Hard as it may be to believe, it was just six months ago that Mayor Antonio Villaraigosa celebrated his managerial triumph by getting the long troubled L.A. Housing Authority (HACLA) back in the good graces of the federal government.
The mayor boasted that HACLA “has reached an important milestone in its efforts to reform..and successfully met federally mandated reforms covering the City’s Section 8 voucher program, putting the department back in good-standing and ending federal oversight of the program.”
“For the first time in years, this agency is solvent, functional and in a strong position to deliver much-needed help to low-income families in LA.“
Oops, maybe Antonio spoke a little too soon.
A new report from federal housing authorities — that has gotten no visibility in the press — says he spoke way too soon to the tune of a $27 million problem, nearly $28 million actually.
“The Authority’s accounting records showed that it improperly advanced and expended more than $27 million in restricted funds to cover its operating losses for its other programs,” reported Regional Inspector General Joan Hobbs in the Housing and Urban Development Report dated Aug. 21.
“The authority contended there was no misappropriation of funds, but rather the way the accounting system presented its financial transactions; however, we were unable to validate its contention.”
The focus of the audit was to see if the city was still screwing recipients of Section 8 vouchers that let them live in decent units at a price they 
could afford but it expanded when suspicions arose that the highly-paid HACLA head Rudy Montiel (more than $300,000) was juggling the money without regard to federal rules or regulations.
No surprise there, the city of L.A. doesn’t believe in obeying the law.
It’s not entirely clear from the audit what exactly Montiel was hiding or why he was moving the money from account to account other than to conceal losses in specific areas, but HACLA’s history suggests it has a lot to do with mismanagement of Section 8 housing vouchers.
From what I can see I’m willing to bet Montiel _ who’s gotten a lot of favorable media treatment — was cooking the books to make it look like the Section 8 funding problem was fixed when he, like just about everybody else at City Hall, was doing the mayor’s bidding.
And in the housing area that means carrying out the mayor’s insane policy of densifying the city to “address the affordable housing crisis in Los Angeles” — a crisis manufactured by the philosophical commitment to providing new housing to any poor person who wants to live here.
Well, at least some of the people who want to live here. Because the long-standing accusation is HACLA is that it’s selective about who it helps and who it doesn’t.
Even
as HACLA was being brought under control by federal authorities for its
abuses, a coalition of public interest law firms and civil
rights groups
last year filed a class-action lawsuit charging it broke the law when it
effectively raised the rent for more than 20,000 poor residents.
So much for the myth Antonio and his pals really are helping the poor.
HACLA
disputed the finding that it lacked “prudent oversight” of its federal
funds, violated any rules or misappropriated any money. The agency
blamed “accounting problems,” but it’s telling that after getting its
protestations of innocence in the record, the agency obeyed HUD’s
directives and reimbursed the money — $27,801,379 of it.
Now
ask yourself, what would you do if you were one of those 15 City
Council members, especially those who claim they care so deeply about
the poor?
Wouldn’t you be mad as hell? Wouldn’t you be calling
Montiel on the carpet and hoilding public hearings and making sure this
was the last time HACLA cheated the poor?
Of course, you would. But you can’t because the City Hall game is fixed and the public doesn’t stand a chance.
It’s not like the council has shown much interest in all the troubles HACLA has had over many years.
Have
they looked into why the agency is spending $7 million a year or so on
outside lawyers, something that has caused so much concern when it
involves bumblinig City Attorney Rocky Delgadillo?
Was anybody worried when Montiel last year fired his own whistleblowing chief investigator, Abel Ruiz, after he alleged that people inside the agency
interfered with his efforts to get to the bottom of an $800,000 bid-rigging
scheme.
The firing followed disclosure in the Times that a housing authority manager, Victor
Taracena, had awarded construction and design contracts to family members and to
three firms with ties to present and former City Council members in the 14th
District, the seat now held by Jose Huizar.
You don’t need to ask whatever came of all that — I told you the game is fixed.
TED AND JESSICA I TOLD YOU SO– HIS FAVORABLE PRESS TREATMENT CAME FROM YOU THE “LA SLIMES”
HUIZAR DID NOT ACT ALONE…….THERE IS COMMISSIONER DEL ANGEL WHO LIVES AND STRIVES IN THE 14TH DISTRICT, AND WAS APPOINTED ONCE AGAIN TO THE BOARD OF COMMISSIONERS (hacla) BY BOY VILLAR.
A FAMOUS EX COUNCILMAN WITH A FELONY RECORD, WORKING WITH A HIRED MANAGER IN THE 14TH DISTRICT IN HACLAS PROPERTY AS A CONSULTANT (OF WHAT??). THE EX BOARD OF COMMISSIONER CHAIRPERSON MS. ELEANOR WILLAMS WHO HIRED MR. MONTIEL AND ALL THE OTHER LAME DUCKS SITTING ON THE BOARD ALLOWING RUDY TO RUN HIS RACKET. HE VIOLATED THE RIGHTS OF THE RESIDENTS, THE EMPLOYEES AND THE CITIZENS OF LOS ANGELES IN THAT HE HAS DISREPECTED OUR LAWS AND MADE OFF WITH A GREAT PROFIT THRU HIS SALARY. HE IS IN THE PROCESS OF TEARING DOWN THE LAST RESORT HOUSING FOR MANY POOR PEOPLE IN THE DEVELOPMENTS IN SOUTH CENTRAL. HE WILL LEAVE HERE LIKE HE LEFT TEXAS “IN A HOLE AND ANGRY” WITH MORE MONEY THAN HE HAS EVER MADE OR QUALIFIED TO MAKE.
Show me the money! the report concludes that a “repaid/reclassified” (page 24 comment 11) satisfies the finding. Ms. Hobbs, did you verify that the money is in the bank? The HACLA is completely broke and has no money whatsoever. I do not care how much you are told, if there is no money to back the liabilities, then the money is still “borrowed”. Many programs have been mismanaged in the last three years and money has been flowing from different sources to cover the incompetency. Montiel made statements that his budgets were balanced to his board that he reports to, really?
Did you know that the Chief Financial Officer was let go? Alfonso Verduzco took a short vacation and was told that he was insubordinate. Verduzco, an executive held to such a childish treatment. He was dismissed, what a coincidence as the report does allude to the CFO telling the truth to the OIG and gets fired (page 20, comment one). Verduzco told Montiel that HACLA was running out of money!!!! HACLA has no money!! Hobbs, you may want to contact Verduzco in the Dominican Republic and ask him. In the mean time, Verduzco may join the ones in line to sue the HACLA!! Abel Ruiz suit got settled rather quickly, is HUD approving all these expenses??
As for Taracena, yeah, I agree he is running free on the streets of Guatemala, Montiel knew and approved what Taracena was doing, whats behind the scenes, we don’t know, but it sure got conveniently forgotten.
Just where did this guy come from, how does the mayor tie into this.
Who is this guy’s immediate boss.
You mentioned the firing of two or three people I think it is more like 10-15 that he saw as a threat because of their knowledge about his crooked management. Dig deep
His salary is more than 300.00 th. How do you pay an official with such little responsibility more or even as much as our police chief who has the weight of this entire city on his head and with staff in a danger zone everyday.
We paid a large relocation fee and housing cost. He has a non-reportable pocket money income of 3700.00 a month. HE DEVELOPED HIS ON RUN OUT OF TOWN MONEY BY PRE-ADVANCING HIS CONTRACT AND INCREASE IN SALARY NEGOTIATIONS. WHO APPROVED IT? THE COMMISSIONERS.
He allows Ms. commissioner Del Angel to live it up in limos, upscale hotels around the nation without reporting her stipend expenditures as required by law.(HUD)
You need to run now RUDY POOTIE
It is not necessary to look into the 7mil on legal fees. The big dummy put it the paper that he spent it (LA TIMES) and that was a couple of yrs ago and he is stilling spending on the same cases that he fails to win. Tax payer dollars not his. HUD no reply.
Run? Why on earth would “Rudy Pootie” run? Gardenhire was 1997 (jury trial $1.7M – whistleblower) and the Loyce/Smith gang held on until Spring 2004. So, “Rudy Pootie” has at least until 2014.
now this is getting interesting come on in the ring
where is smith and loyce now
No money?
What about the junket Montiel is putting together to fly a bunch of Jordan Downs residents around the country?
Is this the payoff so he can let his buddies redevelop Jordan?
He must have some money the spent 30 mil on a land field by the jordan downs housing development
For years Richard Alatorre has been getting paid by HACLA for years. Until the LA times report on lobbying, Alatorre never reported his income from Montiel. Check the reports at:
http://ethics.lacity.org/efs2003/index.cfm?fuseaction=lobreports.qtrreport&lob_qtr_rpt_id=5932
This is how close Richard Alatorre, Maria Del Angel, Abraham Paez, Huizar, Villar are from Montiel. All of them were tied to the $2500 toilet fiasco.
If this is so I can understand why Victor is dwelling in Guatemala but why the hell is Paez still working with Alatorre both on HACLA payroll and maria del angel is still on the board of commissioners approving all of rudy’s ill conceived ideas. She lives in the projects no job, no car, (unless Rudy bought her one)yet she is allowed to vote on expenditures and contract for millions as if she is eduacated.
If you REALLY want to see Loyce & Smith, go to 111 North Hill Street, Los Angeles, CA 90012 (downtown Los Angeles, Stanley Mosk Courthouse)
on Monday, 09/15/2008 at 08:30 am in department 62 to view their public Jury Trial. Or, go line to http://www.lasuperiorcourt.org/civil/, and enter BC361111 and view all their VERY INTERESTING exhibits. In any event, RUDY POOTIE has much more creativity when he steal money. Oh, by the way, don’t go looking for Dwayne Williams, he was discused on Statue of Limitaitons, like duh, we haven’t been hearing about their errant ways for decades!
Wow, just checked http://www.guidestar.org (you need to register to use)but if you look for LOMOD and go to reports, you will find tax returns for non profits which lists compensation for officers, Montiel comes at $402,322 for 2005!!!!
As for Paez, if you look for Estrada Courts you will find that for 2005, Abraham Paez was compensated $95,000, his wife that works for him, $53,622, for Phil Chavez who was a manager for HACLA is compensated $81,384, and believe it or not all comes from tax payers money!!!!!
Because of all the money Rudy has stole and arranged to give to his favorite people that are deep deep in this money scheme with him, we the poor employees at the bottom of are losing our job. We are hard working maintenace workers that are with the union and we are loosing our exterminators,cement crew. irrigation crew and mechanics, all people that have worked hard for years. Rudy is non union,so he wants to contract out all of our jobs,take food off of our tables, make our kids hungry and homeless. We need help from someone to keep our job. We are hard working Americans that have done nothing wrong.Rudy came fron Texas like Lela Gonzales,who tried to do the same thing to L.A. housing 21 years ago.I Hear he talks to her.
BOY VILLAR
WHERE ARE YOU? HOLD THE CAMERAS – UNCUT THE RIBBONS – YOUR NEXT CEREMONIAL SHOULD BE THE FUNERAL OF YOUR MAYORSHIP AND ALL POSITIONS IN PUBLIC OFFICE
HUD WHERE ARE YOU!!!! YOU HAVE ALL THE INFO ALTHOUGH YOU’RE HIDING SOME OF THE MESS BECAUSE YOU WERE NOT DOING YOUR JOB TO WATCH THESE CROOKS
Rudy has ruined the Housing Authority. Check the public housing vacancy reports. Hundreds of vacant units, many vacant for years. Truly embarrassing as well as millions of dollars in lost rental income. Total incompetence; total lack of leadership.
Isn’t it convenient that Rudy’s ex-henchmen are hiding in Latin America. Go join them Rudy, the sooner the better.
Where is HUD? Don’t they give HACLA about a zillion dollars per year? And all HUD can say is “move the money back.” OOHH, big punishment for intentionally cooking the books and skirting the rules. And, doesn’t the report say the Chief Financial Officer told the truth, and then oopps, he gets fired. Hello, don’t need a rocket scientist here to tie the two together. Tell the truth, get fired = whistleblower. But apparently, the whistler is simply NOT LOUD ENOUGH.
Jesus Christ this Montiel character has an UGLY mug. He should be fired for that reason alone.
Why hasn’t Hud come to rescue their money or are they apart of this too. The residents and the maintenance employees need help to maintain their homes and jobs. Rudy has ruined L.A. City Housing Authority like Bush has ruined the United States. It is very sad that the people that should have stopped Housing from being ruined DID NOT have the back bone to do so . I wonder if their pockets were lined also ? The situation is so bad we PRAY for the LORDS Help.
to 9’13’08 7:10
I agree with you he is one uggggggly something only a mother could love. But the L A Times did an article on him saying he was a practicing catholic who prays before dinner sooooo what!!!!
crooks have souls they’re just on their way to hell.
But the real problem is what he is doing to the poorest of poor. Whenthe not poor at all are losing their homes he is actually taking the homes and money out of the HACLA to benefit him and big developers.
Oh but Maxine Waters is not a developer but she is right in with him and
Hahn is an insult to her family principles and integrity for she does nothing to maintain the welfare of the poor whom she serves and is ultimately responsible for these communities.
SPEAKING OF GOLDEN PARASHUTES HAS ANYONE SEEN THE SWEET DEAL RUDY HAS JUST IN CASE HE GETS FIRED BEFORE HIS CONTRACT IS UP. GOOD OLE DEL ANGEL REALLY TAKES GOOD CARE OF HIM, WHILE SHE IS UNEMPLOYED
CAUGHT YOU ELEANOR WILLIAMS BIG SPENDER
Rudy!!! Let our people GO!!!!
Is this why he is terminating positions in th organization, he does not give a shit for the poor residents nor for the employees!!
He does not give a rats as for the residents or the employees!!
Many of us in the Housing Authority accounting department work hard and long hours. The story about the 27 million makes headlines in a blog. It has not made the newspapers or the TV. Because there is nothing there. It was just an accounting error that has been corrected.
I BELIEVE IT MADE HEADLINES IN AN OIG REPORT SIGNED BY HUD OFFICIALS…SO ARE YOU TELLING ME THAT IT WAS JUST AND ERROR THAT WAS NOT DISCLOSED TO THE INSPECTOR GENERALS INVESTIGATORS IN ORDER FOR THE REPORT TO READ DIFFERENTLY.
You work hard and long because you are afraid that gangster might fire you..Duh
3:46
Are you a HACLA staff member? Making a statement the it was “just an accounting error” for 27 million like it does not really matter shows total incompetance and irresponsibility on your part.
3:46 is Ken or Rudy, they are well aware of this blog. Rudy is well aware of the implications of this web blog(sending security to find out who taped copies of this web blog to the cafeteria!!!) again, their is no money to back up all the extra expenses!! Public housing and capital fund are in the red!!!!! there is no money!!!!
This is crap this man was crooked from the first day. the mayor knows all about it. He knows that all the shakers and movers and the watchdogs in this city are pre occupied with the bail outs the banks, forclosures and other matters that he is just taking pure advantage and opportunity to get away with his dirt.
I am a single mom who works in the section 8 department. i am greatful to mr montiel.
last year he made sure all of the eligibility workers got raises and an increase in medical.
thank you mr montiel.
to 8:05
You are very selfish you may have gotten a raise on your $20TH a year job and you probably just started there. Of course you are not concerned with the long time employees that he got rid of thru H.R. RULE VIOLATIONS OR THRU HIS RE ORG CRAP. THEY DIDN’T GAIN THEY LOST ALL AND MOST WITHOUT CAUSE.
THEN HE GAVE YOU THAT WERE LEFT A RAISE. THIS IS THE PROBLEM WITH THIS WORLD WE ALWAYS WANT WHAT IS BEST FOR US AND NOT FOR US ALL. THANK GOD NOT MONTIEL. CONSIDER OTHERS SOMETIMES.
Obama hired several pouwrfel HOUSING AUTHORITY parasites AND they went to work for Obama at HUD and the DOJ, including fat ugly pig Thomas Saenz, Villa-Rat-gosa’s former Mayor’s Counsel. A report authorized and blessed by Gruel and #1 City Sellout Carmen Gaga Dumb-tanich last week just white-washed the Bonnie-Brae Project that Garcetti has nightmares over. Thus, can anything really be done about this thing? The solution is to MOVE OUT OF L.A. or Stay AND Drink lots of booze, smoke pot, or get a good pharmacist to get you linked. Whoever reads this post is very very LUCKY because you HAVE A REAL CHOICE here. It’s YOUR LIFE, It’s your family, and it’s your SANITY at stake. The Scumbags own the Politicians and you the homeowner/businessman/tentant ARE JUST OCCUPANTS to be ripped off endlessly to feed the CORRUPTION. So If you can AFFORD the City Hall imposed theft from you AND earn a good living, FUCK IT and Stay. Otherwise: 1-800-UHAUL. L.A. City is a place to either get great riches or DIE A SLOW AND PAINFUL DEATH one minute STUCK IN TRAFFIC AT A TIME!!! You see the people out there, like the shooter at Vine and Sunset! Like the OccupyLA guys. Like Kevin James the guy had a great Radio gig AND a great Law gig and he pissed away the radio gig by trying to be mayor?See, that’s what L.A. does to even the most rational of us (EVENTUALLY.) So decide as we close this 2011 year: SAVE YOUR SANITY AND MOVE, or stay AND WITHER AWAY. But that Vine St. Shooter SHOULD BE A WAKE UP CALL L.A. is a NUTHOUSE!
So are you saying that single moms deserve what you recvd. and married moms are not important to be benefited on the job. You being single is your design not housing. I hope you don’t think rudy the rat gives a hoot about you …even if you are from the same race card
I just read the (REPORT) from the OIG I don’t know if this guy is crooked or if he is stupid and have a bunch of dummies working for him. ugly and stupid and shady is a deadly combination
SUBSEQUENTLY THIS SHIT WAS BOUUND TO HIT HOUSING..THE SYSTEM WAS LAYBACK AND EMPLOYEES WERE MISMANAGING MONEY AND SUPPLIES..ALL I KNOW IS THAT I WORK FOR THE AGENCY BUT EVERYBODY THINKS THEY ARE HIGH AND MIGHT JUST BECAUSE THEY PAY UNION DUES…DONT FORGET TO DO YOUR JOB….
REPLY TO: “single mom who works in the section 8 department”
I can see that you look no further than the tip of your nose. Mr. Montiel, who I think is a very smart person, wanted to finish the negotiations with the Union before the deadline in order for him to receive his bonu$. That is why he did not cut our benefits like he did with the Admissions holiday. But he is still outsourcing some jobs, bullying some employees and playing by different rules than he expects his employees to play by, unless you happen to be one of his favorites.
Good comments/information about hacla. Lets be realistic Rudy Montiel is never in the office and has no time nor is his office door ever open to hear/see any employee (you only see Senior staff goffers like Senford Riggs, who they say was a Maintenance Supervisor and now Housing Director ????? so much for the “highly sophisticated nationwide recruitments!!
Rudy Montiel cares only about his interests and how much money he’s taking to Texas, you see the great salary + monthly living expenses and other stipends approved by the great board(again our tax dollars at work).
finance staff was reprimanded and suspended when they questioned Montiel for travel expenditure reports as he continues to refuse to submit one every time he travels. No wonder commissioner Del Angel runs around time spending hacla money
and yes, files nothing.
Montiel, shame on you to call yourself a “practicing catholic” just because you pray before your meals. That’s not what being catholic is about, you’re an embarrassment!!
Mr. Mayor why do you ignore these comments?, something needsto be done NOW. HUD,need your HELP in reconstructing housing authority there is a lot of unhappy employees who have been serving our low income clientele throughout our city for many years and who need to be treated with dignity and respect.
It’s amazing that someone making a salary of over $300,000 can receive a stipend for housing when there are employess that qualify for Section 8.
Employees are being laid-off making it difficult or impossible to complete the goals of the Housing Authority. However, Rudy is still hiring and adding to his executive management team. This is a downward spiral to the destruction of the Housing authority. And that has always been Rudy’s mission.
Out of the business of providing assistance and into aquisitions and asset management. Low income housing used as an intro into developments that will house the more affluent. The mayor and the commission are now working for Rudy. The HACLA is no longer a advocate for low income housing.
HACLA employees. Please pay attention to what is and has been going on in your Internal Control Department. Rudy Montiel and Ken Simmons are slowly but surely dissolving that department a little at a time.
Some of you may or may not be aware that the Internal Control Department is now under the leadership of the LA City Attorney.
Rudy Montiel purposely made that move in order to cloak all communication within that department under the guise of Attorney/Client privilege. Try to make a public records request from that department and you’ll see what I mean.
Rudy is obviously concerned about person(s) within that Department who have a different morality than he does.
I take you back to the Victor Taracena case. As you know, the Internal Control Department investigated that matter and in doing so, uncovered information which lead them to believe that Rudy Montiel may have had some illegal involvement. When Rudy became aware that members within the Internal Control Department had suspensions about him, the Department Head, Abel Ruiz was fired. Mr. Ruiz later filed a wrongful termination civil suit and the HACLA settled with him out of court,
The lead investigator on the Taracena case, Ron Hobson, was so concerned that HACLA was going to retaliate against him that he left the HACLA for another job.
The Attorney for the Internal Control Department, Ada Cordero-Sacks, also involved in the investigation and voiced her belief that Mr. Montiel was involved, also was fired by the HACLA one day before her probation period was over. Ms. Cordero-Sacks also filed a wrongful termination civil suit and on this past Friday, her civil trial came to an end . She was vendicated and the HACLA was ordered to pay her over $700,000.00 in damages. I doubt if Mr. Montiel will publicize this one like he did the Lucille Loyce civil case. Let’s see!
The only other person from the Internal Control Department involved in the Taracena matter, Rich Carroll, was promoted to the Acting Director position after Mr. Ruiz’s departure. Mr. Carroll stayed there until 30 days or so after he gave a deposition in the Cordero-Sacks law suit. He was then mysteriously demoted and replaced by a part time LA Deputy City Attorney. Since then, I’m told that Mr. Carroll testified in the Cordero-Sacks trial and his testimony was instrumental in the jury’s decision. Now I find out that Mr. Carroll has been placed on paid administrative leave pending the outcome of an unknown investigation. Can you say “another law suit”.
I agree with the previous posters. It appears as though if you go against Rudy Montiel, you will be fired. Surely the Board of Commissioners is aware of this. How much more money do the tax payers have to pay for pay outs and attorney fees? I hope someone takes notice and calls Rudy to the table on this.
Also, it appears as though Ken Simmons has a little problem where ever he goes with employees filing law suits against him. Why would Rudy hire a guy like that for such an important position? Let’s see how this plays out.
I gave all this to the L A TIMES and they can’t be bothered. Look at Scott Butler the head of the “police force”. Fired by the sheriff’s department. Never attained the rank above “deputy”, nailed by Ken Simmons for conflict of interest for running a PI business on the side and yet he is STILL HERE. Why? He is related to Patrice McConnell, the head of HR. When ever I hear absentee director Rudy talk about “ethics” I want to throw up. Nobody cares.
As you know, the Housing Authority of the City of Los Angeles has favored Latinos for promotions and other non African-Americans since the arrival of Mr. Montiel, as president and CEO of this agency. He placed an African American woman as the Human resources Director; however, she is just a token in his administration and she works at the mercy of Mr. Montiel, and; unfortunately, she cannot prevent this above-mentioned behavior demonstrated in his administration. Please Maxie Waters, Janice Hahn or Bernard Parks. We need your assistance now!!
As you know, the Housing Authority of the City of Los Angeles has favored Latinos for promotions and other non African-Americans since the arrival of Mr. Montiel as president and CEO of this agency. He placed an African American woman as the Human resources Director; however, she is just a token in his administration and she works at the mercy of Mr. Montiel, and; unfortunately, she cannot prevent this above-mentioned behavior demonstrated in his administration. Please Maxie Waters, Janice Hahn or Bernard Parks. We need your assistance now!!
It is not necessary to look into the 7mil on legal fees. The big dummy put it the paper that he spent it (LA TIMES) and that was a couple of yrs ago and he is stilling spending on the same cases that he fails to win. Tax payer dollars not his. HUD no reply.
An interesting dialogue is price comment. I believe that it is best to write more on this subject, it may not be a taboo subject but usually individuals are not sufficient to speak on such topics. To the next. Cheers