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Taxpayer-funded housing project still unfinished
A city project meant to quickly turn a hotel into housing for people experiencing homelessness has stretched into a years-long construction effort — with nearly $20 million now tied to the development.
LOS ANGELES COUNTY, Calif. - A city project meant to quickly turn a hotel into housing for people experiencing homelessness has stretched into a years-long construction effort — with nearly $20 million now tied to the development and neighbors questioning the pace of progress.
The City of Los Angeles purchased the former Ramada Inn at 3130 Washington Blvd. in 2020 for about $10.2 million as part of an effort to rapidly expand housing through the state’s Project Homekey program.
The 33-room property was initially used as interim housing for people experiencing homelessness. But in 2022, the building was shut down so it could be converted into permanent supportive housing.
Nearly four years later, construction is still ongoing.
Neighbors say the project appears to move slowly, with little visible work at times.
"It’s every day that ends in Y. Where are the workers? Where is the urgency?" said Sean O’Brien, who lives nearby.
City records show part of the delay involved permitting and financing challenges.
Documents reviewed by FOX 11 show the nonprofit operator, People Assisting the Homeless (PATH), spent nearly two years navigating plan checks and approvals required from several agencies, including the Los Angeles Department of Building and Safety, the Fire Department and accessibility regulators.
By the time permits were secured, additional funding was needed to move the project forward.
City leaders approved an additional $1.5 million in Proposition HHH housing funds to close the financing gap. With loans and additional public and private grants, the total investment in the project now stands at roughly $20 million.
When completed, the development is expected to provide 32 units of permanent supportive housing for the homeless population.
Some neighbors say they support housing solutions but question the cost and timeline.
"Why does it take so long? It’s such a waste of money and there’s nothing to even show for it," said Brennan Lindner, another nearby resident.
"It just feels like more and more money," O’Brien added. "How can you keep spending more and more?"
Residents also pointed to ongoing homelessness nearby, including trash and signs of encampments near the construction site.
"We certainly need people living in there," another neighbor said. "There’s a lot of craziness out here."
City officials say the project also revealed problems with the process of converting interim housing sites.
In a recent report to the Los Angeles City Council, City Administrative Officer Matthew Szabo recommended the city "not authorize the demobilization of any Project Homekey sites until the City confirms full funding has been secured," in an effort to prevent buildings from sitting vacant while financing is finalized.
Officials now estimate the project could be completed later this year.
Still, some neighbors remain skeptical.
"Last year they said it would open in the spring. Then they said summer," O’Brien said. "If you look around, I wouldn’t be surprised if it’s not open next summer."