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

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

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

Money spent is not just for questionable contracts KPRC 2 Investigate showed you Federal investigators are looking into HHA and a large development in Houston’s East End.

Luxury housing on contaminated soil

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

Mayor John Whitmire recently stepped in, 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 prepares you for every trial you can imagine.”

Federal agencies are 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.

The results of these tests are still pending, leaving the future of the project in limbo.

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

Environmental attorney Robert Karl who works with NRP Design wrote: “There are a number of details related to the environmental status of that parcel that remain uncertain, including further investigation in unsampled areas.”

He recommended that HHA not risk any serious money on the property until it could complete additional environmental review.

However, the agency continued with the acquisition and construction.

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

Millions of taxpayer dollars at stake

The project cost taxpayers $146 million, raising questions about accountability within the Housing Authority. At the beginning of this year, HUD expressed concern and requested updated soil test results. Instead of stopping, the Housing Authority continued with construction.

The fallout from these decisions prompted calls for increased oversight.

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

What’s next?

The dismissal of David Northern marks a significant change in leadership, but does not solve the underlying problems. Residents and advocates are demanding answers about the mismanagement of public funds and safety risks associated with the development.

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 to follow this developing story and bring you the latest.

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