LOS ANGELES (KABC) -- Skid Row housing trust, a nonprofit that owns and operates 29 buildings, 2,000 units of subsidized housing on Skid Row, is in such dire financial trouble that the city of Los Angeles is stepping in.
"We are going to be just as bold when it comes to preserving housing as we are about building housing, because as we must scale our programs to house Angelenos, available housing is a must," said Los Angeles Mayor Karen Bass.
"This is a massive undertaking and if this works ladies and gentleman we may have found a solution to replenish and rehabilitate our housing stock for years to come," said LA City Attorney Hydee Feldstein-Soto.
The buildings house 1,500 of LA's most vulnerable residents, those on the brink of homelessness.
The financial problems for the trust have resulted in poor conditions that are dangerous for tenants including fire hazards, leaking roofs and elevator issues. The city is seeking a public health and safety receivership to save the 29 buildings.
"This is not like a commercial receivership. It is not a debt-collection measure. It is a regulatory receivership for purposes of preserving the housing," said Feldstein-Soto.
"Our receiver draws upon his own lines of credit to advance the funding that is required and the court grants a super-priority lien on the priority. So the city is not coming out of pocket,"
The receiver will take control of the properties, address the issues, and make sure units are maintained and not left vacant.