State Attorney General has sued Chinese Committee on Aging Housing Corporation and CEO Donald Toy over botched operations at the Cathay Manor Apartments in L.A.’s Chinatown.
The lawsuit, filed in L.A. Superior Court, alleges the defendants breached their fiduciary duties by failing to ensure health and safety conditions at the complex, the Los Angeles Times reported. The housing facility has a history of building code violations, including fire-safety system problems and elevators that don’t work, effectively keeping elderly and disabled tenants trapped in the building.
Cathay Manor Apartments, a 16-story, 268-unit property at 600 North Broadway, opened in 1984 as a refuge for aging Chinatown residents in the ethnic neighborhood. But complaints have mounted over the years involving maintenance and safety issues.
In 2021, 186 residents filed a lawsuit seeking repairs to the building’s elevators and laundry facilities Also, the City of Los Angeles filed criminal charges against Los Angeles-based CCOA Housing and Toy alleging failure to maintain the property. Both cases are pending.
The housing developer and Toy have denied the allegations. An attorney for Toy could not immediately be reached for comment by the Times.
In 2023, CCOA Housing agreed to pay $1.5 million in civil penalties and sell Cathay Manor following an investigation by the U.S. Department of Housing and Urban Development, according to the state’s lawsuit. The nonprofit House of David Preservation paid $97 million for the complex later that year. Terms demanded a $27 million payment on the closing date and the remaining $70 million due in June 2025.
In its lawsuit, Bonta and the state seek a judge’s order to dissolve CCOA Housing and appoint a receiver to manage the assets.
The state’s suit will make sure the nonprofit will make the pending payment, Bonta said. The suit alleges Toy controlled the nonprofit’s board by picking the members, ensuring lax oversight of money transfers to other organizations Toy controlled.
“CCOA Housing Corp. completely failed in their mission,” Bonta said. “We have no faith in the board — Mr. Toy or the other board members — to be able to make payments that are consistent with the mission.”
— Joel Russell