🚨 URGENT! DEADLINE MARCH 23, 2026 — YOUR TAXPAYER DOLLARS AT RISK! 🚨
Building with public money
$77.4M in Taxpayer Exposure — Built on Flawed Numbers
11-story tower next to single-family homes
This image is to scale. An 8-story metal tower next to a house on 14th Street.
$620K/unit (2022)
$1.11M/unit (2024)
$77.4M Total
$13.5M HTF
$6M Land Value
$86.9M → $133M
Gap $242K
~$942K/unit
+53%
+79%
+50%
+850%
077.4M
013.5M
006.0M
086.9M
Santa Monica Taxpayers

3 Conflicted Council Members · $20 Million of YOUR Money · Residents Ignored

Documents show undisclosed communications and political relationships!

Hit this button now to send a letter

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March 23, 2026 — Final day for public objections to HUD before federal funds are released.

086.9M
133.0M
077.4M
013.5M
006.0M
242K
217
017
850%
001.4M
850% Increase
217 Calls
(8 months)
17 Calls
(Before)
Arson: 2
Assault: 2
Battery: 3+
Elder: 1
Psych Hold: 4
$1.4M Missing
CITY LAND
HTF
DEVELOPER
PROJECT COST
2022 — $620K / unit
2023 — Cost escalation begins
2024 — $1.11M / unit
$77.4MTotal Project Cost
$13.5MCity Housing Trust Fund
$6MLand Value Given Away ($1/yr · 55 yrs)
~$1.2MTrue Cost Per Unit
~$870KAvg Santa Monica Condo
2500+Residents Oppose This Project
The Bait & Switch

Bankrupt City Buys Building for Developer

The City told the taxpayers that there would be no cost to us. That was a lie!

Unleashed store on 14th Street

1402 Wilshire Blvd (Corner of 14th & Wilshire)
Iconic building will be demolished by the City!

Corner of 14th Street rendering
Lost parking → businesses lose customers
Tri-morbid patients next to seniors and schools
Economic death spiral → how does this bring business back?

What about the safety of our kids? This is located 1.5 blocks away from Lincoln Middle School.

You lose parking. You lose a beloved business. You lose safety. You get the bill.

Documented Facts:

The Pattern

Missed Deadlines · Hidden Litigation · Cost Overruns · Your Money at Risk

The same pattern repeats itself across every aspect of this deal — and Santa Monica taxpayers are left holding the bag.

Missed financing deadlines

Federal grant never came through. Tax credits lost. Timeline pushed back.

Undisclosed material litigation

Lawsuit hand-delivered December 17. HCHC never told lenders.

Repeated cost escalations

Venice Dell: 53% cost overrun. Same developer, same executive, same conduct.

No consequences

Despite documented failures, HCHC receives another chance — and $13.5M.

Your money on the hook

Unlimited gap financing authorized. Final taxpayer liability: unknown.

What due diligence was performed before committing taxpayer money to a developer with this track record?

Who benefits from these decisions?

This is why federal authorities—FBI, HUD OIG, U.S. Attorney—must investigate the relationships, communications, and financial interests behind this decision.

Stop this now, or Santa Monica risks losing the integrity of its process and the trust of its residents!

What Happened in 30 Seconds

Understand the story before the legal details

1

City gave away $6M in land + committed $13.5M taxpayer funds to developer Hollywood Community Housing Corporation (HCHC)

2

Three officials with conflicts of interest approved it anyway — motion maker, seconder, and a third who took campaign cash from the service provider

3

The deal assumed a federal grant that never came through — taxpayers had to bail it out with $13.5M

4

City never did proper environmental review before signing — used a legal shortcut now being challenged in court

5

Federal deadline is March 23 — to protect our taxpayer dollars and transparency.

City On the Record

The City Has Acknowledged — and Is Still Moving Forward

✓ City Acknowledgment — January 13, 2026

At the January 13, 2026 City Council meeting, City leadership acknowledged that the HCHC DDA is under active review. The City is aware of the ongoing litigation, the three documented conflicts of interest, and the 2500+ residents who oppose this project. The Council's own direction was to "ensure that we engage in good governance practices and revote on all items consistent with the FPPC ruling." The HCHC matter is being assessed by staff — yet no funds have been clawed back and the federal RROF is proceeding.

Federal Objection — HUD (24 CFR §58.76)

Five Grounds to Stop the Release of Funds

HUD must accept objections when the responsible entity committed funds before environmental clearance or omitted required steps. The public record establishes all five grounds below.

Ground 01

Service Provider Safety Concerns

The People Concern (TPC) — the project's service operator — has documented performance issues:

  • Drug Activity at Federally-Funded Facilities: TPC CEO John Maceri publicly admitted (video timestamp 2:43) distributing "harm reduction supplies: needles, Narcan, pipes, torch lighters" at The Laurel (1413 Michigan Ave) and confirmed TPC operates as housing first, low barrier, no drug testing provider. Video Evidence (Timestamp 2:43)
  • Conflict of interest: TPC CEO gave $400 to Councilmember Zernitskaya before vote — FPPC Complaint Natalya Zernitskaya
  • Safety record: Similar TPC facility saw 850% increase in police calls (217 vs. 17 baseline) including arsons
  • Financial compliance: $1.4M in unreconciled federal funds per Moss Adams audit — Report
21 U.S.C. §856 · 2 CFR §200.302 · FPPC §84308
Ground 02

Inadequate Tribal Consultation

Tribes contacted February 23, 2026 — 9 days before FONSI. The Gabrielino Tongva responded the same day citing proximity to a recorded Native American village. FONSI issued 9 days later with zero follow-up.

36 CFR §800.4(b)(1)
Ground 03

Conflict-Tainted Approval

Three councilmembers voted December 17, 2024 with undisclosed conflicts. Under Petrovich v. City of Sacramento (2001), a single conflicted vote can void a quasi-judicial action. FPPC complaints are filed and on record.

FPPC §84308 / §87100
Ground 04

Funds Committed Before Environmental Review

City committed $13.5M and signed a 55-year ground lease on December 17, 2024 — 14 months before the FONSI was issued March 6, 2026. The Environmental Assessment wasn't prepared until January 2026.

24 CFR §58.22 Violation
Ground 05

Outdated Noise Study

Noise assessment used pre-pandemic 2019 traffic data. First-floor outdoor area sits at exactly 65 dBA DNL — the precise HUD "Normally Unacceptable" boundary. Undercount places elderly residents in a hazardous noise zone.

HUD Noise Policy Non-Compliance
The Warning Nobody Heeded

A Pro-Housing Org Said Stop. The City Said Go Anyway.

Santa Monicans for Renters' Rights (SMRR) — one of Santa Monica's strongest pro-housing, pro-tenant organizations — warned City officials in writing, with numbers and citations, that this project was built on an unsound financial foundation.

When SMRR's warnings are combined with three conflicted votes, undisclosed ex parte communications, and continued action after formal notice — the City's exposure is documented, foreseeable, and cumulative.

Documented Conflicts of Interest

Three Votes. Three Conflicts. Zero Disclosures.

FPPC complaints are filed. All evidence is public record.

Jesse Zwick
Dist. 2 · Seconded Motion
FPPC Advice Letter A-25-153 confirmed disqualifying conflict — employed by the Housing Action Coalition (housing lobbying org). Sent ex parte emails to HCHC's director from the council dais during public comment: "30 neighbors are angrily denouncing the project." On closed-session day, asked Letts: "Is this the course of action you want to pursue?" — and received strategic direction. Prior HCHC relationship through Bonin's Venice Dell project.
FPPC ComplaintAdvice Letter A-25-153Ex Parte Violations
Caroline Torosis
Mayor · Made the Motion
Senior Policy Director for LA County Supervisor Holly Mitchell — whose office is listed as HCHC's "Government Partner" on HCHC's own public website. Torosis made the motion to approve. LA County CPRA response described her HCHC communications as "voluminous." At the meeting, she told HCHC's director: "Having known your track record across SoCal, I feel confident" — a pre-existing undisclosed relationship.
FPPC ComplaintGov. Code §87100
Natalya Zernitskaya
Councilmember · Voted Yes
Received $400 in campaign contributions from The People Concern CEO John Maceri — HCHC's designated supportive services provider — within 12 months of the vote ($250 on May 28 and $150 on June 26, 2024). California's Levine Act requires mandatory recusal when a contributor has a financial interest in the proceeding. She voted anyway, without disclosure.
FPPC ComplaintLevine Act §84308
Evidence Documents

Download the Official Filings

All documents are part of the public record. Share with neighbors, representatives, and federal agencies.

⚖️
FPPC Complaint — Jesse ZwickAdvice Letter A-25-153 · Ex Parte
⚖️
FPPC Complaint — Caroline Torosis§87100 · Voluminous Comms
⚖️
FPPC Complaint — ZernitskayaLevine Act §84308 · $400 Contribution
📄
SMRR Warning LetterPro-Housing Org Warns of Financial Risk
🏛
City Council Agenda Item 11AStaff Report · December 17, 2024

Take Action — Deadline March 23, 2026

Send Your Objection to HUD, DOJ & the City

One click sends your objection to all recipients simultaneously. Personalize it with your name and address before sending. Please add the website: https://smtransparency2.netlify.app/ to see the evidence.

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Frequently Asked Questions

Q: Does this mean I'm against affordable housing?

A: No. This challenges whether the process was legal and whether taxpayer money is protected. It keeps the city and council accountable. It protects the right of Santa Monica residents and the city.

Q: What's the single biggest problem with this deal?

A: Three officials with conflicts of interest voted to commit $19.5M in public assets (cash + land). Under California law (Petrovich v. Sacramento, 2001), even one conflicted vote can void the entire quasi-judicial action.

Q: Why should I send an objection if the City already knows about this?

A: HUD is a separate federal agency. Your objection creates a federal record that HUD must review before releasing funds. The more voices on record, the harder it is for federal agencies to ignore procedural violations.