WYP panel discusses controversy around land deal that involves the Houston City Controller

HOUSTON - This week’s panel: Wayne Dolcefino, media consultant;   Carmen Roe, Houston attorney; Charles Blain, Urban Reform; Antonio Diaz-, writer, educator and radio host; Michele Maples, conservative attorney; Chris Tritico, FOX 26 legal and political analyst,  join Greg Groogan in a discussion about the recent controversy involving the Houston City Controller and land that was sold for development.

HOUSTON (FOX26) October 10, 2019      On land once owned by Houston's financial watchdog, a City Housing project is well underway.   And yet the 120-unit development for elders with low income - has what many consider a shady past.

Orlando Sanchez, candidate for City Controller, offered an assessment.   "I've never seen anything so horrendous come out of City Hall," said Sanchez.

Turns out, the land for this project was owned, until recently, by the City's current financial watchdog Chris Brown who was paid $5.6 million dollars by a developer with money borrowed from the City of Houston's Housing and Community Development Department.   That's right, tax dollars ended up in the pockets of the public official responsible for preserving them

"It just doesn't pass the smell test," said City Council Member Dwight Boykins.

Council Member Dwight Boykins says like everyone else on council who voted through this project, he had no clue Controller Brown was indirectly reaping a multimillion dollar profit from a deal heavily fueled by City dollars.   And while Brown kept quiet to Council, he did ask and receive approval from the City's Legal Department as well as Housing and Community Development Director Tom McCasland to proceed with the deal.

"If the City Legal Department knew about this and the Housing Director knew about this, the council members should have known," said Boykins.

In a statement to FOX 26 Brown defended his action saying "“Prior to my father’s passing, he asked that our family sell the property in East Downtown for senior affordable housing."

City Housing project underway

FOX 26 has reviewed property records which show Brown's father Peter had no interest in the land at 2800 Commerce which was purchased in 2017.

Brown's campaign says Peter Brown, in fact, loaned his son the money. 

The challenger looking to replace Houston's Controller hopes voters are watching.

"It tarnishes his credibility as the public watchdog and it diminishes his ability to present financial documents to the Mayor and City Council that they can trust," said Sanchez.

For the second day, Brown declined Fox 26's request for an interview.

A spokesperson for Sylvester Turner says "The Mayor was not aware of the Controller's involvement in this transaction."

HOUSTON (FOX 26)   October 9, 2019       As the elected Controller, Chris Brown is Houston's financial watchdog - a watchdog that apparently no one at City Hall was watching very closely.

Documents obtained by FOX 26 News indicate a local developer who obtained a low interest, $3.5 million loan through the City's Housing and Community Development Department used the proceeds to purchase Commerce Street property owned by Brown. The final price tag was $5.6 million - a 60 percent premium over the County's appraised value. It was a big payday for Brown, but also a big potential problem because the City's “financial watchdog” never disclosed to City Council he stood to profit from the publicly funded deal.

Council Member Mike Knox recalls that when it came time to vote on funding for construction of the 120 low income east side housing units in October of 2018, there was no indication Controller Brown was involved in the project and stood to reap millions on the deal. Four other council members reached by FOX 26 confirmed Knox's account and expressed alarm.

"It cries out deception. It cries out misdeed. It cries out, this was not above board and I think the administration should have caught it and I think Chris Brown should have told us about this and to slip this by is just unconscionable, in my opinion," said Knox adding, "This is a serious and egregious malfeasance of duty and responsibility."

Declining an on camera interview, Brown instead issued a statement.

“Prior to my father’s passing, he asked that our family sell the property in East Downtown for senior affordable housing. My involvement with the transaction was limited to the sale of that property. I sought and obtained a legal opinion confirming there were no conflicts with my involvement in this transaction. I also filed all disclosures required by law."

Orlando Sanchez, who is challenging Brown in the upcoming City election, says he believes the Controller didn't disclose because he knew City Council would spike a very profitable deal.

"I think it’s a breach of the public trust, at minimum, at worst it could be criminal. This gentleman was allegedly lining his pockets with the public's money," said Sanchez.

Brown's critics say the Controller audited the Housing and Community Development Department giving him access to inside financial information prior to the controversial land deal.  Knox, Sanchez and others say the City Charter strictly prohibits elected officials from profiting, directly or indirectly, off business transactions involving the City.