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Houston Housing Authority CEO placed on administrative leave amid contract scandal uncovered by KPRC 2 Investigates

The CEO of the Houston Housing Authority is now on administrative leave with pay after a months-long investigation by KPRC 2 Investigates Amy Davis exposing HHA for a series of questionable contracts and projects, prompting calls for accountability from the public.

The Board of Houston Housing Authority put David Northern on administrative leave while their investigation into him continues.

“Placing the president and CEO on administrative leave is a positive development, necessary to restoring trust in the Houston Housing Authority (HHA). With new leadership, HHA should be better able to fulfill its primary mission of providing affordable housing to Houston residents more effectively and efficiently and get away from the wasteful practices of the past. I applaud Click2 Investigative Reporter Amy Davis for bringing this scandal to light. She has done a service to all Houstonians,” said Houston City Council Member Julian Ramirez.

KPRC 2 Investigates contracts within the Houston Housing Authority. KPRC 2 Investigator Amy Davis finds questionable dealings and potential taxpayer money waste related to the HHA. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

HHA provides housing and services to tens of thousands of low-income people and families in our city using mostly federal tax dollars.

Months ago, Amy Davis started following the money HHA provided to contractors who were supposed to make renovations after receiving tips that some Houstonians were worried that the money meant to pay for improvements to Houston housing developments was not being used properly.

Most of the concerns came from residents who live in the Cuney Homes, Houston’s oldest public housing development. The residents were frustrated over incomplete renovations in their Third Ward neighborhood.

KPRC 2 Investigates contracts within the Houston Housing Authority. KPRC 2 Investigator Amy Davis finds questionable dealings and potential taxpayer money waste related to the HHA. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

HHA had allocated $643,500 for a landscape improvement project to connect Cuney Homes to the Columbia Tap Trail, which included adding benches, a table, and other amenities. However, the agency paid more than $766,000 to contractors for the job—$123,000 over budget—without delivering the promised enhancements.

Elite Project Management, owned by Lemontre Woods, was contracted as the project manager. Woods registered his company with the state just two months before signing a contract with the HHA on March 4, 2024.

Northern, who signed the contract, initially dodged questions regarding the project and later admitted in a private meeting that he was unaware it had been left incomplete.

Contracts KPRC 2 Investigates obtained showed all work was to conclude on or before April 1. HHA paid Elite all of the money under its contract and then some. Documents show Elite project managers asked for another extension until May 7 and an extra $17,500 to order the items.

The Houston Housing Authority (HHA) embarked on a project to install 1,615 window air conditioning (AC) units across three local housing projects, originally budgeting $2.3 million. However, the final cost ballooned to more than $5.4 million—leaving many questions about the use of public funds and who benefited from the extra costs. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

Among the incomplete and questionable projects was the installation of 1,615 window air conditioning units at Cuney Homes, Kelley Village, and Irvinton Village. Initially budgeted at $2.3 million, costs unexpectedly escalated to over $5.4 million, raising significant concerns about the management of public funds.

Northern, who does not report directly to Houston’s current mayor, John Whitmire, does report to the HHA Board of Commissioners.

In February 2024, Mayor Whitmire removed Snowden and four other commissioners from the HHA Board, citing concerns about financial mismanagement and a lack of leadership. Despite these changes, the newly appointed board remains bound by Northern’s amended contract.

KPRC 2 Investigates contracts within the Houston Housing Authority. KPRC 2 Investigator Amy Davis finds questionable dealings and potential taxpayer money waste related to the HHA. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

Northern sent this response to KPRC 2 Investigates late Tuesday evening.

Today, David A. Northern Sr., President and CEO of the Houston Housing Authority (HHA), issued the following statement after the HHA Board voted to place him on administrative leave to perform an investigation into his performance:

“I’m confident this warrantless investigation to try to remove me from my position will turn up nothing. The Board has taken this step to try and fabricate a reason to remove me because they do not have one. This decision stems from the coordinated opposition from anti-affordable housing and special interest groups who view affordable housing as a threat to their pocketbooks.

Regardless, I remain committed to the vital mission of providing affordable housing to Houston families, despite the attacks my team and I have faced. Since 2024 alone, we’ve secured over $60 million in federal funding that will lead to an anticipated $750 million dollar investment into some of Houston’s historically underserved communities. And we’ve launched innovative programs that make real differences in people’s lives including programs that help families access thriving neighborhoods, support seniors aging in place, and expand services for our most vulnerable residents. Furthermore, my administration has systematically resolved the HUD deficiencies identified before I took over as President & CEO, and caught the agency up on its 3-year audit backlog. And several weeks ago, I proposed an independent audit - unanimously approved by the Board – to ensure complete transparency of our contracts and procurement process.

I am deeply concerned about the weaponization of our housing authority and the negative impact that this has had on the morale of HHA staff and our ability to serve our constituents. Nevertheless, I will keep fighting to protect both our mission and the truth. At the heart of this issue, it is Houston’s most vulnerable residents who stand to lose the most.”

The KPRC 2 Investigates team will continue to bring you the latest on this investigation.

Amy started digging into these HHA contracts months ago after working on tips sent to KPRC 2 Investigates. If you have a tip or question, email Amy at ADavis@kprc.com or Investigates Producer Andrea Slaydon at ASlaydon@kprc.com.


MORE TO COME: Wednesday at 6:35 a.m. KPRC 2 Today, Amy Davis digs deeper into these lucrative multi-million-dollar contracts we are all paying for.


About the Authors
Ninfa Saavedra headshot
Amy Davis headshot

Passionate consumer advocate, mom of 3, addicted to coffee, hairspray and pastries.

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