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KPRC 2 Investigates uncovers bizarre business linked to HHA contracts

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KPRC 2 Investigates uncovers bizarre business linked to HHA contracts

Houston’s Investigative team is not stopping anytime soon.

KPRC 2′s investigation into questionable Houston Housing Authority contracts has uncovered a bizarre business hired to help in Houston.

Investigator Amy Davis has part three of the deep dive into contracts costing us millions of dollars.

First, the latest in this investigation that is getting attention:

The Houston Housing Authority (HHA) embarked on a project to install 1,615 window air conditioning (AC) units across three local housing projects, originally budgeting $2.3 million. However, the final cost ballooned to more than $5.4 million—leaving many questions about the use of public funds and who benefited from the extra costs. (Copyright 2024 by KPRC Click2Houston – All rights reserved.)

We have questions about a lot of the companies, but this one may be the most bizarre. During KPRC 2′s investigation of the Houston Housing Authority one company in particular stands out.

Fashion business linked to HHA contracts

Bragger Company, a fashion and design business based in Chicago, IL, secured a contract to install the AC units. The company’s background, primarily focused on clothing and accessories, raises questions about its suitability for such a large-scale construction project.

Bragger Company, a fashion and design business based in Chicago, Illinois, secured an HHA contract to install the AC units. KPRC 2 Investigates is looking into these contracts. (Copyright 2024 by KPRC Click2Houston – All rights reserved.)
Bragger Company, a fashion and design business based in Chicago, Illinois, secured an HHA contract to install the AC units. KPRC 2 Investigates is looking into these contracts. (Copyright 2024 by KPRC Click2Houston – All rights reserved.)

Houston City Councilmember Julian Ramirez voiced these concerns, stating, “You would expect to hire companies with relevant experience, and you would want to go local. Houston has plenty of companies that can do good AC work, so why go to Illinois?”

Houston City Councilmember Julian Ramirez is asking a question we couldn’t get the Housing Authority to answer. We did pull together some documents and evidence that provides some insight.

  • Sept. 15: Public records show that Jonathan Stephens, owner of Bragger Company, signed the contract with HHA on Sept.15.

  • Oct. 4: HHA procurement management issued a letter stating that Bragger was not a registered business in Texas, requiring Stephens to provide proof of registration or risk contract termination.

  • Oct. 9: Stephens registered his company with the Texas Secretary of State, explicitly stating the purpose was “contract business with the Houston Housing Authority.”

HHA CEO David Northern, originally from Chicago, acknowledged knowing Stephens but would not elaborate on their relationship.

Houston Housing Authority CEO David Northern. (Copyright 2024 by KPRC Click2Houston – All rights reserved.)

HHA General Counsel Jennine Cox asserted that simply knowing someone does not constitute a conflict of interest.

However, the investigation uncovered further links, including the hiring of Marquis Barnes, another Chicago native, as HHA’s construction manager in 2023. Barnes allegedly asked another contractor to perform work on behalf of Bragger Company, raising further red flags.

Contractor Kevin Calvin, Owner of TPMG Construction, says Barnes asked him to do the work for Bragger Company.

“They told me if I would play ball and participate in a certain way that they would tell me what the bid numbers were… that they would actually make sure I got some other contracts,” said Calvin.

A letter from Stephens in Chicago to the HHA asks them to release work materials and checks to Kevin Calvin in Houston.

When contacted for comment, Stephens refused to answer questions about the contract and hung up when asked about his involvement in the AC installation project. Additionally, Barnes did not respond when asked if he knew Stephens prior to the contract award.

KPRC 2 Investigates Houston Housing Authority contracts. (Copyright 2024 by KPRC Click2Houston – All rights reserved.)

Photos on Barnes’ Facebook page show him wearing Bragger Company apparel months before the contract was signed, further deepening suspicions of prior connections.

Bragger Company, a fashion and design business based in Chicago, Illinois, secured an HHA contract to install the AC units. KPRC 2 Investigates is looking into these contracts. (Copyright 2024 by KPRC Click2Houston – All rights reserved.)

“I guarantee you; we’ve got plenty of MWBE (Minority Women’s Business Enterprise) companies in Houston that can do that work so it raises some suspicion why they chose this company in Illinois over all these companies in Houston? MWBE firms that would be able to do this work,” said Ramirez.

As the investigation unfolds, the HHA board has also moved to evaluate CEO Northern’s leadership, hiring a consultant to review his performance. The outcomes of both reviews are expected to shed light on whether the contracts were awarded improperly and if any further action will be taken.

Jonathan Stephens has declined further comment about the comment. When Investigator Amy Davis asked why he would do a job installing AC units in Houston, he hung up.

On Oct. 15, the Houston Housing Authority board voted to hire outside legal counsel to investigate the contracts and payouts.

The KPRC 2 Investigates team are not done yet. Look for more on these contracts involving YOUR money.

In the meantime, you can email Investigator Amy Davis at adavis@kprc.com with any tips or questions. You can also email Investigative Producer Andrea Slaydon at ASlaydon@kprc.com.

Copyright 2024 by KPRC Click2Houston – All rights reserved.

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