Corrupt non profit developer (EBALDC) challenged for swindling the poor

Corrupt non profit developer (EBALDC) challenged for swindling the poor

By Lynda Carson November 20, 2009

Oakland - Corruption is rampant in Oakland's housing programs due to a lack of over sight, greed, arrogance and the willful wrong doing of poverty pimps in the housing programs, masquerading as Mother Theresa types, who make their living by exploiting the poor.

On the morning of Thursday November 19, around 25 employees from the property management division of the East Bay Asian Local Development Corporation (EBALDC) held a monthly meeting in the community meeting room in the basement of 829 E. 19th St. (Effie's House), a 21 unit residential building in east Oakland.

Residents of 829 E. 19th St., were not invited to the non profit housing developers monthly meeting in the so-called community meeting room, and were not welcome to voice their complaints or concerns during the meeting.

The meeting was chaired by Mary Hennessy, director of EBALDC's property management division, and included property manager Karim Sultan, Danny Chen the building manager of 829 E. 19th St., Robin Smith the building manager of the Hugh Taylor House, and a host of other building managers from EBALDC's 17 or more residential properties, scattered throughout Oakland.

What was different about this property managers meeting, was that it was disrupted by one of the low-income residents of 829 E. 19th St., who snook into the meeting room and verbally challenged EBALDC's employees to explain why the low-income residents of 829 E. 19th St., were being ripped off by excessive fees in the form of general and administrative expenses ($10,580), plus another $12,122 in management fees, including an additional $11,649 in professional fees, on top of being charged $20,722 to cover the salaries and wages of employees, while being charged an additional $9,009 to cover employee benefits, on top of being charged an additional $60,458 for repairs and maintenance of 829 E. 19th St., during fiscal year 2007 - 2008.

On behalf of the concerned residents at 829 E. 19th St., each of the property and building managers from EBALDC who were at the meeting were served a copy of a letter that included a list of the excessive fees and charges ripping off the tenants, at 829 E. 19th St.

The letter demands that Mary Hennessy and Karim Sultan of EBALDC must offer a written explanation to the residents of 829 E. 19th St., that would offer some transparency in regards to the excessive management charges the low-income residents face, and further demands that Hennessy and Sultan should explain why the low-income residents are being ripped off by tens of thousands of dollars annually, through excessive fees and administrative expenses, for the 21 unit building they reside in.

EBALDC is an Oakland non profit housing organization that claims to offer affordable housing, but in many instances charges more for rent on a monthly basis for their rental units, than many for profit landlords charge for comparable units in Oakland.

According to public records in the form of a 990 tax form filed with the Internal Revenue Service and dated as recent as 5/11/09, the low-income renters were charged the above mentioned excessive fees the tenants are complaining about, including a whole host of other fees and excessive charges making life miserable for the low-income renters trapped into the never ending cycle of poverty, due to the excessive fees and charges being foisted upon them by the non profit housing developer known as EBALDC.

The residents also demand that EBALDC must provide some details regarding the distinction between general and administrative expenses being charged to tenants ($10,580), compared to management fees being charged ($12,122), or professional fees being charged ($11,649), on top of the $29,000 in salaries and benefits the tenants had to cover through their rents, during FY 2007-2008.

In response to being challenged by the low-income residents of 829 E. 19th St., a huge roar of laughter erupted in the meeting room of EBALDC property managers, after the unwanted building resident that just served them notice, was quickly ushered from the room, ending the brief disruption of their monthly property managers meeting.

Apparently, these poverty pimps thought that it was hilarious and fun to be challenged by the lowly poor they pretend to serve, who have deep concerns about being ripped off by those masquerading as affordable housing advocates in EBALDC.

Later, during a discussion with EBALDC's chief financial officer who just got back from a lengthy vacation in China, Don Piyathaisere stated; "All the fees and excessive charges the tenants face at 829 E. 19th St., are perfectly legal, and EBALDC charges accordingly to cover the expenses for the property, and it's employees managing the 21 unit residential building."

Corruption In Oakland's Housing Programs

During March of 2009, in spite of the objections of low-income residents at 829 E. 19th St., the City of Oakland loaned EBALDC $1.25 million to renovate 829 E. 19th St., and EBALDC is currently seeking further additional loans, and plans to do around $3 million in renovations at 829 E. 19th St.

Being forced ever deeper into poverty as a direct result of the huge loans being made to EBALDC, the low-income residents of 829 E. 19th St., are already seeing their monthly rents skyrocket by hundreds of dollars extra per month since last March. With only 21 units in the building, the low-income tenants have so-far been saddled with around an additional $60,000 in debt per unit, to pay off the $1.25 million loan, on top of what they have already been paying in excessive fees and charges per month.

The rent for one tenant shot up from $535 per month, to around $870 per month since last March, and others in the building have also had huge rent increases skyrocketing from around $700 per moth, to $1,000 per month in rent, threatening the low-income renters with homelessness as a result.

Nearly nine months after EBALDC got their $1.25 million loan from the City of Oakland, renovations have still not began at 829 E. 19th St. Meanwhile, the low-income residents are saddled with the huge debt and are being forced to pay off the loan made to EBALDC, through the huge rent increases they have been facing recently.

During last March, when members of the community expressed deep concern and spoke out against the huge loans being granted to local non profit housing developers such as EBALDC, Affordable Housing Associates and Resources for Community Development, that have saddled Oakland's poor with over $10 million in debt that they cannot afford to pay, a petition with over 500 signatures was delivered to Oakland's City Council, demanding more over sight into the way EBALDC and the other non profits operate in Oakland, which was totally ignored by the council members.

EBALDC A Non Profit - Money Making Machine

During 2003, EBALDC's assets were listed at a mere $23,876,277, and since then their assets have skyrocketed to around $77,492,652 in 2008, showing that a hefty profit can be made by a non profit organization, even during hard times for all the poor, elderly and disabled people, being saddled with debt and exploited in EBALDC properties.

At last count, EBALDC has around 86 highly payed employees, including 6 of them alone who pull in well over $450,000 a year in salaries and benefits, plus vacation time and healthcare, by sticking it to the low-income residents being exploited throughout EBALDC's vast residential empire.

Lynette Lee, Executive Director of EBALDC pulls in $87,265 in salary, plus $3,055 in employee benefits, totaling over $90,000 a year.

Don Piyathaisere, Chief Financial Officer, pulls in $91,138 in salary, plus $2,236 in employee benefits, totaling over $93,000 a year.

La Netha Oliver, Director of Human Resources, pulls in $68,547 in salary, plus $1,227 in employee benefits, totaling over $69,000 a year.

Carlos Castellanos, Director of Real Estate Development, pulls in $71,865 in salary, plus $2,415 in employee benefits, totaling over $74,000 a year.

Mary Lucero-Dorst, Director of Asset Management, pulls in $63,054 in salary, plus $2,201 in employee benefits, totaling over $65,000 per year.

Charise Fong, Director of Economic Development, pulls in $69,751 in salary, plus $2,099 in employee benefits, totaling over $71,000 a year.

EBALDC building managers Danny Chen and Robin Smith, make their profit and ill gotten gains by enabling EBALDC to violate California state law that requires a resident manager to be in charge of each of the properties they manage, including Effie's House and the Hugh Taylor House, in east Oakland.

Mr Chen and Ms Smith, have both hi-jacked jobs that rightfully should have gone to residents of Effie's House, and the Hugh Taylor House, and offer nothing short of total contempt for the resident manager laws of California, being part of the corrupt Oakland housing programs, that lack proper oversight, and exploit the poor throughout Oakland.

The low-income residents of 829 E. 19th St., are waiting for a reply from EBALDC in regards to why they are being ripped off with excessive fees and charges, despite being laughed at by EBALDC staff for complaining about the drastic situation.

Lynda Carson may be reached at tenantsrule [at] yahoo.com