LOS ANGELES (April 25, 2024) – Today, AIDS Healthcare Foundation (AHF) notified the receiver for the Skid Row Housing Trust that AHF will not buy the six very troubled properties it intended to purchase for $27 million.
During the escrow due diligence process, AHF learned that the six buildings would require $14 million to bring them up to a fully habitable state. In addition, the operations of these properties are on track to lose $10 million in 2024.
While AHF is gratified that the Los Angeles City Council and Mayor Karen Bass have indicated their support for the sale, the current circumstances do not allow for a sustainable model. Any buyer of these properties will find themselves in the same situation that led to the failure of Skid Row Housing Trust in short order unless a new model can be developed.
AHF will continue to expand its portfolio of low-income properties in Los Angeles and across the country and wishes the city success in finding the best way to preserve these valuable housing resources.
