Housing Department lost 'millions'

Despite a tight budget to build and maintain affordable homes, the Los Angeles Housing Department has lost millions of dollars by failing to ensure borrowers comply with loan promises and sometimes lends money to developers who have defaulted on previous city loans, according to an audit released Monday. Kerry Cavanaugh in the Daily News.

The Housing Department has made big improvements in how it manages and monitors loans, but the agency still loses an estimated $6 million a year in potential income because it doesn't have the staff to review annual financial statements submitted by borrowers, City Controller Laura Chick wrote in the audit.

"These very important public dollars are needed to provide safe and livable neighborhoods through the development and preservation of decent and affordable housing," Chick said. "It is essential that we ensure the public that these monies are meeting their intended targets."

The Ho