NEWS HEADLINES

Dallas Developers, Others Indicted

By Donna Kimura

Oct. 18—Indictments have come down against several former Dallas city leaders and a prominent developer of low-income housing tax credit developments.

Sixteen people were named in the indictments, including Brian and Cheryl Potashnik, the couple that leads Southwest Housing Development Co., according to The Dallas Morning News. They have declared their innocence and pleaded not guilty to allegations that they bribed officials for supporting their affordable housing proposals, according to the newpaper.

Others involved in the case have also pleaded not guilty this month.

State Rep. Terri Hodge, former Dallas Mayor Pro Tem Don Hill, and others are accused of taking kickbacks from the developers. The FBI investigation had been going on for more than two years.

A 166-page indictment says that Hodge resided at Rosemont at Arlington Park, a Southwest Housing affordable housing community, and supported the company’s tax credit projects in her district and sought the support of other elected officials for projects in other districts. The document says that the Potashniks agreed to pay a significant portion of Hodge’s rent and her electric bill.

According to Southwest Housing’s Web site, the company has 54 properties with more than 12,000 apartments and townhomes. They firm had earned strong praise for their developments.

The Potashniks’ attorney is Abbe Lowell whose clients have included former Washington, D.C., lobbyist Jack Abramoff.