13 Investigates: HHA site under federal investigation purchased for 4x appraised value

HOUSTON, Texas (KTRK) -- 13 Investigates found the Houston Housing Authority property federal investigators spent the last three days drilling at was purchased for four times more than what the county appraised it at.

Sources tell ABC13 that the investigation at the site is part of a broader federal probe into allegations of corruption within the Housing Authority.

On Tuesday, HHA confirmed with ABC13 that they were served a search warrant by the HUD Office of Inspector General to collect soil samples at their property, The Pointe at Bayou Bend.

The 400-unit low-income Second Ward housing project is currently vacant. The mayor halted move-in there this summer, citing four state environmental violations.

The more than $130 million project is located next to the city's former incinerator laden with toxic ash.

"It does speak to. Was it the best fit?" new Houston City Council Member Mario Castillo, who represents the site and holds a masters in public health, asked.

Castillo is one of several officials questioning why the land was purchased for affordable housing in the first place.

"You're talking about a vulnerable population, and you don't want to put them in even more harm when they are trying to better themselves," he said.

13 Investigates found the Houston Housing Authority, working through its private partner, the NRP Group, used TXDOT funds to purchase this property for four times its Harris County Appraisal District value.

HCAD data shows the land was appraised at about $11 and 30 cents per square foot in 2020. Yet, it was purchased for this HHA project at $44 per square foot. That came out to be about $54.4 million spent on the land alone. The property was purchased from the Cockrell family. They are well known in Houston, having spent tens of millions of their oil-amassed fortune on philanthropy across the state. Their name is seen everywhere, from the Museum of Natural Science, home to the Cockrell Butterfly Exhibit, to the University of Texas at Austin's Cockrell School of Engineering.

Alan Atkinson, who has developed much of the surrounding properties, called the transaction a "sweetheart deal."

"It's obvious to me on its face because I know the people that were involved," Atkinson added.

ABC13 contacted the HHA, Cockrell's, and NRP working to understand why this land was purchased for significantly more than its appraised value.

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