Two key officials at the Weingart Center Association, a prominent homeless services provider in Los Angeles, have been suspended amid an internal review of its housing projects. This decision follows concerns about the valuation of certain projects. An outside law firm has been hired to investigate these allegations.
Background of the Investigation
The Weingart Center has initiated this review due to inquiries regarding its housing projects, particularly following reports in local media. Chief Operating Officer Tonja Boykin has been appointed to lead the organization during this period.
Key Personnel Involved
- Kevin Murray: President and CEO, former state senator.
- Ben Rosen: Director of real estate development, under investigation.
Murray has not yet provided a public statement on the matter. Meanwhile, Rosen’s attorney expressed his client’s readiness to assist in the review process, emphasizing Rosen’s long-standing commitment to housing solutions for the homeless.
Details of the Housing Projects in Question
While the specific projects under review haven’t been disclosed, they are believed to include:
- A nursing home in Cheviot Hills linked to a federal criminal case involving fraudulent documentation for a $27.3 million sale.
- A proposed conversion of a Torrance hotel into supportive housing for the homeless at an inflated $30 million price.
Concerns Over Project Valuations
Recent evaluations have suggested that the Torrance hotel was worth significantly less than Weingart’s planned purchase price. Experts indicated values ranging from $21.5 million to $22.7 million. In contrast, Torrance officials produced an appraisal valuing the hotel at only $10.2 million.
Funding and Financial Implications
Weingart aimed to secure substantial state and local funding for these ventures:
- Up to $20.5 million from Los Angeles and $26.6 million from the state for the Cheviot Hills project.
- A proposed request for $37.7 million in Homekey+ funds for the Torrance project.
In addition, Weingart stood to benefit from developer fees for both projects, potentially exceeding $2 million for the Torrance hotel conversion alone.
Community Reactions
Local officials and community members have raised concerns over these valuations. Mike Mauno, a former Torrance city council member, reported his suspicions to federal authorities regarding the hotel’s appraisal.
Weingart ultimately abandoned the Torrance project, citing community opposition as a significant factor.
Statewide Context of Homeless Services
The situation occurs amid California’s ongoing efforts to combat homelessness through initiatives like the Homekey program. Since the pandemic, the state has invested approximately $3.6 billion into projects aimed at housing vulnerable populations.
Weingart, headquartered in Skid Row, serves nearly 2,000 individuals daily, focusing on innovative solutions to address homelessness. The ongoing investigation may impact its operations and future projects in Los Angeles County.
