The chief govt of one in every of Los Angeles’ most outstanding homeless service nonprofits has resigned from a authorities oversight board amid a federal investigation into one of many nonprofit’s actual property dealings.
Los Angeles Mayor Karen Bass initially appointed Weingart Heart CEO Kevin Murray to the board of the Los Angeles County Reasonably priced Housing Options Company, which is tasked with spending a portion of Measure A gross sales tax income on reasonably priced housing and homeless prevention.
Final week, a Bass consultant emailed LACAHSA workers that Murray submitted his resignation to the mayor’s workplace on Nov. 29 and mentioned the workplace can be in contact quickly relating to a alternative.
Murray and Bass’ workplace didn’t instantly reply to requests for remark. Murray is now not listed on the LACAHSA board’s webpage.
A number of weeks in the past, the Weingart Heart positioned Murray and his director of actual property improvement, Ben Rosen, on depart whereas the nonprofit carried out an inside assessment into its housing initiatives.
In an announcement on the time, Weingart didn’t specify which housing initiatives had been below assessment, however the transfer got here after The Occasions raised questions on two initiatives, together with one in Cheviot Hills that’s now the topic of a federal investigation.
In October, federal prosecutors accused an actual property govt of utilizing faux documentation to purchase a nursing dwelling in Cheviot Hills for $11.2 million, then rapidly promoting it to Weingart for $27.3 million, which used authorities cash to fund the acquisition and eventual conversion to homeless housing.
The mission has but to open and prosecutors have mentioned they’re investigating what the town of Los Angeles and Weingart knew in regards to the govt’s actions.
Murray, a former state senator, informed The Occasions in August that he had “no prior relationship with the vendor and no persevering with relationship” and that taxpayers paid truthful market worth for the property.
A Weingart spokesman couldn’t instantly reply questions on Murray and Rosen’s present standing on the nonprofit.
After Rosen was positioned on depart a number of weeks in the past, his legal professional informed The Occasions his consumer is a “career-long advocate of housing for individuals experiencing homelessness” who welcomed Weingart’s assessment.
Earlier this yr, Bass appointed Rosen to serve instead for Murray on the LACAHSA board, explaining she did so at Murray’s request.
Bass withdrew the appointment following announcement of the federal investigation into Weingart’s Cheviot Hills transaction.
