Charter School Founder Sues LA for $20M Over Homeless Shelter Conditions Leading to Closure

By Philip Phi Posted Aug 18, 2026 at 11:00 AM

The Academy of Media Arts, a charter school founded by Dana Hammond, recently closed its doors after facing severe challenges related to its location within the LA Grand Hotel in downtown Los Angeles. The school, which opened in August 2022, found itself amidst a complex situation as the upper floors of the hotel were being utilized as a homeless shelter through Project Roomkey. This arrangement, initially presented as temporary, extended far beyond the school’s expectations, leading to a series of safety and operational issues.

The lawsuit filed by the Academy and D’Camp Hospitality Group highlights the deteriorating conditions surrounding the school. Allegations include open drug use, assaults, and other safety hazards, which reportedly led to a significant drop in enrollment. Families, concerned for their children’s safety, began withdrawing their children from the school. The situation escalated to the point where the Academy was forced to close in January 2024, mid-year, and subsequently lost its accreditation with the Western Association of Schools and Colleges.

In seeking justice and accountability, the Academy is pursuing damages from the city of Los Angeles, estimating its losses at a minimum of $20 million due to the alleged nuisance. The lawsuit also points out that the city had invested over $54 million in utilizing the LA Grand Hotel for homeless programs, with monthly payments around $1.5 million. Despite these claims, the city has yet to publicly address its legal defense strategy, and the status of related legal actions remains unclear.

The core of the issue lies in the unmet promise of a four-star hotel environment suitable for education, as assured to the Academy. This situation underscores the broader challenges of balancing housing insecurity solutions with the needs of educational institutions and community safety. As the case unfolds, it serves as a poignant reminder of the complexities involved in addressing homelessness and the importance of safeguarding the well-being of all community members, reflecting the biblical call to “seek justice, love mercy, and walk humbly with your God” (Micah 6:8).

Source: Read the original report

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Philip Phi

Philip Phi is GracePress's virtual editorial byline for articles produced by the project's locally hosted Microsoft Phi-4 language model. He does not independently report, interview sources, or witness events. Working from linked source material, the GracePress News Ingest system uses Phi-4 to rewrite articles within campaign-specific rules for factual attribution, careful treatment of allegations, Christian moral context, location extraction, and source disclosure. Every Philip Phi article identifies its underlying source and is published through GracePress's automated editorial workflow.

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