City agrees to federal government allegations that it does not meet accessibility standards
The city of Los Angeles has reached a $38.2 million settlement with the U.S. Department of Justice to resolve allegations that the city violated federal accessibility requirements when using Department of Housing and Urban Development (HUD) funds for affordable multifamily housing projects, officials said.
The settlement followed a 2017 whistleblower lawsuit in which the U.S. government intervened. The lawsuit alleges that for more than a decade, Los Angeles knowingly violated federal law by failing to ensure that housing built or rehabilitated with HUD funds was accessible to people with disabilities. The lawsuit alleges that the city falsely certified its compliance with these requirements to HUD on an annual basis.
“Localities that receive federal grants for affordable and accessible housing must comply with federal law and respect the rights of people with disabilities,” said First Assistant U.S. Attorney Joseph T. McNally, stressing that the substantial settlement underscores the commitment to ensure that recipients of federal funds comply with their legal obligations.
The U.S. government argued that the city’s violations included structural deficiencies such as steep slopes, high counters and thresholds inaccessible to wheelchair users. In addition, the city was accused of failing to maintain a publicly available list of accessible units and of failing to designate a staff member to coordinate accessibility efforts, as required by federal law.
“By failing to ensure that HUD-funded multifamily housing met federal accessibility requirements, the city has discriminated against people with disabilities,” said HUD Inspector General Rae Oliver Davis, adding that the settlement is a renewed effort to work with Los Angeles to meet the city’s housing needs.
The $38.2 million settlement resolves the lawsuit under the False Claims Act, which allows private citizens to sue on behalf of the government and share in compensation. The case was brought by a Los Angeles wheelchair user and the Fair Housing Council of San Fernando Valley, a nonprofit disability rights group. Those parties could be awarded a portion of the settlement, but the amount of compensation has not yet been determined.
This settlement follows a 2020 agreement in which the U.S. government obtained $3.1 million from another defendant in the same case, CRA/LA, the successor to the City of Los Angeles’ Community Redevelopment Agency.
The Department of Justice’s Civil Division, along with the United States Attorney’s Office for the Central District of California and HUD’s Office of Inspector General, led the investigation and litigation of this case.
The settlement resolves the allegations, but no liability arrangement has yet been made.
