Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
This is an archival story that predates current editorial management.
This archival content was written, edited, and published prior to LAist's acquisition by its current owner, Southern California Public Radio ("SCPR"). Content, such as language choice and subject matter, in archival articles therefore may not align with SCPR's current editorial standards. To learn more about those standards and why we make this distinction, please click here.
Housing Authority Caught in Audit
()
The Los Angeles Daily News reports today that the City of Los Angeles's "Housing Authority "inappropriately" shifted $30 million to a nonprofit agency last year to avoid paying the cost of issuing excess rental vouchers, a new federal audit says.
The Los Angeles agency transferred the $30 million from its reserve accounts, then told the federal government it didn't have the money to cover the cost of as many as 1,500 vouchers issued to help low-income residents pay their rent, according to a memo from the U.S. Inspector General's Office and interviews conducted Monday with officials.
Auditors termed it a "deviation from program requirements" and an "inappropriate advance" when the Housing Authority transferred the money Dec. 31 to Los Angeles LOMOD West Inc., a nonprofit organization created in 1973 to develop low-income properties.
Support for LAist comes from
The money was transferred back March 30 on order of the federal government and used to cover Section 8 voucher costs, officials said. The inspector general did not recommend any other corrective action.
David Clark, the Housing Authority's acting Section 8 director, downplayed the results of the audit. He said the agency has transferred top management into other positions and is working closely with HUD to fix the underlying problem of issuing too many rental vouchers in an effort to ensure that all the money allocated is spent for low-income people needing housing.
"To us, this is sort of ancient history. We are on the road to recovery," Clark said.
"The Housing Authority has acknowledged that it did make mistakes and it needs to fix them and is fixing them," Clark said."
Gee, Dave, what if the road to recovery leads to a slippery slope where we'll find ourselves hoisted by our own petard?
Bureaucrat double-talk aside, this is troubling news. The agency was combating the effects of a change in the federal government's housing policy.
According to the Daily News, "the federal government once encouraged issuing excess housing vouchers -- to reduce homelessness -- because not all with vouchers were likely to find privately owned apartments that meet government safety standards and price limits, said Linda Couch, deputy director of the National Low Income Housing Coalition.
Support for LAist comes from
But last year, as part of a cost-saving measure, Congress removed housing agencies' ability to issue excess vouchers. Couch and other housing advocates maintain that the Los Angeles Housing Authority was caught off guard.
Jan Breidenbach, executive director of the Southern California Association of Nonprofit Housing, blamed a national shortage of voucher funding on the federal government.
"This administration has put good housing authorities in a Catch-22," she said. Of the Los Angeles Housing Authority, she said, "I don't believe they were shifting money around to try to avoid costs. They were trying to get housing out to people who need it."
Given the shortage on funding for vouchers and the dearth of affordable housing in Southern California, we think it's going to be a long winter for the homeless in LA if the agency created to provide some relief can't obey its own regulations.
Picture credit: Hands in the Cookie Jar Productions, Dalon Huntington
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
The L.A. City Council approved the venue change Wednesday, which organizers say will save $12 million in infrastructure costs. -
Taxes on the sale of some newer apartment buildings would be lowered under a plan by Sacramento lawmakers to partially rein in city Measure ULA.
-
The union representing the restaurant's workers announced Tuesday that The Pantry will welcome back patrons Thursday after suddenly shutting down six months ago.
-
If approved, the more than 62-acre project would include 50 housing lots and a marina less than a mile from Jackie and Shadow's famous nest overlooking the lake.
-
The U.S. Supreme Court lifted limits on immigration sweeps in Southern California, overturning a lower court ruling that prohibited agents from stopping people based on their appearance.
-
Censorship has long been controversial. But lately, the issue of who does and doesn’t have the right to restrict kids’ access to books has been heating up across the country in the so-called culture wars.
Best of LAist