Nonprofit Landlord Accused Of Keeping Rental Properties In Egregious Disrepair

Cozen O'Connor
Contact

Cozen O'Connor

  • Indiana AG Todd Rokita sued rental property owner Fox Lake AHF, Inc. (“Fox Lake”), a nonprofit, and its rental management company, Aloft Mgt, LLC (“Aloft”), over allegations that they allowed two large apartment complexes with thousands of residents to fall into disrepair in violation of Indiana’s Deceptive Consumer Sales Act and Nonprofit Corporations Act. In addition, by serving as a management company for Fox Lake, Aloft allegedly engaged in the unlicensed practice of real estate in violation of Indiana’s Home Loan Practices Act.
  • The complaint alleges that Fox Lake and Aloft received over 600 violation notices from the county public health department for failing to maintain basic habitability standards in the apartments they managed, including failing to provide heat, hot water, and air conditioning as well as fix water damage, mold, and broken windows. The complaint further alleges that residents are at risk of a water shutoff because Fox Lake is delinquent on a $1 million utility bill. In addition, the complaint alleges that Fox Lake misapplied or wasted nonprofit corporate assets and that it failed to fulfill its stated charitable mission of providing low-income housing.
  • The complaint seeks injunctive relief, restitution, civil penalties, and attorneys’ costs, among other things.  The complaint also seeks to appoint a receiver over Fox Lake.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Cozen O'Connor | Attorney Advertising

Written by:

Cozen O'Connor
Contact
more
less

Cozen O'Connor on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.