Are property values still on the decline in Los Angeles, CA? If you ask the Los Angeles Unified School District’s (LAUSD) legal team, the answer is yes. LAUSD filed suit in Sept. 2014, alleging that JP Morgan Chase and Citigroup, violated the Fair Housing Act (FHA), which caused a high number of foreclosures and property value reduction. Both banking entities wanted the cases dismissed, due to lack of standing. How do you think the court ruled?
The courts dismissed both of LAUSD’s lawsuit.
U.S. District Judge Otis D. Wright II’s, two page order, approved a stipulation of dismissal submitted by both parties. This is the second case where Judge Wright sided with the banking industry, in similar cases filed by LAUSD.
The stipulation waived the city’s right to further appeal or relief and precluded the city from reviving the suit after the outcome of parallel suits against other banks.
Cities, schools and states have all brought individual lawsuits against JP Morgan Chase, Citigroup and Wells Fargo, alleging discrimination against low-income, underserved communities by targeting them for predatory home loans.
The city estimated its property tax losses at $481 million.