Santa Monica Residents Raise Conflict-of-Interest Concerns Over Council Vote on Affordable Housing Project

Santa Monica, CA - February 9, 2026 - A group of local residents and neighborhood organizations has formally questioned the validity of a December 17, 2025, Santa Monica City Council vote approving development agreements for an affordable housing project with the Hollywood Community Housing Corporation (HCHC).

The vote, listed as Agenda Item 11.A, approved a 99-year ground lease on city-owned land at 14th Street and committed $13.5 million from the city's Housing Trust Fund to support the project, which aims to deliver 100% affordable housing units.

In a January 8, 2026, letter to Interim City Attorney Yolande Y. Gisele von Tongeln, representatives from Santa Monica Neighbors and Mid-Wilshire Residents alleged that three council members who voted in favor-Councilmember Jesse Zwick, Mayor Caroline Torosis, and Councilmember Natalya Zernitskaya-may have had disqualifying conflicts of interest under the Political Reform Act and related ethics rules.

The residents cited the following issues: Councilmember Zwick allegedly engaged in undisclosed ex parte communications with HCHC Executive Director Sarah Letts, including emails and private discussions on project alternatives, during the council process.

Councilmember Zernitskaya received a $400 campaign contribution from the CEO of an organization providing supportive services to HCHC projects, potentially triggering concerns under the Levine Act.

Mayor Torosis holds a senior deputy policy role in Los Angeles County Supervisor Holly Mitchell's office, which has listed HCHC as an official government partner on housing development initiatives.

The complaint references a December 2025 ruling by the California Fair Political Practices Commission (FPPC) that required Zwick to recuse himself from housing-production decisions due to his employment with the Housing Action Coalition, an advocacy group. The FPPC determined a potential nexus under its "nexus test," even though traditional materiality thresholds were not met.

The letter also notes that the city is currently in the process of ratifying or revisiting several prior housing-related votes from 2025 involving Zwick, as reported in local media coverage from January 2026.

Separately, the residents highlighted prior warnings from Santa Monicans for Renters' Rights (SMRR), a prominent local housing advocacy organization. In submissions dated September 18 and September 30, 2025, SMRR reportedly questioned the project's financial assumptions, including the city's estimated $150,000 per-unit gap financing (suggesting a higher figure of at least $240,000 based on comparable HCHC projects), risks from releasing project security early, potential prevailing-wage obligations falling to the city, and concerns over in-lieu fee calculations.

The group expressed concern that a required revote-excluding any conflicted members-could fail to pass, leaving the city exposed to litigation from the developer over committed funds, executed contracts, and transferred land. They described the situation as placing the city at risk of further financial liability amid existing budget pressures.In their correspondence, the residents requested a legal analysis from the City Attorney's Office on the vote's validity, as well as a meeting to discuss next steps. They emphasized a desire for transparency and good-faith collaboration to protect taxpayer interests.

No public response from the City Attorney's Office to the January 8 letter or the follow-up January 30 meeting request has been reported as of February 9, 2026. The Santa Monica City Council has not yet addressed the specific allegations regarding the December 17 vote in open session, though related housing-vote ratifications have been on recent agendas.The Hollywood Community Housing Corporation did not immediately respond to requests for comment. City officials have previously described the project as advancing long-standing goals for affordable housing production in compliance with state mandates.This developing story continues to draw attention from neighborhood groups and local media outlets covering Santa Monica governance and housing policy.