Patt Morrison For December 9, 2011

Housing Authority controversy continues as interim CEO resigns

Wall Street Protest Spreads To Other Cities

Kevork Djansezian/Getty Images

Los Angeles City Hall

The scandalous legacy left by former CEO Rudolf Montiel continues to haunt the current administration of the Housing Authority of the City of Los Angeles. Ken Simmons, who has been serving as the HACLA’s interim CEO since Montiel was fired by the housing authority board in March of 2011, has submitted his resignation, saying he felt dominated by the controversy surrounding his predecessor.

The agitation stems from the fact that Montiel received an extraordinary 1.2 million dollar severance package, after being ousted due to suspicious expense records. Los Angeles Mayor Villaraigosa’s office initially denied knowledge of the large payout, but later changed this account when the mayor’s deputy chief of staff Matt Szabo said, “The mayor was absolutely aware and authorized the settlement in this matter.” In response to Simmons’ resignation, Mayor Villaraigosa called the move “necessary” and supports City Controller Wendy Greuel’s pending comprehensive financial audit of the Housing Authority. We get an update on the story from SoCal Connected’s Laurel Erickson, who broke this story.


Laurel Erickson, correspondent, SoCal Connected

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