If $100 disappeared from your wallet, you’d probably
notice pretty quickly. The same can’t be said for Los
Angeles, which seems unable to keep track of considerably more
money.
The Los Angeles Housing Authority, which is supposed to provide
public housing and rent assistance to low-income residents, is
missing $70 million of its budget. Much of the money is assumed to
have been misappropriated by corrupt managers whom the city is
suing.
One of these managers is Lucille Loyce, former LAHA assistant
executive director, whose alleged misspending includes wrongfully
paying a friend and business partner up to $4 million for
“consulting.” Loyce has ironically filed a wrongful
termination lawsuit that claims that her firing was retaliation for
complaining about using LAHA funds to fight gang violence.
Considering only 15 percent of county residents can afford to
buy a home, the city should certainly be taking retributive action
against those suspected of embezzlement in one of its most needed
agencies.
However, Los Angeles also deserves part of the blame. The
misconduct apparently began over a decade ago, and the city paid a
former employee $1.3 million in 1999 after she filed a
whistle-blower suit accusing Loyce of firing her for trying to
expose wrongdoing at the agency.
Loyce was promoted shortly thereafter.
In a city already facing a public housing nightmare while also
attempting to clean up Skid Row, uncovering corruption could not
have come at a worse time.