AIDS Healthcare Foundation to sue City of Los Angeles over hospice issue

The AIDS Healthcare Foundation, a non profit, Los Angeles-based AIDS treatment and advocacy center, is going to sue the City of Los Angeles and the Los Angeles Housing Department (LAHD) for contract violation and for a "judicial determination" concerning the validity of a loan agreement between LAHD and AHF.

The loan involved the construction of Linn House, an AIDS hospice care facility in Los Angeles. AHF is no longer in need of this hospice, because the hospice provides services that are no longer relevant to the needs of people living with HIV/AIDS today in Los Angeles. While LAHD insisted that AHF had breached the terms of contract, by using this place in a different way, to best respond to the changing needs of the AIDS epidemic here in Los Angeles.

Earlier the authorities threatened to initiate foreclose proceedings on the facility if AHF was not going to immediately repay the $1.1 million loan plus interest. Under the terms of the 40-year loan, the money is not fully payable until after the year 2030.

The loan was granted to AHF in 1994 to construct Linn House, a 25- bed AIDS hospice located in Los Angeles (near the West Hollywood border) that was initially intended to serve terminally ill AIDS patients during their final days.

AHF made several tries to settle the dispute, for example: it offered one to fully repay the $1.1 million loan provided that the City and Housing Department waive more than $700,000 in interest charges. But LAHD has rejected all of the offers.