A South Los Angeles nonprofit that runs interim housing for people coming out of jail paid more than $1.7 million over three years to two for-profit companies controlled by its chief executive, Kenya Croom. That flow of money, revealed in public filings and internal transaction reports, has county reviewers and watchdogs asking whether the deals were properly disclosed and vetted. A Step to Freedom, the nonprofit at the center of the scrutiny, operates several interim housing sites and grew fast after landing county contracts.
Federal tax returns show the group’s revenue climbed as it scaled up. Tax data compiled by ProPublica lists A Step to Freedom’s 2024 revenue at about $5.28 million and reports Kenya Croom’s executive compensation at roughly $118,558. Those filings formed part of the public record that reporters used to trace vendor payments and rising program costs. The organization’s shift from a small shelter operator to a multi-site provider helps explain why its contracting and bookkeeping are now under a microscope.
Los Angeles Times reporting shows that over three years A Step to Freedom paid more than $1.7 million to two companies tied to Croom, including $275,259 to R&K Mgmt Firm Inc. in 2023 and $214,725 to ASF Solutions LLC in 2024, and that an internal transaction report listed nearly $1.3 million paid to ASF Solutions in 2025. County reviewers later examined the nonprofit’s vendor payments for fiscal year 2024-25 and concluded that while meal services were within the approved scope, the ASF Solutions contract created a conflict of interest. Officials have asked the nonprofit to repay about $82,800. Croom told the paper that leaving her ties off the tax filing was an oversight, saying, “We didn’t check a box. We made a mistake.”
Nonprofit Scale And Governance
A Step to Freedom’s website and filings say the group runs multiple interim housing programs in South L.A. and serves roughly 200 residents at a time, and the organization lists Kendel Croom as its board treasurer. That kind of governance setup, a small board paired with rapid growth and related-party vendors, is exactly why oversight experts say detailed minutes, conflict-of-interest declarations and clear procurement records are not optional paperwork. The nonprofit says it shifted some food preparation into vendor contracts to cut costs as it expanded.
What Experts Say
Nonprofit watchdogs warn that related-party contracts can create incentives that undercut a charity’s mission, even when the services are real. Laurie Styron of CharityWatch has pushed for strict disclosure rules and competitive bidding for vendors, and accounting experts such as Brian Mittendorf at Ohio State University say boards need to document how they weighed costs and quality. Without those checks, donors and taxpayers are left with little assurance that contracted services are coming at the best value.
Next Steps And Oversight
County officials and funders say they will be watching the audit findings and any repayment closely, and the nonprofit says it is cooperating with a pending audit while reviewing its governance practices. According to the Los Angeles Times, A Step to Freedom disclosed the potential problem to its funders and said it is taking steps to fix record-keeping and oversight lapses. County and state auditors have in recent years flagged gaps in oversight of homelessness contracts, and this case is adding pressure to tighten how subcontractors are vetted and disclosed.
For residents who rely on the beds and meals A Step to Freedom provides, the immediate question is whether governance fixes will translate into steadier services and cleaner books. The episode highlights how quickly a small nonprofit can become a major government contractor, and why watchdogs and funders keep pushing for more transparency when public dollars are on the line.
