AUDITS OF CRA CALL FOR REFORMS CHICK: PROBLEMS HAVEN'T BEEN FIXED.Byline: James Nash and Rick Orlov Staff Writers Capping a series of stinging audits of the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. city agency charged with revitalizing re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. troubled neighborhoods, City Controller Laura Chick chick abbreviation for chicken (1). said Wednesday that she has turned over her findings to a civil grand jury to consider for further investigation. Chick's comments raised the specter of a criminal investigation at the $359 million Community Redevelopment Agency, already beset be·set tr.v. be·set, be·set·ting, be·sets 1. To attack from all sides. 2. To trouble persistently; harass. See Synonyms at attack. 3. by charges of sloppy slop·py adj. slop·pi·er, slop·pi·est 1. Marked by a lack of neatness or order; untidy: a sloppy room. 2. management and lax LAX - LAnguage eXample. A toy language used to illustrate compiler design. ["Compiler Construction", W.M. Waite et al, Springer 1984]. oversight of loans. In an interview at the conclusion of three audits that looked at the agency's loan practices, affordable-housing mandates and disposal of agency- owned real estate, Chick called for sweeping reforms in how the $359 million Community Redevelopment Agency is managed. ``The things we're talking about in these three audits have been known ... to the CRA See Community Reinvestment Act. management before I got involved,'' Chick said. ``We did not go in there and discover hard-to-find problems.'' Earlier Chick audits of contracting practices at the city Airport and Harbor departments triggered criminal inquiries into possible ``pay-to- play'' practices of trading contracts for political donations Noun 1. political donation - a contribution made to a politician or a political campaign or a political party political contribution donation, contribution - a voluntary gift (as of money or service or ideas) made to some worthwhile cause . Federal and county criminal grand juries are looking into those allegations, and several individuals close to Mayor James Hahn For the Iowa politician, see . James Kenneth "Jim" Hahn (born July 3, 1950) is an American politician from the Democratic Party. He was the Deputy City Attorney (1975-1979), City Controller (1981-1985), City Attorney (1985-2001) and Mayor of Los Angeles, California - mayoral aides or commissioners - have left their posts. Chick confirmed that some materials uncovered during her office's CRA audits have been turned over to the county's civil grand jury, but she would not elaborate. Auditors' working papers working papers pl.n. Legal documents certifying the right to employment of a minor or alien. Noun 1. working papers , reviewed under the California Public Records Act, show some portions missing; an aide to Chick said those parts had been turned over to the grand jury. CRA Administrator Robert ``Bud'' Ovrom, brought in by Hahn nearly two years ago to change the agency, said the reports give him a road map to make changes. ``This confirms where I thought we might have problems and we can try to fix those now,'' Ovrom said. ``Sure, I would much rather be working on new projects, but we have to make sure that the ones we are working on now are being done correctly. Every organization can improve.'' Yusef K. Robb, a Hahn spokesman, declined to comment on the significance of the possible investigation. But Robb said Hahn has acknowledged problems at the agency and moved to correct them. ``The CRA certainly needs more accountability and that's why we took action to install world-class management and fix the agency,'' Robb said. Ovrom had requested the audits from Chick as a way to get a handle on his agency, which has seen its budget reduced by 62 percent from its peak to its current level of $34 million and its staff of 350 people reduced to 187. ``Any time you have changes like that, you are going to see an impact on your operations,'' Ovrom said. ``And while our budget and staffs were being reduced, we were still adding project areas.'' In her reports issued over the past week, Chick has cited a series of management problems and urged the City Council to hold hearings into the agency's operations. Her most recent report, released Wednesday, looked at how the CRA handled and sold property under its control. It concluded that the CRA did not accurately account for its real-estate holdings. In one case, auditors discovered that the agency paid $8.4 million for a loft project in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or , not $5.9 million as the agency reported to its board and the City Council. Chick said the findings undermine confidence that the CRA is using all of its limited funds to restore blighted blight n. 1. a. Any of numerous plant diseases resulting in sudden conspicuous wilting and dying of affected parts, especially young, growing tissues. b. areas. ``It's very difficult to make a judgment on whether we are successful in our redevelopment ventures,'' she said. ``Is the money well spent?'' She cited an example in which her staff was unable to verify the sale of six parcels of land with a value of $1.2 million. ``The CRA owns a sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. amount of real estate throughout the city
which, if managed properly and equitably, can be used as powerful tool
for economic development and creating home ownership
opportunities.''
Her two earlier CRA audits found problems in how the agency monitors loans and concluded that it had failed to follow up to see whether developers provided the affordable housing for which they had received subsidies. A special hearing is being planned, to be held within the next month by two City Council committees, to look into the CRA operation and review where it stands and where it should be headed. ``To me, what we've had is a management problem we are trying to take care of,'' said Councilman Eric Garcetti Eric Garcetti (born 1971) is the son of former Los Angeles county district attorney Gil Garcetti, and was elected to the Los Angeles City Council in 2001. He was reelected in 2005. , chairman of the council's Housing, Community and Economic Development committee. ``What the controller has done with her audits is open the opportunity for fundamental reform in what the CRA is doing now and what it should be doing. We have had great successes in downtown, in Hollywood and the San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. . We have to see how that can expand.'' Councilwoman Wendy Greuel Wendy Greuel is President Pro Tempore of the Los Angeles City Council representing the 2nd District. Greuel was elected in 2002 to fill the remainder of the term of Councilman Joel Wachs. She was elected in her own right in 2003 and reelected in 2007. , chairwoman of the council's Audits and Governmental Efficiency Committee, said she is focused on making sure the agency is being used throughout the city to its full advantage and that tax dollars are not being wasted. ``There are some areas of the Valley that we think still need attention, but the audits raise questions we need to find answers for. We want to make sure there is accountability in how they are handling their dollars.'' Greuel said she hopes the hearings will also enable the city to focus on the future direction of the CRA. The agency was designed to help rebuild blighted areas of the city and it has been credited with success, particularly in the downtown area where a citywide housing shortage has resulted in dramatic gains in residential units. ``You'd have to say they have done a remarkable job in terms of housing, but we need to look at the overall development picture,'' said Jack Kyser, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the of the Economic Development Corp. ``They have been successful in housing, but areas I'm looking at include preserving industrial land and using that to bring in businesses to create jobs. You have to be careful that you don't turn all industrial land over to residential uses.'' Chick served on the City Council in the 1990s when there was a brief move - later abandoned - for the council to take over the functions of the seven-member appointed commission that oversees the CRA. Garcetti said he would explore that, but only if he believes it could add transparency to the agency's operation. Ovrom said he believes the agency is improving, particularly with a new reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. in place and his dealings with council members. ``I have had a very positive response to everything we're doing and I hope we can win their support,'' Ovrom said. The CRA has long been subject to controversy because of its power of eminent domain eminent domain, the right of a government to force the owner of private property sell it if it is needed for a public use. The right is based on the doctrine that a sovereign state has dominion over all lands and buildings within its borders, which has its origins in as well as the diversion of new property tax revenue from the city, county and school board until a project area is declared completed. James Nash, (213) 978-0390 james.nash(at)dailynews.com AT A GLANCE Here are some key facts about the Los Angeles Community Redevelopment Agency: The CRA is overseen by a seven-member commission appointed by the mayor and confirmed by the City Council. --Budget: $342.4 million. --Employees: 187. --Redevelopment project areas: 33. --Size of projects: More than 17,700 acres. More information is available at dailynews.com CAPTION(S): box Box: AT A GLANCE (see text) |
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