BRADENTON, Fla. — Louisiana Treasurer John Kennedy fired off a seven-page letter letting the state attorney know that he is not pleased with a federal housing discrimination settlement.
State Attorney General James "Buddy" Caldwell authorized the settlement on behalf of the State Bond Commission, which was accepted by federal Judge Martin Feldman on July 31.
Feldman closed the case, though it can be reopened if the SBC fails to abide by its terms.
Kennedy, who is chairman of the SBC, said in a letter Aug. 11 that his opposition to the settlement was made known to Caldwell before it was filed with the court.
"The proposed settlement should have been brought back to the commission for its consideration and a vote... especially after opposition to it was known," Kennedy wrote to Caldwell. "Only in this way could the members of the commission express their positions on it, in the proper public forum, and vote on it up or down."
Kennedy went on to say that he believes the agreement leaves the SBC "subject to indirect, if not direct, continuing supervision" by the Department of Justice for an indefinite period, which will allow the federal government to question SBC decisions on housing matters.
"This has always been the most objectionable part of any settlement of this case to all members of the commission," he wrote.
The SBC was "accused of discrimination and violation of federal law in this case" by the justice department, neither of which was true, Kennedy said. The state should have gone to trial.
Kennedy told The Bond Buyer on Aug. 1 that he was "shocked" and "appalled" that the attorney general entered the settlement without coming back to the Bond Commission.
The settlement states that the SBC must comply with the Fair Housing Act, which applies prospectively to any moratorium or policy that would prevent consideration of affordable housing projects in New Orleans.
A spokesman for the Attorney General's office said the Bond Commission authorized the settlement at its July 17, 2014 meeting.
Video of that meeting, however, shows that the SBC voted only to reopen negotiations after rejecting the terms of a settlement proposed earlier this year.
