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Friday, January 17, 2025

City Of Los Angeles Agrees To Pay $38.2 Million To Resolve False Claims Act Suit For Alleged Misuse Of HUD - Lawfuel

LOS ANGELES – The City of Los Angeles has agreed to pay $38.2 million to resolve allegations that it knowingly failed to meet federal accessibility requirements when it sought and used U.S. Department of Housing and Urban Development (HUD) grant funds for multifamily affordable housing, the Justice Department announced today.

“Municipalities that receive federal grant money for affordable and accessible housing must comply with federal law and honor the rights of people with disabilities,” said First Assistant United States Attorney Joseph T. McNally. “The nearly $40 million settlement here demonstrates our commitment to ensuring municipalities receiving federal funds comply with federal law. We will continue to work with the City of Los Angeles to ensure equal access for individuals with disabilities.”

HUD provides grant funds to Los Angeles and other cities to support housing and community development, including building and rehabilitating affordable multifamily housing units. Recipients of federal housing development funds must comply with federal accessibility laws, including Section 504 of the Rehabilitation Act, the Americans with Disabilities Act and the Fair Housing Act. These laws prohibit discrimination against people with disabilities in activities receiving federal financial assistance.

For example, the laws require five percent of all units in certain federally-assisted multifamily housing be accessible for people with mobility impairments and an additional...



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