Housing company owner is indicted
Dallas-based developer Brian Potashnik, who was a key player in Bexar County's affordable housing market for half a decade, was indicted Monday in Dallas on 14 federal charges of bribery and conspiracy to commit bribery with government officials. The long-expected indictment piqued the interest of local and state housing officials, who quickly described how they had severed ties with Potashnik and taken steps to protect taxpayers' property connected to his company, Southwest Housing Development Co...They were among 14 housing and government officials, including state Rep. Gladys E. Hodge of Dallas, charged in several alleged schemes to exchange money or housing for favorable treatment of Potashnik's company.

Housing company owner is indicted
10/01/2007
Ron Wilson
Express-News Staff Writer 

Dallas-based developer Brian Potashnik, who was a key player in Bexar County's affordable housing market for half a decade, was indicted Monday in Dallas on 14 federal charges of bribery and conspiracy to commit bribery with government officials.

The long-expected indictment piqued the interest of local and state housing officials, who quickly described how they had severed ties with Potashnik and taken steps to protect taxpayers' property connected to his company, Southwest Housing Development Co.

If convicted, Potashnik and his wife, Cheryl, who also was indicted on 14 counts, face maximum jail terms of 130 years and fines of $3.5 million each.

They were among 14 housing and government officials, including state Rep. Gladys E. Hodge of Dallas, charged in several alleged schemes to exchange money or housing for favorable treatment of Potashnik's company.

Rudy Rodriguez, chairman of the Bexar County Housing Authority, said the agency ceased doing new business with Southwest Housing after questions arose from an audit last year about former members of the board of commissioners.

"We have an all-new board and 80 percent turnover in employees since (the agency's two Southwest Housing deals were made)," Rodriguez said.

FBI spokesman Erik Vasys in San Antonio confirmed an ongoing investigation here but declined further comment.

BCHA had been dealing with Potashnik's company since 2001 and has two apartment complexes that serve the southwestern quadrant of the county. They serve 456 working families, said BCHA Executive Director Laura Morales.

The Dallas-based company is trying to sell its interests to Seattle-based Cascade Affordable Housing, and Rodriguez said he plans to meet with its representatives this week.

The San Antonio Housing Authority bullet-proofed its contracts with Southwest Housing by including language that would transfer management and rent to the authority in case of future indictments, said Gavino Ramos, SAHA's director of corporate relations.

SAHA, too, is expecting Cascade to take over Southwest Housing's interests in their joint ventures, Ramos said.

Southwest Housing was one of the state's biggest users of the federal housing tax credit program administered by the Texas Department of Housing and Community Affairs, for which Cheryl Potashnik at one time represented builders on a community advisory board.

TDHCA Executive Director Mike Gerber said the agency had received an application from Southwest Housing for funding, "which our board declined to provide him."

"We stand by the integrity of our programs," Gerber said, adding that TDHCA will review all Southwest properties in its portfolio to ensure that the poor, working families the agency serves are protected and provided with good housing.

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it