Introduction to LACAHSA
A new Los Angeles County public entity soon will collect an estimated $400 million annually in taxpayer money to fund low-income housing developments across the county. Ryan Johnson, interim chief executive of the Los Angeles County Affordable Housing Solutions Agency, is tasked with spending those dollars to finally make a dent in the region’s unrelenting homelessness crisis.
Background and Selection of Ryan Johnson
Johnson was selected in September from 28 applicants. The agency’s board members — L.A. Mayor Karen Bass, all five county supervisors, other local elected officials and nonprofit leaders — touted Johnson for bringing a fresh perspective, someone who could identify creative ways of funding low-income housing. His resume laid out a history in finance, capital markets, and real estate development and investment through a career spent mostly outside of government.
Concerns About Johnson’s Background
But Times interviews with board members and a past employer raised concerns about Johnson’s background and the vetting that led to his assuming the job as interim head. Johnson said that in his last job as founder and CEO of Fulham Square Capital, he acquired 2,600 apartment units and converted them from market-rate to affordable housing within 14 months. After The Times raised questions about those transactions, the outside consultant that handled LACAHSA’s CEO search said it did not research individual deals, which it said was beyond the scope of its responsibilities. And citing confidentiality agreements with his investors, Johnson himself will not provide any specific information about the transactions.
Previous Work Experience
In his job before Fulham, Johnson worked as a vice president for a Bay Area nonprofit housing developer, and in his five months there, he said, he helped save the firm from bankruptcy. A spokesperson for the company disputed that claim, saying it was never at financial risk. Before moving to California, Johnson worked as a vice president for a South Carolina nonprofit investor. Over 15 months, Johnson said, he grew the firm’s assets from $5 million to $220 million. The nonprofit’s tax forms, however, show a much smaller increase. Johnson explained the inconsistency by saying that some of the deals were joint ventures with assets on other companies’ books.
Departure and Future of LACAHSA
In a late March interview, Johnson said he planned to be with the agency for the “long haul.” Less than two weeks later, he announced he was not going to pursue LACAHSA’s permanent CEO position when his one-year contract expires this fall. Johnson said he wanted to return to the private sector to have more flexibility to care for an ailing family member. The decision means LACAHSA will embark on its second national search for a CEO in two years, unsettling an agency that is just getting off the ground.
Overhaul of Hiring Process
Miguel Santana, the president and CEO of the California Community Foundation and vice chair of the LACAHSA board, said the need to find another leader and questions about Johnson’s background check mean the agency should overhaul its hiring process. LACAHSA is paying Illinois-based KEES Alford Executive Search up to $175,000 over two years to lead the search for an interim and permanent CEO. The firm said it used industry standards and conducted an appropriate search. Santana said the agency should consider contracting with a new consultant.
Role and Funding of LACAHSA
LACAHSA will receive more than a third of the estimated $1.1 billion raised annually by the half-cent sales tax increase approved by county voters in November and which took effect in April. The agency, founded through state legislation in 2022, is supposed to create affordable housing by financing new low-income developments and paying to convert market-rate properties, among other means. Proponents said a new agency was needed to make housing decisions that benefit the whole region, rather than relying on piecemeal funding from the county’s 88 cities.
Conclusion
The departure of Ryan Johnson and the questions surrounding his background have raised concerns about the hiring process and the future of LACAHSA. The agency’s ability to effectively address the region’s homelessness crisis depends on its leadership and ability to make informed decisions. As LACAHSA moves forward, it is essential that the agency prioritizes transparency and accountability in its hiring process and operations.
FAQs
Q: What is LACAHSA and what is its purpose?
A: LACAHSA is the Los Angeles County Affordable Housing Solutions Agency, a new public entity tasked with spending taxpayer money to fund low-income housing developments across the county.
Q: Who is Ryan Johnson and what is his role at LACAHSA?
A: Ryan Johnson is the interim chief executive of LACAHSA, responsible for spending the agency’s funds to address the region’s homelessness crisis.
Q: What are the concerns surrounding Johnson’s background?
A: Concerns have been raised about Johnson’s background and the vetting process that led to his appointment, including discrepancies in his resume and a lack of transparency about his previous work experience.
Q: What is the future of LACAHSA and its leadership?
A: LACAHSA will embark on a new national search for a CEO, and the agency is considering overhauling its hiring process to prioritize transparency and accountability.
