Public trust, private deals. KPRC 2 Investigator Amy Davis continues the investigation into the Houston Housing Authority’s questionable contracts.
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The latest project in question: A deal to install window AC units at three Houston housing projects.
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.
This investigation sheds light on why the project, known as the “Heat Relief Project,” cost taxpayers millions more than anticipated. Despite multiple requests, HHA President and CEO David Northern, who previously discussed the project, is now declining further comment.
Funding the project
In an interview from August 2023, Northern explained that the funding came from the U.S. Department of Housing and Urban Development’s (HUD) capital funds. However, 14 months later, questions arise as to why this relatively simple project more than doubled in cost.
KPRC 2 Investigates requested every contract hired to do the work.
“I just want to talk to you about this. It’s public funds. It’s about the work you did,” said Investigator Amy Davis.
“Get rid of the camera and I’ll invite you in,” said Jules Moor.
Who benefited?
We obtained contracts and found that the project was split among 22 companies, many of which had little to no prior experience.
HHA President and CEO David Northern wouldn’t talk to us on camera but in a closed-door meeting he told Amy Davis the decision to divide the contract was aimed at giving opportunities to small, minority, and Black-owned businesses. Yet, some businesses, like Elite Project Managers, had barely been established before receiving contracts.
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KPRC 2 Investigates findings also include:
- Digging through the contracts we discovered Woods was paid $75 an hour as a project manager for Impact Commercial Construction at Irvinton Village.
- About four months later he started Elite Project Managers and got an emergency contract to take out dozens of window units that were incorrectly installed and then reinstall them.
- This contract, classified as an “emergency,” bypassed the normal bidding process and resulted in Woods’ company walking away with over $1.3 million.
Woods declined to speak but did talk to the Housing Authority Board at a meeting.
“I have not, nor would I ever take the money from my clients and not get the job done,” he said.
But it’s not just the money you paid for work - it’s the money you paid for no work.
Payments for no work
Beyond the inflated costs, there were also instances of payments made for non-work. Payment records show more than $128,000 was paid out for weather delays, material shortages, and days when residents wouldn’t allow installers into their homes.
These workers were paid by the hour, including for eight-hour days when no work was completed.
What’s next?
There are still many unanswered questions.
The KPRC 2 Investigates team led by Investigator Amy Davis will continue to break down this investigation in the coming days. Tomorrow, we’ll explore why a contract was awarded to a company based in Chicago to install AC units in Houston.
Stay tuned as we dig deeper into the deals you paid for.
Amid our investigation, the Houston Housing Authority released a statement: Houston Housing Authority Addresses Concerns and Outlines Future Initiatives. You can read the full statement below.