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Controversial homeless housing project faces delays
A controversial homeless housing project in Cheviot Hills is facing renewed scrutiny as neighbors question the pace of construction, while officials say the opening date has been delayed again.
LOS ANGELES - A controversial homeless housing project in Cheviot Hills is facing renewed scrutiny as neighbors question the pace of construction, while officials say the opening date has been delayed again.
The Shelby Drive project, located at a former assisted living facility, is being converted into interim housing with 78 units for adults experiencing homelessness.
What we know:
Los Angeles city records show the project has received a commitment of approximately $31.5 million, including about $20 million for renovations and more than $11 million for operating costs.
But neighbors say they rarely see construction crews at the site.
"I drive by sometimes, and I often times don’t see anybody working," said Amanda Ryan, a Cheviot Hills resident who opposes the project.
Another neighbor, John Clark, said the pace of work has raised concerns.
"There’s like nobody here working. So, it’s certainly not a top project on anybody’s priority list to finish this place," Clark said.
During a FOX 11 visit late Wednesday afternoon, no construction workers were observed at the property. Through exterior windows, rooms appeared unfinished, with exposed areas, missing sheetrock and floors still needing work.
FOX 11 asked security for access inside the building but was denied entry. While the crew continued recording the exterior, security followed and recorded the FOX 11 team.
A neighbor also raised allegations about the condition of the building, including claims involving asbestos and construction costs. A member of the L.A. District 5 council office confirmed the recent discovery of asbestos.
Federal investigation into property sale
The project is also connected to a federal criminal case involving real estate investor Steven Taylor.
Federal prosecutors allege Taylor used fraudulent financing to purchase the former senior living facility for about $11 million before selling it to the Weingart Center for about $27 million through what prosecutors describe as a double-escrow transaction.
Taylor has pleaded not guilty. The Weingart Center has not been charged in that federal case.
The Weingart Center, which is expected to operate the facility, is also facing a separate civil lawsuit filed by neighbors who allege the organization misled them about how the site would operate.
A judge has allowed the lawsuit to move forward, but the court has not found that fraud occurred.
FOX 11 reached out to the Weingart Center for comment Wednesday afternoon and had not received a response.
Council District 5 sets conditions before support
The Los Angeles City Council District 5 office, represented by Councilmember Katy Yaroslavsky, said the project could open in October but only if several conditions are met.
In a statement to FOX 11, the office said it wants:
- Full accountability related to the federal investigation.
- A binding covenant limiting the site to adults 55 and older.
- A strong operating agreement with standards for safety, security, accountability and communication with neighbors.
The office said the final two requirements require approval from the California Department of Housing and Community Development.
Mayor Bass defends project
Los Angeles Mayor Karen Bass’ office previously defended the Shelby site, saying it remains an important source of interim housing in an area with limited shelter options.
"The Shelby site in West LA remains a critically important property that will provide interim housing in an area of the city that has extremely limited interim housing supply," the mayor’s office said in November.
The mayor’s office said the project was approved through the state’s Homekey program after city officials prioritized locations with limited interim housing options.
Following the federal charges against Taylor, Mayor Bass said the city would cooperate with investigators and hold anyone involved in fraud accountable.
"My administration has zero tolerance for corruption – period," Bass said in a statement. "We’re working with the U.S. Attorney’s Office to ensure that anyone who engages in fraud against the city will face the full force of the law."
For now, neighbors say they are watching the project closely as the city works toward a new October opening target.
The Source: This report is based on Los Angeles city financial records, federal indictments filed by the U.S. Attorney's Office, official statements from Council District 5 and the Office of Mayor Karen Bass, on-scene visual documentation, and court filings from an active civil lawsuit filed by Cheviot Hills residents.