A low-income housing project in Anaheim is part of a federal grand jury investigation into a prominent Los Angeles-based developer, according to a report in the Los Angeles Times.
The investigation, according to the Times, centers on millions of dollars in taxpayer funds that the firm, Advanced Development and Investment Inc., may have fraudulently billed cities. The investigation is also reportedly looking at whether apartments built by ADI were potentially unsafe and whether improper gifts were made to public officials.
ADI developed projects in several Southern California cities, mostly in Los Angeles County, and federal officials said they were not allowed to discuss which specific housing developments were included in the probe.
However, Ruth Ruiz, public information officer for Anaheim, said ADI developed one project in the city, a 52-unit complex for low-income families on Elm Street.
She said in an email that the city sent inspectors and consultants to the property to "review any potential construction problems" but "the inspectors and consultants did not find anything significant."
She said "cosmetic" defects were being fixed.
Under Anaheim's agreement with ADI, she said, the developer received a $3.4 million, 55-year loan to cover the cost of land and to correct some environmental problems.
The loan will be repaid through a split in which 85 percent of the cash flow goes to the city's Housing Authority and 15 percent to the developer. After 55 years, ownership of the project reverts to the Anaheim Housing Authority.
-- TRACY WOOD