New GLO Review Slams Houston on Five Counts Relating to Harvey Relief

Two months ago, the Texas General Land Office (GLO) launched a review of Houston’s Housing and Community Development Department (HHCD) after Mayor Sylvester Turner allegedly tried to steer a $14 million affordable-housing contract using HUD money toward his former law partner. The GLO review, released Tuesday, notes both findings and corrective actions required of Houston to ensure a fair, open, and competitive award process in the future.

The GLO review criticized HHCD for five major problems listed below. The City has until December 10, 2021, to address the GLO review’s findings by delivering a Corrective Action Plan. Houston then has another 90 days to implement the plan. Hanging in the wind: the fate of the City’s entire multi-family rental program, Harvey multi-family relief projects in the pipeline, and millions of dollars in past awards now being questioned.

Image courtesy of HUD. For more on the need for affordable housing, click here.

The GLO review was triggered on September 22 when the HHCD’s former Director Tom McCasland accused the Mayor during a City Council meeting of overriding his department’s recommendations. The Mayor recommended a project that would have benefited his former law partner. McCasland alleged that his department’s recommendations could have built four times the amount of affordable housing units in poorer neighborhoods for roughly the same amount of money. McCasland also alleged that he was being forced to participate in what he called a “charade of a competitive process.” The Mayor promptly fired McCasland, leading to multiple investigations. The GLO review was just one.

Summary of Five Main Findings

The GLO never uses the word “charade” in its findings, but one could easily infer a charade from their substance.

The GLO’s objective was to evaluate whether the City had adequate controls in place to meet program and contract requirements for the allocation of $450,050,472. At a high level, the five findings released on Tuesday 11/23/21 require the City to:

  1. Strengthen NOFA/RFP Issuances – GLO found inconsistencies among the way NOFA/RFPs (Notice of Funding Availability/Request for Proposals) were issued, evaluated and scored. Inconsistencies included program content; threshold criteria; and award processes.
  2. Strengthen the NOFA/RFP Scoring Method – GLO found the City does not have controls in place to ensure it follows criteria for awarding projects.
  3. Ensure Documentation Supports Project Awards – GLO found that Houston does not document subjective criteria used by HHCD and the Mayor’s office when evaluating applications.
  4. Strengthen Conflicts-of-Interest Provisions – GLO found the City does not have internal controls that screen out Conflicts of Interest.
  5. Produce Documentation Justifying Award Recommendations – GLO found inconsistencies between grant requirements and recommendations. Subjective factors – not based on the competitive process – were often used to recommend projects without explanation.

Full Text of Findings and Exhibits

Here is the GLO’s entire 11-page letter to HHCD’s Interim Director Keith Bynam, and three exhibits referenced in the letter:

  • Exhibit 1 – Scoring results for four NOFAs
  • Exhibit 2 – A memo to the Interim Director from an Assistant Director attempting to justify the Mayor’s intervention on a low scoring project
  • Exhibit 3 – Examples of HHCD responses to appeals from developers. The responses do not document specifics for rejections.

If you read nothing else, make sure you see Page 1 of Exhibit 1. It recommended making an award to one project that 25 other projects outscored. Those 25 higher scoring projects were either wait-listed or not recommended. Hmmmm!

Egregious Examples of Specifics Cited in GLO Report

Here are some of the more serious infractions that support the five major findings.

GLO complained about Houston’s lack of consistency, accuracy and fairness. For instance:

  • Data for 40% of tested applications was entered incorrectly, resulting in incorrect scoring.
  • Submission deadlines for some RFPs were shortened in a way that excluded some applications and diminished the quality of others. This resulted in competitive disadvantage for some applicants and presumably an advantage for others.
  • Conflict of interest disclosures were excluded from some rounds of funding.
  • 9 of 12 applications in two other rounds of funding did not have conflict of interest forms actually signed by applicants or co-applicants.
  • Some NOFAs contained language giving the Mayor’s office the right to approve or deny applications in accordance with the Mayor’s priorities, but the Mayor was not required to explain why.
  • The City frequently did not give specific reasons for approving or denying a grant.

ABC13’s Ted Oberg ran this story Tuesday night about the millions of dollars now at risk for poor people who still need help after Harvey.

Here is the Mayor’s response to the charges in GLO review.

Posted by Bob Rehak on November 24, 2021

1548 Days since Hurricane Harvey

The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.

FEMA Study Shows Better Building Codes Provide 11-to-1 Return

A recent study by the Federal Emergency Management Agency (FEMA) demonstrated the value of adopting hazard-resistant building codes. They can provide an 11-to-1 return by reducing losses and helping communities get back on their feet faster after disasters. Not to mention saving lives. This 12-page brochure summarizes the 189-page study.

What FEMA Found

FEMA found that only about a third of counties and municipalities across the U.S. have adopted modern building codes; 65% have not. People living in those places, says FEMA, are bearing a dangerous, costly, and unnecessarily high level of risk in the face of natural disasters.

Weighing Costs Vs. Benefits Makes Compelling Case

The additional cost of building features such as roof tie-downs, window protection, strengthened walls, is on average less that 2% of total construction costs. Yet FEMA’s study found that areas with modern building codes will avoid at least $32 billion in losses from natural disasters when compared to jurisdictions without modern building codes.

That likely underrepresents savings, because the study focused only on buildings constructed since 2000, which represent only about 20% of buildings in the country. It also did not include “indirect losses” such as business interruption, time off the job to rebuild, and tax revenues lost.

Forty to sixty percent of small businesses do not reopen after a flood or hurricane which affects the overall viability of the entire community.

The next part of the brochure talks about the escalating threat of natural disasters and breaking the chain of destruction.

FEMA found that every $1 spent on mitigation in new building code construction saves $11 in disaster repair and recovery costs.

For instance, spending $4,500 to elevate a new home, and install roof-tie downs and storm shutters could save $48,000 during the life of a 30-year mortgage.

A 1% cost premium will provide the roof tie-downs, window covers and other features that help a house survive high winds during a hurricane. In addition, 1.2%–1.7% cost increase over standard construction costs will raise the ground floor, generating the “freeboard” needed to withstand most floods.

How to Help Your Community Get Better

The final part of the brochure provides a roadmap for getting cities and counties to adopt better building codes.

For its part, FEMA is starting to provide grants to cities that have adopted contemporary building codes through its BRIC program (Building Resilient Infrastructure and Communities). Here’s this year’s Notice of Funding Availability.

It appears that Texas could qualify for a billion dollars in BRIC grants if the State adopted current building codes.

Many people just assume that local officials have their backs and are doing the right thing when it comes to adopting the latest building codes. But obviously, if two thirds aren’t current, that’s a bad assumption. Building codes may not be the highest priority of officials. So how can you know which standards your community goes by?

The Department of Homeland Security has developed a new website called InspectToProtect.org. Putting your address, city or zip code in the search bar. The site will then search its database and tell you where you stand.

Inspect to Protect’s rating for Humble.

Use this information to start a dialog with your local representatives. You can also point them to this 90-minute video of a webinar produced by FEMA. It’s called “Where and How We Build: Using Land-Use and Building Codes to Increase Resilience.”

Posted by Bob Rehak on 11/22/21

1546 Days after Hurricane Harvey

Huberty Secures Another $50 Million for Lake Houston Dredging

State Representative Dan Huberty announced on Wednesday this week that he secured another $50 Million for dredging Lake Houston through a rider he attached to SB 1 – a 972 page appropriations bill – earlier this year.

Rider to SB 1 Added During Last Conference Committee

The rider actually stipulates the money will go to the Texas Water Development Board but earmarks it. The text says in part, “Water Development Board shall allocate $50,000,000 for the state fiscal biennium beginning September 1, 2021, for the purpose of providing financial assistance for removing accumulated siltation and sediment deposits throughout the San Jacinto River and Lake Houston.”

The bill became effective on 9/1 after a final conference committee, vote and the Governor’s signature. Huberty credits Chairman of the House Appropriations Committee, Greg Bonnen, Representative Armando Walle, also on the House Appropriations Committee. Huberty said, Bonnen helped it go in and Walle made sure it stayed in.

Huberty said the money will be used to keep dredging continuously as long as it lasts. The City will actually be doing the dredging (see photos below). Huberty also credits Mayor Sylvester Turner and Mayor Pro Tem Dave Martin for working to make the appropriation happen.

Where Money Will Be Used

In addition to East Fork dredging, Huberty sees the money being used to clear accumulated siltation from the mouths of inlets around the lake, such as those in Huffman, Atascocita and Walden.

Update on Status of East Fork Dredging

Shortly before sundown today, I put a drone up from Kingwood over the East Fork and captured the images below.

Looking SE toward Luce Bayou entrance to East Fork and one of two mechanical dredges currently on station.
Closer shot of same dredge. Note: all photos were taken just before sunset on Saturday night, 11/20/21.
Looking south toward Lake Houston, West Fork confluence (upper right) and FM1960 bridge in distance.
Looking North. Kingwood on left; Huffman on right.

The shot above shows you just how big this task will be. I first photographed these dredges in the East Fork on October 12. So it’s taken them roughly five weeks to excavate the sandbar between the two pontoons.

Below, you can see what the same area looked like almost a year before dredging started. The photo gives you some idea of the immensity of the task. The sand bars you see grew 4000 feet in length during Harvey and Imelda.

East Fork Mouth Bar after Imelda. Taken in December 2020, ten months before start of East Fork dredging about five weeks ago.

Josh Alberson who boats this area regularly with a shallow draft jet boat found that the depth of the river through his reach had been reduced from 17 feet before Harvey to about 3 feet after Imelda. That’s a major loss of conveyance that backed water up and contributed to flooding on both sides of the river.

Smaller tributaries exhibit similar problems, for instance Rogers Gully.

Rogers Gully mouth bar in Atascocita

Thank You Dan and God Speed

Everyone in the Lake Houston Area owes Dan Huberty a huge “thank you” for this one. Huberty, who has served in the House for 10 years, has announced his intention not to run again. Throughout his tenure, Huberty helped reform state education funding. He also passed regulation that forced sand mines to register with the TCEQ during his freshman year in 2011. God speed on the next leg of your journey, Dan.

Posted by Bob Rehak on 11/20/21

1544 days after Hurricane Harvey