Bad bets, dysfunction: Inside the collapse of the Skid Row Housing Trust

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Bad bets, dysfunction: Inside the collapse of the Skid Row Housing Trust
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The Skid Row Housing Trust was a model for nonprofits housing homeless people in Los Angeles. Behind the scenes, it was imploding — leaving tenants in squalor.

Los Angeles housing officials are planning to step in with immediate help to stabilize residential buildings that the financially strapped Skid Row Housing Trust is unable to maintain in habitable condition.

Next, the board turned to one of the internal candidates to fill the leadership void. Lee Raagas, who began consulting for the trust on growth and public funding in 2015, was elevated to chief operating officer in 2018, then tapped as chief executive. The Edward’s tenants were moved in 2018 before the trust had financing for the new construction. And that funding would never come.2020 annual report

Renderings of a proposed multi-use Skid Row Housing Trust development in South L.A., which would have included “a manufacturing plant that specializes in contained, indoor growth of cannabis and cannabis related products.” New board chairman Simon Ha responded to the complaint with a letter saying an investigation into the allegations against Raagas “did not result in sufficient evidence to substantiate the claims,” but that “there is a cultural problem and a perception problem arising out of lack of communication, confusion surrounding current procedures and processes, and a lack of clarity on roles, responsibilities, and expectations.

These included negative cash flow at 60% of its projects with state funding, liabilities dwarfing its assets, high staff turnover and insufficient resources to complete five projects in development.The agency found that the trust had removed tenants from the Edward, improperly used $100,000 from the Edward’s reserves for operating costs, kept units at the Simone vacant to

In November, state housing officials visited more than a dozen of the trust’s properties and found 250 habitability violations. Leaders of other skid row organizations told The Times that they have unpaid bills for services to the trust but are trying to resolve them without going to court.deplorable conditions at St. Mark’s Hotel.

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