Despite the rise in homelessness, the federal government continues to raise the barrier to creating shelter for those without permanent housing. Infusing bad actors with HUD money is another layer.
In September the Biden admin. awarded a $10M Tenant Education and Outreach (TEO) grant to two activist groups.
Distributed by HUD, the money will go to the AIDS Healthcare Foundation (AHF) and the Mass. Alliance of HUD Tenants.
“Empower tenants” is the stated purpose of the HUD grant.
In the next two years funds will go to 30 tenant advocacy groups to “preserve affordability.” Antiphrasis at its best.
653,104—number of homeless people in the U.S. after years of decline, homelessness increased 12 percent y/y in 2023
256,610—number of the unsheltered homeless i.e. people who live on the streets, in vacant buildings or cars
181,000—number of homeless in California Calif. spent $7.2 billion, or $42,000 per homeless person (2021-22)
Stone cold activism Michael Weinstein, founder of AHF regularly uses the non-profit’s coffers to advance his political agenda through the ballot.
Poking the activist: Prop 34 Also on the ballot is Prop 34, which would restrict healthcare entities licensed in Calif. that participate in 340B, that have spent over $100 million on activities other than patient care over the past ten years and who own and operate multifamily units with a minimum of 500 serious safety violations. In other words—AHF. Prop 34 mandates that AHF revert at least 98 percent of its revenue back to direct patient healthcare.
Poking the bear: Prop 33 On the ballot this November, Prop 33 is Weinstein’s third attempt to overturn California’s Costa—Hawkins Rental Housing Act, which has restricted rent control since 1995. At present, over 30 states have legislation prohibiting/restricting rent control.
Loophole mastery: Taxpayers fund Weinstein
Using a federal program (340B), AHF buys AIDS drugs at a deep discount and charges insurance companies full price when dispensing them to patients. Financial statements show AHF’s 62 pharmacies earned $1.9B of the charity’s $2.2B in total revenue last year.
The Prop 34 campaign is deemed a “revenge initiative” brought by the California Apartment Association, also a major donor to the No on Prop 33 campaign. However, CAA is not Prop 34’s only proponent. Others include a variety of patient advocacy groups like the ALS Association and the California Chronic Care Coalition.
$300,000 million
Weinstein’s spend on multiple rent control campaigns. He has vowed to push rent control until it is Calif. state law.
HOUSING IS A HUMAN RIGHT
Weinstein’s tenant advocacy group, Housing is a Human Right, stands to receive a sizable portion of the HUD grant money. If housing is a right, conferred by whom? Weinstein has vowed to fund rent control initiatives until it is California state law.
$178M AHF spend on 15 LA properties/1,500 units, 467 in development with an additional $66 million spent on buildings in Georgia, Florida, New York and Texas.
Source: No place to go, Christian Britschgi; State of Homelessness: 2024 edition, Daniel Soucy, Makenna Janes, Andrew Hall; U.S. Department of Housing and Urban Development; California 2022-23 budget; The governor’s homelessness plan; Inside the world’s largest aids charity’s troubled move into homeless housing, Liam Dillon, Doug Smith, Benjamin Oreskes; Prop 33, Prop 34 and the controversy over aids healthcare foundation, Angela McGregor
