By John Donegan for Long Beach Post
Originally published Oct. 14, 2026
An affordable housing charity that controls hundreds of apartments in Long Beach is facing a torrent of accusations that it cheated the government out of tens of millions of dollars, defrauded homeless assistance programs and swindled low-income tenants out of money.
The nonprofit Helpful Housing and its for-profit subsidiary Ocean Structure are run by Rodney Rosenstein, who is in federal custody after being indicted in connection with a series of alleged fraud schemes in Arizona.
In Long Beach, a flood of similar accusations at 15 residential complexes has gone virtually unnoticed until now. They are spread across dozens of lawsuits reviewed by the Long Beach Post, as well as through obtained property records, financial documents, a whistleblower account from a former employee and interviews with tenants. Separately, they are little more than small-time court cases, rental disputes and loan defaults. Taken together, they allege Rosenstein is at the center of a cascading scam that took advantage of multimillion-dollar homeless services programs and federal affordable housing incentives with little oversight.
One attorney in particular managed to build the most comprehensive view of the alleged scheme while she pursued a maintenance worker’s wage-theft case. Kimberly Lind says Rosenstein’s organization falsified paperwork under the city’s nose for years, all to hide a system of overcharging agencies that placed formerly unhoused people in the apartments.
The full extent of the potential fraud in Long Beach — which also included low-income tenants alleging they were charged exorbitant fees without cause — remains unknown.
Lawyers for Rosenstein declined to comment or did not respond to detailed questions from the Post. The city of Long Beach has said the Arizona indictment “raises new concerns” about its dealings with Rosenstein’s organizations, and it’s already suing him over missing payments on federal loans that it administers.
Still, Helpful Housing is continuing to serve as a landlord and collect money meant to help people avoid homelessness: The Long Beach Housing Authority alone is using federal housing vouchers to pay rent for 14 tenants at Helpful Housing and Ocean Structure properties, amounting to $157,811 so far this year.
Since 2010, Helpful Housing says it’s housed 10,000 people in “beautifully designed” Long Beach apartments. Its website touts its housing-first approach, its experience developing and remodeling apartments and its goals of expanding across LA County.
Rosenstein’s business boomed in Long Beach after he received $6.5 million in zero-interest federal loans via the city between 2010 and 2016 to renovate apartment buildings. The loans came with the condition that he rent to low-income tenants at discounted rates and prove it every year with pay stubs and other documents showing their incomes fell below federal limits.
As renovations were completed, revenue started rolling in. Records obtained by Lind and the Post show much of it was paid by government programs and homeless services agencies, which placed people in the apartments and paid millions in rent, repairs and security deposits.
Before the loans, the nonprofit was reporting around $129,000 in revenue a year. By their 2024 filing, the nonprofit and business raked in more than $5 million in annual revenue and had accrued more than $51 million in total assets.
It was around this time that Lind began looking into Helpful Housing.
According to the attorney, the case brought to her in late 2023 by former maintenance worker Javier Zaldivar seemed at first a straightforward wage-theft suit against the nonprofit: Zaldivar claimed he worked at least 64 hours a week without rest breaks or sick pay for $15 an hour until he was fired in May 2023. He said he was owed $288,491 in back pay and civil penalties.
“And then as I got deeper and deeper into the case, I realized what they were doing,” Lind said.
Proceeding to court in March 2024, Lind dug heavily into Rosenstein’s nonprofit and businesses, interviewed whistleblowers, and obtained a combination of emails, pay stubs and loan agreements. She even deposed Rosenstein himself before the lawsuit settled under undisclosed terms. Rosenstein continued to deny wrongdoing, and Lind alleges the full depth of the fraud has yet to come to light.
“It was just one thing after another,” Lind said. “It’s a rabbit hole that you go down, and I had to find out more.”
She said she found countless examples of forgeries, including W-2s, 1099s and pay stubs that were submitted to the city to prove they rented to low-income tenants, a requirement of the zero-interest loan agreement. Some people, she said, didn’t even exist.
“They were pretty sloppy in some of them,” Lind said. “Some of it was kind of ridiculous. I look at pay stubs all the time. I know what’s supposed to be on them and what looks fishy.”
In the course of her investigation, Lind attempted to connect with a number of former employees. Many were afraid to come forward, she said, but eventually she met a former administrator who joined Helpful Housing in August 2022 and was tasked with balancing ledgers, handling evictions and reviewing vacancies.
In a sworn statement Lind shared with the Post, the worker — who asked to be identified publicly only as UMI for fear of retaliation — said they first noticed potentially fraudulent activity within the first four months on the job, watching co-workers routinely submit fabricated documents to the city.
In some cases, the employee alleges, the organization maximized its profits by double-charging different agencies for the same tenant. In other cases, workers like Zaldivar were allegedly asked to build partitions in rooms to make space for multiple tenants: A building at 720 Chestnut Ave., for example, was permitted for 14 units but housed 18 by building partitions in some rooms “the size of a closet to maximize profits illegally,” UMI’s statement said.
After a number of confrontations with co-workers and Rosenstein, UMI quit, according to the sworn statement.
“‘Everyday is a new element of chaos,’” they recalled telling Rosenstein. “‘You are all going to get caught committing fraud and the properties will end in receivership. You keep putting people in your buildings, and in the community — they are going to call their councilperson and it’s going to all blow up.’”
The practices alleged by UMI and Lind follow a strikingly similar pattern — relying on falsified tax and payroll records — to one federal prosecutors say Rosenstein allegedly orchestrated in Tucson, Ariz., also under his principal nonprofit, Helpful Housing.
In an indictment filed in August, prosecutors say Rosenstein and Helpful Housing stole $2.9 million in COVID-relief money and $35 million in bank loans by lying about payroll expenses, creating W-2s for people who didn’t exist or never worked for him, and falsifying how full his Arizona buildings were, including one instance where his conspirators allegedly “staged” a condemned building to appear full of residents during various bank inspections. He faces up to 30 years in prison on the charges and has pleaded not guilty.
When reached by phone, a federal prosecutor on the Arizona case declined to say whether they were looking into Rosenstein’s Long Beach business.
The indictment “raises new concerns” about Rosenstein’s dealings in Long Beach, said Deputy City Attorney Nick Masero. He said he could not comment on the accusations raised by Lind, “but in all such cases the city will accept available information, use the tools available to obtain additional information, coordinate with partner agencies that have different jurisdictions and take all appropriate actions to assert its rights and obtain just outcomes.”
Separately, the city has so far filed 15 lawsuits against Rosenstein for allegedly failing to make all the payments on the federally backed zero-interest loans he used to renovate his Long Beach properties. If they win, they plan to seize the 15 apartment buildings and auction them off, hoping to recoup a combined $9.6 million in principal and interest.
As part of the loans, Rosenstein’s companies agreed to annual audits and inspections from the city. It’s unclear what they found or if they were completed. The city declined interview requests and refused to release audit and inspection documents while it’s in litigation with Helpful Housing.
In addition to the Long Beach Housing Authority, much of Rosenstein’s organization was fueled by money it took from Southern California anti-homelessness agencies — about 80%, according to UMI’s statement. During the course of her investigation, Lind obtained records showing millions in payments from nonprofit organizations like Mental Health America of Los Angeles (MHALA) and Interval House.
MHALA, for example, paid Rosenstein’s entities a combined $3.1 million between 2014 and 2024 for rent, security deposits, repairs and “late housing support,” according to records Lind provided to the Post. (MHALA declined to comment.) Interval House confirmed the records were accurate and acknowledged they paid rent for some tenants through 2019 using government-funded programs like Long Beach Community Action Partnership Home Energy Assistance Program, and First 5, a state program targeting housing for homeless families.
People Assisting the Homeless (PATH) confirmed it also worked with Rosenstein’s companies for about five years but did not disclose how much it had paid them.
At least some of the money allegedly never went to services supporting low-income residents.
When tenants moved out, UMI alleged, staff would send agencies bogus work orders for repairs they say were never completed. In one example from November 2021, UMI said, Favela’s Construction & Renovation charged $19,400 for alleged repairs.
When MHALA tried to deliver a check, an employee discovered the company’s listed address was actually a senior-living apartment building and confronted Helpful Housing, accusing them of fraud, UMI said.
The scheme also allegedly targeted the residents themselves.
Julie Curren, who was placed at a Helpful Housing complex on 17th Street in October 2022, told the Post that PATH paid a $5,000 deposit meant for her to keep upon finishing their supportive housing program. “That deposit should have come back to me,” Curren said.
But when she moved out in October 2024, she was charged $2,200 in damages. When she sued in small claims in December 2024, she said, attorney Bruce Gridley, representing Helpful Housing, first offered a $1,000 settlement. She refused. Then Gridley presented photographs of a messy apartment.
“None of those pictures were mine,” she said. “The only thing that needed to be done was a quick paint job, and somebody told me somebody moved in like two days after I left, so you can’t tell me that apartment was in disarray.”
A work order provided to Curren showed the contractor hired to take care of the repairs: Structural Integrity, a Chatsworth-based company owned by Rosenstein. (Gridley, who is also listed as a board member of Helpful Housing, declined to comment for this story.)
Curren said she spent months trying to recover her security deposit, money that she saw as a second chance at life.
In emails she shared with the Post involving the city housing authority and Helpful Housing, the nonprofit claims it sent the money to the city, though officials claim they never received it. She says she’s weighing a civil suit. But she can’t afford a lawyer.
“I think I’ve exhausted every effort,” Curren said. “I don’t know what to do.”
Long Beach Post reporter Jacob Sisneros contributed to this report.