United States: Nonprofit landlord accused of gruesome damage to rented property
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- Indiana AG Todd Rokita filed a lawsuit against the owner of the rental property Fox Lake AHF, Inc. (“Fox Lake”), a non-profit organization, and its lease management company, Aloft Mgt, LLC (“Aloft”), on charges that they allowed two large housing estates with thousands of residents to collapse in violation of Indiana Law on Sales to Fraudulent Consumers; and the Nonprofit Corporation Act. In addition, while acting as the management company for Fox Lake, Aloft allegedly engaged in unlicensed real estate practices in violation of the Indiana Home Lending Act.
- IN a complaint claims Fox Lake and Aloft received over 600 notices of abuse from the county health department for failing to meet basic living standards in the apartments they managed, including failing to provide heating, hot water and air conditioning, and repair water damage , mold. and broken windows. The complaint also alleges that residents are at risk of shutting off water because Fox Lake failed to pay a $ 1 million utility bill. In addition, the complaint alleges that Fox Lake misused or squandered nonprofit assets and failed to fulfill its stated charitable mission of providing low-income housing.
- The complaint requires injunctive relief, restitution, civil fines, and legal fees, among others. The complaint is also directed at the appointment of a receiver over Fox Lake.
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