Bad Bookkeeping Alleged at Houston Housing Authority

External auditors have found major deficiencies in the Houston Housing Authority’s bookkeeping and oversight of its federal housing voucher program, casting a shadow over the agency’s leadership and operational practices.

The audit of HHA, conducted by Berman Hopkins CPAs & Associates, found “material weakness” and “material noncompliance” in every major program reviewed for last year, the Houston Chronicle reported. Problems such as incomplete financial records, delays in recertifying voucher holders and inadequate documentation for applicants were highlighted as critical failures.

Among the most alarming findings, 35 out of 40 reviewed housing choice voucher files lacked required paperwork for annual recertification, potentially jeopardizing participants’ assistance and risking inaccurate subsidy payments. The audit also revealed that nine of 10 specialized vouchers for disabled or formerly homeless individuals lacked eligibility documentation.

Gaps in the management of the public housing program were also noted, with 14 out of 40 families not being offered rent options that could reduce financial burdens.

The audit also highlighted persistent challenges stemming from delays in past reviews during the pandemic, which allowed systemic problems to go unaddressed for years. While the HHA has committed to addressing the backlog, progress has been slow.

Concerns over financial mismanagement and inefficiency had been mounting for months, prompting the board to investigate president and CEO, David Northern Sr., who resigned from the authority on Monday, the outlet reported.

Northern, who had faced growing criticism during his tenure, exited under an agreement that awarded him six months’ salary and health insurance instead of the three years of compensation he was entitled to before his contract was nullified.

“I applaud the board’s actions toward transparency and holding leadership accountable,” Mayor John Whitmire said.

The mayor had previously replaced five of the seven board members, citing dissatisfaction with the agency’s performance, including its temporary halt on issuing new housing vouchers earlier this year.

Northern’s departure followed weeks of deliberations by the board, which placed him on paid administrative leave in October. The board also engaged an outside consultant to evaluate Northern’s performance and an attorney to examine the agency’s contracting and payment practices.

However, it remains unclear whether these evaluations have been completed or whether they will continue under new leadership. Interim leadership has been assigned to Jennine Hovell-Cox, the authority’s general counsel.

—Andrew Terrell