The KPRC 2 Investigation into the Houston Housing Authority (HHA) and its misuse of tax dollars led to the resignation of its president and CEO, David Northern. Last month, we requested a copy of the settlement and payout to Northern. Now, our questions about how much he was paid have surprised HHA leadership.
The latest in the HHA investigation
Last month, we reported that Northern agreed to resign in a settlement with the HHA in exchange for six months of his salary and benefits.
We’ve obtained a copy of that settlement, and the details may surprise you.
David Northern, who joined the HHA as president and CEO in 2022, served just over two years before resigning amid a board investigation into questionable contracts and financial practices. The settlement approved by the new board reveals Northern walked away with $210,252.18, which includes six months of pay and accrued paid time off (PTO).
A closer look at the settlement raises eyebrows. Northern was paid $65,432.18 for 469 hours of PTO. That’s more than 58 days or nearly 11 weeks of pay.
When questioned, HHA Chairman Jody Proler admitted there was no record of how much PTO Northern had used over the past two years, allowing him to claim the full amount. Proler told us he had no idea until we questioned the hours. The chairman told investigative reporter Amy Davis he and the board have called for an investigation, asking the HHA chief financial officer and interim President and CEO who authorized the inflated payout. He also wants to know who was responsible for failing to log Northern’s paid time off during his time at HHA.
Proler also revealed that the Housing Authority paid Northern the full settlement amount before he had signed the settlement agreement. When Proler caught it, they gave Northern 24 hours to sign it or risk the HHA clawing the payment back.
Part of the deal: No more investigation
But there’s more: The settlement includes clauses that prevent either party from suing or disparaging each other. It also states that HHA will not continue any investigation into Northern’s conduct as CEO, including allegations related to ongoing issues with air-conditioning contracts. Additionally, if any investigations proceed, HHA agrees not to issue findings on Northern’s culpability.
The board chairman confirmed the investigation into questionable contracts and payouts continues, focusing on other HHA employees involved in incomplete projects.
More questions for HHA leadership
Late Wednesday the HHA board chairman called for an investigation into who authorized Northern’s final payout - giving him $65k + in paid time off (a lot of time that he had already taken). He told Amy Davis he’s asking the interim president and CFO who signed off on the payout.
The CFO also said he learned Northern was given the final payment before signing the settlement.
We will stay on this story and provide updates as we uncover more.
If you have something you want KPRC 2 Investigator Amy Davis to look into email ADavis@kprc.com.
