Doors lean against a wall next to an unfinished driveway on Dec. 13, 2023, at the former Quality Inn & Suites in Thousand Oaks. Shangri-La Industries, which owns the motel, has been sued by the state of California for problems at this and other properties slated to become housing for homeless people.

Editor’s note: This article was updated to reflect a change in the listed defendants in the final version of the state’s legal complaint. The complaint names the cities of Thousand Oaks, Redlands, Salinas and King City, and the county of San Bernardino.

California’s attorney general filed a lawsuit Monday against the owner and developer of several state-funded homeless housing projects, including the stalled conversion of the former Quality Inn & Suites in Thousand Oaks. The lawsuit also names the city of Thousand Oaks as a defendant.

Shangri-La Industries owns seven motels in California that are supposed to be converted to permanent supportive housing for homeless people. Under California’s Project Homekey, the state awarded Shangri-La $114 million to buy and renovate those properties.



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