Greuel announces probe of nonprofits controlled by housing agency
In a letter to the authority’s interim president, Doug Guthrie, Greuel requested detailed financial information on the groups, which she said together produce a profit of more than $15 million a year for overseeing rental units and HUD contracts.
Greuel’s audit comes as city leaders have expressed anger about the way the agency, responsible for housing 60,000 of the city’s neediest, is run.
Last month, city leaders were infuriated by reports of lavish taxpayer-funded restaurant meals and a high-priced payout for the fired executive director.
Many of those meals were paid for not directly from agency funds, but from funds the nonprofits control.
City Councilman Dennis Zine referred to that practice as using the nonprofits as a vehicle for “washing money so we can spend it the way we want and not be accountable for anything.”
-- Jessica Garrison
Photo: L.A. City Controller Wendy Greuel at a news conference last summer. Credit: Al Seib / Los Angeles Times