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US Bank to pay Los Angeles $13.5M for alleged failure to maintain foreclosed properties

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US Bank to pay Los Angeles $13.5M for alleged failure to maintain foreclosed properties

U.S. Bank NAwill pay $13.5 million — $11.9 million in civil penalties, the balance to resolveMunicipal Code violations — to resolve allegations that it allowed hundreds of foreclosedproperties in Los Angeles to fall into disrepair, according to the website of theLos Angeles city attorney.

Under the terms of the settlement with Los Angeles, the unit will maintain foreclosedproperties in accordance with all applicable laws and standards for two years. Thebank will also designate one full-time senior employee to serve as a point of contactfor city agencies regarding code violations at foreclosed properties it owns.

The civil complaint, which focused on 170 of the over 1,500 propertiesUS Bank had acquired in Los Angeles through foreclosure, alleged that the bank failedto bring its properties into compliance despite repeated notices to comply and hearingnotices from various city agencies. It was originally filed in July 2012 by then City Attorney Carmen Trutanich.

"Banks must be accountable for the condition of the propertiesthey hold," current Los Angeles City Attorney Mike Feuer said.

The settlement requires court approval.