Quake Loan Program to Be Reorganized

The Los Angeles City Council voted Wednesday to assign a housing expert from the Redevelopment Agency to help audit and reorganize the city’s troubled earthquake loan program.

William Jones, a rehabilitation project manager for the Community Redevelopment Agency, will work at the Housing Department’s earthquake loan program until June 30.

The loan program has been the focus of tough criticism from several fronts.

The Times reported recently that repair work in parts of the hard-hit North Hills community virtually stalled after the department awarded nearly $11 million in loans and grants to an inexperienced but politically connected nonprofit developer.

The Times also reported that the department has failed to take tough action against earthquake repair contractors who violate labor laws by not paying their employees the prevailing wage.

The city’s controller is also auditing the loan program in response to an investigation by a carpenters’ cooperative that has also been critical of the department.

Gary Squier, manager of the department, has defended the loan program but acknowledged he has not had enough staff members to adequately monitor the $320 million in loans issued by the department.

The council agreed to pay Jones $85,430 to help oversee an internal audit of the earthquake loan program and to help reorganize crucial divisions within the housing department.

Since 1983, Jones has headed the CRA’s Housing Rehabilitation Section, and has overseen the repairs of more than 1,000 housing units.