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Nonprofit Landlord Accused of Keeping Rental Properties in Egregious Disrepair

  • Indiana AG Todd Rokita sued rental property owner Fox Lake AHF, Inc. (“Fox Lake”), a nonprofit, and its rental management company, Aloft Mgt, LLC (“Aloft”), over allegations that they allowed two large apartment complexes with thousands of residents to fall into disrepair in violation of Indiana’s Deceptive Consumer Sales Act and Nonprofit Corporations Act. In addition, by serving as a management company for Fox Lake, Aloft allegedly engaged in the unlicensed practice of real estate in violation of Indiana’s Home Loan Practices Act.
  • The complaint alleges that Fox Lake and Aloft received over 600 violation notices from the county public health department for failing to maintain basic habitability standards in the apartments they managed, including failing to provide heat, hot water, and air conditioning as well as fix water damage, mold, and broken windows. The complaint further alleges that residents are at risk of a water shutoff because Fox Lake is delinquent on a $1 million utility bill. In addition, the complaint alleges that Fox Lake misapplied or wasted nonprofit corporate assets and that it failed to fulfill its stated charitable mission of providing low-income housing.
  • The complaint seeks injunctive relief, restitution, civil penalties, and attorneys’ costs, among other things.  The complaint also seeks to appoint a receiver over Fox Lake.