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. 
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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. 

FHA "Bad Boy/Apple" Protections Not Fully Working Against Lender Staff and Execs.

While clearly FHA has become more aggressive in rooting out FHA fraud,  this Center for Public Integrity story from the WaPo HERE demonstrates that it has a way to go.

"....documents and interviews reveal that more than 34,000 home loans have been issued over the past two years by a dozen FHA-approved lenders that have employed people who were convicted of felonies, banned from the securities industry or previously worked for firms barred by the agency.

More than 3,000 of those loans, about 9 percent, were seriously delinquent or already a claim on the FHA insurance fund as of June 30. That's nearly triple the rate for all loans made by FHA lenders over the past two years...

Originally created and posted on the Oregon Housing Blog