" The '7 Deadly Sins' of REAP" - Article by Carol Knapp on NEW Website FOCUSING on Los Angeles Housing Department

NEW WEBSITE FOCUSING ON LA HOUSING DEPARTMENT WITH SPECIAL EMPHASIS ON REAP (RENT ESCROW ACCOUNT PROGRAM)...http://FairHousingCoalition.com. (And YES, it's no accident the site has been created...and the person who created it is no stranger to ZD's blogging & TV 35 appearances. AND ALL OF THIS SINCE THE RETURN OF ZUMA DOGG.)

CAROL KNAPP HAS THE FIRST ARTICLE:

The "7 Deadly Sins" Of REAP

Nov 01, 2010

THE “7 DEADLY SINS” OF REAP

By Carol Knapp

On March 16, 2009 I experienced the sheer joy of filing lawsuit against the Los Angeles Housing Department’s REAP program (Landfield, et al v. L.A., Case No.: CV09-01798 – U.S. District Court – Central Division ).

Some background:

My very first introduction to the unparalleled corruption in the Los Angeles Housing Department was in 1987 when the Rent Escrow Account Program ordinance (“REAP”) was enacted. Since I had purchased my first piece of rental property only a couple of years earlier, I was blissfully ignorant of…and unprepared for…the outright abuse of property owners and destruction of property rights I was to witness for the next 23 years.

For those unfamiliar with REAP, it a program dreamed up by two ex-L.A. City Councilpersons… Zev Yaroslavsky and Gloria Molina…to allegedly “clean up the slums.” However, the only “cleaning up” REAP does is the financial kind on behalf of politicians and crony developers.

REAP was billed as a humanitarian effort to eliminate health and safety risks in “slum” apartment buildings. However, this alleged purpose has turned to be a thinly disguised excuse to swindle property from the “little guy or gal” to hand over to city-connected developers, as is spelled out in Landfield v. L.A.

Briefly, REAP and its partner in crime, RRP (Rent Reduction Program), allows the city to reduce the rent by as much as 50% if the tenant agrees to pay the (reduced) rent to the city instead of to the owner. And, as if this in itself isn’t bad enough, the LAHD bureaucrats don’t even abide by the federal and state Constitutions, laws or even their own policies and procedures in administering REAP.

READ MORE/FULL POST/SEE THE SITE

BREAKING NEWS: Los Angeles Housing Department "Director of Compliance & Code Enforcement" (OVER REAP) -- LEAVING THE DEPARTMENT AND LEAVING THE CITY!

[Pictured: This document says a lot to ZD. Mercedes Marquez & Hakha Mortezaie -- in charge of REAP Rent Adustments Appeal Hearing? ZD DOESN'T PLAY THAT! Hakha reports to ROBERTO ALDAPE. GET IT!]

For the past month, you have been reading on this blog about the conflict of interest and corruption allegation within the Los Angeles Housing Department (LAHD). Of specific interest was the RENT ESCROW ACCOUNT PROGRAM (REAP). AND, what SEEMS to be the FACT, that once you are placed on REAP rent reduction program, you allegedly do not get your money back from the city and are not removed from the rent reduction program.

The conflict of interest allegations were discussed at a July 21, 2010 Los Angeles City Council meeting and the allegations were followed up over the past month by Zuma Dogg; after being sent a detailed memo from within the LAHD by workers who were scared to speak out about the corruption because upper management at LAHD is "vicious" as it was stated to ZD.

So between hardcore corruption allegations at LAHD, as described in the memo as being at the hands of Roberto Aldape which is hurting BOTH property owners AND tenants -- ALONG with the turmoil that has all but shut down the department in a hostile and "vicious" environment -- 

ZUMA DOGG felt moved to come off a long hiatus to NIP this activity (though no longer just a bud) -- and waves WERE felt within the department.

Yesterday, LA City News reported there was turmoil and a lot of scurrying at the TOP of LAHD, YESTERDAY -- AND TODAY, LA CITY NEWS has learned that HAKHA MORTEZAIE, Director of Compliance & Director of Enforcement -- WILL BE LEAVING THE OFFICE AND THE CITY TO TAKE A POSITION ELSEWHERE -- OUTSIDE THE CITY. (Who cares where...it's out of ZD's jurisdiction...but if you are REALLY curious...all you have to do is cross the street and you are IN the City he will be working for -- as of November. (NEXT WEEK?) Hakha was under Mercedes Marquez, who was forced out by a plaintiff with $40 million lawsuit against the city. The plaintiff agreed to drop the lawsuit if Marquez was ejected from LAHD. So she was shipped off to the White House to absorb the mess. Under Marquez is LAHD Asst GM Roberto Aldape, who has been the one blogged about regarding the REAP corruption allegations. And now Hakha, part of REAP compliance and enforcement UNDER ALDAPE -- IS BUGGIN' OUT OF THE CITY!

Maybe this has NOTHING to do with any of the blogging and comments on TV 35...but suddenly you have to person in charge of overseeing REAP and CODE ENFORCEMENT and COMPLIANCE -- leaving -- just as the heat is seriously turned up on the department...AND YOU KNOW THAT IT HAS.

ALSO: Just as LAHD Asst GM Roberto Aldape has HIS OWN REAP Outreach Contractor he is affiliated with (L.A. Housing Law Project, of which Aldape is listed as contact person -- along with his own private law practice) -- HAKHA MORTEZAIE (in charge of compliance and enforcement at REAP) has his own Outreach Contractor affiliation, LACLJ (LACLJ.org), of which he is listed as, "Executive Director." (And the conflict allegations are that outreach contractors are suing property owners after going out on inspection jobs for the city in their outreach contractor role.  (WONDER HOW MUCH MONEY HAS BEEN PAID TO LACLJ?) Here he is at an LACLJ event (in the orange shirt):

From LACLJ.org: Maria Aguila is the Housing Outreach Coordinator. Maria works directly with tenants, landlords, and Los Angeles Housing Department inspectors to encourage the maintenance and repair of residential buildings. She also informs tenants of their rights at LACLJ’s Eastside Housing Rights Clinic. Maria has over 20 years of community outreach experience. Maria is fluent in Spanish.

So, YES...rack up another on for ZD when it comes to the POWER SHIFT AT CITY HALL AWAY FROM CITY HALL AND TOWARD ZUMA DOGG! Cause he also has City Attorney's Office & LAPD tied up over assessing the Federal Court Order AGAINST THEM filed by Dowd/Dogg.

AND, it should be noted to those concerned with the city's treasury that Eric Garcetti told Matt Dowd to go ahead and get attorneys (12 in total) because the city has already budgeted for attorneys to fight lawsuits -- and that council is USED to Dowd/Dogg in chambers during public comment as blasted on TV. 

AS U CAN SEE...the SAME arrogance that got them into this mess...is continuing, cause Eric Garcetti is simply too competitive and combative for the city's own good. Unfortunately, he IS a Rhodes Scholar, so perhaps he's good with numbers, but again...I am here to say, his personal, combative, vindictive nature is SERIOUSLY an issue you must consider before EVER VOTING to put HIM in charge of L.A. as mayor. 

AND IT'S TRUE...I guess council IS used to stuff like having the LAHD Director of Compliance & Operation Enforcement LEAVING THE CITY over ZD's blogging and TV 35 heat -- BEATING YOU IN FEDERAL COURT -- AND EXPOSING IT ON TV 35...AND THE COUNCIL PENSION/SALARY DOUBLE DIPS and everything else that will be HAMMERED upon City Hall.

Hey Antonio...did you hear what Garcetti just said to Dowd to keep your name in Zuma Dogg's mouth?

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.]

City Council Discusses Los Angeles Housing Department CORRUPTION Allegation, called, "Fairly Serious As Relating To The Conflict," by Councilman Parks

By now, hopefully, you have seen the video of Zuma Dogg delivering public comment on Friday (10/8/10) regarding "Conflict of Interest" allegations relating to the L.A. Housing Department's REAP (Rent Escrow Account Program).

The comment was based on a memo sent to Zuma Dogg by L.A. Housing Dept employees who are frustrated by what is going on in the department. HERE IS THE LINK to the memo detailing L.A. Housing Dept CORRUPTION allegations as "put on the public record" by ZD before Council on Friday

SUMMARY: Allegedly, the Asst GM of L.A. Housing Department is also one of the outreach contractors awarded hundreds of thousands of dollars and is also a private attorney using info gathered as outreach contractor to sue property owners. (One person...three roles and a massive scam, as alleged.)

NOTABLY: In this video from the July 21, 2010 council meeting to discuss these allegations, council was confused as to what they were voting for. Although it was Wesson's motion, Paul Krekorian stopped the train, asking for "reconsideration," which allowed all the slower, but corrupt, councilmembers to change their vote to the "shady" side, defeating Park's corruption-busting amendment. (Krekorian sure did want these contracts under conflict allegation investigations to be pushed through!)

Watch the video embedded in this post from the council meeting, then the one of Zuma Dogg from Friday (following up on this). MORE TO COME. I know there are other issues in the city like DWP and CRA. But this is low-hanging fruit that is a MAJOR corruption scam -- and will take down a bunch of corrupt people.

DID MAYOR VILLARAIGOSA APPOINT THE ASST GM (ROBERTO A.) WHO IS ALLEGED TO BE PULLING ALL OF THIS OFF, AS DISCUSSED BY COUNCIL? THIS GOES DEEP AND IS ONLY THE FIRST LAYER OF THIS ROTTEN, STINKING ONION. COUNCIL IS SCARED ABOUT THIS ONE!

UP NEXT: I know there is whoopty-doo corruption in the Mayberry-sized cities surrounding Los Angeles City, but a constituent challenging Dennis Zine in the next City Controller election, Zuma Dogg, keeps going over the Rent Escrow Account Program balance sheet...and keeps coming up TWO MILLION DOLLARS SHORT!?!?! (Dennis wouldn't know: He can't count past ten, without taking off his shoes.)

(IS $2 MILLION "MISSING" FROM THE ACCOUNT, AS HAS BEEN REPORTED TO THIS BLOG FOR A FEW MONTHS, NOW?)

(Maybe one of these fist pounding, LA Times re-reading, hot-air blowing, AM radio talk show hosts can utter a peep over this? OR DO WE HAVE TO WAIT UNTIL INDICTMENTS ARE REPORTED IN L.A. TIMES, AFTER THE FACT, AS THE OTHER 99.9% OF THE TIME?)

L.A. City Council Discusses Housing Dept Corruption Allegations (Pt 2)

L.A. City News for Thursday, October 7, 2010 - L.A. CITY ATTORNEY OFFICE & COUNCIL PUT ON NOTICE Regarding MASSIVE Conflict of Interest at L.A. HOUSING DEPARMENT "Rent Escrow Program" (Is $2 Million Missing From City's Rent Escrow Account? Insiders Say, "YES!")

TIMES UP!: No, this isn't a blog post about L.A. Times bankruptcy proceedings. It's about TIME BEING UP FOR L.A. CITY ATTORNEY'S OFFICE & CITY COUNCIL regarding the matter of conflicts of interest at L.A. Housing Department and REAP outreach contractors. 

The conflict being, the Assistant GM of Housing Department (in charge of investigating REAP outreach contractors) IS the REAP outreach firm "L.A. Housing Law," contracted by the LOS ANGELES Housing Dept. 

Moreover, the L.A. Housing Dept Asst GM Robert A., who is also the contact name listed for "L.A. Housing Law" (the REAP outreach contractor hired by Housing Dept.) --  is also an attorney.

The same address is used for the L.A. Housing Law (REAP outreach firm) as Robert A.'s law office. (Robert being Asst GM of the L.A. Housing Dept.)

Any conflict in having someone hire himself as an outreach contractor to gather information on properties in L.A., then use the info to sue property owners? No problem! If anyone complains, it's the person pulling off the capers who is in charge of investigating it.

HERE IS POSTING of the memo from L.A. Housing Dept insiders on MASSIVE conflict of interest with REAP outreach contractor this post is based upon. http://ow.ly/2PRZ9

MORE (GAR)SHADINESS?: And is $2 million missing from the REAP account? 

And, in Eric Garcetti's district, is it impossible (98% impossible) for a property owner to get their money refunded back from the REAP (rent escrow) account, AFTER the city approves and promises the return of funds once the work has been completed and signed off on?

And now Zuma Dogg has returned to chambers over the issue. And the surface has only been scratched. 

Hopefully, this matter will be addressed by council and the city attorney's office will show up with their homework done, next time. EVEN IF IT MEANS A NON-FLASHING, NON-DIGITAL BILLBOARD HAS TO STAY UP FOR A FEW EXTRA DAYS! (This conflict is gonna cost more than the city can absorb, these days. And you cannot win. And will lose. And lose BIG! Then all the people who you hope will vote for you, WON'T.

AND NOW, the tweeted version of the above passage...then MORE L.A. CITY NEWS for Thursday, October 7, 2010. (Check back for more breaking news tweets later in the day.)

L.A. CITY NEWS: Breaking News in the Twitter feed -- streaming audio & video -- and blog posts on L.A. City Hall. News, Politics & Activism. 27 minutes ago

CA GOV RACE: What's worse? Failing to pay your $23/hr employee for miles driven; or calling her a "wh*#%"? Voters will decide in November. 55 minutes ago

IT'S NOT OVER!: Don't be shocked if L.A. Mayor Villaraigosa is indicted by DA's "Public Integrity Unit" over TicketGate after Nov. election. 58 minutes ago

L.A. City News predicts eventual indictment of L.A. Mayor Villaraigosa over TicketGate scandal. DA's "Public Integrity Unit " working on it. about an hour ago

LA CITY NEWS - POLITICAL CORNER: "NO, NO, NO, NO, NO on 25." Steve Cooley for Attorney General. David Barron for CD 6 in 2011. More to come. about an hour ago

SAYS IT ALL: Only food/coffee cafe at L.A. City Hall went out of business. E-Rip/layoffs mean cafe couldn't make it. (Microcosm of city!) about 2 hours ago

Since City Hall has a half-empty parking lot, they should sell passes to lobbyists who are paying to park across the street. $ for City! about 2 hours ago

A city worker says City Hall should sell parking passes for lobbyists paying to park across the street. ERip mean half-empty lot. GOOD IDEA! about 2 hours ago

NEW & EXCLUSIVE YouTube Video: L.A. Housing Dept "Conflict of Interest" Allegations as discussed at L.A. Council meeting. http://ow.ly/2Qqjd about 2 hours ago

Assembly Passes Main Budget Package Bill: The state Assembly has passed the main bill in a legislative package aim... http://bit.ly/aYNySq about 6 hours ago

RT @LATimescitydesk: Prop 19, the marijuana legalization initiative, is pulling in some big donations: http://lat.ms/a1LOwH about 6 hours ago

Although not a supporter of his comments on CA marijuana, STEVE COOLEY must be elected next ATTORNEY GENERAL! TicketGate fans will be happy. about 8 hours ago

RT @latimes: Dow off 19, or 0.2%, to 10,949. S&P 500 off 2, or 0.2%, to 1,158. Nasdaq up 3, or 0.1%, to 2,384. http://lat.ms/a7qII8 about 11 hours ago

STUNNINGLY IRRESPONSIBLE that Gov & CA Legislators would pass a budget based on optimistic outlook of an improving economy. A FAKE BUDGET! about 12 hours ago

L.A. City News for Thursday, October 7, 2010 - L.A. CITY ATTORNEY OFFICE & COUNCIL PUT ON NOTICE Regarding MASSIVE C... http://ow.ly/19kuGX about 20 hours ago

RT @CNBCEuropeBreak: French Pension Bill to be Amended:http://bit.ly/dwQ0Id (Even the FRENCH beating CA in pension reform. They have bill.) about 20 hours ago

COUNCIL CHAMBER walls are about to cave in and rafters will fall on their heads over L.A. HOUSING DEPT REAP CONFLICT! Process has started. about 22 hours ago

GOING TO GET WORSE IF CITY ATTORNEY & COUNCIL DOESN'T ADDRESS REAP CONFLICT ISSUE: "Is $2 MIL missing from REAP account?" Insiders say YES! about 22 hours ago

HERE IS POSTING of memo from L.A. Housing Dept insiders on MASSIVE conflict of interest with REAP outreach contractor. http://ow.ly/2PRZ9 about 22 hours ago

NOTICE TO CITY ATTORNEY & COUNCIL: Cat is out of the bag on the Housing Dept Conflict regarding L.A. Housing Law & LAHD Asst GM=SAME PERSON! about 22 hours ago

ONLY IN L.A. would the person in charge of investigating contractors, BE the contractor & a law firm taking info and using it for lawsuits. about 22 hours ago

HOUSING DEPT CONFLICT SUMMARY: Asst GM of Housing Dept (in charge of investigating REAP contractors), IS the contractor & REAP lawsuit firm! about 22 hours ago

TIMES UP!: L.A. City Attorney may have blown off the report in July, but now a memo from L.A. Housing is out detailing conflict allegations. about 22 hours ago

In July, City Attorney rep told Council, report (that was due) on REAP Housing Dept Conflict still wasn't started. NOW, ZD blasting details. about 22 hours ago

L.A. CITY ATTORNEY & COUNCIL: In July, City Attorney told Council they did not start "REAP CONFLICT REPORT." ZD, BACK @ CITY HALL OVER THIS! about 22 hours ago

TO L.A. CITY ATTORNEY OFFICE & COUNCIL: You've been put on notice, on the record, by 3 people in 24 hrs on L.A. Housing Dept REAP conflict. about 22 hours ago

ZumaDogg created an "Arbitron-style" ratings device for bloggers: You can tell exactly how many people are on your blog at any given moment. about 22 hours ago

From @EricGarcetti blog - Blueprint for Reform of City Collections Unveiled. - http://ow.ly/2PGyI 1 day ago

SEE IT HERE: CBS2 story on L.A. City Employee Salaries Database (Updated): LINK TO TWO DATABASES - http://ow.ly/2PGvm 1 day ago

Calif. Democrats Call For Foreclosures Investigation - http://ow.ly/2PGqv 1 day ago

New CA State Budget contains same overly-optimist outlook, as did L.A. City Council's. Filled with smoke & mirrors: CBS2 http://ow.ly/2PGoA 1 day ago

Dow up 23, 0.2%, to close at 10,968. S&P 500 fell less than 1 point, 0.1%, to 1,160. Nasdaq fell 19, 0.8%, to 2,381 http://lat.ms/aoq87k 1 day ago

Mayor Villaraigosa's divorce finalized - More than three years after Mayor Antonio Villaraigosa's wife of nearly 20 ... http://ow.ly/2PGgV 1 day ago

http://LACityNews.com

Los Angeles Housing Department CONFLICT OF INTEREST with RENT ESCROW CONTRACTORS Discussed at Today's L.A. City Council Meeting (HERE IS THE MEMO THAT WAS DISCSSED!)

TUESDAY OCTOBER 5, 2010 UPDATE: At today's Los Angeles City Council meeting, a group of concerned constituents, who saw this memo posted on this blog, showed up to further expose the conflict of interest allegations at the L.A. Housing Department regarding the REAP (Rent Escrow) outreach contractors. The matter was address by Council during the July 21, 2010 council meeting. The City Attorney was supposed to have a report ready on the matter. But they announced their homework was not ready (they hadn't started the report). Perhaps, because all resources are allocated toward billboard enforcement, instead of the conflict at the Housing Department that the city will lose many, many, many millions of dollars in upcoming lawsuits.

HERE IS A FULL REPRINT OF THIS MEMO AS ADDRESSED DURING TODAY'S CITY COUNCIL MEETING BY A GROUP OF ACTIVISTS. 


(It should also be mentioned, that it has been brought to the attention of the L.A. City News staff that there is about $2 million in unaccounted for (LOST/MISSING/DON'T KNOW WHERE THEY ARE) DOLLARS! (And, constituents in Eric Garcetti's district are starting to become squeaky wheels regarding the "Hotel California" aspect of trying to get your money out of RENT ESCROW. (The money check in, but can never leave.) IS THERE A RACKET GOING ON BETWEEN THE OUTREACH CONTRACTORS & TENANTS TO FILE COMPLAINTS AGAINST LANDLORDS IN CD 13 ERIC GARCETTI'S DISTRICT TO KEEP THE MONEY IN THE CITY'S ACCOUNT, AND NO BEING RETURNED TO IT'S RIGHTFUL OWNERS - (THE PROPERTY OWNERS). Perhaps a Grand Jury investigation will be getting to the bottom of these matters.


LETTER FROM (ALLEGEDLY) FRUSTRATED L.A. HOUSING DEPT STAFF ON RENT ESCROW CONFLICT OF INTEREST as addressed by Council, currently awaiting a (delayed) report from the City Attorney's office:

Dear Sir,

We are a group of Housing Department employees who are too intimidated to disclose our identities, yet are troubled enough to address some of the recent conflict of interest allegations pertaining to the Rent Escrow Account Program (REAP).

We would like to thank you for speaking up during the July 21st Council meeting and bringing to light the fact that the Housing Department’s REAP contractors are under a cloud of serious conflict of interest allegations (July 21, 2010 Council Session, Item  #37).

You were absolutely correct in your observation that some REAP contractors may have abused their roles and turned their LAHD contracts into a revolving business by playing on both sides of the proverbial fence.

As we understand, during the July 21st session the LAHD and the City Attorney’s Office were tasked with investigating the aforementioned conflict of interest allegations and submitting a report to the City Council on their findings.

We would like to inform you, however, that as far as REAP is concerned, there exists an appearance of impropriety within the Housing Department itself. As things stand now, the LAHD is not in a position to conduct a fair and impartial investigation, and it should be precluded from investigating its REAP outreach contractors. It is an open secret that some member(s) of the LAHD executive team have a private and personal interest in this matter that may influence the objective exercise of their official duties. This, at the very least, smacks of blatant conflict of interest.

Specifically, the LAHD Assistant General Manager in charge of overseeing REAP, Roberto H. Aldape, was previously employed by and had a business relationship with one of the outreach contractors in question – the Los Angeles Housing Law Project.

To place the subject matter in a broader context, Roberto H. Aldape was hired by the LAHD in late 2006, having neither led large organizational units nor having worked in the public sector in his prior employment history. His appointment is yet another of a series of questionable and arbitrary actions that over the years the LAHD has become infamous for. Stated another way, the LAHD hired one of its contractors’ representatives (if not the contractor’s principal agent) and placed him in charge of overseeing the same contractor.

Mr. Aldape is a fervent adherent of the kiss-up-kick-down school of management, and his foul mouthed, bullying management style demands not merely obedience but also obeisance. He mercilessly and relentlessly goes after all those who dare to contradict him or question his tactics and management style. As time passed, somehow his interim AGM position was eased into a permanent one. Also noteworthy is the fact that nowadays the LAHD has four AGMs, whereas in the past it had only two or three.

The person directly in charge of REAP, Compliance Division Director Roya Babazadeh, is not about to challenge or express opinions contrary to Mr. Aldape’s. Suffice it to mention that Ms. Babazadeh’s appointment to her current position was not without controversy itself: she was promoted over more qualified and experienced female and minority candidates, and her promotion was in direct violation of class-specific preconditions and requirements.

Assistant General Manager Roberto H. Aldape’s relationship with one of the REAP outreach contractors, the Los Angeles Housing Law Project, is of such opaqueness that it definitely should raise a red flag. In the past decade or so the Los Angeles Housing Law Project has been awarded hundreds of thousands of dollars in City contracts, yet one may never find out how many side lawsuits this contractor has initiated from information gained through REAP outreach contacts.

Curiously, in various documents and websites, Mr. Aldape’s law office and the Los Angeles Housing Law Project had been listed under the same address.

For example, in the City of Los Angeles Compliance List For Equal Benefits Ordinance database, the Law Offices of Roberto H. Aldape and the Los Angeles Housing Law Project share the same address: 1125 West 6th Street, Los Angeles, CA 90017 (EXHIBIT 1 and EXHIBIT 2).

In addition, various websites also convey the same information: the Law Offices of Roberto H. Aldape and the Los Angeles Housing Law Project had the same address and conducted their business from the same physical location (EXHIBIT 3 and EXHIBIT 4).

Mr. Aldape’s relationship with the Los Angeles Housing Law Project is a murky one at best and raises numerous ethical questions: What exactly was his relationship with the Los Angeles Housing Law Project that he was allowed to operate his own law practice from the same address?

Were the Law Offices of Roberto H. Aldape and the Los Angeles Housing Law Project actually the same entity and different in name only?

Did the Law Offices of Roberto H. Aldape at one point in time morph into the Los Angeles Housing Law Project, or was it the other way around?

Were these two business names used interchangeably, depending on convenience and expediency?

Did Mr. Aldape conduct a separate law practice while simultaneously working with the Los Angeles Housing Law Project? If so, how many of his private practice cases originated from the Los Angeles Housing Law Project?

Another potential red flag arises from the fact that the name of the Los Angeles Housing Law Project cannot be found in the California Attorney General’s database listing of nonprofit organizations. Interestingly enough, among the five REAP outreach contractors, the Los Angeles Housing Law Project is the only one that is not listed in this database.

All nonprofit groups are under strict registration and annual reporting requirements, and as a nonprofit corporation, the Los Angeles Housing Law Project cannot be exempted from such rules.

It remains to be seen whether this is an omission by the California Attorney General’s Office or the Los Angeles Housing Law Project. If a nonprofit corporation fails to register, the nonprofit is in violation of the California Nonprofit Integrity Act.

A failure to register would also violate the City of Los Angeles contract provisions, where a “good standing with any regulatory agencies” is one of the requirements.

It is unquestionable that, at the very least, Mr. Aldape has had a pivotal business relationship with the Los Angeles Housing Law Project.

The idea that somehow he could be impartial enough to oversee an objective and fair investigation of the Los Angeles Housing Law Project is laughable, if not outright illegal. Should Mr. Aldape nominally recuse himself from this investigation, it would be equally questionable to assume that any of his subordinates would be brave enough to come up with evidence potentially incriminating the Los Angeles Housing Law Project.

Needless to say, those brave and ethical enough to do so would incur Mr. Aldape’s full wrath and fury, while having no place to hide.

After the expiration of the current REAP contracts, a new RFP will go out inviting submission of proposals for outreach services. The Los Angeles Housing Law Project will undoubtedly be one of the bidding contractors. Again, it would strain credulity to assume that anyone inside the LAHD could be in a position to objectively evaluate the proposals and act contrary to Mr. Aldape’s interests.

The Law Offices of Roberto H. Aldape/Los Angeles Housing Law Project arrangement has been a winning one for Roberto H. Aldape. He has managed to parley this curious business deal into a high-paying government job, thus completing the circle fully and gaming the system in its entirety.

The losers in all these, however, have been the taxpayers of Los Angeles and the employees of the LAHD. The former have been kept in the dark and are clueless about the machinations taking place inside LAHD; the latter, while mostly aware of these shenanigans, are too cowed and helpless to do anything about them.

The overwhelming majority of the LAHD employees conduct themselves in an ethical manner day after day, yet over the years this department has been marred by allegations of impropriety and conflict.

And almost without exception, high ranking members of the LAHD have been the source of these transgressions. Time and again, the LAHD has proven that it is not capable of self-policing, and that its internal control mechanisms do not work.

An investigation of the Rent Escrow Account Program is long overdue. The program desperately needs bright sunlight to be shone on its numerous dark corners. We hope the City Council will take the lead on this matter.

[Will try to post the PDF attachment of Exhibits 1-4, documenting how Mr. "Two Hats" has been using both addresses as referenced above. But you can clearly see both addresses being used in the Exhibits.]

http://HeatPolitics.com

MEMO: Conflict of Interest Allegations at Los Angeles Housing Department (City Council WAITING for City Attorney's LATE Report On This Issue)

THIS IS THE MEMO CITY HALL DOESN'T WANT YOU TO SEE...even if your typical NC member doesn't care. 


LETTER FROM (ALLEGEDLY) FRUSTRATED L.A. HOUSING DEPT STAFF ON RENT ESCROW CONFLICT OF INTEREST as addressed by Council, currently awaiting a (delayed) report from the City Attorney's office:

Dear Sir,

We are a group of Housing Department employees who are too intimidated to disclose our identities, yet are troubled enough to address some of the recent conflict of interest allegations pertaining to the Rent Escrow Account Program (REAP).

We would like to thank you for speaking up during the July 21st Council meeting and bringing to light the fact that the Housing Department’s REAP contractors are under a cloud of serious conflict of interest allegations (July 21, 2010 Council Session, Item  #37).

You were absolutely correct in your observation that some REAP contractors may have abused their roles and turned their LAHD contracts into a revolving business by playing on both sides of the proverbial fence.

As we understand, during the July 21st session the LAHD and the City Attorney’s Office were tasked with investigating the aforementioned conflict of interest allegations and submitting a report to the City Council on their findings.

We would like to inform you, however, that as far as REAP is concerned, there exists an appearance of impropriety within the Housing Department itself. As things stand now, the LAHD is not in a position to conduct a fair and impartial investigation, and it should be precluded from investigating its REAP outreach contractors. It is an open secret that some member(s) of the LAHD executive team have a private and personal interest in this matter that may influence the objective exercise of their official duties. This, at the very least, smacks of blatant conflict of interest.

Specifically, the LAHD Assistant General Manager in charge of overseeing REAP, Roberto H. Aldape, was previously employed by and had a business relationship with one of the outreach contractors in question – the Los Angeles Housing Law Project.

To place the subject matter in a broader context, Roberto H. Aldape was hired by the LAHD in late 2006, having neither led large organizational units nor having worked in the public sector in his prior employment history. His appointment is yet another of a series of questionable and arbitrary actions that over the years the LAHD has become infamous for. Stated another way, the LAHD hired one of its contractors’ representatives (if not the contractor’s principal agent) and placed him in charge of overseeing the same contractor.

Mr. Aldape is a fervent adherent of the kiss-up-kick-down school of management, and his foul mouthed, bullying management style demands not merely obedience but also obeisance. He mercilessly and relentlessly goes after all those who dare to contradict him or question his tactics and management style. As time passed, somehow his interim AGM position was eased into a permanent one. Also noteworthy is the fact that nowadays the LAHD has four AGMs, whereas in the past it had only two or three.

The person directly in charge of REAP, Compliance Division Director Roya Babazadeh, is not about to challenge or express opinions contrary to Mr. Aldape’s. Suffice it to mention that Ms. Babazadeh’s appointment to her current position was not without controversy itself: she was promoted over more qualified and experienced female and minority candidates, and her promotion was in direct violation of class-specific preconditions and requirements.

Assistant General Manager Roberto H. Aldape’s relationship with one of the REAP outreach contractors, the Los Angeles Housing Law Project, is of such opaqueness that it definitely should raise a red flag. In the past decade or so the Los Angeles Housing Law Project has been awarded hundreds of thousands of dollars in City contracts, yet one may never find out how many side lawsuits this contractor has initiated from information gained through REAP outreach contacts.

Curiously, in various documents and websites, Mr. Aldape’s law office and the Los Angeles Housing Law Project had been listed under the same address.

For example, in the City of Los Angeles Compliance List For Equal Benefits Ordinance database, the Law Offices of Roberto H. Aldape and the Los Angeles Housing Law Project share the same address: 1125 West 6th Street, Los Angeles, CA 90017 (EXHIBIT 1 and EXHIBIT 2).

In addition, various websites also convey the same information: the Law Offices of Roberto H. Aldape and the Los Angeles Housing Law Project had the same address and conducted their business from the same physical location (EXHIBIT 3 and EXHIBIT 4).

Mr. Aldape’s relationship with the Los Angeles Housing Law Project is a murky one at best and raises numerous ethical questions: What exactly was his relationship with the Los Angeles Housing Law Project that he was allowed to operate his own law practice from the same address?

Were the Law Offices of Roberto H. Aldape and the Los Angeles Housing Law Project actually the same entity and different in name only?

Did the Law Offices of Roberto H. Aldape at one point in time morph into the Los Angeles Housing Law Project, or was it the other way around?

Were these two business names used interchangeably, depending on convenience and expediency?

Did Mr. Aldape conduct a separate law practice while simultaneously working with the Los Angeles Housing Law Project? If so, how many of his private practice cases originated from the Los Angeles Housing Law Project?

Another potential red flag arises from the fact that the name of the Los Angeles Housing Law Project cannot be found in the California Attorney General’s database listing of nonprofit organizations. Interestingly enough, among the five REAP outreach contractors, the Los Angeles Housing Law Project is the only one that is not listed in this database.

All nonprofit groups are under strict registration and annual reporting requirements, and as a nonprofit corporation, the Los Angeles Housing Law Project cannot be exempted from such rules.

It remains to be seen whether this is an omission by the California Attorney General’s Office or the Los Angeles Housing Law Project. If a nonprofit corporation fails to register, the nonprofit is in violation of the California Nonprofit Integrity Act.

A failure to register would also violate the City of Los Angeles contract provisions, where a “good standing with any regulatory agencies” is one of the requirements.

It is unquestionable that, at the very least, Mr. Aldape has had a pivotal business relationship with the Los Angeles Housing Law Project.

The idea that somehow he could be impartial enough to oversee an objective and fair investigation of the Los Angeles Housing Law Project is laughable, if not outright illegal. Should Mr. Aldape nominally recuse himself from this investigation, it would be equally questionable to assume that any of his subordinates would be brave enough to come up with evidence potentially incriminating the Los Angeles Housing Law Project.

Needless to say, those brave and ethical enough to do so would incur Mr. Aldape’s full wrath and fury, while having no place to hide.

After the expiration of the current REAP contracts, a new RFP will go out inviting submission of proposals for outreach services. The Los Angeles Housing Law Project will undoubtedly be one of the bidding contractors. Again, it would strain credulity to assume that anyone inside the LAHD could be in a position to objectively evaluate the proposals and act contrary to Mr. Aldape’s interests.

The Law Offices of Roberto H. Aldape/Los Angeles Housing Law Project arrangement has been a winning one for Roberto H. Aldape. He has managed to parley this curious business deal into a high-paying government job, thus completing the circle fully and gaming the system in its entirety.

The losers in all these, however, have been the taxpayers of Los Angeles and the employees of the LAHD. The former have been kept in the dark and are clueless about the machinations taking place inside LAHD; the latter, while mostly aware of these shenanigans, are too cowed and helpless to do anything about them.

The overwhelming majority of the LAHD employees conduct themselves in an ethical manner day after day, yet over the years this department has been marred by allegations of impropriety and conflict.

And almost without exception, high ranking members of the LAHD have been the source of these transgressions. Time and again, the LAHD has proven that it is not capable of self-policing, and that its internal control mechanisms do not work.

An investigation of the Rent Escrow Account Program is long overdue. The program desperately needs bright sunlight to be shone on its numerous dark corners. We hope the City Council will take the lead on this matter.

[Will try to post the PDF attachment of Exhibits 1-4, documenting how Mr. "Two Hats" has been using both addresses as referenced above. But you can clearly see both addresses being used in the Exhibits.]

http://LACityNews.com