BARACK OBAMA & MERCEDES MARQUEZ: Does LA Housing Department CORRUPTION Over AFFORDABLE HOUSING Lead To The WHITE HOUSE?

Oh no...U.S. President Barack Obama is working SO HARD to try and not just restore the country's economy, but try to keep our cities and states from falling into a big DWP sinkhole.

So he probably wouldn't be to happy to find out the bang he is getting for his buck when it comes to the HUD money for affordable housing projects in the City of Los Angeles that HUD director Mercedes Marquez is handing over to the city.

We've read the reports on Federal Stimulus money being stuck in the pipeline and grossly bamboozled. And FBI investigations on money being handed out to developers for affordable housing projects, only to find the housing is never built. Also, purposefully driving up costs and flat out over-billing. (FBI investigation into ADI developers, who are also accused of giving bribes and campaign contributions to elected officials, may show the other problem of MASSIVE over-billing.)

So when homelessness seems to be visibly increasing on the streets of Los Angeles, keep in mind, the city's solution is like trying to capture water in a bucket, while the elected officials shoot holes in the bucket to reclaim the lost money...I mean water. 

But before the property scheduled for an "affordable housing" make-over makes it into the hands of the City's preferred developers and contractors...HOW DOES THE PROPERTY GO FROM THE LAWFUL HANDS OF THE ORIGINAL PROPERTY OWNER...INTO THE HANDS OF THE CRA OR ONE OF THE REAP OUTREACH CONTRACTORS, HIRED BY THE CITY, WHO SOMEHOW END UP WITH THE PROPERTIES THEY WERE HIRED TO INSPECT?:

RENT ESCROW ACCOUNT PROGRAM (REAP)

The more you look into it, the more you will find that the City of Los Angeles' REAP program is the single biggest fraud and racketeering scheme in city history. And it is currently underway as this post is being typed.

Over the past four years, L.A. City gadfly, Zuma Dogg has spoken out on the issue of REAP corruption (conflict of interest allegations), literally hundreds of times as the REAP items appeared on the agenda at the L.A. City Council meeting.

And over the past month, more specifics of this corrupt racket have been detailed and exposed from within the Los Angeles Housing Department (LAHD) in form of a memo sent to some L.A. City Councilmembers and to this blog.

Zuma Dogg took the information contained in the memo (which he had already heard all about, before) -- and did a little more investigation, that echoed what the LAHD staffers were saying about the fraud, waste and abuse (of staffers) in the department, and began to not only blog about it, but blast it on L.A. City's own cable channel (carried on every Time Warner cable TV in L.A. City).

The result: Hakha Mortezaie, Director of Enforcement, overseeing the REAP cases, WILL BE LEAVING THE LAHD, effective in NOVEMBER. (Which starts on Monday.) This is the person who wears a judge's robe at the REAP rent reduction appeal hearings, even though he is not a judge and the hearings are not really a court.

But, Hakha REALLY DOES ALSO WORK FOR one of the REAP outreach contractors hired by the city. And he really is an attorney for them. And they really do end up owning some of these properties they are going out to inspect, I am told. (So does the CRA, sometimes.)

Hakha Mortezaie is part of the Mercedes Marquez, Roberto Aldape (Eric Garcetti?) crew. Mercedes works at the White House in Washington, D.C., now. (So if there is any corruption happening, and some of it has been reported to be investigated by the FBI, then does the corruption LEAD to the White House? Or is it happening under the White House's nose, like kids tearing up the house with wild parties while the parents are away on vacation?)

HERE'S WHAT HAS BEEN ALLEGED TO BE HAPPENING (And the allegations are getting so loud, my ears are starting to feel the way they did the day after I saw The Who in concert.):

City hires outreach contractor to inspect mom and pop building owners, housing the kind of people who can't afford a (city hall connected developer's) million dollar luxury condo project.

But, the City of L.A. is a casino where your building is seen as chips that they are there to take from you, since THEY are the house. But they are playing with a marked deck. (The "marked deck" being conflicts of interest and sheer corruption.)

One conflict may be arising out of the fact that you have people like Roberto Aldape & Hakha Mortezaie who are not only the LAHD executives in charge of overseeing REAP; they are both associated with outreach contractors that they are hiring to inspect properties across the city for REAP. Both are attorneys, working for these outreach contractors.

So are they hiring and paying outreach contractors, of which they are listed as the contact people for, then suing property owners as attorneys, based on the information they gather as outreach contractors? (This scenario was described on the record during the July 21, 2010 L.A. City Council meeting.)

MASSIVE CORRUPTION ALLEGATIONS!!!

AND OH YEAH, Hakha Mortezaie is the guy who puts on a judge's robe as though the REAP rent reduction appeal hearings are actually a real court. Surprisingly, the court always rules to place your property INTO REAP, then it becomes ALMOST IMPOSSIBLE to get off the list, get your money back -- and NOT lose the property.

Part of the problem as alleged by people telling their stories to LA City News; Hakha will not release the money tenants have paid into the city's Rent Escrow account, back to the owner...UNTIL THE SHOW THEY HAVE A ZERO OR NEGATIVE BANK ACCOUNT BALANCE!?!?! (I guess the point is you have to prove you spent all the money you have fixing the problems they keep tacking on. Of course, then people can't make the loan payments, and they lose the property.)

Sometimes the outreach contractors sue for it and ends up in their hands. Sometimes the CRA takes it over.

In one person's situation, as soon as they satisfied the city's requirements and were released from REAP (after suing, cause the ONLY way you will EVER be removed from REAP and get your money back IS IF YOU SUE...and even then you have to fight to get the money) -- THE COUNTY INSPECTORS SUDDENLY HAPPENED TO SHOW UP THE NEXT DAY, to start all the shakedowns and tack-ons, from the top with 135 violations.

I THINK THIS WHOLE SITUATION NEEDS THE ATTENTION OF THE FBI (FEDERAL BUREAU OF INVESTIGATIONS)

And Eric Garcetti said Zuma Dogg and Matt Dowd should go ahead and hire 12 attorneys for the FEDERAL civil lawsuit regarding 1st Amendment violations at Venice Beach against L.A. City-- because Eric says City Council budgets for the City Attorney's office to defend lawsuits against the city -- and that City Hall is used to DOWD/DOGG on TV 35, taking up time exposing fraud, waste and abuse.

THAT'S NOT THE POINT ERIC! WE KNOW THE CITY ATTORNEY'S OFFICE HAS A BUDGET TO DEFEND LAWSUITS...THE POINT IS, YOU ARE NOT SUPPOSED TO BURN IT UP ON A LAWSUIT YOU CLEARLY LOST, WHILE TRUTANICH'S OFFICE IS STRETCHED THIN TO DEFEND OTHER MATTERS...THE CITY HAS A CHANCE OF WINNING! (DOH! Didn't they teach you that at Rhodes Scholar School?)

SUMMARY: After two weeks of blogging and blasting on TV about LAHD corruption allegations with the Rent Escrow Account Program, the person in charge of overseeing REAP enforcement IS LEAVING THE HOUSING DEPARTMENT AND TAKING A JOB OUTSIDE OF THE CITY. (Outside ZD's jurisdiction, though not far from it.) Also, Garcetti said, "Hire the attorneys" to Dowd/Dogg because, "Trutanich's office has a budget to defend against lawsuits and City Hall has gotten used to us." Hope this post is "no biggie", Eric.)

NEXT: Did LAHD use CITY OFFICE SPACE, SUPPLIES & EQUIPMENT FOR VILLARAIGOSA'S MEASURE H? (Garcetti, was MEGA-PRO "H", too!)

NEW & EXCLUSIVE: Here is the detailed script of allegations surrounding corruption and conflicts at Los Angeles Housing Department (LAHD) with Roberto Aldape as Asst GM, Herb Wesson as Housing Chair, and Eric Garcetti as Council President

To: Abused Los Angeles Renters & Property Owners (Landlords)
Fr: LA City News
Re: Public Comment Script for Tuesday's L.A. City Council meeting on LAHD/Roberto Aldape
Dt: 10/16/10 - REGARDING Tuesday, 10/19/10 Council Meeting (10 AM start time)


HERE IS A SCRIPT PREPARED FOR PEOPLE WHO WANT TO SHOW UP AT L.A. CITY HALL ON TUESDAY (10/19/10) TO TAKE BACK THE CITY FROM THE CORRUPT L.A. HOUSING DEPARTMENT UNDER ASST. GM, ROBERTO ALDAPE. (See this post for more info on Tuesday's meeting regarding this matter.)

[START]


Good morning, Mayor Villaraigosa and Los Angeles City Council.


I am here today, to follow up on the Council discussion of "conflict of interest" allegations at the L.A. Housing Department as you discussed at the July 21st City meeting, in these chambers. 

In a committee meeting, it was revealed that a complaint has been filed, regarding alleged conflicts of interest, regarding the LAHD "RENT ESCROW ACCOUNT PROGRAM" -- or REAP.


Since then, more information has come to light on these allegations, and how the conflicts are taking place in the City of Los Angeles as we speak.


Much of the information came from within the L.A. Housing Department, itself, from fearful and frustrated LAHD staffers who not only don't like the way they are being treated by Assistant General Manager, Roberto Aldape, but don't like what they are seeing in regards to the fraud, waste and abuse within the department under the management of Mr. Aldape. 


It has been brought to light from within the department, that Mr. Aldape is allegedly putting the city at HUGE RISK of a MASSIVE wave of lawsuits from property owners in Mr. Aldape's multiple roles he is playing in the L.A. housing market, wearing many "conflicting" hats.


LAHD has awarded HUNDREDS of THOUSANDS of DOLLARS to "L.A. Housing Law Project." A firm hired by the City as a REAP, Rent Escrow, Outreach Contractor. LAHD Asst GM, Roberto Aldape, is listed as the contact person for L.A. Housing Law Project. (The firm hired by the city to go out to properties to inspect for violations.)


Mr. Aldape also has a private law practice. The address for his law firm, is the same address listed for L.A. Housing Law Project.


The allegation, that Councilmember Bernard Parks called, "fairly serious as relating to the conflict," is that Mr. Aldape is taking the information gathered in his role as REAP Outreach Contractor and using it to create lawsuits against property owners. 

This is done through a process of racketeering by going to the tenants of the buildings -- that were inspected by the outreach contractor -- to conspire to create the lawsuits.(Which sometimes includes instructing tenants to purposefully damage the building to keep tacking on violations to enhance the lawsuit; and bring in more revenue to the REAP account.)


So you have one individual who is the Asst. GM of the Housing Department -- and the person of overseeing the Rent Escrow Program for the City of Los Angeles -- who is alleged to be taking the information gathered by the Outreach Contractor firm (that he is listed as the contact person) -- to create lawsuits against property owners (in his role as private attorney.)


Additionally, it has been brought to community attention that SEVERAL MILLION DOLLARS ($7-$10) ARE UNACCOUNTED FOR FROM THE L.A. HOUSING DEPARTMENT ACCOUNT.


We are calling for City Controller Wendy Greuel to call for an accounting of this unaccounted for balance.


On the heels of the FEDERAL investigation, which includes an FBI investigation in L.A. developer ADI, accused of giving bribes and illegal campaign contributions to L.A. elected officials -- including CONFIRMED campaign contributions to current L.A. mayor Antonio Villaragiosa -- a lot of ends are being tied together by insiders who are then providing the information to LA City News. 


Especially, when you consider the Controller revealed that FEDERAL STIMULUS MONEY was not being used in a timely or efficient manner, preventing project from being started OR completed -- it has been noted in the details of the FBI investigation into ADI and the Bonnie Brae project in Council President Eric Garcetti's district, that this most valuable affordable housing is not being built as promised, once the money has rolled in to build it. 


So at a time when the city is faced with a housing crisis, as more and more property owners who house lower income tenants are at risk of losing their property -- due to corrupt tactics of LAHAD's ROBERTO ALDAPE -- and more and more tenants are going to be joining the already 40,000 (PLUS) of homeless on the streets of L.A. -- IT IS REVEALED THAT THE HOUSING ISN'T BEING BUILT...


And the Asst General Manager of the Housing Department seems to be running his own corruption ring at the FEDERAL, STATE AND LOCAL GOVERNMENT'S EXPENSE.


This is an urgent matter of public safety and we are asking for FEDERAL AUTHORITIES, including the FBI take a close look at the books in the L.A. Housing Department to see why people can't account for SEVERAL MILLION DOLLARS, why housing isn't being built when the money was given for it -- and how a conflict of interest, organized-crime racket is hurting the ENTIRE L.A HOUSING MARKET -- with both renters and owners. (And infuriating BOTH sides is a rare task, not easily achieved.)


Insiders are contacting the California State Bar Association over Mr. Aldape's alleged practices. Additionally, L.A. Housing Law Project is NOT a registered non-profit listed on the CA Attorney General website. And is the ONLY "Outreach Contractor" being hired by the city that IS NOT listed on the site. It's likely that the entire organization is operating in violation of STATE and FEDERAL law, regarding non-profits. AND, lawsuits have already been filed against the city regarding the Rent Escrow Program conflict allegations, that will become "facts" in court and in the next L.A. City Attorney's report on this matter. 


I hope council is able to work with the mayor on calling Mercedes Marquez (who appointed Mr. Aldape) and find somewhere in Washington to absorb his corruption. The City of Los Angeles can no longer afford to let Mr. Aldape and his organized group of cronies to bleed this city dry of money and housing. 


Please demand his resignation before we are demanding YOURS, Herb Wesson, Eric Garcetti and Antonio Villaraigosa. Thank you. 

[SHOW UP AT CITY HALL ON TUESDAY, OCTOBER 19, 2010 by 10 AM TO DELIVER THIS SPEECH AT THE L.A. CITY COUNCIL MEETING.]

NOTICE TO LOS ANGELES HOUSING DEPARTMENT on RESIGNATION of Asst GM Roberto Aldape

[Pictured: LOOKS like a nice guy. LAHD staff say, "otherwise." Will he be "resigning" soon?]

Until now, the name of the Los Angeles Housing Department Asst. General Manager who is alleged to be running a Rent Escrow (conflict of interest) RACKET within the department (as blogged about here and blasted on City TV 35, this past week) has been kept off the City TV 35 broadcast of the L.A. City Meetings. 

The intent is to have the Asst GM replaced and the person's name doesn't matter. However, in an attempt to speed up the "resignation" process, since so many people are suffering under his tenure -- and since more and more info is suddenly crawling out of the city hall marble (they don't have woodwork inside city hall); 

THE PEOPLE OF LOS ANGELES ARE REQUESTING Mr.Roberto Aldape, Assistant General Manager of the Los Angeles Housing Department, RESIGN TODAY (10.14.10, even though it's already 3:30pm). 

If not, we have no choice than to appear before the People of Los Angeles on Friday, October 15, 2010, to provide new and additional information, and will be including Mr. Roberto Aldape's name in all future posts and public comments as televised and re-televised on City TV.

PUBLIC COMMENT FROM LAST WEEK DESCRIBING "TIP OF THE ICEBERG" THAT'S GONNA SINK SOME L.A. CITY HALL TITANIC ELECTED OFFICIALS. FRIDAY'S PUBLIC COMMENT IS GONNA BE AN "F-ING" NIGHTMARE FOR CITY HALL. A DAY THEY SHOULD BE PRAYING DOESN'T COME, AND IT WON'T IF HE RESIGNS, TODAY:

(Roberto Aldape was appointed by Mercedes Marquez. The city was sued for $40 million dollars by a developer over Ms. Marquez. The developer agreed to DROP THE LAWSUIT, under ONE CONDITION: Mercedes Marquez HAD TO GO. (She did. To The White House.)

Hopefully, Washington, D.C. can absorb some more of our municipal waste and corruption. GET HIM OUTTA HERE!!! NOW!!! DON'T LET FRIDAY'S PUBLIC COMMENT HAPPEN! YOU DON'T WANT THAT, ANTONIO and CERTAIN CITY COUNCILMEMBERS.