Will a New Lawsuit Force 'Slumlord' US Bank to Cleanup Its Act?

Jessica Garrison and Angel Jennings report on a new lawsuit filed this week by the City of Los Angeles that is part of "an aggressive attempt to deal with the urban decay caused by the housing crash."

Marking the second time the City of Los Angeles has gone after a major bank for being a slumlord, officials announced civil allegations this week that, "found problems in the way US Bank handled 1,500 home foreclosures and cited more than 150 homes that had fallen into disrepair. The city is demanding that the bank clean up vacant properties and improve conditions for families living in others." 

According to Garrison and Jennings, "City officials say they want to hold banks that helped fuel the housing boom responsible for the blight that rippled through the city after those loans went bad."

"[S]eeking an injunction and potentially millions of dollars in penalties and restitution from the Minneapolis-based financial institution," the approach being pursued by Los Angeles is novel, but may set a precedent for cities seeking creative ways to deal with problems resulting from foreclosures. 

"Deutsche Bank and US Bank have argued that the blame for neglected, foreclosed homes lies not with them but with loan servicers, who are contracted to manage the properties."

Full Story: L.A. sues US Bank over blighted, abandoned homes


Prepare for the AICP* Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
AICP CTP Storefont Display

The first online AICP* CTP exam prep class

Are you ready to take the AICP* Certified Transportation Planner exam?
Priced at $245 for May exam!
Women's t-shirt with map of Los Angeles

City T-Shirts for the ladies!

Women's Supersoft CityFabric© Fashion Fit Tees. Now available in six different cities.
Woman wearing city map tote bag

City Shoulder Totes - New Cities Added!

Durable CityFabric© shoulder tote bags available from 9 different cities.