HOUSTON -- A Dallas developer wants a $2.3 million loan from Houston, but some city council members say it's risky business as a bailout that could cost taxpayers, the KPRC Local 2 Troubleshooters reported Tuesday.

Brian Potashnik is developing apartment complexes in Houston and asking Houston City Council for a $2.3 million loan with your tax dollars. He's also at the center of an FBI investigation in north Texas.

The cash is needed because his company, Southwest Properties, missed out on federal funds that were linked to a development contract that he signed with the city. He lost the federal money because some city leaders said his company violated the contract.

"I don't want anyone to think they can not live up to their contract obligations and just come to city council and change the contract," Houston City Councilman M. J. Khan said.

The contract required Southwest Properties to secure certain bonds before building two senior citizen apartment complexes. But that did not happen and they were built anyway, the Troubleshooters reported. One of them is on Airline and the other is located on Aldine Bender near Interstate 45.

Neighbors are upset because instead of only senior citizens, mainly Hurricane Katrina evacuees have moved in with them.

"Who's benefiting -- the developers or the elderly -- the seniors or the developers -- or the housing authority? Come on," resident Maria Tijerina said.

White's staff has been pushing for the loan despite the broken contract.

"We entered into negotiations with the owner to try to find a way that we could mitigate the fact that they had not complied with the requirements of the contract," said John Walsh, the mayor's housing aide.

Potashnik has been trying to persuade council to approve the loan, blaming it all on a paperwork error.

"It was not our intention, nor was it our understanding, that we circumvented any of the city's rules or regulations," he said.

Council members grilled him about the FBI investigation in Dallas, where city leaders are accused of taking free rent in exchange for approving his projects.

Potashnik told Houston City Council that he did nothing improper, but he would not talk to the Troubleshooters about any of it.

"You can't answer any questions? You're asking the city to bend that many rules and you can't answer any questions, sir?" Troubleshooter Stephen Dean asked.

Potashnik walked away with no comment.

Council members are getting the full court press for the loan, even from Mayor White, the station reported.

In a memo, White called both of the projects "high quality" and he alluded to the FBI probe in Dallas, saying it shouldn't be a problem in Houston, even if wrongdoing is found.

But enough council members are bothered about all of the questions surrounding the loan of tax money that the vote could be delayed Wednesday or council could vote it down.