A: There are 18,276 applicants currently on the general HCV waitlist. We are not actively selecting waitlist applicants and have not done so during CY2024. It is difficult to say what the average wait time is because of so many factors associated with making that determination - and especially during our current shortfall status. All applicants currently on the waitlist were added the last time the list was open for new applications in September 2016. To date approximately half of those applicants added in 2016 have been served. As far as the number that receive a voucher each month, since the list is static the number is zero for 2024… with exceptions. There are other special purpose targeted vouchers available under the HUD Special Programs but the number is small and only amounts to a handful each year.
Q: At the same time that HHA announced it was out of funding for the voucher program, several HHA executives received substantial pay raises. How do you justify that?
A: The voucher program is not connected to the HHA employee pay.
Additional statement from the Housing Authority regarding the content of this story
The HHA Voucher Program is funded through the Housing Choice Voucher Program (HCVP/Section 8) through HUD. This funding pays for tenant-based assistance to low-income families, seniors, and individuals with disabilities. It does not pay for the HHA executive staff.
The Central Office Cost Center (COCC) of the HHA is a business unit that generates fees from a variety of housing and support programs administered by the HHA. The HHA executive salaries are funding from this business unit and not funded by HUD directly.
Background on Executive Salary Increases:
In 2023 the HHA commissioned an independent third-party salary study, and it was determined that several of the employees - exempt and non-exempt - where being compensated below market.
A COLA increase was given to correct that delta.
