Los Angeles to Pay $38.2M to Settle Affordable Housing Whistleblower Case

In a landmark case for affordable housing justice, the City of Los Angeles has agreed to pay $38.2 million to resolve a False Claims Act whistleblower suit alleging misuse of Department of Housing and Urban Development (HUD) grant funds. Whistleblower Mei Ling, an L.A. resident who uses a wheelchair, played a crucial role in holding the city accountable and ensuring federal funds are used to benefit all residents, especially those with disabilities.

Ms. Ling, along with the Fair Housing Council of San Fernando Valley (FHC), filed the FCA case in 2011 alleging that for over a decade Los Angeles failed to comply with federal accessibility laws while building and rehabilitating affordable multifamily housing. These laws include the Americans with Disabilities Act and the Fair Housing Act which mandate that a certain percentage of housing units be accessible to people with mobility, visual, and auditory impairments.

Ms. Ling and FHC accused the city of not meeting these requirements, resulting in housing that was not structurally accessible due to issues like steep slopes, high counters, and non-wheelchair-friendly thresholds. Their advocacy and tenacity paid off in 2017, when the United States government intervened in the lawsuit.

The $38.2 million settlement not only resolves the allegations but also sends a message to other municipalities about the importance of compliance with federal laws.

Deputy Assistant Attorney General Brian M. Boynton said, “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.”

According to General Counsel Damon Smith of HUD, this settlement provides a “fresh start” for L.A. and HUD “to work collaboratively to address the city’s pressing housing needs.” The settlement also reinforces the role of whistleblowers in protecting public interests and ensuring that federal funds are used to create inclusive and accessible communities.

If you have information of potential government grant fraud and would like to speak to an experienced member of the Constantine Cannon whistleblower team, please do not hesitate to contact us for a free and confidential consultation.