Court Vindicates AHF in SRO Elevator Case; Blames Former Owner

In News by Ged Kenslea

Judgment shows Kameron Segal failed to disclose Skid Row building – Madison Hotel – had severe issues, including unfixable elevator, during sale to AIDS Healthcare Foundation in 2017


LOS ANGELES (April 11, 2024) – AIDS Healthcare Foundation (AHF) has won its fraud case against former Madison Hotel owner Kameron Segal and his company, 424 E. 7th Street, LLC., and Los Angeles County Superior Court Judge Stephanie Bowick has awarded AHF a default judgment of $1.5 million in damages.

“The Los Angeles Times and other media outlets parroting the Times’ sloppy journalism repeatedly have blamed AHF for The Madison’s problems, especially its elevator outages. This judgment proves AHF did not know the elevator was problematic to begin with,” said Jonathan M. Eisenberg, Deputy General Counsel – Litigation for AHF. “The real story should be the efforts that AHF makes to keep the elevator running and to fix it as quickly as possible when it goes out. We have spent more than $600,000 on the elevator so far. The prior owner never disclosed more than a $150 receipt for repairs in the three years he owned the building.”

AHF, through its Healthy Housing Foundation (HHF) division, purchased the Madison Hotel in 2017 for $7,575,000 and renovated the Skid Row single room occupancy property to create 208 rental units for extremely low-income people in need. The building is at full occupancy, and tenants pay $400 per month.

AHF filed suit in September 2022, alleging fraud and other causes of action.

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