Key facts
- Two businessmen claimed a California state senator was part of their nonprofit for wildfire victims.
- The senator's office confirmed he has no affiliation with the organization.
- Experts have raised doubts about the feasibility and cost of the nonprofit's housing plan.
- The businessmen have prior experience in finance and real estate development.
Two Los Angeles businessmen have claimed that a California state senator is part of their nonprofit organization aimed at helping wildfire victims, a claim that the senator's office has denied. The businessmen, West and Dietz, have proposed a plan to build affordable housing for those displaced by wildfires.
Experts in affordable housing have expressed skepticism regarding the viability of the businessmen's plan. Jim Mather, a retired executive from Century Housing, questioned the proposal's mechanics, suggesting that the estimated construction costs of $2.8 million to $3.5 million per home might make it more economical for victims to rebuild independently. Mather also voiced concerns about the complexity of the plan, including the use of tax-exempt financing for an untested concept and an aggressive construction timeline with an unusual lease-to-own program.
West has a background in finance, having founded Hedge Fund Services, which supported numerous investment firms. Dietz has raised significant capital in venture and real estate, and was an early investor in companies like Costco and Starbucks. Dietz previously founded United Dwelling, a company that facilitated the construction of accessory dwelling units and was once highlighted by politicians, including Governor Gavin Newsom, as a model for housing solutions. However, United Dwelling ceased operations during the COVID-19 pandemic.