A city-owned property near Venice Beach that was intended to provide housing for the homeless has remained largely unused for years as the project has faced ongoing delays and rising costs.
The building, a former Ramada Inn located on Washington Boulevard, was purchased by the city in 2020 for about $8 million. The plan at the time was to use the hotel as temporary housing for people experiencing homelessness.
However, the site has spent much of the time since then sitting mostly vacant while city officials worked through permit approvals, funding issues and construction planning. As those delays mounted, the estimated cost of the project grew significantly. The total price is now nearing $20 million for a redevelopment that will create 32 housing units, bringing the cost to roughly $625,000 per unit.
Councilwoman Traci Park, whose district includes the property, criticized the situation and said taxpayers have spent millions on a building that still has not been put to use.
The property at 3130 W. Washington Blvd. was acquired in December 2020 with the intention of operating as interim housing. But in October 2022, the shelter program there was shut down and the residents were relocated so the structure could be redeveloped into permanent supportive housing.
At the time, then-Councilmember Mike Bonin backed the decision to convert the site from temporary shelter space into long-term housing. After the building was cleared, the project ran into a series of obstacles. A report released in January by City Administrative Officer Matthew Szabo found that the process of obtaining permits alone took about 20 months.
Funding also proved to be a challenge. The nonprofit organization overseeing the project, PATH Ventures, secured roughly $5.5 million from a combination of public and private funding sources but still needed additional financing. City officials later approved another $1.5 million designated for supportive housing to help fill the gap, and PATH Ventures obtained a $1.25 million construction loan from Genesis LA.
The financing agreements were finalized in September 2025, allowing construction work to begin the following month. The project is now expected to be completed in December 2026.
Park, who assumed office in December 2022, said the project stalled because the city acquired properties before securing approvals, final plans and service arrangements. She said the building should already be serving people in need and instead has become an example of the city’s mismanagement of similar initiatives.
The Venice project is not the only one facing delays. According to the same report from the City Administrative Office, the city and the Housing Authority purchased 45 properties intended to provide housing, totaling 3,098 beds or units.
So far, about 2,054 of those units are either occupied or in the leasing process. That means 1,044 units funded by taxpayers are still not in service, with many still undergoing renovation, conversion or working to secure the necessary financing to move forward.