BRADENTON, Fla. - The Louisiana State Bond Commission wants the Department of Justice to attend one of its meetings in hopes of resolving a housing discrimination lawsuit.
The SBC decided to extend the invitation after reviewing options for dealing with an upcoming court hearing on the lawsuit, which state Treasurer John Kennedy has been ordered to attend with authority to speak for the full commission. Kennedy is chairman of the SBC.
At its May 15 meeting, the commission considered not allowing Kennedy to speak or allowing him speak on behalf of the full SBC while exercising his best judgment.
Kennedy said he was not comfortable having "unfettered" approval to speak at the hearing, but he also did not want to "waste the judge's time."
The commission authorized Kennedy to explain that the SBC does not believe it has "done anything wrong," and that they want to meet with DOJ attorneys "to discuss the matter" and see if it can be resolved.
The June 26 hearing is about the DOJ's request to reopen a 2012 lawsuit because the Bond Commission rejected a settlement in March that its attorneys had negotiated with the federal government.
The suit alleged that the Fair Housing and the Americans with Disabilities acts were violated because of a years of delays in the commission's approval of $3.4 million of multifamily housing revenue bonds for a $6.6 million development in New Orleans designated for low-income and homeless persons with disabilities.
Kennedy likened a proposed settlement of the suit to a consent decree.
New Orleans, also named in the suit for delaying its approval of the project, entered a separate negotiated settlement and agreed to review federal housing laws, improve zoning procedures, and fund 350 affordable housing units.
In other action May 15, the SBC learned that some local governments are setting general obligation millage rates in excess of debt service requirements.
The Louisiana State Auditor's office discovered the situation while reviewing audits, and found that some incorrect rates were levied year after year, said Joy Irwin, assistant legislative auditor and director of local government services.
Irwin said she thought this occurred because bond attorneys estimate millage rates in bond indentures and "unfortunately because local governments don't understand the process" they levy more than necessary.
One commission member said he was concerned that the funds may be spent for unauthorized purposes.
Irwin said the auditor's office would consider actions that need to be taken as audits are reviewed. The SBC was not asked to take a vote on the issue.
