The procuratorate of Zhengzhou, capital of Henan province, decided Friday to investigate Zhai Zhenfeng, former director of the housing administration bureau in Erqi district of the city.
A preliminary probe by the district government said Zhai's family owns 29 houses.
A whistle-blower said on his microblog account in December that Zhai's daughter herself owns 11 houses.
Last year, the whistle-blower accused Zhai of buying houses and selling them at a profit and acquiring properties for his son and daughter when he was the housing administration head.
In September 2011, Zhai was removed from his post by the local discipline inspection watchdog.