Tuesday, December 27, 2011

UPDATE: Letter from LA City Housing Authority Says $15 Million in Annual Profit From Non Profits Including Section 8 Contract Administration Non Profit.

UPDATE: Thanks to HACLA staff who responded to my public records request today and provided me with a clean copy of the letter. Link to letter below now takes you to that clean copy of the letter. 
A reporter from the Los Angeles Daily News was kind enough to fax me the letter from HACLA COO Simmons sent to the LA City Council on December 13th. (Recent story is HERE).

Because it is a fax some of text is illegible, but several statements from letter HERE are clear:
  1. Simmons indicates that profits from Section 8 contract administration are not considered by HUD to be "federal" monies.  However at end of page 4 he says that his understanding is that any money earned by public agency should be considered public funding.
  2. The City of Los Angeles provides no money to HACLA.
  3. Simmons did not agree with some of policy calls on spending from former Director and Board Chair.
IRS Form 990's for Los Angeles LOMOD Non Profit. 
Last IRS form 990 that I can find for LOMOD for CY 2009 can be found on web page HERE.  A quick look at that 990 show:
  1. None of officers were paid with LOMOD funds; their salaries appear to have been paid by HACLA.
  2. No expense for travel was shown ( I wonder if travel expense was included in $4.129 million for "management" ?).
  3. Admin fees from HUD totaled $22.3 million, while expenses for OTHER than housing assistance payments totaled $17.3 million (includes "management", "other salaries and wages", and payment to subcontractor Quadel). It is not clear how this $5 million in apparent profit relates to statement in letter that non profits produced $15 million in profit a year; if some of "profit" was received from other non profit controlled by HACLA, I hope that project reserves for HACLA non profit owned projects are fully funded.
  4. LOMOD net assets stood at $17.5 million at the end of CY 2009.
Originally created and posted on the Oregon Housing Blog

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