The Brief

Lea esta historia en Español

In March 2023, Gov. Gavin Newsom stood before a crowd in Sacramento’s Cal Expo event center and made a promise: He’d send 1,200 tiny homes to shelter homeless residents in the capital city and three other places throughout the state.

The move was part of Newsom’s push to improve the homelessness crisis by quickly moving people out of encampments and into more stable environments. But more than a year later, none of those tiny homes have welcomed a single resident. Only about 150 have even been purchased.

Irontown Modular, one of six vendors the state chose to supply the tiny homes in Sacramento, San Jose, Los Angeles and San Diego County, is “absolutely shocked” that they’ve received no orders, said Kam Valgardson, general manager of the Utah-based company.

“The big problem is that the homeless people aren’t getting served,” Valgardson said. “I can complain as a business, but these homeless people are getting no support, no relief. The money’s been promised, but something’s broken in the process and nobody’s placing orders.”

There have been multiple delays and about-faces, over everything from the way the state is funding the units to the ability of local cities and counties to find places to put them. The state has suggested the delays are the fault of local governments. But tiny homes have failed to materialize even when local leaders moved quickly to approve a project site.

In some cases, it’s difficult to know exactly what’s holding up these projects. Communications involving the governor’s office are exempt from the California Public Records Act. Multiple requests by CalMatters for emails between the governor’s office and the cities and counties slated to receive the tiny homes were denied.

The state has started construction at the Sacramento tiny home site, and has made funding available to the other three cities and counties to buy their own tiny homes — delivering on its promise, Monica Hassan, deputy director of the state’s Department of General Services, said in an email to CalMatters. That bolsters the state’s “already substantial efforts to help tackle the homelessness crisis,” she said.

“Focusing solely on timelines diminishes the hard work of numerous individuals dedicated to providing much-needed housing,” she said.

Bringing tiny homes to California

The governor set up a big to-do when he made his tiny home promise in March of last year. He had sample tiny homes set up in the Cal Expo event center to use as a backdrop as he spoke. Local officials, including Sacramento Mayor Darrell Steinberg and San Jose Mayor Matt Mahan, flanked him to show their support and gratitude.

The venue also was strategically chosen — Sacramento planned to set up its allotted 350 tiny homes right there, at Cal Expo.

The plan was simple: The state would buy the tiny homes. The California National Guard would help prepare and deliver them, “free of charge and ready for occupancy.” Los Angeles was promised 500 tiny homes, Sacramento 350, San Jose 200 and San Diego County 150.

In October 2023, Newsom’s office gave its first concrete update: It revealed the six companies it contracted with to supply the tiny homes. They ranged from Pallet, a Washington-based company that specializes in sheltering unhoused people and already has multiple sites up and running in California; to AMEG, a company based outside of Sacramento that does disaster recovery and modular home building, but hasn’t built a community for homeless residents before.

But the project’s parameters changed. Instead of buying and delivering the units, the state decided to send several of the cities cash grants and let them order the tiny homes themselves. In San Jose, this left the city on the hook for more money than anticipated. The state awarded the city $13.3 million. Building the planned tiny homes for 200 people will cost $22.7 million, according to Mayor Mahan.

The mayor said San Jose told the state it would rather get tiny homes with en suite bathrooms, which are more expensive. But, Mahan said, San Jose was willing to cover the cost difference.

Instead, Newsom’s administration decided to provide cash grants in place of fully built tiny homes. It’s more efficient, Hassan said.

San Jose plans to open its tiny home site by July 2025.

“This is a solution that even under this timeframe is significantly faster and lower cost than many alternatives,” Mahan said. “And we’re grateful for the support, and when unexpected things come up, we just roll with the punches.”

Finding space to put these tiny homes — which is the responsibility of local cities and counties — also proved challenging. Plans to place Sacramento’s tiny homes at Cal Expo, where Newsom made his splashy announcement last year, fell apart. Instead, the state intends to set up 175 tiny homes on Stockton Boulevard. The county plans to install the remaining 175 on Watt Avenue.

In March, a year after Newsom named San Diego County as one of the tiny home recipients, the County Board of Supervisors finally approved a location for the project in Spring Valley. But there’s still a lot to do. The county has to test the soil and make sure the site is safe. After that, officials plan to start getting community feedback on the planned project. The county has not yet bought the tiny homes or set an opening date.

“Like every other homelessness policy solution, local governments are fundamentally the drivers and fundamentally the implementers,” said Jason Elliott, Newsom’s deputy chief of staff. “What the state has done is provide billions of dollars in new investment, dozens and dozens of bills to cut red tape and a policy framework that pushes for faster action to resolve unsheltered encampments. But as we have seen time and time again in California, local commitment and partnership is the other side of that coin.”

San Jose, in contrast to San Diego County, approved plans to set up tiny homes at the Cerone bus yard back in October. Even so, the state didn’t send San Jose a grant agreement until March, Mahan said.

Of the four communities promised tiny homes, the state has made the most progress in Sacramento. In late January and early February, the state bought 155 units from BOSS, a tiny home company based in Montebello in Southern California. Those units, most of which are 70 square feet, have been built and are ready to ship to Stockton Avenue, said Kris Van Giesen, senior vice president of community development.

After a brief delay due to rain, a contractor hired by the state has started building out the infrastructure at the Stockton Avenue site, Hassan said. It’s slated to open this fall.

In Los Angeles, city officials still haven’t finalized locations for their tiny homes.

“The city has been working diligently to evaluate potential sites, coordinate relevant departments and prepare plans that will be submitted to the state by the end of May,” Gabby Maarse, a spokesperson for the mayor’s office, said in an email.

No one is ordering tiny homes

Another big selling point of Newsom’s plan: His administration opened up the contracts so that other cities and counties (in addition to the chosen four) could use their own money to buy tiny homes from the six approved vendors, without going through a time-consuming and bureaucratic request for proposal process.

That move was supposed to help get more tiny homes deployed quickly, and therefore, move more people out of encampments. But CalMatters spoke with all six approved vendors, and none have received any orders through that process.

Several companies said a handful of cities have reached out and expressed interest. But without cash from the state, many are finding it hard to pull the trigger.

“A lot of these cities are struggling to find the funding they need,” said Amy King, founder and CEO of Pallet.

The cheapest Pallet tiny home approved by the state contract sells for $18,900. Add an en suite bathroom, and the price jumps to $55,350. That’s still considerably cheaper than other housing options.

Other companies said the state hasn’t done as much as it could to promote the effort. There’s no website that lists the vendors covered by the state contracts, the available models and price comparisons, said Anmol Mehra, co-founder of Plugin House, an Austin-based modular home company and one of the six approved vendors.

And the state insists on approving any promotional materials the vendors put out on their own, Valgardson said. After his company, Irontown Modular, accidentally posted marketing materials online prematurely, the state made them take the materials down and get approval. It took almost two months to get the green light, Valgardson said.

The tiny home companies said they had to jump through myriad hoops to secure the state contracts. Several said they had to design new products specifically to meet the state’s strict requirements for everything from vapor-resistant light fixtures to emergency exit lighting. It took months and cost tens of thousands of dollars, Valgardson said.

David Baldwin, owner of AMEG, expected orders to start rolling in by December of last year. It’s “a little bit frustrating,” he said.

“We’re ready to go,” he said. “We have people chomping at the bit that want to go help.”

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.”