Trustee Mark Adams, who oversees 1,500 tenants in Skid Row, submitted his resignation on Thursday, amid a tumultuous failure to stabilize the neighborhood’s largest homeless housing portfolio while saddled with millions of dollars of additional debt. completed a three-month term.

Adams resigned at the request of Los Angeles Superior Court Judge Mitchell L. Bechloff near the end of a two-hour trial, and Mr. Beckloff is now owned by nonprofit landlord Skid due to a dispute between Adams and city officials. Decided he was overwhelmed with the enormous task of managing 29 properties. Nagaya Trust.

Mayor Karen Bass and city officials.Heidi Feldstein Soto is advised Adams to manage a portfolio of trusts.

Feldstein Soto said Adams, one of the state’s most experienced receivers, has the ability to stabilize properties and fund repairs so other affordable housing providers can take over. He gave his seal of approval that he had a unique qualification.

However, she admitted that the office did not thoroughly scrutinize his resume because of the urgency of the trust issue. Feldstein Soto and other city leaders said they had lost faith in Adams as troubles overseeing the property escalated last month.

“It seems to me that maybe a fresh start is the best way forward,” Beckloff said.

Mr. Beckloff’s hands were tied this week when the city council Conditions to banish Adams. Weeks of fundraising disputes have effectively drained the city of Adams trustees, and a judge has ruled that the city’s plan is the most responsible way to keep paying for necessary renovations and repairs. bottom.

City officials said the loan would provide enough money to manage the trust estate for at least four more months for Kevin Singer, the successor recipient Beckloff approved on Thursday, while Adams We expect to cover any unpaid security deposits and other claims you may have accumulated.

Adams’ tenure prolongs the turmoil facing the trust’s former homeless tenants. Years of mismanagement and bankruptcy Meanwhile, the situation inside the building steadily deteriorated. In April, as the trust failed to pay its bills and residents reported a lack of security and property management, broken doors, windows and plumbing, and rampant trespassing and drug abuse, Mr. Beckloff said Mr. Bass and Mr. Feldstein・Appointed Mr. Adams at Mr. Soto’s request.

very soon, The Times reported on the past incident in detail. Property owners lost their homes under Mr. Adams’ control, tenants were at risk of eviction, and Mr. Adams made six-figure bills.

The city’s problems with Adams first came to light at a court hearing last month. He had borrowed $1.3 million at 15% interest for trust operations and upgrades, which the city claimed violated its pledge to only secure loans at interest rates below 10%.

The following week, property management firm Adams hired Issued 451 eviction notices to tenants who did not pay the rent in May. One tenant was told he owed $56, and many others were exempted from paying due to the poor condition of the room. Feldstein Soto deemed all notices illegal under city law.

Adams said the notice was sent without her knowledge and canceled it in a letter to Tenant.

Since then, city officials have complained that Adams did not provide detailed financial information and that repairs were slow or not done at all. Feldstein Soto told a congressional committee this week that the number of properties with faulty fire safety and safety equipment has more than doubled since Adams took over the portfolio, prompting costly 24/7 He said he needed a security guard.

Adams pushed back against the city’s claims that fire safety had deteriorated during his tenure, saying nearly every building had problems before he was appointed.

In court documents filed this week, he said the city is scapegoating the failure to deliberately degrade the trust’s portfolio. make him cash hungry. He said the city’s conditional financial support for his replacement was like holding the Trust’s residents hostage without funding for critical security services and emergency repairs.

“Frankly, the city’s actions may ultimately cost lives,” Adams wrote.

Initially, Mr. Adams asked Mr. Beckloff to order $10 million in funding from the city. But on the eve of Thursday’s hearing, Adams agreed a $12 million loan with Seattle-based private real estate lender Avatar Financial Group, with an interest rate of 15% and an additional $800,000 upfront fee. submitted a report stating that

In court on Thursday, Adams continued to point to a lack of funds as the main problem facing the trustees and said he was confident the money would get the job done.

“It’s no exaggeration to say that the lack of funding is the problem,” says Adams. “Because that’s the problem.”

Mr. Beckloff appears to agree with Adams, repeating his praise at earlier hearings that Adams was well suited for the role. The judge also said Adams’ work was fine and no wrongdoing was found.

Managing a trust estate was a very difficult order, and Beckloff said no one could handle it better.

But the judge decided that the city’s loan program, with interest rates of up to 3%, was the best way forward.

“We ended up with a city in one corner, a receiver in another corner, and a lot of people around the ring,” Beckloff said. “But at the heart of it are 1,500 people at risk of losing their homes.”

How much it will cost to restore the trust’s portfolio and who will receive the bill remain unresolved.

The trustee typically uses the capital of the property or proceeds from the sale of the property or rent increases to pay for repairs and receivership fees. But the trust is on the brink of bankruptcy, federal and local regulations are preventing rents from skyrocketing for tenants, and city leaders are scrambling to keep affordable housing amid the homelessness crisis.

The $10 million loan comes from the city’s affordable housing program. City leaders told Congress this week that they will eventually be repaid as assets have been spun off into other entities, but they will likely need to cover at least some of the debt with city and other public subsidies. said there would be.

City officials and Singer, who appeared in virtual court on Thursday, said more than half of the trust’s affordable housing estates (newer, higher-value properties) will be transferred to other nonprofit housing providers over the next year. Predicted and created a new $10 million budget. Several months. Beckloff has already approved the sale of six such buildings to PATH Ventures and another to LA Family Housing.

That would leave a dozen residential hotels owned by the trust, many of them 100 years old, and other most dilapidated buildings.

“After we show that we’ve made great strides, we’re going to go back to the city council and ask for more funding,” Singer said.

City leaders say one big variable remains unclear: how much Adams’ tenure will cost. Mr. Adams had assigned himself to his 18 employees with wages ranging from $151 to his $465 an hour.

Adams said in court filings that fees to his company, California Receivership Group, totaled $329,000 in April and May, but outside law firms, property It does not include administration, security, or other outstanding payments to contractors he hires. City attorneys said in court on Thursday that they believe the total amount of unpaid claims exceeds $3 million.

Feldstein Soto didn’t appear in court on Thursday but tried to assure members of Congress that Singer would do a better job than Adams. At a city council committee hearing this week, she told the city about 500 resumes of new recipients, his work on complex issues in San Francisco, and his plans to provide the city with detailed information about his progress. He noted a more thorough scrutiny of willingness.

“It’s very difficult to admit mistakes,” Feldstein Soto said at the hearing. “But I think part of our job is to fix any mistakes.”