Venice homeless housing development continues in limbo as councilmember declares the project dead
- The California Coastal Commission approved a 120-unit affordable housing project in Venice on Wednesday.
- The decision came one day after a city panel denied a land transfer to the developer, a move that an L.A. city councilmember said effectively killed the housing plans.
- The back-and-forth continues years of uncertainty over Venice Dell with a former mayoral staffer saying he was directed to stop working on the project in a “highly unusual” move.
The fate of a large proposed affordable-housing development along Venice’s famed canals remains murky this week after one regulatory decision cleared the way for final approval just as another left it all but dead.
The continued uncertainty adds to the eight years of public debate over the Venice Dell project, which aims to provide 120 apartments for formerly homeless and low-income residents on a city-owned parking lot in the once working-class and now wealthy beach community.
Even among contentious affordable housing proposals, Venice Dell stands out in the intensity of litigation from all sides, confusion over the project’s status and the machinations of Los Angeles politicians determining if it will break ground. A former staffer for Mayor Karen Bass responsible for expediting affordable housing developments told The Times that his superiors directed him to stop advancing Venice Dell through city bureaucracy two years ago after local elections ushered in project opponents in key roles. He called the direction “highly unusual.”
A lawsuit alleges that Mayor Karen Bass, Councilmember Traci Park and City Atty. Hydee Feldstein Soto are stalling a low-income housing plan in Venice.
The project’s years of limbo were supposed to be clarified this week after a hearing in front of the California Coastal Commission, which governs development along the coastline. On Wednesday, the commission voted in favor of Venice Dell after negotiations with developers, Venice Community Housing and Hollywood Community Housing Corp. led to a reduction of 20 units to better accommodate public access on the site to a boat launch in the canals. Besides the housing, the project includes 278 parking spaces in garages to replace the existing public surface lot and provide for residents.
Though the project has not lined up its financing, the coastal panel’s approval was considered one of its last major regulatory hurdles.
Yet the commission’s decision came a day after the city’s Board of Transportation Commissioners, which oversees city-owned parking lots, voted to deny transferring the land to the developers. The board instead called for expanding parking, shuttle services and other mobility options on the site while allowing affordable housing on a separate nearby city-owned parcel.
This action effectively killed the project, said Councilmember Traci Park, who represents Venice and opposes the development.
“The commission declined to convey the lot,” Park said. “There is no lot to build it on.”
Becky Dennison, co-executive director of Venice Community Housing, disputed that the city commission’s decision meant the end of the project, calling it instead “a political ploy.” Dennison said the Coastal Commission’s approval will force the mayor and City Council, which previously voted to advance Venice Dell, to take action and reveal their commitment to providing affordable housing in a neighborhood that has very little.
“It’s time to put your money where your mouth is or kill a project that could house all of these unhoused and low-income people,” Dennison said.
The Venice Dell saga began in 2016 when the city asked for developers to propose building affordable housing projects and replacement parking on the site. Six years later, the council approved a development agreement for Venice Dell with support of then-Councilmember Mike Bonin, who represented the community.
Later that year, Park and City Atty. Hydee Feldstein Soto, both of whom opposed the project on the campaign trail, won their elections as did Bass, who did not specifically weigh in.
Once they took office, the city’s work on the project stalled, said Azeen Khanmalek, who served in roles to advance affordable housing developments in the mayoral administrations of Bass and her predecessor, Eric Garcetti.
Venice Dell was handled differently than the more than a half-dozen other projects he oversaw under both mayors, Khanmalek said. He said that his superiors told him to not to follow typical procedures to further its approvals based on perspective from the city attorney’s office and that the mayor acceded to that view.
“The communication was basically to hold off and discontinue normal activities that I would normally undertake to try to move the project forward,” said Khanmalek, who left Bass’ office in late 2023. (Khanmalek now works as executive director of Abundant Housing LA, a pro-development organization but emphasized that he was speaking in his personal capacity.)
Khanmalek said he pushed internally to continue working on Venice Dell but was rebuffed.
Bass spokesperson Zach Seidl said in a statement that the mayor’s office worked with city departments on funding applications and deadline extensions for Venice Dell “even in the midst of litigation and a challenging road to approval.”
Bass did not commit to backing the project after this week’s decisions.
“The mayor remains supportive of affordable housing being built in this area,” Seidl said.
Bass put new restrictions on her plan to speed up the approval of affordable housing, taking out properties that are in historic districts, hillsides with high fire risk and other areas.
This summer, low-income housing advocates sued the city alleging that Feldstein Soto and Park, with the tacit support of Bass, violated fair housing laws by slow-walking the project. The case is ongoing. That action followed two unsuccessful suits by Venice neighborhood groups challenging its approval.
Spokespeople for Feldstein Soto did not answer questions about the allegations that she stalled Venice Dell, though the city has denied the claims in court filings. In late November, the city attorney sent a letter to the Coastal Commission requesting it delay its action because of the uncertainty surrounding the land transfer. One of her deputies suggested to the panel at its meeting Wednesday that the transportation commission’s decision killed the project unless the City Council overturns the action by early next month.
Park said she did not interfere with the city’s process.
“This was a project that was mired in controversy and litigation, and I have respectfully remained on the sidelines, waiting for those processes to play out, the litigation and the necessary city steps that needed to be taken,” Park said. “Those things have now happened.”
Park said she supported the transportation commission’s decision, which she said would balance the need for resident and tourist parking in Venice with affordable housing on the nearby site. Though a new project would require starting from scratch, including soliciting developers and gaining Coastal Commission approval, she backed expediting its approval.
“The board has given us a pathway to deliver on all of the important policy goals, affordable housing and mobility options that really could set an example all across the city and the region,” Park said.
Gov. Gavin Newsom and Atty. Gen. Rob Bonta announced a lawsuit Monday against the city of Norwalk over its ban on new shelters and homeless housing.
At their meeting Wednesday, Coastal Commissioners seemed weary of the years of debate. After more than four hours of discussion and public testimony, Commissioner Dayna Bochco said, “I can’t say I learned anything new today” except about the city transportation commission hearing.
Bochco said the city would make the ultimate decision whether Venice Dell is built.
“There’s only one thing in my mind that we can do today and that is to approve this project,” she said. “It doesn’t mean it will be built. The city will do whatever it seems to think it wants to do. But we’re not going to be the impediment.”
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