Corpus Christi Housing CEO Ousted Amid Controversy

Close-up of a house key in a wooden door lock, symbolizing leadership transition and stability after the termination of Corpus Christi housing CEO.

Sudden Leadership Shake-Up

The Corpus Christi Housing Authority (CCHA) has entered a new chapter after the abrupt termination of Corpus Christi housing CEO Gary Allsup. After a two-hour executive session on Sept. 15, the Board of Commissioners voted to immediately remove Allsup, who had led the agency for nearly 14 years. In his place, Chief Financial Officer Rhen Bass has been appointed interim CEO while the board begins its search for a permanent successor.

Allsup declined to comment through his executive assistant shortly after the vote. Calls placed later that afternoon also went unanswered.

Silence in Public, Debate Behind the Scenes

Notably, the board decided without public discussion. Commissioners offered little insight into whether ongoing controversies played a role in the ouster. For months, the agency has faced heightened scrutiny over compliance with the Texas Open Meetings Act, Allsup’s substantial salary, and public backlash surrounding a workforce housing initiative.

Commissioner Greg Smith confirmed that officials denied the property tax exemptions tied to the program, but did not elaborate on the decision to fire Allsup. Smith and two other new commissioners were appointed to the board in May by Corpus Christi’s mayor, adding fresh perspectives to the agency’s leadership.

The Workforce Housing Controversy

For years, the Corpus Christi Housing Authority mainly operated under the radar. That changed in April when local taxing entities discovered that the agency had quietly acquired 13 private apartment complexes valued at $330 million. The move stunned officials at Del Mar College, Nueces County, and the City of Corpus Christi, who argued the acquisitions would strip millions in property tax revenue that funds essential community services.

Corpus Christi housing CEO Gary Allsup defended the acquisitions as part of a Corpus Christi Housing Authority workforce housing program aimed at residents caught between two financial realities: those who earn too much to qualify for subsidized housing but cannot afford market-rate units. Under the program, landlords were required to rent at least half of each complex’s units at affordable rates, federally defined as no more than 30% of household income, including utilities.

While critics argued that the Corpus Christi Housing Authority should have remained focused solely on low-income housing, supporters said the initiative addressed a critical affordability gap in the city. Still, months of disputes over tax exemptions and the program’s legality created mounting tension between housing officials and local leaders.

Allsup’s Contract and Compensation

Allsup’s employment contract, signed in March, outlined a salary of $528,074 and an annual bonus of $257,742. The contract’s validity became a point of contention, according to Commissioner Joe McComb.

“There was an issue of whether it was a valid contract or not,” McComb said. He added that his confidence in Allsup’s leadership had begun to wane.

Allsup brought more than 25 years of housing agency experience when he joined CCHA. He earlier worked as the executive director of the Kansas Housing Resources Corp. and served at the Missouri Housing Development Corp. In total, he cited more than 40 years of government experience.

Board’s Perspective and Next Steps

Commissioners have refrained from disclosing specific reasons behind their decision, describing the matter as personnel-related. McComb emphasized the importance of trust in leadership. “We’re there to do what we can for the best interest of the housing authority, and you’ve got to have a high level of confidence,” he said.

Smith said that “several factors” influenced the decision, but refused to elaborate until the board finalizes the separation terms.

Meanwhile, Commissioner Judith Gonzalez-Rodriguez said the board’s mission remains unchanged. “I know that the board will continue to move forward with our mission, which is to provide housing for families in our community,” she stated.

Interim Leadership in Place

For now, Bass leads the authority. He has served as CFO for five years and will maintain stability during the transition. The board confirmed it will launch a search for a new permanent CEO in the coming months.

The termination marks a significant turning point for the Corpus Christi Housing Authority. With millions of dollars, community trust, and affordable housing policy at stake, the agency’s next steps will shape its reputation and future role in the region.

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