The City Council has unanimously approved a recommendation to remove Mark Adams, the receiver responsible for overseeing 29 dilapidated buildings in Skid Row that house around 1,500 low-income tenants. The council has also authorized a $10 million loan to maintain and repair these buildings while under receivership. Both decisions were made without prior discussion at Tuesday’s meeting, with council members Monica Rodriguez and Curren Price absent.
Previously, the council’s Budget, Finance, and Innovation committee gave the green light to these recommendations. Councilman Bob Blumenfield, the committee chair, emphasized the need for the city to intervene to ensure the safety of residents living in the Skid Row Housing Trust. Blumenfield referred to the situation as a humanitarian crisis and expressed the city’s responsibility to address it, even if they were not the cause of the crisis.
Councilwoman Katy Yaroslavsky echoed Blumenfield’s sentiment, emphasizing the necessity of taking action to resolve the crisis.
Housing Department General Manager Ann Sewill and City Attorney Hydee Feldstein Soto explained why they requested the loan during the committee meeting. They stressed that it is crucial to secure affordable housing and services for the vulnerable residents affected. The loan is contingent upon the appointment of Kevin Singer, a new receiver who would replace Adams.
The city council does not have the power to fire Adams, as he was appointed by a Los Angeles Superior Court judge at the city’s request. Therefore, the council would need to petition Judge Mitchell Beckloff to dismiss Adams and appoint a new receiver.
The Skid Row Housing Trust, which owns these buildings, faced financial collapse earlier this year. Sewill released a report last week indicating that some of the buildings may be irreparably damaged and should be demolished. The problems faced by the tenants include filth, plumbing issues, pests, and disturbances from individuals using drugs or sleeping in common areas.
Adams has faced criticism for alleged failure to make progress in rehabilitating the buildings and finding credit at reasonable rates. Last spring, a firm hired by Adams sent eviction notices to several tenants who were behind on rent, which he later retracted, stating that he did not authorize the notices.
Adams plans to respond to the city’s report in court, citing Judge Beckloff’s support for him. Feldstein Soto emphasized the lack of transparency from Adams, including his failure to account for approximately $3.5 million in collected rent since his appointment in April. Consequently, Feldstein Soto expressed the loss of confidence in Adams’ ability to fulfill his responsibilities.
In response to Councilman Blumenfield’s inquiry about how Singer differs from Adams, Feldstein Soto highlighted that Singer, the principal and CEO of Receivership Specialists, has been thoroughly vetted by the Housing Department and the City Attorney’s Office. She also mentioned positive feedback from the San Francisco city attorney.
Sewill’s report states that the loan will be repaid once the properties are no longer under receivership. The repayment will come from either the limited finance partners or other housing initiatives led by the Housing Department and potentially other government partners. The $10 million loan is expected to cover costs and expenses related to receivership, including Adams’ expenses, for a period of up to six months.
Sewill emphasized the goal of stabilizing the trust properties and ensuring they provide a safe living environment until each property can be transferred to a new general partner or owner. Feldstein Soto acknowledged the need for high-quality services in these buildings and expressed difficulty in admitting any mistakes, but emphasized the importance of correcting them.
The court is scheduled to consider the city’s request for a new receiver on Thursday, according to Feldstein Soto.
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