Staff Report
Jody Proler, chair of the Houston Housing Authority (HHA) board of commissioners, said the board—almost entirely replaced by Mayor John Whitmire in 2024—had promised to steer the agency past its long history of legal battles.
Karen Miniex, the former counsel at HHA, could not be reached for comment through her attorney.
Miniex Retaliation Suit: Houston Housing Authority Accused of Punishing Whistleblower
Under the settlement, the bulk of the payout ($500,000) goes to the United States. The False Claims Act enables whistleblowers to get a portion of any monetary recovery and for Miniex, that comes to $100,000.
This is in addition to a separate $2.2 million she won in a previous case alleging retaliation after she blew the whistle on the agency.
The Houston Housing Authority provides housing for low-income residents in the city, managing roughly 5,000 apartments. While HHA staff don’t handle day-to-day maintenance like painting or HVAC repairs, the agency hires contractors to take care of those tasks.
Because this contractor money comes from federal funds, HHA agrees to follow strict policies to avoid wasting taxpayer dollars or creating conflicts of interest. Larger contracts face even tighter oversight to ensure spending is fair and responsible.
HHA Fraud: Report Reveals Millions Lost to Mismanagement
Miniex’s whistleblower lawsuit, brought by the U.S. government, claimed that between 2012 and 2018, HHA skipped independent cost estimates meant to keep contractor bids reasonable.
The suit also alleged that the agency split large jobs into smaller contracts to bypass oversight.
These practices, the complaint said, led to the federal government being “fraudulently overcharged for HHA’s services.”
Appeals Court Clears Way for Whistleblower Case
The legal battle has dragged on for seven years and spanned three different HHA presidents. The case was initially dismissed after a district court judge noted a 2016 federal audit had already found that HHA had misused more than $3.2 million in federal funds.
But the U.S. Court of Appeals overturned that dismissal, clarifying that the audit did not count as an administrative civil money penalty.
AC Problems and Public Housing Setbacks
HHA’s contracts came under renewed scrutiny in 2024 when promised air conditioning in public housing and improvements to the Columbia Tap Trail faced delays—or never happened at all. The board hired outside lawyers to investigate, and the then-president resigned.
By May, the investigation concluded that mismanagement of air conditioning contracts had cost the agency millions and created significant problems for residents.
Saleem Mubarak
Saleem Mubarak is a real estate journalist with a sharp eye for market trends and neighborhood insights. With a background in data-driven reporting and a passion for uncovering emerging investment opportunities. Saleem Mubarak specializes in making complex real estate developments accessible to investors, homebuyers, and industry professionals. His work often features exclusive expert interviews, zip-code-specific analysis, and a focus on the evolving dynamics of Texas' hottest property markets. When he’s not writing, you’ll find him exploring Houston’s hidden housing gems and decoding the next big real estate wave.