Rep. Gomez, Sen. Feinstein, and Sen. Padilla Call on HUD to Ensure Transparent Process for the Sale of Cathay Manor Apartments

Gomez Letter builds on a year of advocacy for residents of the Cathay Manor Apartments to ensure they have an affordable, safe, and sanitary place to live.

LOS ANGELES – Today, Congressman Jimmy Gomez (CA-34) and Senators Dianne Feinstein (D-CA) and Alex Padilla (D-CA) sent a letter urging the U.S. Department of Housing and Urban Development (HUD) to address substandard housing conditions impacting the residents of the Cathay Manor Apartments in Chinatown, Los Angeles. Specifically, the letter calls on HUD to ensure a transparent process for the property transfer of Cathay Manor and to prioritize culturally-competent buyers that will provide long-term stability for the residents — many of whom are low-income, elderly Chinese immigrants. 

Cathay Manor, a 16-story, 270-unit residential apartment building, is currently owned and operated by the Chinese Committee on Aging (C.C.O.A.) Housing Corporation, a nonprofit entity that developed Cathay Manor with financing through the HUD’s Section 202 Supportive Housing for the Elderly program and receives project-based Section 8 rental assistance. 

A Real Estate Assessment Center inspection of the building on October 13, 2021, confirmed tenant reports of rodent and roach infestations, exposed wires and electrical hazards, inoperable fire protection, mold and mildew, and broken sanitation systems. Residents have also cited frequent elevator outages that lasted for months, preventing elderly tenants from accessing food or medical services. 

The owner and operator of Cathay Manor, C.C.O.A. Housing Corporation and its CEO and President Gong (Donald) Toy, are facing 16 criminal charges for the numerous building code violations. Mr. Toy is currently in the process of transferring ownership of Cathay Manor to Lutheran Gardens Corp, a non-profit public benefit corporation.

“We urge you to work diligently to address the substandard housing conditions at the building and prioritize culturally competent buyers that will provide long-term stability for the elderly residents of Cathay Manor,” wrote the lawmakers. “As the responsible lender and regulator, we ask that as HUD reviews the proposed sale package, you facilitate an open, transparent process of property transfer and respect state and local laws to notify qualified potential buyers. We also ask that your staff include our staff in future conversations to ensure residents’ voices are heard in an appropriate forum.” 

HUD is currently working with Lutheran Garden Corp. to renew the Housing Assistance Payment (HAP) contract until September 2042 and extend the building’s affordability covenant through June of 2060. However, residents and Chinatown community advocates are alarmed at the lack of transparency from the C.C.O.A. Housing Corporation—whose bylaws require fifteen members to serve on the Board of Directors of the Chinese Committee on Aging and to authorize any contracts the president executes—and consultation from those who would be most impacted by the decision.    

On November 4, 2021, Congressman Gomez sent a letter to the U.S. Department of Housing and Urban Development (HUD) Secretary Marcia Fudge urging the Department to take immediate action to address substandard housing conditions impacting residents of the Cathay Manor Apartments. 

On December 16, 2021, Congressman Gomez toured Cathay Manor and met with Cathay Manor residents. Afterward, he held a press conference where he called for the resignation of Don Toy, the CEO of the C.C.O.A. Housing Corporation.   

On January 4, 2022, Congressman Gomez sent a letter to California Attorney General Rob Bonta requesting a California Department of Justice (CA DOJ) investigation into potential management improprieties at Cathay Manor Apartments. 

On June 11, 2022, Congressman Gomez convened a meeting with HUD Regional Administrator Jason Pu, the Chinatown Community for Equitable Development (CCED), Southeast Asian Community Alliance (SEAC), Cathay Member residents, and Chinatown community advocates to receive assurances that the proposed owner would preserve affordability.  

 

See the full text of the letter below. Link to pdf here

 

Dear Secretary Fudge, 

We write to share our strong concerns regarding the safety and health of residents at the Cathay Manor Apartments (“Cathay Manor”), a 16-story, 270-unit residential apartment building for low-income seniors in the Chinatown neighborhood of Los Angeles, California. We urge you to work diligently to address the substandard housing conditions at the building and prioritize culturally competent buyers that will provide long-term stability for the elderly residents of Cathay Manor.     

Cathay Manor was the first federally subsidized senior housing project in Chinatown, using financing from the Department of Housing and Urban Development’s (HUD) Section 202 Supportive Housing for the Elderly program. Today, the building stands in extreme disrepair and neglect, with numerous Los Angeles City Building and Safety and HUD code violations, leaving residents feeling unsafe and deeply troubled.  Mismanagement culminated in the building’s only two elevators becoming inoperable for months, essentially trapping vulnerable senior citizens in the high rise, unable to leave to receive medical care or to go grocery shopping.   

As a result of the numerous building code violations, the owner and operator of Cathay Manor, Chinese Committee on Aging (C.C.O.A.) Housing Corporation and CEO and President Gong (Donald) Toy, are facing 16 criminal charges for their failure to properly maintain and repair the building and equipment inside the building. We also recently learned that during these proceedings, they are in the process of transferring ownership of the Cathay Manor to Lutheran Gardens Corp, a non-profit public benefit corporation with a close working relationship with the current property manager, Barker Management Inc.  

As the responsible lender and regulator, we ask that as HUD reviews the proposed sale package, you facilitate an open, transparent process of property transfer and respect state and local laws to notify qualified potential buyers. We also ask that your staff include our staff in future conversations to ensure residents’ voices are heard in an appropriate forum. We thank you for your urgent attention to this matter.

Sincerely, 

 

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