Baltimore is suing a recipient of some of its federal coronavirus relief funds, alleging that the group used money intended to provide rental assistance and mental health resources to instead buy property.

The city is seeking $234,813 from Ahavas Chaim, a Baltimore-based nonprofit that operates a drop-in center for Jewish teens in the Cross Country neighborhood. The group was awarded $500,000 in federal funding in 2022, a portion of the $641 million Baltimore was given by the federal government in the wake of the pandemic.

The funding, which was part of a $15.8 million pot of grants to city nonprofit agencies awarded that fall, was supposed to pay for rent and housing security deposit support for residents impacted by the pandemic, according to the lawsuit.

Some was also dedicated to mental health support resources for at-risk youth, while an unspecified portion was to be used for “facility improvements” to the group’s “existing center,” although no address for the center was listed on the group’s application.

When city officials visited Ahavas Chaim’s site, however, a representative of the group told them the pandemic aid money was used to buy an adjacent property, according to the lawsuit.

The lawsuit and state records identify Ahavas Chaim’s principal place of business as 7201 Park Heights Ave., a largely vacant lot at the corner of Seven Mile Lane. The rear of the property is occupied by a tent that is marked with the same address. A fence wrapped in black burlap surrounds the tent, and the entrance is guarded by a security camera.

Social media posts and photos on the group’s website show events that appear to be held in a tent. The property was once home to Yeshiva Lev Shlomo, a school that burned due to arson in 2018.

Rabbi Shaya Kohn, the leader who the group’s website says is “affectionately known as G-Money,” could not be reached via the site’s contact information. A receptionist for the group’s attorney, Mayer Guttman, said, “He’s good at this time” — turning down a reporter’s interview request.

Property records show Ahavas Chaim purchased a neighboring residential property at 7205 Park Heights Ave. on December 8, 2022, one day after the city’s spending board approved the grant agreement with the group. Ahavas Chaim paid $850,000 for the single-family home, records show, almost double its estimated $436,800 value.

No one answered when a reporter knocked on the home’s door. Mail was piled in front of the door and trash was visible on the floor inside.

One month after warning the group that they were in default on their grant agreement, Baltimore notified Ahavas Chaim in June 2024 that it was terminating the deal. Both parties agreed to a mutual termination agreement that was approved by the Board of Estimates in July without discussion. That agreement called for Ahavas Chiam to repay $234,800 in unauthorized expenses within 60 days. The group has not paid, the lawsuit states.

The lawsuit marks an about-face for city officials who once heralded Ahavas Chaim as an “ARPA partner,” referring the pandemic relief act’s acronym. In an April 2023 newsletter from the Office of Recovery Programs, Shmuel Leshnoff, a representative of the group, lamented how increasing costs were making it harder to afford supplies like food.

“Pricing is crazy. I try to make sure that we spend efficiently, and I’m always looking for the best pricing, but there is only so much organizations and families can do with the cost of items,” Leshnoff was quoted as saying.

A spokesman for Mayor Brandon Scott said he could not answer questions about the justification for the grant award to Ahavas Chaim or the portion of the grant that city officials are now seeking to reclaim.

“As this matter is in active litigation, the city will reserve comment for the appropriate judicial forum,” said Kamau Marshall, a spokesperson for Scott. “The city remains committed to responsibly and transparently managing federal funds.”

Baltimore Banner reporter Giacomo Bologna contributed to this article.