The United States has intervened in a whistleblower lawsuit that alleges that the city of Los Angeles misused millions of dollars in HUD funds
The Department of Justice is suing the city of Los Angeles and its community redevelopment agency, the CRA/LA, for allegedly misusing millions of dollars in Housing and Urban Development funds.
The DOJ announced that it has intervened in a whistleblower lawsuit that accused Los Angeles and the CRA/LA of falsely certifying compliance with federal accessibility laws in connection with claims submitted for HUD housing grants.
The lawsuit alleges that Los Angeles “applied for and received from HUD millions of dollars in federal housing funds” to develop affordable housing accessible to people with disabilities. According to the Justice Department, as a recipient of HUD funds, the city was required to comply with various accessibility laws, which it allegedly violated. Among those laws was a requirement that 5% of all units in federally assisted housing be accessible to people with mobility impairments.
The lawsuit alleges that none of the HUD-assisted housing units supported by the CRA/LA met the minimum number of accessible units. It also alleges that neither the city of Los Angeles nor the CRA/LA actually monitored sub-recipients of HUD funds for compliance with the law.
“This case alleges that the city of Los Angeles repeatedly violated the law by falsely certifying that millions of federal dollars were being used to build housing that included units accessible to people with disabilities,” said Acting US Attorney Sandra R. Brown. “While people with disabilities struggled to find accessible housing, the city and its agents denied them equal access to housing while falsely certifying the availability of such housing to keep the dollars flowing. The conduct alleged in this case is very troubling because of the impact on people who did not have access to housing that met their needs.”
The original lawsuit was filed by Los Angeles resident Mei Ling, who uses a wheelchair, and the Fair Housing Council of San Fernando Valley, a civil rights advocacy group.
“This case demonstrates the important role whistleblowers play in the process of uncovering waste, fraud and abuse,” said David A. Montoya, HUD inspector general.
Related stories:
New HUD budget draft deals blow to affordable housing
Bank of America settles mortgage loan discrimination case
The DOJ announced that it has intervened in a whistleblower lawsuit that accused Los Angeles and the CRA/LA of falsely certifying compliance with federal accessibility laws in connection with claims submitted for HUD housing grants.
The lawsuit alleges that Los Angeles “applied for and received from HUD millions of dollars in federal housing funds” to develop affordable housing accessible to people with disabilities. According to the Justice Department, as a recipient of HUD funds, the city was required to comply with various accessibility laws, which it allegedly violated. Among those laws was a requirement that 5% of all units in federally assisted housing be accessible to people with mobility impairments.
The lawsuit alleges that none of the HUD-assisted housing units supported by the CRA/LA met the minimum number of accessible units. It also alleges that neither the city of Los Angeles nor the CRA/LA actually monitored sub-recipients of HUD funds for compliance with the law.
“This case alleges that the city of Los Angeles repeatedly violated the law by falsely certifying that millions of federal dollars were being used to build housing that included units accessible to people with disabilities,” said Acting US Attorney Sandra R. Brown. “While people with disabilities struggled to find accessible housing, the city and its agents denied them equal access to housing while falsely certifying the availability of such housing to keep the dollars flowing. The conduct alleged in this case is very troubling because of the impact on people who did not have access to housing that met their needs.”
The original lawsuit was filed by Los Angeles resident Mei Ling, who uses a wheelchair, and the Fair Housing Council of San Fernando Valley, a civil rights advocacy group.
“This case demonstrates the important role whistleblowers play in the process of uncovering waste, fraud and abuse,” said David A. Montoya, HUD inspector general.
Related stories:
New HUD budget draft deals blow to affordable housing
Bank of America settles mortgage loan discrimination case
