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Scrutiny of Affordable Housing Developer in Glendale

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The Los Angeles Times highlights some of the shadiness surrounding developer Advanced Development and Investment Inc's dealings in Glendale. The company, which is being investigated by federal prosecutors, is accused of fraud, as well as possibly building unsafe housing. In the case of Glendale, the city paid out millions to the firm to build affordable housing, while ADI overbilled and "simply fabricated documents out of whole cloth," according to the Times. At the same time, ADI forced its subcontractors to donate to local politicians, although Glendale council members deny that they were influenced by the campaign contributions or knew of the ADI subcontractor ties. Still, the Times shows that the city did approve the project, despite questions being raised about ADI's overbilling. "In a memo dated April 10, 2008, three months before the project won approval, [Mike Fortney] the city's housing project manager, noted to his boss that ADI's cost estimates on the Vassar project were up to $4 million higher than warranted. A day later, he listed 16 more concerns, including ADI's failure to turn over certified audit reports." But Glendale Mayor Ara Najarian says he and three other council members had "never seen the memos warning against entering into the Vassar deal with ADI or been told in detail of their contents."
· Builder got millions from Glendale despite concerns about project [LAT]