Oakland non profit (OCHI) sued for $2.5 million over mass eviction scheme

News Flash: OCHI non profit mass eviction scheme

July 8, 2008

Oakland non profit organization is sued for $2.5 million

Oakland -- Oakland Community Housing, Inc. (OCHI), an Oakland non profit housing organization was sued as recently as July 3 for $2.5 million in damages, for it's alleged involvement in the abuse of it's low-income tenants at the California Hotel, by forcing the tenants to live in slum-like conditions.

The suit also seeks a court injunction to stop the unlawful attempt by OCHI to force 75 tenants out of their housing at the California Hotel.

OCHI, their partners CaHon Associates, Inc., the John Stewart Company, and Greg Hyson the Vice President of the Telesis Corporation in Washington DC, are listed as defendants in the lawsuit among others.

See information below for more details about the lawsuit that seeks $2.5 million in damages from the non profit organization.

Information below includes recent news articles, details on the scheme to force the tenants out of their housing to make way for a transitional housing project at the California Hotel, and other pertinent information...

Oakland Community Housing, Inc., has been sued in the past by it's tenants due to major infestations of rats, bedbugs and cockroaches at the California Hotel. Click on article directly below for more...


Oakland Infestation: Tenants Sucked Dry by Bed Bugs, Slum Lords

by Lynda Carson/Fault Lines ( sfbay-print [at] indymedia.org )
Tuesday Oct 4th, 2005 8:58 PM

http://www.indybay.org/newsitems/2005/10/04/17726311.php

>>>>>>>>>>>>>
Alert:Plan to Reuse California Hotel as transitional housing
Tuesday, July 8, 2008 2:36 AM
From:
This sender is DomainKeys verified
"Lynda Carson"
Add sender to Contacts
To:
pere [at] value.net, jmurcko [at] isp.com, tamiko23 [at] sbcglobal.net, leahhess2 [at] sbcglobal.net
Cc:
OfficeOfTheMayor [at] oaklandnet.com, nnadel [at] oaklandnet.com, jrusso [at] oaklandnet.com, dbrooks [at] oaklandnet.com, Jquan [at] oaklandnet.com, changochang [at] oaklandnet.com, pkernighan [at] oaklandnet.com, ghyson [at] telesiscorp.com, idelafuente [at] oaklandnet.com, lreid [at] oaklandnet.com, kgotv.desk [at] abc.com, newstips [at] ktvu.com, newsdesk [at] kpix.com, lundin [at] kron.com... more
From: Lynda Carson
tenantsrule [at] yahoo.com

July 8, 2008

Alert: Plan to Reuse California Hotel as transitional housing

(See articles below about the dozens of poor, elderly and disabled people who are being unlawfully forced out of the California Hotel without due process (eviction proceedings) in a court of law.)

The plan to REUSE the California Hotel as transitional housing for the homeless rather than using it for it's current use as long term residential housing, reveals that the planners have total disrespect for the poor existing community that currently resides at the California Hotel.

These people should be tried and locked up for their unlawful actions in trying to frighten and terrorize the existing tenants out of their housing at the California Hotel.

Heres the complete rundown of the scheme someone figured out to re-open the flood gates of $$$FUNDING$$$ that could be used to exploit the Alameda County homeless population so that some non profits could make even MORE money by providing services to the homeless, if they can reuse the California Hotel as transitional housing for the homeless.

The scheme has been in the works for well over a year, and the "RFP" was launched by OCHI on August 31, 2007 to see if there would be any takers.

The schemers knew that they needed to figure out how to get rid of the current residents of the California Hotel so that they could launch their plan, and they are using city funds to entice the current residents out of their housing at the California Hotel through fear and intimidation rather than using the courts in a lawful manner, as evictions are normally conducted.

In this case, no eviction notices have been served, and the courts cannot enforce any evictions at the California Hotel at this point.

Every last individual that is involved in the scheme to terrorize the renters out of their housing at California Hotel should be tried and prosecuted for their unlawful activities.

Click on the "Uptown Affordable Housing RFP" for full details on the elaborate scheme to force the poor out of the California Hotel... http://tinyurl.com/672kjc

>>>>>>>>>>>
[DOC] Uptown Affordable Housing RFP Outline

Click below or further below on link to PDF file...

http://tinyurl.com/672kjc

File Format: Microsoft Word - View as HTML
With the release of this Request for Proposals (RFP), CaHon Associates, Inc.,
the current owner and an affiliated of Oakland Community Housing Inc. (OCHI), ...

http://www.ochi.org/news/california_hotel_rfp_docs/ final_california_hotel_rfp.doc - Similar pages

**********
[PDF] Cahon Associates, Inc.

File Format: PDF/Adobe Acrobat - View as HTML
The California Hotel is a historic landmark building in Oakland currently owned by Cahon Associates,
Inc. (Cahon), an affiliate of OCHI. ...

http://www.ochi.org/news/california_ hotel_rfp_docs/california_hotel_flyer.pdf - Similar pages

**********
Redevelopment Agency And The City Of Oakland

http://tinyurl.com/62ntrb

(See page 4)
Reuse California Hotel for Transitional Housing - $143,000 (DHS)
There is currently a professional service contract between Operation Dignity, Inc., and the
Department of Human Services (DHS). Shortly after the first of the year, $128,381 was
encumbered for this contract. Operation Dignity, Inc. is to administer the Homeless Mobile
Outreach Program (HMOP). A main objective under this contract is coordination of outreach
activities and assisting persons living in homeless encampments to transition to mainstream
housing, including emergency housing, residential mental health, and drug and alcohol
programs, transitional housing, permanent housing, permanent supportive housing, and other
services. The California Hotel is one of various locations in which transitional housing will be
provided. The scope of work is expected to be fully executed by June 30, 2008.

(See page 7)
Reuse California Hotel for Transitional Housing - $300,000
Staff is still in negofiations with Oakland Community Housing Inc. (OCHI), a non-profit
developer, and supportive service providers to transfer the ownership and convert the California
Hotel to a permanent supportive housing complex. This includes accessing the $300,000 set
aside by the Council for the Reuse of the California Hotel for Permanent Supportive Housing.
Staff went to the CED Committee on January 22"^ and full Council on February 5"" to allocate
this funding to Cahon Associates as a grant (Agency Resolution No. 2008-0005 C.M.S.) to help
fund the rehabilitation and conversion of the California Hotel for permanent supportive housing
units for homeless individuals and households.

************
CaHon Associates and OCHi

http://www.google.com/search?hl=en&q=Cahon+Associates%2C+Inc.+OCHI&btnG=Search

************
Low-income tenants sue over eviction
By Paul T. Rosynsky
Oakland Tribune
Article Created: 07/03/2008 08:16:41 PM PDT

http://www.insidebayarea.com/ci_9781882?source%253Dmost_emailed.26978592730A3B8C7F471EACE0DA4EF2.html

OAKLAND — A lawsuit filed Thursday claims that low-income tenants of California Hotel are being illegally evicted from their studio apartments as the owners of the 150-unit complex attempt to violate agreements with the state and city by remodeling the decrepit building to attract a higher-paying clientele.

"They care nothing about these people," said John Murcko, an attorney representing 75 tenants of the building. "These people will be out in the streets, and they can't take care of themselves."

The lawsuit was filed by Murcko and Stephen Perelson against Oakland Community Housing Inc., Cahon Associates, John Stewart Company and a number of individuals who run those companies.

Eleanor Piez, community relations manager for Oakland Community Housing Inc., declined comment Thursday. Others named in the lawsuit either declined to comment or could not be reached for comment.

Not only does the lawsuit claim an illegal eviction and a violation of a state contract, it also claims that the building's owners have purposely failed to repair deficiencies and allowed decrepit conditions to exist in hopes of forcing tenants out.

The lawsuit seeks an injunction to prevent the owners from evicting tenants, and it seeks $2.5 million in damages related to the conditions in which the tenants have been forced to live.

"The place is terrible," Murcko said. "They have bed mites, broken windows, mice, roaches and garbage piling up
Advertisement
everywhere."

Murcko said the building's owners began ignoring maintenance and tenant complaints last year when it stopped offering apartments for rent. Since then, roughly 75 tenants found new homes, leaving 75 still living in the building.

Those 75 tenants were given notice June 20 that the building would be closed on or shortly after July 15. In the notice, Cahon Associates cited an operating deficit as a reason for the closure.

"Cahon Associates, Inc., the owner of the building, cannot afford to hire another management company to operate the California Hotel or subsidize the operating deficit that exists at the property," the notice states. "Tenants should begin to look for another place to live and plan to vacate the building."

Current tenants pay on average $500 a month for their studio apartments, each of which has a private bathroom. Some units have private kitchens, but community kitchens are available on every floor. California Hotel, at 3501 San Pablo Ave., is advertised as a residence for "very low-income" people on Oakland Community Housing's Web site.

Murcko believes Oakland Community Housing and the other owners want to remodel the hotel to make it attractive to tenants using Section 8 vouchers, a move that will result in the company being able to charge a higher rent.

But Murcko claims in the lawsuit that Oakland Community Housing and Cahon Associates cannot follow through with that plan because it signed a deal with the state in 1990 agreeing to keep the building available for "very low-income" tenants for 30 years. In exchange, the state gave Cahon Associates $7 million in tax breaks.

Under the contract, a low-income tenant was defined as anyone earning less than 60 percent of the area's median gross income.

In addition, Cahon Associates received a $4.8 million loan in 1990 from the Oakland Redevelopment Agency to rehabilitate California Hotel and make it available to tenants earning less than 80 percent of the area's median gross income.

While the company's agreement with the state allows it to rent apartments to tenants with higher incomes, it can only do so if it is operating the property at a loss.

Murcko, however, claims that Oakland Community Housing and Cahon Associates are making money on the venture. With 150 tenants paying on average $500 a month in rent, Oakland Community Housing and Cahon Associates should be receiving at least $75,000 a month in rent, Murcko said.

"Based on information and belief, the operating expenses for the California Hotel were under $75,000 a month, including expenses for the managers, security, desk clerks, janitors, maintenance, garbage disposal, electricity and water," the lawsuit states.

Reach Paul Rosynsky at prosynsky [at] bayareanewsgroup.com or 510-208-6455

***********
Oakland low income housing may close
Thursday, July 03, 2008 | 6:55 pm

By Leslie Brinkley

http://abclocal.go.com/kgo/story?section=news/local&id=6244840

OAKLAND, CA (KGO) -- Dozens of disabled Oakland residents could find themselves homeless in the next two weeks if the California Hotel closes. You may have seen it right next to Interstate 580. It's one of several affordable housing projects run by a nonprofit company that the city says can no longer maintain its projects.

"I am the working poor and I am collateral damage," says tenant Duane Anderson.

Low income housing tenants say they fear becoming homeless in a few weeks as the California hotel is set to close down.



On Thursday, 51 of the 75 current tenants filed a complaint in court.

"I have been told on the 15th, the water, the electricity, the garbage services, the gas will all be shut off. A fence will be put up and I will be forbidden to enter the building. I haven't received an eviction notice. I haven't been evicted. I've been intimidated and threatened that you have to move," says Anderson.

"These people are all physically and medically disabled and five are in wheelchairs and they have nowhere to go," says tenants attorney John Murcko.

A spokesperson for Oakland Community Housing Incorporated, a nonprofit housing developer named in the lawsuit, told ABC7 News that they are not able to comment. The situation is changing quickly.

Officials with the City of Oakland were unavailable to comment today, citing the unusual circumstances this case poses. The deputy director of Housing and Community Development told ABC7 News:

"There are city ordinances to protect tenants that do apply, but we don't know what happens when an owner closes shop and walks away, which is the potential situation we could find ourselves in come the 15th of July."

The city is offering tenants first month's rent and a security deposit on another place.

"The waiting list on low income housing is a year, two years and section 8 is three years. There's nowhere for these people to go. We're going to court to get an injunction to stop this," says Murcko.

"There's no place to go because there are no openings for low income housing or nothing like that," says Mickey Martin.

An attorney for the tenants says effective July 1st, they are paying their rent to a trustee and that money will enable these tenants to run the hotel themselves and pay utilities come July 15. They intend to stay put.

***********
Gregory Hyson
1101 30th Street NW 4th Floor
Washington DC 20007
202-295-1204
ghyson [at] telesiscorp.com

************
Gregory Hyson: ZoomInfo Business People Information

View Gregory Hyson's professional background on ZoomInfo, ... of Oakland Community Housing, Incorporated, a community development corporation specialized in ...
http://www.zoominfo.com/people/Hyson_Gregory_16596849.aspx

*************
WEST OAKLAND COMMUNITY HOUSING INC

(c/o GREG HYSON), 405 14TH ST STE 400, Charitable Organization ...

http://www.taxexemptworld.com/organizations/oakland_ca_94612.asp?spg=2

**************
OCHI's 2006 990 Tax Return

The last 990 Tax Form filed by OCHI with the IRS was for 2006, and it was filed or received on August 28, 2007.

2006 990 Tax Form - Received August 28, 2007
Oakland Community Housing, Inc. (OCHI)
EIN - Employee Identification Number 94-2377749
510/763-7676

According to the 990 Tax Form OCHI filed for 2006;

At the end of 2006 for OCHI;
Total Assets: 11,423,208
Total Liabilities: 10,019,326
After subtracting OCHI's liabilities from their assets, the Fund Balance totaled; 1,403,882

In 2006, OCHI also had $167,937 in tenant security deposits, according to the tax statement.

-OCHI SALARIES-
In 2006; Dwight Dickerson was payed $92,337
Charles Fowlkes was payed $82,089
Eleanor Piez was payed $79,104
Amanda Kobler was payed $69,136
Mike Morell was payed $79,136
Total in wages to top 5 OCHI employees: $401,802

Theres 4 other employees working for OCHI that are listed as earning more than $50,000 annually, according to the 2006 990 tax information.

OCHI the non profit organization came out ahead by $1,403,882 in 2006, according to their 2006 990 tax information.

The books are in care of Charles Fowlkes.

*************
Oakland Community Housing Inc.
2030 Franklin Street, 6th Floor, Oakland, CA 94612
(510) 763-7676 | Fax (510) 763-7730
info [at] ochi.org
http://www.ochi.org

Officers and Board of Directors, 2006

Officers

Kathryn Kasch; President
Roderick J. Roché; Vice President
Byron Phillips; Secretary/Treasurer
Donald Gilmore, Executive Director; Assistant Secretary

Board of Directors

Dr. Cobie Kwasi Harris
Carolyn E. Johnson
Timothy Jones
Kathryn Kasch
Eileen Marrinan
Carmella Patton
Byron Phillips
Roderick J. Roché
Margaret Weitkamp

OCHI staff can be reached at (510) 763-7676. The following is a list of OCHI senior staff members with their extensions and links to their email addresses.

Donald Gilmore , Executive Director, ext 317 - dgilmore [at] ochi.org

Michael Morell, Director of Operations, ext. 318

Charles Fowlkes, Controller, ext. 307

Amanda Kobler, Acting Director of Real Estate Development, ext 313

Eleanor Piez, Director of Community Relations, ext. 327

Asset Manager (position vacant at this time) ext. 314