CEO of Homeless Service Suspended; Law Firm to Investigate Property Valuations

Two senior officials from the Weingart Center Association in Los Angeles have been placed on leave amidst an internal review of specific housing projects. The nonprofit organization has engaged an external law firm to investigate concerns regarding the valuation of certain homeless housing projects.

Leadership Changes at Weingart Center

The Board of Weingart Center has appointed Tonja Boykin, the Chief Operating Officer, to lead the organization during this review process. Stefan Friedman, a spokesperson for the nonprofit, confirmed this decision in a recent statement.

Key Officials Under Investigation

• Kevin Murray – President and CEO, former state senator.
• Ben Rosen – Director of Real Estate Development.

Both officials have been suspended pending the outcomes of the investigation. Samuel Josephs, representing Rosen, stated that his client is willing to cooperate fully with the review.

Background of the Investigation

The internal review follows emerging concerns from recent media reports about some housing projects. One significant project is linked to a criminal case involving a real estate executive accused of submitting fraudulent documentation. This individual allegedly purchased a nursing home in Cheviot Hills for $11.2 million before selling it to Weingart for $27.3 million.

Another project in focus involved the conversion of a hotel in Torrance into supportive housing for homeless individuals. The hotel was set to be purchased by Weingart for $30 million, a price deemed excessively high by experts, with some appraisals valuing it between $21.5 million and $22.7 million.

Financial Implications

Weingart’s investigation is crucial as it received substantial funding from city and state sources. The organization was awarded $20.5 million from the city of Los Angeles and $26.6 million in state Homekey funds to acquire and adapt the Cheviot Hills property.

However, the Torrance hotel project faced significant community opposition. After conducting their own appraisal, city officials found the hotel was worth only $10.2 million and ultimately, Weingart decided against pursuing the acquisition.

California’s Investment in Homeless Housing

The Homekey initiative, launched by Governor Gavin Newsom, aims to provide quick shelter options for homeless individuals by converting buildings into living spaces. To date, California has invested $3.6 billion into over 250 Homekey projects, creating more than 15,800 housing units.

Community Concerns and Future Steps

Local residents and former officials have expressed deep concerns about the valuations of these projects. Mike Mauno, a former Torrance city council member, highlighted the significant discrepancy in property values. He voiced skepticism about Weingart’s financial decisions and the impact on taxpayer-funded initiatives.

The ongoing review will focus on ensuring proper valuation and effective use of funding in the pursuit of aiding the homeless population in Los Angeles. As the investigation progresses, Weingart aims to uphold its commitment to delivering innovative solutions for homelessness.