Fraud suspected as several low-income housing projects in SoCal face foreclosure

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When the old All-Star Lodge motel in San Bernardino was converted into low-income housing specifically for the homeless in 2022, many of the residents were overjoyed. Now some are saying their future is uncertain.

The old All-Star Lodge motel in San Bernardino property is one of several Project Homekey properties across the state of California in foreclosure.When the old All-Star Lodge motel in San Bernardino was converted into low-income housing specifically for the homeless in 2022, many of the residents were overjoyed.

"Somebody took the money and ran. And what we're waiting on now is to see if somebody will pick up the slack." The notices of foreclosure were taped to the front doors of many of the residents in late 2022. Two weeks later, the California Department of Housing and Community Development filed a lawsuit against the for-profit developer responsible for seven Project Homekey properties now facing foreclosure.

"The difficulties they find themselves in are of their own making. This is clearly spelled out in the complaint. HCD will continue to make every effort to ensure Homekey dollars go toward housing individuals experiencing homelessness, and not enriching developers."

 

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