The Brief

L.A. Mayor Karen Bass has made speeding up the development of new affordable housing a centerpiece of both her successful campaign and her time in office.

During her first week on the job, Bass signed an executive order streamlining the approval of new affordable housing. Executive Directive One, or ED1, represents her biggest step toward making good on those promises. And exempting new affordable housing from lengthy environmental reviews has been a key pillar of ED1.

Now, about a year after her swearing in, LAist has found that city officials have quietly started accepting environmental challenges from groups opposed to new apartments.

One developer aiming to construct a four-story apartment building for low and moderate-income renters in the Westside neighborhood of Sawtelle was assured in writing by the L.A. Planning Department in mid-December that their project was exempt from the California Environmental Quality Act (CEQA). Two weeks later, the same department accepted a CEQA appeal from opponents of the development.

Steven Scheibe — co-founder of Generation Real Estate Partners, the company behind the development — said the city signing off on a CEQA challenge was “highly unexpected.”

“It's pretty frustrating,” he said. “It has obviously delayed the start of construction, which we were expecting to do in the middle of February. We're unlikely to be able to start at that time period.”

Scheibe and his partners submitted the project through ED1, which promises to speed up the construction of 100% affordable housing projects by approving applications within 60 days, and issuing building permits within five days.

Exempting projects from CEQA allows developers to avoid lengthy environmental impact studies that can delay new housing construction, often for a year or more. So far, the city has fast-tracked dozens of projects under ED1 that bypass CEQA.

The Planning Department’s guidelines continue to say that ED1 projects are “exempt” from environmental review. A letter of compliance Scheibe received on Dec. 12 explicitly says his project “is statutorily exempt” from CEQA. Scheibe was surprised to see the city sign off on a CEQA appeal on Dec. 27, because he was counting on ED1’s guarantees.

Standing in a dirt parcel where two single-family homes were recently torn down to make way for the 44-unit project, Scheibe said, “We would not have acquired this lot if it wasn't for ED1.”

So far, affordable housing plans have nearly doubled

L.A. housing advocates have generally cheered ED1, saying it has convinced many private developers to build affordable housing without taxpayer funding.

The planning department reported in late November that in ED1’s first year, the program had received proposals for more than 9,000 units of new affordable housing, almost double the amount proposed the previous year.

But some housing advocates now worry that the Sawtelle project’s appeal could open the floodgates for all ED1 projects to be delayed.

“I think it was a bad decision. I think the city should have not accepted the appeal,” said Scott Epstein, the policy director for the pro-housing group Abundant Housing L.A. “This appeal directly attacks ED1 and its legitimacy.”

A street sign designating this neighborhood as “Sawtelle Japantown” hangs above a busy intersection on L.A.’s Westside.

(

David Wagner/LAist

)

In response to questions from LAist, the mayor’s office said they’re currently working with the city attorney on how to handle the appeal moving forward.

“CEQA should not be used as a strategy to block affordable housing projects from moving forward,” said Clara Karger, a spokesperson for the mayor’s office, via email. She said ED1 “cuts through red tape and breaks down bureaucratic barriers.”

Could environmental appeals derail new low-income housing?

If time-consuming CEQA appeals are allowed to move forward, L.A. could struggle to meet obligations under state law to plan for nearly 185,000 new low-income homes by 2029.

City planning officials also recently accepted a CEQA appeal for an ED1 project in the San Fernando Valley’s Sherman Oaks neighborhood. Land use attorney Dave Rand, who represents the developers behind the project, described the appeal as a “Hail Mary” attempt by opponents.

Rand believes city officials’ hands were tied by opponents’ interpretation of state law, essentially forcing them to accept the CEQA appeals. But he expects the city to bat down the challenges.

“Even though this is an annoyance and a slight hiccup in the process, this by no means undercut the substantial benefit of ED1,” Rand said.

It’s unclear what happens next for the projects facing CEQA challenges. Typically, these appeals go to the city council, where public commenters will have a chance to express opposition or support for new housing projects. Affordable housing developers expected their ED1 projects to proceed without contentious public hearings and council votes.

“All of this is very new for both us and for the city,” said Scheibe. “We're unsure as to what it means. But we do know that we're going to be delayed.”

Why opponents are fighting new housing on L.A.’s Westside

State lawmakers passed the California Environmental Quality Act in 1970, and it was signed into law by Gov. Ronald Reagan. The law requires studies and disclosures of possible environmental harms from various development projects.

A fierce debate has raged over the years about CEQA’s role in slow-rolling, and even killing, new housing. Local governments exempt many projects from CEQA. The California Legislative Analyst’s Office has concluded that CEQA is often used to delay or scale down housing projects, and can result in years of review for projects in the state’s largest cities.

A “now leasing” sign advertises apartments for rent in L.A.’s Sawtelle neighborhood.

(

David Wagner/LAist

)

Opponents of the Sawtelle project have raised some familiar objections to new housing, including concerns about street parking. Located about a mile from two Metro stops on the Gold Line, the project includes no on-site parking.

Other complaints have centered on perceived impacts to nearby property values and neighborhood crime levels. Manhattan Beach resident Allen Pachtman owns an apartment building next to the proposed 44-unit building. He helped organize the CEQA appeal filed by a group calling itself Missouri Avenue Neighbors.

“I can just picture somewhere down the line that it's going to end up being a high-crime neighborhood,” Pachtman said. “People will be leaving, and it'll just ratchet downwards.”

Pachtman, a doctor, said he’s relying on the apartment building on Missouri Avenue to help fund his retirement. But he worries new low-income apartments next door will harm that investment.

“It’s going to degrade the value of my building,” Pachtman said. “I don't know if that's environmental enough. I don’t know that you're going to be able to measure, like, air pollution is any worse. But the quality of life is certainly going to decline.”

Such concerns about the impact of low-income housing on neighborhoods have been studied, with academic researchers finding that these projects do not hurt nearby property values and do not increase crime. When LAist asked Pachtman by phone to elaborate on his concerns about increased crime, he hung up and ended the interview.

One-bedroom apartments near UCLA for under $1,900

The proposed Sawtelle project consists mainly of one-bedroom apartments. Most of the units will be restricted to tenants in the city who qualify as low-income (the cut-off is currently $70,640 for a one-person household).

The project also includes a few studios and two-bedroom apartments. Some units will be reserved for moderate-income tenants (those earning up to $82,500 for a one-person household).

If the apartments were being rented today, most one-bedroom units in the building would rent for no more than $1,892 per month.

“If you go two blocks over, you're looking at $3,000 rents for a one-bedroom,” said Scheibe. “We saw this as a really good opportunity to provide affordable housing that is at a major discount.”

Unlike other ED1 projects in areas such as South L.A., where existing renters are now facing relocation, no tenants were displaced for this project. Scheibe said many of the prospective tenants will likely be students and staff commuting to the nearby UCLA campus without a car.

Should ED1 projects be stopped in cultural districts?

Some opponents of the Sawtelle project have argued the entire neighborhood should be off-limits to ED1 projects. They’ve said it’s unfair that Bass banned ED1 projects in single-family neighborhoods, while allowing developments in designated ethnic enclaves such as Sawtelle’s Japantown.

“What we foresee is that this will be of catastrophic effect to us,” said Cesar Aranguri during a recent planning and land use committee meeting of the West Los Angeles Sawtelle Neighborhood Council. “It’s striking right at our core in terms of our culture and our history.”

A hand-written sign calls on residents to help “save Sawtelle” by weighing in on plans for a new affordable housing project in the neighborhood.

(

David Wagner/LAist

)

Aranguri presented a plan calling on Bass to exclude all named cultural districts from ED1, just as she did back in June for single-family neighborhoods. California housing advocates have already sued over the city’s decision to halt projects in single-family zones, which make up 74% of the city’s residential land.

Scheibe says affordable housing benefits communities. In Sawtelle, he says new low-income housing could provide a place for aging Japanese American residents to live.

“A lot of seniors who want to stay in their neighborhood feel like they're being priced out,” he said. “This would provide an opportunity for them.”

Where lawmakers stand on the appeals

The district’s council member, Traci Park, said she has not yet taken a position on whether the CEQA appeal should move forward.

“I was surprised that it had been accepted,” Park told LAist. “Now that it’s there, and the question exists, it's going to have to be answered. I don't know that there is any kind of process to roll back the appeal.”

Kristina Kropp, the attorney helping opponents of the Sawtelle and Sherman Oaks projects pursue the CEQA appeals, declined to comment for this story.

Councilmember Nithya Raman, who represents Sherman Oaks, has supported the ED1 project in that neighborhood. The full council is currently considering a plan to transform ED1 from a mayoral directive into a permanent ordinance.

What happens next?

Meanwhile, L.A. faces a lawsuit aiming to overturn ED1 in its entirety. The Westside nonprofit Fix The City, which frequently sues the city over land use issues, filed the complaint in December, claiming ED1 “eliminates public hearings, due process and the right of appeal.”

The developers behind the Sawtelle project have sent the city a letter demanding a dismissal of the CEQA appeal. They said if the city fails to overturn the challenge within 90 days, it will be in violation of the state’s Housing Accountability Act.

The legal sparring is playing out against the backdrop of a worsening housing crisis. Most L.A. County tenants pay more than 30% of their income on rent according to the U.S. Census Bureau, a level deemed unaffordable by federal government standards. The number of people experiencing homelessness in the city of L.A. increased 10% last year to 46,260.

Scott Epstein with Abundant Housing L.A. said environmental challenges, which he sees as often abuses of CEQA’s original intent, are slowing down much-needed new housing.

“We need to shift our attitude away from the notion that housing is an impact, and toward the notion that housing is a benefit,” Epstein said.

The legal tug-of-war centers on a two-panel work called “Adam” and “Eve.” The life-size paintings depicting the biblical characters were created around 1530 by German artist Lucas Cranach the Elder.

The Nazis stole the two paintings, and many others, from Jewish art dealer Jacques Goudstikker in Holland in 1940. After the war, the Dutch government sold these two works to a Russian aristocrat, who sold them to the Norton Simon in Pasadena in 1971.

“By pursuing the recovery of the Cranachs, we are seeking to reverse a great injustice perpetrated by the Nazi theft of a Jewish family’s property,” Rabbi Noah Farkas, president and CEO of Jewish Federation Los Angeles, said in a written statement.

The Federation is plaintiff in a lawsuit filed on Monday in L.A. Superior Court that names the museum and two related foundations as defendants. Cranach the Elder’s work has sold for millions of dollars.

Goudstikker’s only living heir, Marei von Saher, gave the Federation the authority to file the lawsuit. If the lawsuit is successful, the Federation pledges to use the majority of the net proceeds to care for impoverished Holocaust survivors living in the L.A. area.

Adam and Eve, painted around 1530 by German artist Lucas Cranach the Elder.

(

Courtesy Norton Simon Art Foundation

)

Von Saher has spent years trying, unsuccessfully, to get these paintings back. But this lawsuit is different. It’s filed under a 2024 California law that gives people the ability to petition to recover cultural property “that was taken or otherwise lost as a result of political persecution,” according to the law.

Stolen painting

Responding to the lawsuit, the Norton Simon Museum did not challenge that the painting was looted by the Nazis.

“After decades of litigation, court after court including the United States Supreme Court has confirmed that the Norton Simon Art Foundation has proper title to 'Adam' and 'Eve,'" the museum said in a written statement.

The museum is referring to a 2018 ruling by the U.S. Ninth Circuit Court of Appeals, which said that since a foreign government sold the artwork, the court could not declare that sale illegal. The U.S. Supreme Court let that decision stand without reviewing it.

The Norton Simon has been pressured to negotiate with the heirs to return the work, even from the founder’s grandson.

“In my opinion, it's immoral and unethical because they don't have good title,” said Joel Greenberg, founder of the nonprofit Art Ashes, which helps families of Holocaust survivors recover art looted from their ancestors.

It’s not the only high-profile case of Nazi-looted art in the region. The late Los Angeles resident Maria Altman recovered a work by Gustav Klimt that was looted from her family by the Nazis in Austria.

LOS ANGELES (AP) — A motorist was arrested on murder charges after authorities say she slammed her SUV into a city bus in Los Angeles, killing at least two people and injuring six others in a prelude to a second deadly tragedy: the fiery crash of a TV news helicopter that was covering the collision.

Bailee Lynn Rios, 36, of Simi Valley, was arrested Tuesday night and is being held at a Los Angeles jail with bail set at $4 million, police said Wednesday. The case is being forwarded to the district attorney’s office, which will decide whether to file the charges in court or pursue different ones. Information on a lawyer who could speak on her behalf was not immediately available.

The helicopter, which was used by NBC and Telemundo, crashed about two hours after police say Rios drove her 2004 Ford Expedition the wrong way down a busy avenue, ran a red light and struck a vehicle before hitting the bus. One passenger was fully ejected from the bus and another was partially ejected, police said.

Rios’ mother, Cindy Rios, said she was shocked and saddened by the string of events. She said she had not spoken to Bailee Lynn since her arrest and had not been contacted by law enforcement.

“It’s just horrible,” Cindy Rios told The Associated Press in a phone interview Wednesday. “The fact that my daughter was involved and was the cause of it is just extremely disturbing.”

“If anything, I’m sorry for the other families,” she added. “My daughter’s alive. People lost their lives.”

Chopper crash killed a reporter, a pilot and a man on the ground

NBC4 Los Angeles reported that two people aboard the helicopter — reporter Eliana Moreno and pilot George Marciniw — were killed when the chopper went down Tuesday in the Chatsworth neighborhood in the San Fernando Valley north of downtown.

A person on the ground, identified as 29-year-old Edy Gutierrez Mejia, died in a parking lot, the Los Angeles County Medical Examiner’s Office said. He was from Guatemala, the country’s consulate confirmed.

The crash happened as news crews were reporting on the collision involving the SUV that slammed into the bus.

There were no immediate details on what caused the helicopter crash, but an alarm could be heard sounding inside the helicopter’s cockpit as it lost altitude in the final seconds of video the crew broadcast before the crash.

Just after the beeping noise starts, a woman’s voice says “uh oh.” The helicopter moves quickly away from the bus crash site and starts losing altitude. The woman says “You can’t pull up?” before the video stops as the chopper nears the ground.

“That video is probably the most important evidence that we have discovered so far,” National Transportation Safety Board investigator Fabian Salazar said Wednesday at a news briefing.

Salazar said the sounds were consistent with the helicopter’s engine changing speed, as well as what he said were likely advisory tones for the pilot. The NTSB said it is also investigating the bus collision.

The helicopter, a Eurocopter AS350, went down near a large storage facility. At least four cars and two storage containers burned after the helicopter caught fire. NBC4 reporter Robert Kovacik was at the bus scene and saw black smoke and rushed to the helicopter crash site.

Anchor and reporters pay tearful tributes to deceased colleagues

Moreno was a familiar voice for NBC4 and Telemundo 52 during the station’s aerial coverage. She and Marciniw were both were employees of Angel City Air, which operated the chopper for the station.

Moreno, born in Orange County, joined Angel City Air in 2010, the same year she earned a broadcast journalism and political science degree from Chapman University. She reported for several news outlets and began flying with Marciniw in 2023, the NBC4 website said.

Marciniw grew up in Southern California and graduated from Burbank High School in 1974.

“I think a lot of us are still trying to process what happened, this terrible loss,” NBC4 reporter Lauren Coronado told viewers early Wednesday as she stood near the crash site. A hazmat crew was cleaning up jet fuel, she said.

In a tribute to Moreno and Marciniw, the newscast referred to them as “the team in the sky,” saying Moreno would often post videos from her job and was in awe of the view. Anchor Lynette Romero held a colleague’s hand and wiped away tears after hearing Moreno’s voice when one of her posts was played.

In an interview with the station, Esteban Jimenez, a pilot, said he had known Marciniw since the 1990s. He said Marciniw had been his instructor.

“I just talked to him on Sunday. We were talking about the aviation business and retiring,” he said.

Expert talks about what may have caused the crash

Aviation safety expert Jeff Guzzetti said the alarm sounding in the helicopter’s final video sounds like the low rotor RPM warning horn that signals the main rotor is no longer spinning enough to keep the helicopter in the air.

“It just has all the earmarks of a potential loss of engine power and a dangerous decrease in the main rotor speed,” said Guzzetti who used to investigate crashes for both the NTSB and FAA.

Guzzetti said the pilot appeared to be trying to perform an emergency maneuver to use the wind to force the rotor to spin again much like a breeze turns a windmill. Doing that can create a bit of lift that could help cushion the impact, but Guzzetti said there would have been little opportunity to do that because the helicopter had been hovering at a low altitude beforehand.

There are risks to news helicopters particularly in a major city like Los Angeles where multiple helicopters respond to an incident, but the pilots all coordinate closely over the radio to ensure they maintain a safe distance from each other. The industry also shares best practices to help keep these news flights safe.

“It’s a very unique form of flying. And the community is very good about lessons learned,” Guzzetti said. “And so because of that, you don’t hear about too many of those accidents. So they’re rare, but they do occur, just because the mission is a risky one.”

Other crashes involving news helicopters

The station said this is the second aviation tragedy in its history.

In 1977, a KNBC news helicopter crashed when it ran out of fuel while returning to the station after covering a wildfire in Santa Barbara, killing the pilot and camera operator. The pilot, former U.S. Air Force officer Francis Gary Powers, had been in the news years earlier when he was shot down and captured while flying a U-2 spy plane over the Soviet Union for the CIA, an ordeal portrayed in the movie “Bridge of Spies.”

There have been at least eight fatal crashes involving news helicopters in the U.S. since 2000, killing 16 people, according to a review of federal accident records and news accounts.

They include a 2023 crash in a New Jersey forest that killed the pilot and a photographer aboard a helicopter used by Philadelphia station WPVI and a 2022 crash beside a Charlotte, North Carolina, interstate that killed a pilot and meteorologist during a training flight for WBTV.

A 2007 midair collision in Phoenix of two TV news helicopters that were covering a police chase led the NTSB to recommend that news helicopters have at least two people in the cockpit so the pilot can focus on flying while the reporter focuses on the story.

___

Golden reported from Seattle, and Collins from Hartford, Connecticut. Associated Press writers Josh Funk in Omaha, Nebraska; Olga Rodriguez in San Francisco; Kathy McCormack in Concord, New Hampshire; and Allen Breed in Raleigh, North Carolina, contributed.

Federal and county law enforcement announced charges Wednesday against three people in a widening investigation of homelessness services fraud in the L.A. area. Prosecutors previously charged three other people and said they plan to bring “many more” cases.

In Wednesday’s announcement at a news conference, authorities alleged a bribery scheme built on "ghost" clients illustrates a yearslong problem.

"Nobody was minding the shop," the region’s top federal prosecutor, Bill Essayli, told reporters in response to a question from LAist. "There's no vetting. There's no auditing. There's no accounting. It was just a rush to push as much money out the door."

What are the charges?

Authorities arrested Michael Young — founder of the Culver City nonprofit Home At Last — and accused him of using shell companies and fake bids to misappropriate $12 million in taxpayer funds. The allegations include siphoning $1 million into a high-end nightclub, a nearly $50,000 trip to Tahiti and a $140,000 restoration of a vintage Chevy Impala.

Michael Young, 46, of Baldwin Hills

(

Courtesy Department of Justice

)

A headshot of Alex Soofer shared by a federal prosecutor on X.

(

First Assistant U.S. Attorney Bill Essayli via X

)

Scott Turner, the U.S. secretary for Housing and Urban Development, said Young's group received more than $118 million in public dollars for homeless housing since 2019 — over $75 million of it through the Los Angeles Homeless Services Authority, or LAHSA.

The new cases allege about $12 million in misappropriated funds — almost all of it by Young.

The bribery charges are against Lakiya Malone, an employee of the nonprofit Special Service for Groups, or SSG, who was responsible for referring homeless people to LAHSA-funded housing. Prosecutors say Malone took roughly $180,000 in bribes from Alexander Soofer, head of the now-defunct nonprofit Abundant Blessings, and in exchange steered him "ghost" participants — so he could bill for services never rendered.

Lakiya Malone, 48, of South Los Angeles

Donye Mitchell, 55, of Orange

(

Courtesy Department of Justice

)

“She was supposed to guard the money, and instead she took bribes,” Essayli, the first assistant U.S. attorney for the Central District of California, said.

In a statement, SSG said it has been working with federal prosecutors “to ensure that any responsible individuals are held accountable” and has strengthened its “protocols and compliance.”

Charges against Soofer were announced in January. Authorities announced Wednesday that he has agreed to plead guilty to wire fraud and money laundering. Soofer admitted in his plea agreement to the alleged bribery scheme.

According to prosecutors, Soofer also admitted to "pocketing at least $2 million in taxpayer money for his own personal enrichment and for businesses unrelated to homeless housing," and that he has agreed to forfeit the money to the U.S. government. Prosecutors previously alleged he diverted a much larger amount: at least $10 million.

An LAist investigation found LAHSA kept awarding millions in contract renewals to Soofer’s group even after LAHSA’s own compliance team labeled it "high-risk" for, among other things, billing for services while reporting no enrolled participants.

The third defendant announced Wednesday is Donye Mitchell of the nonprofit Big Blue Umbrella. Mitchell is accused of lying about his experience to land a $1.2 million county-funded grant, receiving $315,000 and using those funds for personal expenses, including bail for a domestic violence arrest and video games. Officials said he's believed to be in Las Vegas and hadn’t been arrested as of Wednesday morning.

Mitchell is “a convicted fraudster, by the way,” Essayli said. He was convicted in 2011 of defrauding California unemployment benefits, according to the criminal complaint in the new case, and was ordered in 2012 to compensate the state $6 million.

The county funds he’s accused of stealing were awarded by a county vendor in 2024 — well after his fraud conviction.

LAist has left phone messages for Young's and Malone’s lawyers inviting their response to the charges and will update this article if they respond. It is unknown if Mitchell, who has not yet been arrested, has a lawyer.

Prosecutors' critique 

Essayli and L.A. County District Attorney Nathan Hochman criticized what they called a glaring lack of oversight of massive spending on homeless services. Hochman cited a court-ordered 2025 report that found L.A. city officials failed to properly track $2.3 billion in homeless funds, largely by outsourcing to LAHSA — which the review found failed to collect accurate data on its vendors and hold them accountable.

"We have not seen the results you would expect for billions of dollars being spent," Hochman said.

“This is the beginning of these prosecutions,” he added.  ”Many more” are expected in the coming months, he said.

Continuing trouble for LAHSA 

The new charges were announced the day after LAHSA's governing commission decided to give up its responsibility for federal dollars, including applying for roughly $240 million a year in federal homelessness funding and running the annual homeless count.

Also on Tuesday, Mayor Karen Bass skipped a congressional hearing on LAHSA's fraud problems, calling it a "politically motivated" attack.

LAHSA, now led by Interim CEO Gita O'Neill, said in a statement Wednesday that it has "zero tolerance for fraud, waste, or the exploitation of public resources" and commended prosecutors’ action.

The agency said it terminated its contracts with Young’s nonprofit in June after evidence of wrongdoing emerged, and is pursuing recovery of cash seized from Young. The statement added that LAHSA fully cooperated with the federal task force and that no LAHSA staff are implicated — only "external provider executives and outside contractors.”

Essayli was asked Wednesday whether LAHSA's past or current leadership has been culpable.

"That's actually a very difficult question to answer," he said.

"It is not against federal law to be incompetent, unfortunately. I wish it were,” Essayli said. “So just because the people at the helm did not do a good job, that does not give us the authority to arrest them."

“ I assure you, if anyone in power engaged in violation of federal law, we will not hesitate to charge them.”