The Brief

One of L.A.’s biggest homeless service providers has been awarded over $100 million in taxpayer funds while failing to comply with federal audit mandates, according to an LAist review of federal government records.

The downtown L.A.-based nonprofit Weingart Center is at the heart of a controversial property purchase under federal investigation and discussed in a recent criminal indictment of the developer who sold the property.

LAist found Weingart Center also has been continuously out of compliance with federal deadlines to turn in audits — known as “single audits” — since early 2022, based on a review of records in the federal database where they have to be uploaded.

The audits for fiscal years 2022 and 2023 were each finished a year and a half after the federal deadlines, according to the dates on those reviews. The audits show multiple failures by Weingart Center to properly account for taxpayer money that were not remedied from one year to the next.

The group still has not filed an audit that was due nine months ago for its fiscal year ending in April 2024, according to the federal database and L.A.’s regional homeless services agency.

Consequences for failing to turn in a single audit by the deadline can be significant. Federal agencies can cut off any further funds to groups that are overdue, and L.A.’s homeless services agency can do the same, according to a contract with Weingart Center.

Weingart Center has received over $100 million in taxpayer funds while it’s been out of compliance with turning in the audits, according to its latest public tax filing and an LAist review of the audits.

Among the funds the group received while out of compliance is a $9 million no-bid contract L.A. Mayor Karen Bass’ office directed officials to award Weingart Center in 2023 to run the largest shelter site in her signature homelessness program.

A Weingart Center audit also was overdue when the mayor and state officials greenlit the group’s taxpayer-funded purchase of a senior living facility in Cheviot Hills. Federal prosecutors earlier this month announced charges against the man who sold the property to Weingart Center.

Former state Sen. Kevin Murray, who has been Weingart Center’s president and CEO since 2011, has not returned LAist’s messages seeking comment.

Murray and Weingart Center’s chief of real estate development, Ben Rosen, have been placed on leave, according to the L.A. Times. Rosen also has not responded to LAist’s request for comment.

The nonprofit’s board has commissioned an outside investigation into the valuation of housing projects, Weingart Center spokesperson Stefan Friedman told LAist. He did not respond to questions about the audit failures.

Murray previously served in the state Legislature with Bass, who has not responded to a request for comment for this story.

Murray is an attorney and a licensed real estate broker. In addition to leading Weingart Center, he also has a local government role overseeing homelessness spending in the region.

Bass appointed him to the board that oversees hundreds of millions a year in government spending on housing and other programs from the Measure A tax approved by L.A. County voters last year.

The spending panel — known as LACAHSA — oversees just over a third of the roughly $1 billion expected to be generated each year from Measure A. Its job is to create new affordable homes, preserve existing lower-rent housing and prevent people from losing the housing they already have.

This September, Bass also nominated Rosen — the Weignart Center real estate chief — to the spending board as an alternative city appointee to step in when Murray can’t attend. She withdrew that nomination a few days after federal authorities announced their investigation into the property flip.

‘Disappointed’ it wasn’t caught sooner

A large share of the federal money Weingart Center received was distributed by the L.A. Homeless Services Authority, a joint city-county agency known as LAHSA.

LAHSA’s contract requirements say its vendors, like Weingart Center, have to comply with the single audit requirements in federal law. Those requirements say organizations that receive a certain amount of federal money — such as Weingart Center — have to submit the audits within nine months after their fiscal year ends.

Single audits are “the single most important way” to assess an organization’s ability to manage federal dollars, federal officials say.

Among other things, they check whether a group has an accounting system to accurately document the spending.

Weingart Center was long overdue turning in two annual audits for 2023 and 2024 to LAHSA when LAist contacted LAHSA on Oct. 23.

Weingart Center has since submitted its 2023 audit to LAHSA, but the 2024 audit remains overdue.

“We are currently evaluating options regarding next steps,” LAHSA spokesperson Ahmad Chapman told LAist on Nov. 20.

LAHSA’s new interim CEO, Gita O’Neill, told LAist she’s “disappointed” the homeless services authority didn’t catch Weingart Center’s late audits earlier and that she’s been working to beef up oversight of contractors.

O’Neill said LAHSA sent a notice of non-compliance to Weingart Center about the overdue audit and is reviewing the late-submitted audits to see “if additional action is needed.”

At the October meeting of LAHSA’s governing commission, O’Neill shared a plan to improve the agency’s oversight of contracts, which she told LAist will strengthen oversight over issues like single audits. O’Neill, who started at LAHSA in late August, said the reorganization plan would roll out publicly in a few weeks later.

“Every member of this reorganized team will receive training for their new role so we can more effectively hold our [service] providers to the standards we set for them,” O’Neill said. “This is an important step toward holding ourselves and our providers more accountable.”

What state officials say

Aside from LAHSA, the other major agency awarding federal dollars to Weingart Center is the state’s Department of Housing & Community Development, or HCD.

Records show HCD awarded tens of millions of dollars in federally funded grants to Weingart Center under the state’s Homekey program while the group has been out of compliance with turning in the audits.

In an emailed statement, a spokesperson for HCD said Weingart Center was not out of compliance with its award-granting process, which the agency called “very thorough.”

HCD’s agreement with Weingart Center for a 2024 grant says the nonprofit is responsible for complying with the single audit requirements.

The HCD spokesperson said the state housing agency is not responsible for reviewing the federal audits. Instead, the spokesperson said the audits are received and reviewed by the state controller’s office, which then identifies issues and discusses them with HCD.

The controller’s office told LAist it did not receive single audits from Weingart Center or any other nonprofit.

Problems found in latest available audit

The most recent available single audit of Weingart Center, covering fiscal year 2023, was not completed until July 2025, a year and a half after it was due.

That audit report, which LAist obtained from LAHSA, said Weingart Center followed the most important requirements for nonprofits receiving federal funds but also found a range of accounting failures.

The problems identified by auditors included:

• Weingart Center did not include over $50 million in federally funded grants, via HCD’s Homekey program, on the list of federal dollars it handled. The review also found Weingart Center failed to have its financial records checked for accuracy by someone who didn’t prepare them, auditors wrote. 
• Weingart Center did not have an accounting team with enough experience or size to handle housing developments, the review found — despite the problem being flagged in the prior year’s audit. This was one of six problems identified in the previous year's audit that the 2023 audit showed as ongoing.
• Other repeat issues flagged by the audit include Weingart Center failing to properly document money coming into the organization, management failing to catch errors in how it was accounting for money and failing to document how it picked vendors — including the general contractor for a Homekey housing project.

The Weingart Shelby purchase

Weingart Center has been the focus of recent controversy over its use of $27 million in taxpayer funds to buy a senior housing complex from an investor who had just purchased it for less than half that price.

As Weingart Center’s leader, Murray signed key documents in the purchase of the property on Shelby Drive in Cheviot Hills, according to contract records produced by the city in response to LAist public records requests. The documents he signed include a purchase agreement in which he agreed to have Weingart Center keep the seller’s name confidential forever from the news media and general public, with narrow exceptions.

That purchase now is the focus of a federal investigation and was referenced in an October indictment of the man who sold the property to Weingart Center. It was funded by the state’s Homekey program and the city of L.A.

Murray previously told the L.A. Times he had “no prior relationship with the seller and no continuing relationship” and that taxpayers paid fair market price. He has not returned LAist’s messages seeking comment on the property deal.

LAist also has been investigating the sale of the Shelby property and found numerous discrepancies. They include an appraisal report Murray commissioned and submitted for taxpayer funding that showed false information about the purchase deal and the property’s ownership.

[Click here to read LAist’s article exploring the property flip, published today.]

Price concerns about another Murray-led project under same state grant program

The Shelby purchase is not the only Weingart Center property deal that has faced scrutiny.

This summer, city leaders in Torrance publicly alleged the group may have been massively overpaying for a hotel property under a new round of taxpayer-funded Homekey grants. For that site, Weingart Center had teamed up with L.A. County to apply for the grant.

It was one of several criticisms Torrance officials cited in urging the county not to proceed. Ultimately, the project was canceled.

Records show Murray had signed a purchase agreement for Weingart Center to buy the Torrance hotel for $30 million in taxpayer funds. An appraisal he later commissioned found its fair market value was close to the amount he agreed to.

But an appraisal commissioned by Torrance estimated it was worth just $10 million — a third of what Weingart had agreed to pay with taxpayer dollars.

Property valuations are being reviewed by the outside law firm hired by Weingart Center’s board, according to the nonprofit’s spokesperson.

Officials at the county government’s housing agency, known as LACDA, say the appraisal Weingart Center submitted for the Torrance purchase “was conducted by a reputable appraisal company and did not raise concerns.”

Torrance officials, meanwhile, said they had “serious concerns” about how much taxpayers would be paying.

City leaders sent a letter urging the state to reject the grant application.

“This purchase price appears significantly inflated and represents a potential misuse of taxpayer dollars,” they wrote.

This story first appeared on The LA Local.

Since 1977, Richard Santillan has been to every Opening Day game at Dodger Stadium. 

“The tradition goes from my father, to me, to my children and grandchildren. Some of my best memories are with my father and children here at Dodger Stadium,” Santillan told The LA Local, smiling under the shade of palm trees near the entrance to the ballpark Wednesday morning. He was there to protest the team less than 24 hours before Opening Day.

Santillan, like countless other loyal Dodgers fans, is grappling with his fan identity over the team’s decision to accept an invitation to the White House and owner Mark Walter’s ties to ICE detention facilities.

More than 30 people joined Santillan on Wednesday morning for a press conference held near 1000 Vin Scully Drive to convey a message directly to the team. 

“We are demanding the Dodgers stop participating in funding of inhumane treatment of families and do not go to the White House to celebrate with the criminal in chief,” Evelyn Escatiola told the crowd. “Together, we have the power to make a change.”

Escatiola, a former dean of East Los Angeles College and longtime community organizer, urged fans to flex their economic power by “letting the Dodgers know that we do not support repression.”

Jorge “Coqui” Rodriguez, a lifelong Dodgers fan, spoke to the crowd and called on Dodgers ownership to divest from immigration detention centers owned and operated by GEO Group and CoreCivic.

Jorge Coqui H Rodriguez speaks at a press conference outside Dodger Stadium on March 25, 2026, to demand the Dodgers not to visit the White House following their 2025 World Series win.

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J.W. Hendricks

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The LA Local

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In a phone interview a day before the protest, Rodriguez told The LA Local he did not want the Dodgers using his “cheve” or beer money to fund detention centers. 

“They can’t take our parking money, our cacahuate money, our cheve money, our Dodger Dog money and invest those funds into corporations that are imprisoning people. It’s wrong,” Rodriguez said. 

Rodriguez considers the Dodgers one of the most racially diverse teams and said the players need to support fans at a time when heightened immigration enforcement has become more common across L.A.

The team’s 2025’s visit to the White House drew ire from the largely Latino fan base, citing the Trump administration’s ongoing attacks on immigrants. 

In June, the team came under further scrutiny when rumors swirled online that federal immigration agents were using the stadium’s parking, which immigration authorities later denied in statements posted on social media accounts.

The team again came under fire after not releasing a statement on the impacts of ICE raids on its mostly Latino fan base at the height of immigration enforcement last summer. The team later agreed to invest $1 million to support families affected by immigration enforcement.

When he learned the Dodgers were pledging only $1 million to families in need, Rodriguez called the amount a  “slap in the face.” 

“These guys just bought the Lakers for billions of dollars and they give a million dollars to fight for legal services? That’s a joke,” Rodriguez said. “They need to have a moral backbone and not be investing in those companies.”

According to reporting from the Los Angeles Times, former Dodgers pitcher Clayton Kershawsaid last week that he is looking forward to the trip.

“I went when President [Joe] Biden was in office. I’m going to go when President [Donald] Trump is in office,” Kershaw said. “To me, it’s just about getting to go to the White House. You don’t get that opportunity every day, so I’m excited to go.”

The Dodgers have yet to announce when their planned visit will take place. 

Santillan sometimes laments his decision to give up his season tickets in protest of the team. His connection to the stadium and the memories he has made there with family and friends will last a lifetime, he said. On Thursday, he will uphold his tradition and be there for the first pitch of the season, but with a heavy heart.

“It’s a family tradition, but the Dodgers have a lot of work to do,” he said.

A local favorite mom-and-pop bookshop in Eagle Rock is facing displacement due to a steep rent hike. The owners say theirs is just one of several small businesses along Eagle Rock Boulevard struggling to keep up with lease increases.

Over the past 19 years, many in the neighborhood have come to love READ Books for its eclectic collection of used titles and shop dog Florence.

Co-owner Jeremy Kaplan said it’s been a delight to grow with the community over the years.

“Like seeing kids come back in, who were in grade school and now they’re in college,” Kaplan said.

But the building where Kaplan and wife Debbie rent was recently sold, and the rent increased by more than 130% to $2,805 a month, Kaplan said. He told LAist it was an increase his small business simply could not absorb.

Kaplan said he originally was given 30 days notice of the rent increase. After some research, assistance from Councilmember Ysabel Jurado’s office and some pro-bono legal help, Kaplan said he pushed back and got the 90-day notice he’s afforded by state law.

California Senate Bill 1103 requires landlords to give businesses with five or less employees 90 days’ notice for rent increases exceeding 10%, among other protections.

Systems Real Estate, the property management company, did not immediately respond to LAist’s request for comment.

What can small businesses do? 

Nadia Segura, directing attorney of the Small Business Program at pro bono legal aid non-profit Bet Tzedek said California law does not currently allow for rent control for commercial tenancies.

Outside of the protections under SB 1103, Segura said small businesses like READ Books don’t have much other recourse. And even then, commercial landlords are not required to inform their tenants of their protections under the law.

“There’s still a lot of people that don’t know about SB 1103. And then it’s very sad that they tell them they have these rent increases and within a month they have to leave,” Segura said.

She said her group is seeing steep rent hikes like this for commercial tenants across the city.

“We are seeing this even more with the World Cup coming up, the Olympics coming up. And I will say it was very sad to see that also after the wildfires,” Segura said.

Part of Bet Tzedek’s ongoing work is to advocate for small businesses, working with landlords who are increasing rents to see if they are willing to give business owners longer leases that lock in rents.

What’s next 

After READ Books posted about their situation on social media, commenters chimed in to express their outrage and love for the little shop.

While he looks for a new spot, Kaplan says he’s forming a coalition of local businesses and activist groups to see what can be done to help other small businesses facing similar displacement. He wants to address the displacement issue for businesses like his, which have made Eagle Rock the distinctive neighborhood that it is today.

Owl Talk, a longtime Eagle Rock staple selling clothing and accessories in a unit in the same building as READ Books, is facing a “more than double” rent increase, according to a post on their Instagram account.

Kaplan said he’s been in touch with the office of state Assemblywoman Jessica Caloza and wants to explore the possibility of introducing legislation to set up protections for small businesses like his, including rent-control measures or a vacancy tax for landlords. Kaplan said he also reached out to the office of state Sen. Maria Durazo.

By his count, Kaplan said there are about a dozen businesses within surrounding blocks that are at risk of closing their doors or have shuttered due to rent increases or other struggles.

When READ Books was founded during the Great Recession, Kaplan said he knew it was a longshot to open a bookstore at the same time so many were struggling to stay in business.

“It was kind of interesting to be doing something that neighborhoods needed. That was important to me growing up, that was important to my children, that was important to my wife growing up,” Kaplan said.

“And then somebody comes in and says, ‘We’re gonna over double your rent.”

Topline:

Frozen budget: Most of the city’s Bureau of Street Lighting budget comes from an assessment that people who own property illuminated by lights pay on their county property tax bill. The amount people pay depends on the kind of property they own and how much they benefit from lighting. A typical single-family home currently pays $53 annually, and in total, the assessments bring in about $45 million annually for the city to repair and maintain streetlights. Changing the amount the Bureau of Street Lighting gets from the assessment requires a vote among property owners who benefit from the lights.

Ballots: L.A. City Council’s vote gives city staff the green light to prepare and send out those ballots. Miguel Sangalang, who oversees the bureau, said at a committee meeting earlier this month that he expects to send out ballots by April 17. Notices about the ballots will be sent out prior to the ballots themselves.

Near unanimous vote: L.A. City Councilmember Monica Rodriguez was the only “No” vote Tuesday, saying she wanted to see a more current strategic plan for the bureau. Sangalang said the bureau developed a plan in 2022 that lays out how money will be spent. Councilmember Imelda Padilla was absent for the vote.

Vote count: Votes will be weighted according to the assessment amount. Basically, the more you’re asked to pay yearly to maintain streetlights, the more your vote will count. Ballots received before June 2 will be tabulated by the L.A. City Clerk.

How much more money: According to a report, the amount needed in assessments from property owners to meet the repair and maintenance needs of the city’s streetlighting in the next fiscal year is nearly $112 million.

Use of the money: Sangalang said at a March 11 committee meeting that the extra funds would be used to double the number of staff to handle repairs and procure solar streetlights, which don’t face the threat of copper wire theft. That would all potentially reduce the time it takes to repair simple fixes down to a week. Currently, city residents wait for months to see broken streetlights repaired. The assessment would come with a three-year auditing mechanism.