Los Angeles City Attorney Hydee Feldstein Soto filed a petition Thursday, March 30, asking a judge to appoint a receiver for the financially ailing Skid Row Housing Trust in order to save nearly 2,000 units of housing for the homeless on 29 properties.
If a judge approves the request, Mark Adams, founder and president of the California Receivership Group and a recognized leader in the field of receivership, would be tapped to handle the housing trust’s affairs.
Skid Row Housing Trust for more than three decades was viewed as a trailblazer in providing permanent supportive housing, and it manages nearly 2,000 so-called “single-residency occupancy” units.
But in February, the Los Angeles Times reported that the agency, which purchases old buildings and converts them into housing for those facing homelessness, was nearing financial collapse and was trying to turn over its properties to other providers who could continue the work.
That and subsequent reports documented challenges the housing provider faced in maintaining outdated buildings, a challenge complicated by the fact that some residents — in the midst of a breakdown — cause more damage. If units became uninhabitable, Skid Row Housing Trust lost rental income on those vacant units, causing their finances to further spiral downward.
After years of operating in the red, Skid Row Housing Trust is being aided by philanthropic organizations that have committed hundreds of thousands of dollars to keep it running, the Times reported.
City officials previously indicated that they, too, might have to step in — financially or otherwise — to help the struggling housing provider.
During a press conference Thursday to announce the receivership petition, Mayor Karen Bass pledged to be “just as bold when it comes to preserving housing as we are about building housing.”
“We are not going to solve this problem until we can reach the scale to get tens of thousands of people off the street,” Bass said….
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