Former Midtown official admits to misusing public funds meant to build affordable housing

HOUSTON, Texas (KTRK) -- It's a criminal case that has shocked Houstonians, both for its salacious details and for what it means for residents who have been promised help as they struggle to afford their homes.

A former manager of the Midtown Redevelopment Authority admitted on Wednesday to taking public funds that were supposed to go toward affordable housing.

Two others have also been charged in connection with this case.

Todd Edwards, the former real estate manager for the City of Houston's Midtown Redevelopment Authority, pleaded guilty to money laundering and theft.

The agency uses part of its tax revenue to build affordable housing in Third Ward, but court documents show Edwards instead used the money to benefit himself, his lover, and another accomplice.

"Unfortunately, our tax dollars, meant to improve the lives of Houstonians, were spent on flashy cars, nice houses, super living, trips, and pornography of all things," former district attorney Kim Ogg said in a 2024 press conference.

Ogg announced more than $8.5 million had been stolen or misused from 2011 to 2021.

She said the investigation started when Third Ward residents started noticing lots that had been purchased by the agency were not only still vacant, but overgrown.

ABC13 reached one of those whistleblowers on Wednesday, who said he hopes residents will eventually see the benefit of the money set aside to help them.

Court documents show an investigation revealed Edwards had created his own landscaping company, paid himself, and didn't do any work.

Edwards is also accused of giving special bids and information to Veronica Ugorji. Prosecutors said she was in a romantic relationship with Edwards and allegedly owned a landscaping company.

Ugorji has also been charged. Her attorney did not respond to ABC13's request for comment.

Kenneth Jones has also been charged and accused of accepting money for the tearing down of buildings that never happened. Jones' attorney declined to comment on the charge.

Jones' and Urgorji's cases are still pending.

Edwards is scheduled to be sentenced by a judge in June. Prosecutors said he faces anywhere from probation to 40 years in prison.

"The taking of responsibility is a big step towards healing any of the damage that's been done in this case," Edwards' attorney, Inger Chandler, said.

The Midtown Redevelopment Agency didn't directly address ABC13's questions, but now has a new board and chair.

Eyewitness News has reported for years that oversight is often lacking when it comes to the city's many small tax investment agencies.

As the property taxes in Third Ward keep rising, those who live there said, more and more families continue to be pushed out.