CORPUS CHRISTI, Tx — The Corpus Christi Housing Authority board has terminated the employment of CEO Gary Allsup, effective immediately, following a KRIS 6 investigation that uncovered potential violations of state law in controversial workforce housing deals worth $350 million.
The motion, made by Commissioner Greg Smith and seconded by Judith Gonzalez-Rodriguez, passed after the board met for nearly two hours in executive session.
In that same motion, the board appointed CCHA Chief Financial Officer Rhen Bass as interim CEO.
Allsup's termination comes just days after Nueces County Commissioners unanimously authorized "immediate legal action" against the housing authority, specifically challenging contracts related to Allsup's executive agreements and those workforce housing deals.
A months-long KRIS 6 investigation revealed that Allsup oversaw deals involving 13 high-end apartment complexes that could have removed $7.4 million annually from local tax rolls while providing minimal affordable housing benefits. The investigation found multiple violations of the Texas Open Meetings Act (TOMA), including inadequate public notice for board meetings that approved the deals between July 2024 and March 2025.
Meeting agendas provided only vague descriptions like "Consider Resolution for MOU" without mentioning tax breaks or land purchases.
The Nueces County Appraisal District denied tax exemption requests for the properties in July 2025.
Allsup's $786,000 annual compensation package also drew scrutiny. He is paid more than double what Houston's housing authority CEO makes despite Corpus Christi ranking 63rd nationally compared to Houston's 4th place ranking.
The compensation was approved by board chairwoman Cathy Mehne, who was granted sole authority over Allsup's pay package by the board. However, a review of meeting recordings reveals confusion about whether the board actually authorized Mehne to execute the contract or merely negotiate it.
READ MORE: Gary Allsup 2024 contract
READ MORE: Gary Allsup 2025 contract amendment
In a March 2024 recording obtained by 6 Investigates, former board member Dr. Brian Tietje made a motion to give Mehne authorization "to enter into negotiations." CEO Allsup immediately interjected, asking that the motion include "and approve" and "execute."
Despite Allsup's request, Tietje's original motion was never formally amended. After the vote, confusion persisted, with Allsup seeking clarification: "I just want to make sure that it's not just negotiate, but actually execute."
Housing Authority Attorney Jeff Lehrman attempted to clarify, stating the board had authorized Mehne "to not only negotiate, but execute" the contract—though this exceeded the actual motion that was voted on.
Further complicating matters, in May 2025, the board gave Mehne authority to "negotiate, approve and execute Chief Executive Officer performance evaluation" during the chair/board comments section of a meeting. This motion was not listed on the board agenda—a practice the Texas Attorney General's office has previously ruled violates the Texas Open Meetings Act.
Allsup's contracts, obtained through a Texas Public Information Request, include provisions stating that if fired without cause, Allsup continues receiving pay through October 2029.
Commissioner Joe McComb told KRIS 6 News that there are "some questions related to the validity of the contract" and that an attorney hired by the authority will address those issues.
The housing authority operates independently from the city, and the City Council does not set or approve Allsup's salary.
The mayor appoints board members. In May, Mayor Paulette Guajardo appointed three new members to the board of commissioners.
In June, Guajardo called for immediate reforms related to financial oversight and public accountability at the Housing Authority.
READ MORE: Nueces County Appraisal District denies tax exemptions for Housing Authority's workforce housing properties
READ MORE: Small town, big paycheck: Texas Housing CEO outearns top housing officials
READ MORE: We Followed the Money: Here’s who got rich from public housing programs
