Los Angeles

LA Housing Authority Rife With Financial Mismanagement

Audit finds questionable spending. Contain your surprise.


Los Angeles' housing authority, which runs on about $1 billion a year in taxpayer funds, is plagued by bad financial management that causes "questionable practices and poor decisions," according to an audit released Thursday by City Controller Wendy Greuel.

Greuel launched the audit last year amid an outcry over hefty taxpayer-funded restaurant tabs for agency officials and a $1-million-plus payout for the authority's fired executive director. The agency is responsible for sheltering about 75,000 of the city's neediest households.

A previous audit found instances of questionable spending by some agency officials, including double and triple billing for some travel and meal expenses. This audit, which looked at the agency's fiscal operations, did not uncover wrongdoing. But it did find that despite the authority's hefty budget and history of scandal going back decades, agency officials have done little to make sure money is properly managed.