Nonprofit scrutinized for failed homeless housing project as CEO’s salary was $330,000

By Kimberly King

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    ASHEVILLE, North Carolina (WLOS) — News 13 is taking a closer look at Step Up America, the nonprofit tax-exempt 501c-3 with an operating budget in the tens of millions that landed Asheville’s Ramada Inn project — but that failed to execute.

Tod Lipka, CEO of Step Up America, had come to Asheville multiple times to court staff and city council to land the management of the property for homeless studio units that would have brought the nonprofit potentially millions. Those millions would have included funds from federal pandemic rescue money awarded to cities like Asheville during the pandemic.

Currently, even more than a week into 2024, Step Up’s homepage on its website still shows “Step-Up in Asheville” happening at the former Ramada as an active project “opening in 2023.”

The year has come and gone and the property is now foreclosed on after Lipka’s partner, Andy Meyers, CEO of Shangri-La Construction, had its affiliated company, River Ford LP, default on a near $7 million short-term loan. The payments had stopped on the loans months ago, but back in October, Lipka still maintained the project was a “go” despite the impending default by Meyer’s affiliated company.

“This winter, it will be under construction,” Lipka told News 13 in October. When asked what caused the many months of delays, Lipka said nothing about there being loan payment problems behind the scenes.

“Housing is a very complicated business. The outside world has changed a lot from the beginning of this project with interest rates,” he replied.

According to its IRS records, Step Up had revenues of more than $41 million in its latest available 990 IRS filing for 2021. Records show Lipka earned more than $333,000 annually, with six other executives making more than six figures each.

The 2021 tax report shows Step Up’s Chief Financial Officer and secretary, Leibee Judson, made $204,987 with other compensation noted of $12,308. Tavlin David, Chief Programs Officer, made $199,357 with $16,518 in other compensation not specified in the 990 return. Criswell Aaron, Chief Housing Development Officer, made $187,889 with $16,518 in additional compensation.

“We’re a pretty large organization,” said Lipka back in October when asked about his salaries and those of the other officers. “We have 20 housing projects across the country, housing thousands of individuals.”

When asked where millions are being brought and spent, Lipka replied:

“Much of it is government funding; we’re a national organization. I have about 450 staff across five states. Our intention is to house 500 people across North Carolina in five different projects.”

Reports show Step Up has secured agreements with city leaders in Greensboro, Winston-Salem, Fayetteville and Raleigh that would potentially net the nonprofit millions in federal Covid rescue funds to manage homeless housing. But so far, just like with Asheville, Winston-Salem officials report Step Up’s project there is a bust. Also like Asheville, no funds have yet been disbursed.

“The City of Winston-Salem earmarked funds for the Step Up America Initiative to convert a hotel into supportive housing for unhoused individuals,” said Patrice Toney, spokeswoman for Winston-Salem. “No more have been disbursed to the organization because they have not closed on the hotel.”

Lipka said Step Up had nothing to do with the default or financing arranged by Shangri-La for the Ramada sale for the conversion in Asheville. However, Step Up is named in the California Attorney General’s lawsuit alleging fraud and breach of contract for the way millions were allegedly used by the entities to buy hotels and then use those hotels as collateral for multi-million-dollar loans.

“The State of California is going after every single party that is involved,” said Pablo Espinoza, spokesman for California’s Housing and Community Development, which is the plaintiff in the Attorney General’s lawsuit, including Step Up.

Asheville Mayor Esther Manheimer told News 13 on Thursday, Jan. 11, that she’s hopeful a local homeless nonprofit like ABCCM or Homeward Bound could take over the Ramada project.

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