Prosecutors unsealed an eight-count indictment Tuesday against the executive director of the City of Hidalgo Housing Authority and her former secretary, charging them with bribery.

A federal grand jury indicted Susana Munguia, 61, of Hidalgo, who headed the Housing Authority — an independent, federally funded agency — for 25 years; and her secretary, Lubina Pedraza, 53, of Hidalgo.

Prosecutors detailed the allegations against Munguia and Pedraza in an 11-page indictment, which charged them with conspiracy to commit bribery and embezzlement, and seven counts of bribery.

Federal Magistrate Judge Dorina Ramos remanded Munguia and Pedraza to custody Tuesday.

In the indictment, prosecutors detailed how Munguia transformed the Housing Authority into a pay-for-play scheme.

The Housing Authority administered the federal Housing Choice Voucher Program, commonly called “Section 8.” Hidalgo received about $260,000 through the program during an average year, according to the indictment.

During the 2013-2014 federal fiscal year, the Housing Authority handed out 60 housing vouchers, according to the Department of Housing and Urban Development.

Munguia ran the program, which was designed to help low-income individuals afford housing. People who applied for vouchers were placed on a waiting list.

Munguia and Pedraza, though, accepted bribes from people who wanted to bypass the waiting list, according to the indictment. Prosecutors provided details about 16 bribes paid between July 2011 and December 2013...