DOJ orders LA to pay $38M over filing false claims for HUD grants

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Los Angeles will pay more than $38 million to resolve allegations, first brought by two whistleblower, that for a decade the city knowingly shut people with disabilities out of affordable housing created through federal funds, the Department of Justice (DOJ) said.

LA received funds from the U.S. Department of Housing and Urban Development (HUD) to create affordable, multifamily housing, but ignored requirements to make at least 5 percent of the apartments accessible to people with mobility challenges and at least 2 percent accessible for people with visual impairments, the DOJ announced in a press release Monday.

The case resolves claims brought under the qui tam provisions of the False Claims Act by Mei Ling, a mobility challenged resident, and the Fair Housing Council of San Fernando Valley, according to LA’s settlement agreement. The DOJ intervened and filed a complaint against the city in 2017. The whistleblowers will receive an undetermined amount of the settlement total.

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