LA has been in some trouble lately, but so far everyone's managed to keep the FBI out of things. Not anymore: "The FBI is investigating an affordable-housing deal in which Los Angeles officials channeled $26 million to a developer who they knew was under criminal investigation for alleged misuse of public funds, city officials said Thursday." The developer was indicted in New York last fall (for work he did with LA-based CDR Financial) but got all that money to build 92 apartments near downtown for disabled, homeless seniors, who haven't been able to move in because the city's Housing Authority won't release the money to pay their rents, which could force the developer to default. [LAT]
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