Tenants Allege Housing Panel Misused Funds

A group of tenant leaders and residents of the city-run San Fernando Gardens housing development called Friday for a criminal investigation of the Los Angeles Housing Authority over allegations of mismanagement and misappropriation of funds.

About 20 residents protested outside the Pacoima housing development and called for the city attorney and district attorney to investigate Housing Authority finances.

“The residents are fed up with personal abuse suffered by me and many others,” said Sandra Obando, president of the San Fernando Gardens Resident Management Council.

Obando said the investigation should look into allegations that money has been misspent by the authority, as well as “retaliatory and vindictive actions” against tenant groups, including the termination of contracts held by tenant groups to provide their own security and moving services.

The Times recently reported that the U.S. Department of Housing and Urban Development is conducting an audit of the Housing Authority. The audit was launched after federal officials received allegations from some tenant leaders and a contractor that city managers accepted cash meant for poor residents, manipulated bids on contracts, tolerated double-billing by a consultant and took away contracts from those who complained.

Agency representatives denied the allegations.

Agency attorney Martha Shen-Urquidez said a security contract with the tenant council at San Fernando Gardens was terminated when a strike by guards prevented the tenant group from fulfilling its obligation to protect construction sites at the development.

About a dozen security guards held their own march Friday, saying Obando and other critics do not speak for all the residents.