A powerful nonprofit owns apartments for poor tenants. Why does the elevator keep failing?

The AIDS Healthcare Foundation oversees a global philanthropic empire that extends from its Hollywood headquarters to 15 states and 38 countries.the elevator outages can dominate their lives. Owens said he has paid other residents to carry him up the stairs when the elevator was out of service. Each trip cost him $40.

Others say that basic due diligence prior to purchasing the building would have revealed both the settlement,, and issues with the elevator. Steve Diaz, deputy director of the Los Angeles Community Action Network, an organizing group that assisted Madison residents in the lawsuit against Segal, said circumstances at the building were common knowledge throughout skid row.

In a cross-complaint against the city and the Los Angeles Department of Water and Power, the foundation said inspectors dragged their feet when it needed to upgrade the Madison’s power supply, which foundation officials contend was the primary cause for the elevator outages. The foundation asked for damages and for the city to indemnify it in the case brought by tenants. The city and public utility admitted no wrongdoing but paid the foundation $100,000 to settle the case in December.

An elevator expert hired by the plaintiffs estimated in a deposition that a new elevator would cost no more than $375,000. The foundation’sshows that it has more than $200 million in cash on hand and $1 billion in assets. The 71-year-old was part of the settlement with the previous owner over conditions at the Madison. He feels deep frustration that the problems have yet to be resolved.

Tom Myers, the AIDS Healthcare Foundation’s general counsel, in 2021 made settlement offers directly to tenants in the elevator lawsuit and a related one that alleges overall uninhabitable conditions at the Madison, L.A. County Superior Court Judge Stephanie Bowick found. Bowick determined Myers broke legal ethics obligations by not involving the tenants’ attorneys in the discussions. Myers did not respond to a request for comment.

Because corrupt politicians look the other way.

Fix the damn elevator. AHF has no business operating an apartment building if they can’t maintain it. They are a bunch of con artists making the world think they care about low income people.

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