California Attorney General Rob Bonta has filed a lawsuit in the Los Angeles County Superior Court seeking to dissolve the C.C.O.A. Housing Corporation, a nonprofit established in 1979 to provide affordable housing for elderly and handicapped individuals. The lawsuit follows an investigation by the Attorney General's office that found numerous violations of state law.
C.C.O.A. Housing Corporation's main charitable activity was managing Cathay Manor, a 268-unit apartment complex in downtown Los Angeles, funded by the U.S. Department of Housing and Urban Development. The residents are primarily low-income senior citizens, many with disabilities. In 2023, due to mismanagement, C.C.O.A. was forced to sell Cathay Manor.
The lawsuit aims to appoint a receiver while the court resolves the case and seeks to transfer proceeds from the sale of Cathay Manor to another charity with similar goals of providing affordable senior housing. An accounting of all financial transactions involving the charity's directors and related entities is also requested.
Attorney General Bonta stated, "There is simply no denying that C.C.O.A. Housing Corporation and its board members failed our seniors miserably when they operated Cathay Manor." He emphasized that his office is acting to ensure sale proceeds are not misused by current leadership but instead go to legitimate charities offering affordable senior housing.
U.S. Representative Jimmy Gomez expressed support for the investigation: "For years, I’ve heard from Cathay Manor residents about the unacceptable conditions they’ve faced under C.C.O.A. Housing Corporation."
Los Angeles City Councilmember Eunisses Hernandez criticized C.C.O.A.'s handling of Cathay Manor: "They cannot be allowed to benefit from the sale of the building that they so woefully mismanaged and neglected."
C.C.O.A. Housing Corporation faces multiple lawsuits, including one from tenants regarding poor living conditions and criminal charges filed by the Los Angeles City Attorney’s Office in 2021. The current lawsuit will not affect these ongoing actions but seeks a neutral party's oversight through a receiver.
The corporation holds over $8.5 million in a restricted account following Cathay Manor's sale, with an additional $70 million payment due in June 2025 also set for this account. During the investigation, C.C.O.A.'s board failed to present any plans for using these funds for future low-income housing projects.
Defendants named include Gong Donald Toy (Don Toy), who has led C.C.O.A since its inception, along with board members Janet Lim, Sing Foo, and Jimmy Victoria.
The complaint alleges breaches of fiduciary duty by failing to operate Cathay Manor properly and maintain basic health standards such as fire safety systems and elevator maintenance. It also highlights failures in corporate governance practices like holding elections or maintaining records as required by law.
Additionally, it accuses them of filing false statements with regulatory bodies and not responding adequately to requests for information regarding financial transactions involving entities linked to Defendant Toy.
The Attorney General oversees nonprofit public benefit corporations in California ensuring they serve public or charitable purposes without personal gain distribution.