(The Center Square) – Attorney General Rob Bonta has filed another lawsuit against the C.C.O.A. Housing Corporation in Los Angeles’ Chinatown, requesting the dissolution of the corporation and the appointment of a receiver pending the resolution of the numerous lawsuits against the nonprofit affordable housing for “elderly persons and handicapped persons” including allegations of poor living conditions from residents and criminal charges filed by the Los Angeles City Attorney’s Office.
The sole charitable activity of the C.C.O.A. is the 268-unit apartment complex Cathay Manor. The majority of the residents of Cathay Manor are low-income senior citizens, many of whom have disabilities. However, after it was discovered that there was persistent mismanagement of the building, with vulnerable residents living in unsanitary and unsafe conditions, C.C.O.A. was forced to sell Cathay Manor.
“For years, I’ve heard from Cathay Manor residents about the unacceptable conditions they’ve faced under C.C.O.A. Housing Corporation,” said U.S. Rep. Jimmy Gomez. “That’s why I pushed for an investigation, and I’m glad to see California Attorney General Bonta taking action. I’ll keep fighting to protect Chinatown seniors and hold landlords accountable to ensure they meet their responsibilities to our communities.”
Bonta is asking that the proceeds from the sale of the building be transferred to another charity that provides affordable senior housing.
“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,” Bonta said. “It was and still is inexcusable. While C.C.O.A. Housing Corporation no longer owns or manages the building, my office is taking legal action to ensure that the proceeds from the sale of Cathay Manor cannot be used, in any way, by the organization’s current leadership. Their track record speaks for itself. They cannot be trusted to do the right thing. Instead, the funds should be distributed to one of the many legitimate charities that actually provide affordable senior housing in the Los Angeles area.”
Bonta said he sees the need for a neutral party to manage the corporation’s affairs. Additionally, a receiver would be needed to settle the corporation’s affairs, debts and liabilities if the court grants the dissolution of the corporation. Furthermore, since the initial lawsuit in 2021 and the sale of Cathay Manor, the corporation’s board members have not provided a plan as to how the funds will be used.
“Following the sale of Cathay Manor and the payment of existing debts and liabilities, C.C.O.A. Housing Corporation currently has more than $8.5 million in a restricted bank account,” reads a press release from the attorney general’s office. “As a condition for approving the sale of Cathay Manor, the Attorney General required all proceeds to be put in a restricted bank account. In June 2025, a final payment of $70 million is due to C.C.O.A. Housing Corporation from the sale of the building, which will also be placed in the restricted bank account.”
The alleged failed duties cited by Bonta in the lawsuit were a breach in the fiduciary duty to properly operate Cathay Manor, a failure to to maintain financial records and filing false statements to the attorney general’s registry ohef charities and fundraisers.
According to the lawsuit, C.C.O.A. Housing Corporation Gong Donald Toy failed to maintain basic health and safety conditions with Cathay Manor lacking a fire code-compliant fire safety system and two operable elevators, trapping residents in the building. Additionally, Toy filed false IRS documents, citing individuals as being board members who were not. Toy also filed IRS documents claiming that C.C.O.A. Housing Corporation was not related to any tax-exempt entity when Toy actually operates three other nonprofit organizations.
“C.C.O.A. and its board members demonstrated a complete and total disregard for the Chinatown community and the seniors who resided at Cathay Manor,” said Los Angeles City Councilmember Eunisses Hernandez. “They cannot be allowed to benefit from the sale of the building that they so woefully mismanaged and neglected. They have already shown us who they are and I applaud Attorney General Bonta’s efforts to hold them accountable for their egregious breach of the community’s trust.”
