BOSSIER CITY - A low-income housing authority in northwest Louisiana has settled a federal lawsuit in which it was accused of discriminating against black and disabled residents.

The Bossier City Housing Authority had been accused of assigning elderly residents to housing based on race, instead of their place on a waiting list. The suit also said the authority primarily assigned disabled residents to one facility although it had a choice of seven properties.

The Justice Department announced the settlement Friday evening. Court documents and a Justice Department news release say the authority has agreed to adopt new policies. It also will pay $120,000 to compensate elderly or disabled people who were passed over on the authority's housing waiting list.