CORPUS CHRISTI, Tx — The Corpus Christi Housing Authority may have illegally approved controversial workforce housing deals worth $350 million, potentially violating both state law and its own bylaws, a KRIS 6 News investigation has found.
6 Investigates spent months examining meeting agendas, legal documents and board recordings. We found that the Housing Authority failed to provide adequate public notice before its former board approved deals involving 13 high-end apartment complexes between July 2024 and March 2025. These "workforce housing" projects—designed for middle-income residents rather than traditional low-income housing—included significant tax breaks and land purchases.
What We Found:
- Meeting agendas provided only vague descriptions like "Consider Resolution for MOU" and an apartment name
- No mention of tax breaks or land purchases in public notices
- No proposed agreements made publicly available before meetings
- Executive sessions held without proper justification
The Texas Open Meetings Act requires government entities to clearly inform the public about subjects to be discussed at meetings. Courts have established that issues of special public interest require enhanced notice.
CEO May Have Exceeded His Authority
Perhaps more troubling: CEO Gary Allsup may not have had the legal authority to make these purchases at all.
The Housing Authority's own bylaws state: "The CEO may not enter into contracts for the purchase or sale of Real Property without specific Commission Resolution so authorizing."
According to a City of Corpus Christi resolution, because that authorization wasn't obtained through legally noticed meetings, Allsup's actions constitute an "ultra vires act"—meaning he acted beyond his legal authority—potentially making the purchases void.
Questions About CEO's $786,000 Compensation
Allsup's annual compensation package may also be legally questionable if it was approved without proper public notice.
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.
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.
What's Next
In July 2025, the Housing Authority's board hired an outside attorney to evaluate these workforce housing deals, Allsup's salary, and the authority's compliance with the Texas Open Meetings Act. That analysis is expected to be complete in time for the next board meeting this week.
KRIS 6 News will be at the board meeting, scheduled for Wednesday at 11:30 a.m., and will bring taxpayers the answers they deserve.
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