Los Angeles to Pay Over $38 Million to Settle Allegations of Discrimination Against Disabled Residents in Affordable Housing

The city of Los Angeles has agreed to pay more than $38 million to resolve allegations that it knowingly excluded people with disabilities from affordable housing funded by federal grants over the course of a decade, according to an announcement by the Department of Justice (DOJ). The settlement addresses claims first brought by two whistleblowers under the False Claims Act, which alleged that the city failed to comply with federal accessibility requirements.

Los Angeles received funds from the U.S. Department of Housing and Urban Development (HUD) intended to create affordable, multifamily housing. However, the city ignored regulations that required at least 5 percent of the apartments to be accessible to individuals with mobility challenges and at least 2 percent to be accessible to those with visual impairments. The DOJ highlighted these failures in a press release on Monday.

The case originated from claims made under the qui tam provisions of the False Claims Act by Mei Ling, a resident with mobility challenges, and the Fair Housing Council of San Fernando Valley. The DOJ intervened in the case and filed a complaint against Los Angeles in 2017. According to the settlement agreement, the whistleblowers are entitled to receive an undetermined portion of the settlement amount.

The DOJ accused Los Angeles of knowingly disregarding federal regulations, thereby creating housing that was inaccessible to people with disabilities. The city allegedly built apartments with features like counters that were too high for individuals in wheelchairs to use and slopes that were too steep for wheelchair access. Additionally, the city did not maintain a list of accessible apartments and their features, effectively discouraging people with disabilities from applying for affordable housing.

The DOJ further claimed that the city “knowingly and falsely certified to HUD that it complied with these grant requirements.”

“This settlement shows that we will hold accountable jurisdictions receiving federal grant money to ensure they satisfy their obligations to make affordable housing accessible to people with disabilities,” said Brian Boynton, head of the DOJ’s Civil Division, in the release. “Our years spent litigating this case demonstrate the department’s steadfast commitment to this effort.”

The settlement with Los Angeles follows a related $3.1 million settlement reached by the DOJ in August 2020 with CRA/LA, the successor agency to the Community Redevelopment Agency of Los Angeles, over allegations of misusing federal funds for inaccessible housing.

Representatives from the city of Los Angeles, which agreed to settle without admitting liability, were not immediately available for comment.

By fLEXI tEAM