You may think that California’s wild week of corruption and incompetence is pretty bad, but there is one silver lining: The state may not have fallen victim to an affordable housing Ponzi scheme after all!
For some background, California provides state funding for affordable housing projects designated for homeless people. Shangri-La Industries is one such company that took advantage of these funds, with seven properties filling that requirement. Earlier this year, though, Attorney General Rob Bonta sued the company, alleging that it took out loans on six of the seven properties and breached contractual obligations. Now, all seven are at risk of being foreclosed, and California wants its more than $100 million in funds back.
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