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AHF Sues L.A. Housing Dept. to Prevent Closure of AIDS Site
Date:2/24/2008

charges -- which AHF believes are unjust -- that the City and LAHD have imposed on the loan. LAHD has rejected all of the offers put forth by AIDS Healthcare Foundation.

In 2000, AHF notified LAHD that AHF was closing Linn House as a hospice, but that it would continue to use the building to serve people with HIV/AIDS by housing its HIV/AIDS case management activities there. Later that same month, after AHF had also notified the California Office of Statewide Health Planning and Development (OSHPD, and from which AHF received a $3.3 million loan for the facility), of its change regarding the use of Linn House. OSHPD informed the Los Angeles Housing Department that AHF's use of Linn House was in compliance with its OSHPD loan, and advised that, "It is in AHF's and OSHPD's interest for AHF to operate Linn House in a fashion that supports its mission and minimizes its costs." The Linn Trust (from which AHF received both funds and the land on which the hospice facility was built) also approved AHF's adapted use of the facility in order for AHF to continue to meet the actual needs of people living with HIV/AIDS in Los Angeles.

According to AHF's lawsuit, the three key lenders and financial backers of Linn House -- including the Los Angeles Housing Department -- have known that AHF ceased operating Linn House as an AIDS hospice (as outlined in the initial contract) for at least six years, and that AHF has been providing alternative, equally important HIV/AIDS heath care services at the site. As such, AHF believes that the City of Los Angeles and its Housing Department have waived its rights to enforce what AHF believes is in essence an outdated contract that no longer applies to the community's needs regarding HIV/AIDS care and services in Los Angeles. AHF's suit alleges that:

-- "Defendants (LAHD) were aware that AHF was unable to, and did not,

operate the facility as "twenty-five (25) hospice units for persons

with AIDS
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SOURCE AIDS Healthcare Foundation
Copyright©2008 PR Newswire.
All rights reserved

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