City Settles Federal Allegations of Failing to Meet Accessibility Standards
Officials announced that the City of Los Angeles has agreed to a $38.2 million settlement with the U.S. Department of Justice to resolve allegations that it failed to comply with federal accessibility requirements while using Department of Housing and Urban Development (HUD) grant funds for affordable multifamily housing projects.
The settlement follows a 2017 whistleblower lawsuit in which the U.S. government intervened. The lawsuit alleges that for over a decade, Los Angeles knowingly violated federal laws by not ensuring that the housing it built or rehabilitated with HUD funds was accessible to people with disabilities. The lawsuit claims that the city falsely certified its compliance with these requirements to HUD annually.
“Municipalities receiving federal grant money for affordable and accessible housing must comply with federal law and honor the rights of people with disabilities,” said First Assistant United States Attorney Joseph T. McNally. He emphasized that the substantial settlement underscores the commitment to ensuring that recipients of federal funds adhere to legal obligations.
The U.S. government argued that the city’s violations included structural failures, such as steep slopes, high counters, and inaccessible thresholds for wheelchair users. Additionally, the city was accused of not maintaining a publicly available list of accessible units and failing to designate an employee to coordinate accessibility efforts as required by federal law.
“By failing to make certain that HUD-funded multifamily housing met federal accessibility requirements, the city discriminated against people with disabilities,” said HUD Inspector General Rae Oliver Davis. She added that the settlement represents a renewed effort to collaborate with Los Angeles in addressing the city’s housing needs.
The $38.2 million settlement resolves the lawsuit under the False Claims Act, which allows private parties to sue on behalf of the government and share in any recovery. The case was initiated by a Los Angeles resident who uses a wheelchair and the Fair Housing Council of San Fernando Valley, a nonprofit disability rights advocacy group. A portion of the settlement may be awarded to these parties, though the amount has not yet been determined.
This settlement follows a 2020 agreement in which the U.S. government secured $3.1 million from another defendant in the same case, CRA/LA, the successor of the City of Los Angeles Community Redevelopment Agency.
The Department of Justice’s Civil Division, along with the U.S. Attorney’s Office for the Central District of California and HUD’s Office of Inspector General, led the investigation and litigation of the case.
The settlement resolves the allegations, but there has been no determination of liability.
