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$146 million apartments sit empty. Why was it built on contaminated soil?

Paid for with taxpayer money - nearly 400 apartments may never open

KPRC 2 Investigates the Houston Housing Authority. Investigators were sent to check out soil samples from a new HHA apartment build. (Andrea Slaydon, Copyright 2024 by KPRC Click2Houston - All rights reserved.)

Houston – Houston’s Housing Authority President and CEO David Northern resigned after being placed on administrative leave weeks ago. This follows a series of troubling revelations about multi-million-dollar contracts and a questionable housing development.

The decision comes six weeks after KPRC 2 Investigates began looking into multi-million-dollar contracts for work that was never completed.

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David Northern, CEO and President of the Houston Housing Authority resigned on November 18, 2024. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

Investigative reporter Amy Davis explains what happens next and why Northern’s exit doesn’t fix the problems KPRC 2 Investigates uncovered.

The money spent is not just for the questionable contracts KPRC 2 Investigates has shown you. Federal investigators are looking into the HHA and one big development on Houston’s East End.

Luxury housing on contaminated soil

The Pointe at Bayou Bend, located at 800 Middle Street, was intended to provide nearly 400 affordable housing units. However, the property’s history raises serious safety concerns. The site was once used as a trash incinerator and for underground petroleum storage. Multiple test results show ash contains lead anywhere from two times to nine times the level allowed by Texas and the EPA.

Mayor John Whitmire recently intervened, instructing the Housing Authority to halt plans to move tenants into the complex.

“I don’t know why they would ever occupy the building,” Whitmire stated. “It sets you up for every lawsuit you can imagine.”

Federal agencies investigating

Last month, agents from the FBI, the Environmental Protection Agency (EPA), and the Department of Housing and Urban Development (HUD) arrived at the site to collect soil samples.

KPRC 2 Investigates the Houston Housing Authority. Investigators were sent to check out soil samples from a new HHA apartment build. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

Results from these tests are still pending, leaving the project’s future in limbo.

Records obtained through an open records request reveal that Housing Authority officials were aware of the risks as early as 2019.

Environmental attorney Robert Karl working with NRP Design wrote, “There are a number of details pertaining to that parcel’s environmental condition that remain uncertain, including additional investigations in areas not sampled.”

He recommended HHA not risk any earnest money on the property until they could complete an additional environmental review.

However, the agency proceeded with the purchase and construction.

When HUD expressed concern earlier this year and asked for updates on the soil test results HHA moved full steam ahead with construction.

Millions of taxpayer dollars at stake

The project has cost taxpayers $146 million, raising questions about accountability within the Housing Authority. Earlier this year, HUD expressed concerns and requested updated soil testing results. Instead of pausing, the Housing Authority pressed ahead with construction.

The fallout from these decisions has prompted calls for increased oversight.

Federal investigators are now evaluating the project to determine whether criminal or civil violations occurred.

What’s next?

David Northern’s dismissal marks a significant shift in leadership, but it does not resolve the underlying issues. Residents and advocates are demanding answers about the mismanagement of public funds and the safety risks associated with the development.

KPRC 2 Investigates the Houston Housing Authority. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

For now, The Pointe at Bayou Bend is a symbol of failed oversight—an expensive, uninhabitable monument to what critics call a broken system.

KPRC 2 Investigates will continue watching this developing story and will bring you the latest.

In the meantime, check out this HHA story about the thousands of Houstonians waiting for housing vouchers.



About the Authors
Amy Davis headshot

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

Andrea Slaydon headshot

Award-winning TV producer and content creator. My goal as a journalist is to help people. Faith and family motivate me. Running keeps me sane.

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