HOUSING AGENCY TO SCRUTINIZE LOANS.Byline: Patrick McGreevy Daily News Staff Writer After a recent audit charged that 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. Housing Department was mishandling earthquake-repair loans, the new head of the agency announced Thursday that he has ordered a closer review of 272 loans. In a written response to a May 9 audit by the city controller, interim Housing Department chief Garry  This article's grammar usage needs improvement. Please edit this article in accordance with Wikipedia's . Pinney also called for a $200,000
study to determine whether management of the massive loan program must
be changed.
``The department agrees that a management review is needed,'' Pinney said, adding that the study will focus on the department's organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , staffing levels and the way it monitors loans. The audit in May was highly critical of the Housing Department's management of a $350 million loan program to help repair apartment buildings and other residential property damaged by the Northridge Earthquake The Northridge earthquake occurred on January 17, 1994 at 4:31 AM Pacific Standard Time in the city of Los Angeles, California. The earthquake had a "strong" moment magnitude of 6. . The audit found that many loans were approved without sufficient supporting documentation or review. Pinney said the agency already is reviewing 272 loans granted by the agency to make sure they are justified and properly documented. The report is expected by Dec. 1. Los Angeles City Controller The Los Angeles City Controller is an official in the government of the city of Los Angeles, California. The City Controller is the auditor and chief accounting officer of the city. Rick Tuttle Rick Tuttle (born 1940) was Los Angeles City Controller from 1985 to 2001. He stressed the importance of creating a strong democratic influence at UCLA, which was in his words "the best large public university in a major city. said he is glad Pinney is taking his concerns seriously but believes the review should include more than just the 272 loans. ``We would like to explore with them why all of them won't be reviewed,'' Tuttle said. The controller's limited audit singled out one loan that officials said appeared to be for more than the value of the repairs. Pinney said his agency has investigated the case and it has been referred for investigation by law enforcement. Pinney also said his agency has begun reviewing other loans to determine ``that the amount of work performed is commensurate with the amount of the loan.'' He said that review is expected to be completed in June 1998. He added that the response to the numerous concerns identified in the controller's audit indicate the department is ``generally going in the right direction.'' In particular, Pinney agreed with the controller and has instituted measures to make sure that contractors receiving loans are abiding by prevailing wage A prevailing wage is the median wage paid to workers in a specified locality. Scope Prevailing wage may include both wages and benefits. It incompasses the compensation for a worker given for performed labor. requirements of the loans. Pinney said his agency has 790 cases where employees of contractors who received loans were underpaid un·der·paid v. Past tense and past participle of underpay. underpaid Adjective not paid as much as the job deserves underpaid adj → and that the inquiry has resulted in restitution of $257,000 being paid by contractors. However, Pinney said it is not yet practical to impose financial penalties on contractors violating wage laws because of inconsistencies in current loan agreements. |
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