HOUSTON -- Grand jury subpoenas were issued Monday night and city leaders were being called in for questioning after learning the City of Houston accepted a two-bedroom suite at a downtown hotel as a gift.

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D.A. Looking Into Police Chief's Temporary Lodging

The downtown Hyatt $775-a-night two-bedroom suite has been occupied by the city's new police chief, Harold Hurtt, as a temporary residence since March 11.

Mayor Bill White's Chief of Staff Michael Moore said it is not uncommon for the city to cover lodging costs while a new department head looks for a house.

However, when another business pays the tab instead, prosecutors said the city could be caught committing a crime.

"We checked with (our lawyers) before we did anything and (they) said it was fine. We're all about saving taxpayer dollars," Moore said.

But even though the mayor's legal team approved the deal, Harris County's top prosecutor said they could be committing a crime, violating laws that ban gifts to public servants.

"One of them has to do with benefiting a public official or offering a benefit to a public official who may regulate you or regulate what you do," Harris County District Attorney Chuck Rosenthal said. "Just because you can do that in private business, doesn't mean you can necessarily do that in government. We're restricted by other aspects of the law."

News2Houston called the Hyatt Hotel numerous times to ask about the room's rate and were told it was $775 a night.

Moore said they have no intentions of removing Hurtt from the suite.

"The chief and his wife are in town and looking for a house and as soon as they find a house, they will move into their house," Moore said.

White's staff said the chief was out of the room for about a week during the past two months, putting the value of his hotel stay at $46,500 as of Monday night.

When White was questioned by News2Houston Investigator Stephen Dean about the appearance of the police chief receiving free accommodations, the mayor said the city made the commitment to pay for the chief's interim relocation expenses.

"If the room is too fancy, sure that bothers me," White said.

The district attorney's investigators seized records from the Hyatt with a grand jury subpoena.

A staff work in Hyatt Vice President Don Henderson's office told News2Houston Investigators he was not available for comment.