A pivotal discussion on conflict of interest emerged during the Denton Board of Ethics special meeting on June 2, 2025, centering on the role of the Denton Housing Authority (DHA) and its Executive Director's involvement in the Planning and Zoning Commission. The meeting highlighted the complexities surrounding potential conflicts when affordable housing projects are on the agenda.

Commissioner McDade's situation was scrutinized, particularly whether she would need to disclose a conflict of interest due to her dual role as CEO of the DHA and a member of the Planning and Zoning Commission. Legal interpretations revealed that while the DHA operates as a public corporation under Texas law, it is not classified as a business entity in the traditional sense. This distinction raised questions about McDade's ability to participate in discussions involving the DHA.

The consensus among board members indicated that McDade's position could indeed create a conflict of interest, especially when matters related to affordable housing arise. The discussion underscored that her personal interest in promoting affordable housing could bias her judgment, necessitating her recusal from any deliberations involving multifamily or affordable housing projects.

The board emphasized the importance of clarity in the definitions of conflict of interest, noting that if a majority of the Planning and Zoning Commission members have similar conflicts, it could lead to a situation where no one could effectively participate in discussions. This scenario prompted a call for the city council to exercise caution in appointing members to boards to avoid potential conflicts that could paralyze decision-making.

As the meeting concluded, the board recognized the need for further guidance on how to navigate these conflicts, particularly in relation to the DHA's involvement in city projects. The implications of this discussion are significant, as they could shape future policies regarding appointments and ethical standards within Denton's governance.