Westside residents near the controversial interim housing project at 3340 Shelby Drive in Cheviot Hills now have a binding state agreement governing who will live there: only adults 55 and older, under 24-hour security and camera surveillance, with a formal grievance line straight to City Hall.

The California Department of Housing and Community Development on Friday, July 24, finalized an amended Regulatory Agreement for the Project Homekey site, according to Councilmember Katy Yaroslavsky's office. The document formalizes conditions Yaroslavsky's office set before it would support the project.

The age restriction was one of three preconditions. The other two: an enforceable operating agreement and what the council office called "full accountability" related to a federal fraud investigation into the property's sale, according to the Westside Current.

What the rules require

Under the amended agreement, the former assisted-living facility will offer only single-occupancy rooms. Overnight guests are banned. Every resident must sign a behavioral agreement prohibiting violence, threats, harassment, and the possession or distribution of weapons, alcohol, or illegal substances.

Security provisions include 24-hour on-site personnel, regular perimeter patrols, de-escalation-trained staff, and camera surveillance at all primary access points.

A designated community liaison must field neighbor complaints through a formal grievance process, and major incidents must be reported directly to Council District 5.

Within 60 days of the facility opening, Yaroslavsky's office said it will begin establishing a 1,000-foot no-camping perimeter around the site.

The backstory

The property has been mired in controversy since real estate developer Steven Taylor purchased it on Friday, December 22, 2023, for $11.2 million, then resold it to the Weingart Center Association on Wednesday, January 3, 2024, for $27.3 million. Federal prosecutors charged Taylor in October 2025 with seven counts of bank fraud, aggravated identity theft, and money laundering related to the transaction, according to the Los Angeles Times.

The Weingart Center received up to $20.5 million from the city of Los Angeles and $26.6 million in state Homekey funds to acquire and convert the property, the Times reported.

In February 2026, Cheviot Hills residents Samantha Nussbaum and Howard Grossman filed a taxpayer lawsuit against the city, the Los Angeles Housing Department, HCD, and the Weingart Center over the purchase.

At a June 2025 community meeting, Yaroslavsky's office told neighbors: "This is the standard our office expects and will continue to insist on," referring to the 55-and-older requirement. Nussbaum, who later became a plaintiff in the lawsuit, said at the same meeting that residents had raised "red flags about safety, the financial integrity of the transaction, and the removal of seniors" since 2024 but were "dismissed."

What's next

Yaroslavsky's office said construction is expected to continue through the end of 2026. No opening date has been confirmed. The council office said it worked since late 2025 with the Los Angeles Housing Department, the City Attorney, the Los Angeles Homeless Services Authority, and state officials to secure the regulatory changes.

No next community meeting or public comment deadline has been announced. Residents can contact Council District 5 through its office at councildistrict5.lacity.gov.