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Harris County District Attorney Kim Ogg has launched a formal probe into allegations Mayor Sylvester Turner steered affordable housing funds last month to a favored developer.
The allegations come from Tom McCasland, who was recently ousted as Houston housing department head. McCasland further claims at least four potential deals were rated higher than the one the mayor came to terms to with a pair of developers that include former longtime law partner Barry Barnes and another partner from the firm.
In addition to denying any wrongdoing, Turner, who left the firm when he was elected mayor in 2015, insists he never knew Barnes or Jermaine Thomas were involved in the deal.
Turner adds he prioritized the senior housing project known as Huntington at Bay Area at least partly because it is positioned in City Council District E, a relatively wealthy district that has not seen an affordable housing development in the last six years.
The U.S. Department of Housing and Urban Development, which provides the Hurricane Harvey recovery funds the city has proposed using in the deal, is also on record with its intention to work with its Office of the Inspector General to review the matter.
Turner terminated McCasland shortly after he appeared at a city council committee meeting and accused the mayor of “charade bids.” He has also accused Turner of “bankrolling” the Harbor Venture Group developers at the center of the deal.
"I'm being forced to participate in a charade that this was a competitive process when I know it was not a competitive process," McCasland said to council members during a Sept. 21 City Council Housing Committee meeting.
That same day, Turner announced an investigation on himself and has since installed Keith Bynam as interim housing director.