Federal Judge Broadens Controversial Public Housing Deal Fight
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Houston Federal Judge Lynn Hughes has ruled two East Houston neighborhood associations can now join the growing legal fight to stop a controversial planned public housing project next to a toxic ash dumping ground.
The $54 million price tag for the Houston Housing Authority real estate deal is just for the land south of Buffalo Bayou east of the 59 freeway, and it includes spending $10 million in tax money, if you can believe it, on property that is so contaminated with toxic ash it legally cannot even be used for public housing.
“As he walks out the door, HUD Secretary Ben Carson has approved dumping hundreds of low-income families into land in the shadows of an active lead smelter and exposed toxic ash and the old Velasco incinerator,” said Wayne Dolcefino, President of Dolcefino Consulting. “What a legacy! HUD officials need to be held accountable for ignoring the health of the residents from Clayton Homes and the apparent violations of federal law our investigations have already exposed.”
A Dolcefino Consulting investigation has proven the contamination was withheld from at least some HHA Commissioners. We also know HHA never even sought an appraisal on the property, spent almost two million non-refundable tax dollars to make sure they did not lose the property, and concealed the $2 million from HUD for over two months. We have already told you former HHA Chairman Lance Gilliam and the wife of Harris County Commissioner Rodney Ellis stand to make more than $800,000 brokering the deal.
Judge Hughes denied the effort to immediately restrain the Housing Authority from completing the real estate deal but paved the way for hundreds of East End residents to try and stop construction of any public housing on the land. The East End On The Bayou Community Association and the Reserve At East End Property Owners Association has argued placing hundreds of families on property on narrow roads planned 100 years ago with limited roads will place residents in danger during emergency.
The court fight will focus on whether HHA broke federal law by not properly investigating cheaper alternatives for the public housing deal.
Mayor Sylvester Turner has repeatedly argued the controversial housing project is being done by HHA, not the City of Houston, but during the three-hour court hearing Judge Hughes declared, “it is well known the HHA is a front for the City of Houston.” Turner appoints every single HHA Commissioner and has removed three commissioners who argued against the huge expenditure of money just on land.
Each of the planned housing units will likely end up costing taxpayers $270,000 or more. The funds come from the sale of the old Clayton Homes public housing project, flooded during Hurricane Harvey. The Clayton Homes land will be used to widen the freeway.
One of the former HHA commissioners Phillis Wilson, a longtime public housing resident has blasted the secrecy surrounding the real estate deal.
“I feel lied to about a lot of things. They are not thinking about the health of the residents 14, 15 years down the line. If that soil is contaminated, those people are going to be sick,” Wilson told Dolcefino Consulting.” Wilson has confirmed the FBI is investigating the real estate deal.
Our investigation now focuses on the HUD officials who ignored warnings about this real estate transaction involving toxic land. In July, Dolcefino Consulting filed a formal request under federal law to inspect ten months of emails between HUD officials Lorraine Walls, Director the Houston HUD field office, and Jane Hornstein, Director of Special Applications in Chicago.
“These communications must be made public immediately, because the money we are spending on this real estate deal doesn’t really belong to HHA, it belongs the taxpayers, even though it is obvious HHA officials don’t care,” Dolcefino said.
HHA has hidden documents from Dolcefino Consulting citing the federal lawsuit. The housing agency has already been exposed for violations of the Texas Open Meetings Act.
“This is government arrogance exposed. The Houston Housing Authority should release all the documents they are hiding,” Dolcefino said. “HUD should do the same. The public has a right to see how $53 million of their money is being spent.”
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