The Oceanwide Plaza Development had big dreams by its Beijing-based developers, aiming to be a residential and retail complex the building would include an 184-room hotel and 504 condominiums. However, misfortune would soon halt the construction of Los Angeles’ newest skyscraper in 2019, as an FBI investigation and bankruptcy would come to light, leaving behind an unfinished canvas for the LA graffiti artists.
The 1.1 billion 53-story high-rise apartment and multi-use structure, began building in 2015 on Flower St. in Downtown Los Angeles. Four years later, in 2019 construction stopped and it has stood unfinished to the present day. It is said to have been caused by multiple financial problems and even provoked an investigation probe by the FBI 1. While scandal and shady business dealings are interesting, the issue at the heart of this story is that LA faces one of the most severe housing crises with over 46,000 homeless people: many just down the street from this massive unfinished project, highlighting a stark contrast that exists between greedy corporate interests and the needs of the people who call Los Angeles home, especially those who don’t have a home to call their own.
A few weeks ago, the unfinished building became national news as graffiti artists took to their own devices to spread awareness of this injustice by tagging the skyscraper. Officials seem to treat this movement as vandalism and nothing else, adding additional security measures to prevent further graffiti, but what gets lost in the fight about whether graffiti is vandalism or not is what these artists are sacrificing their safety and security to say: there are larger systemic issues, as a result of corporate greed, that require the focus of the public.
Before this movement, many people in LA did not know that this building had been vacant since 2019. To them, it was just another building that would either raise their cost of living or be an eyesore for a growing city. As much as Southern California attracts economic development, SoCal is also seen as a favorable location for homeless people because of the year-round warmer climate. It is no surprise, to Angelinos, to see streets full of homeless people, like Skid Row, living next door to luxury apartments with sky-high rents. But the fact that there is such a mass amount of homeless does not negate the fact that many of these people want to get off the streets desperately. Many of them end up in these situations because of economic challenges that prevent them from affording proper housing.
LA is facing a housing crisis, developments such as the Ocean Wide Plaza are no help to these decade-long issues because they don't offer affordability to the life-long residents of LA, and often sit vacant because multiple housing units in LA serve exclusively as luxury housing. Rent prices in Los Angeles have historically risen since the late 1980s due to this fact.
Mayor Karen Bass is one of the few officials who are actively trying to aid the homeless community. Having built over 22,000 temporary homes, Bass argues that the problem is not getting homeless people off the streets but keeping them housed. Once in temporary housing, it is up to the individual to seek permanent housing. As of late 2023, only 3,500 people have found permanent housing. Programs such as Section 8, although intended to increase access, make it difficult for people to receive housing because of landlords' reluctance to house those who qualify for government assistance. Discrimination and low wages are among the biggest contributing factors to keeping people unhoused within Los Angeles.
It is devastating to see billion-dollar projects go to housing the rich, or worse - remain unfinished - due to poor management, when we are facing such a large housing crisis in a small area. Creating temporary housing is a great solution to help people get off the streets, but there must be more done to prevent systemic issues from hurting those who are the most vulnerable.
1. The FBI had originally sought to find evidence of the former deputy mayor for economic development, Raymond Chan, for corruption after multiple other LA city officials had been exposed for the same. The FBI looked into potential federal crimes including extortion, money laundering, and bribery, to name a few. Some found it odd that the investigation focused on Chinese companies, however, it does become concerning to officials when foreign money becomes involved in U.S politics. Within this investigation, it was found that Jose Huizar, former LA councilman, was involved in receiving “donations” from Torrance developer Samuel Leung. Which led to speculation that the Beijing developers were doing the same. However, the larger conspiracy as to why the development could've been halted is the developers filing for bankruptcy, as a result, it has come to light that the oceanwide had defaulted on loans and owes millions to contractors. How is LA expected to become relieved from its housing crisis if developers have become so corrupt and unreliable?
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