AIDS Healthcare Foundation

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AIDS Healthcare Foundation
AbbreviationAHF
FormationFebruary 1987;37 years ago (1987-02)
FounderChris Brownlie
Michael Weinstein
Type nonprofit organization
95-4112121 [1]
Legal status 501(c)(3)
PurposeTo provide medical care for people living with HIV or AIDS. The organization aims to eradicate HIV/AIDS through its network of health care centers, pharmacies, prevention and testing services, healthcare contracts and other strategic partnerships. [2]
Headquarters Los Angeles, California, U.S.
Coordinates 34°05′56″N118°19′33″W / 34.098787°N 118.325725°W / 34.098787; -118.325725
Subsidiaries AHF Pharmacy
Out of the Closet thrift stores
Positive Healthcare
Housing is a Human Right
Healthy Housing Foundation
Revenue$1,766,598,821 [2] (2020)
Expenses$1,635,146,022 [2] (2020)
Employees2,446 [3] (2019)
Website ahf.org

AIDS Healthcare Foundation (AHF) is a Los Angeles-based 501(c)(3) nonprofit organization that provides HIV/AIDS prevention, treatment, and advocacy services. [4] As of 2024, AHF operates about 400 clinics, 69 outpatient healthcare centers, 62 pharmacies, and 22 Out of the Closet thrift stores across 15 U.S. states, Washington, D.C., Puerto Rico, and 46 countries, with over 5,000 employees, and provides care to more than two million patients. [5] [6] [7] [8] The organization's aim is to end the AIDS epidemic by ensuring access to quality healthcare, including HIV and STD testing, prescription of medications like Pre-exposure Prophylaxis (PrEP), and referrals to specialty pharmacies. [9] [10] [11] AHF is the largest provider of PrEP in the United States, though its founder Michael Weinstein has received criticism for his past opposition to the drug.

Contents

Since 2012, AHF has become highly active in sponsoring and exclusively financing multiple high-profile ballot initiatives in two states, starting with a successful Los Angeles County initiative to require condoms in adult films (2012 Los Angeles Measure B), and then a similar statewide initiative which failed (2016 California Proposition 60). They also ran two measures seeking to cap prescription drug prices (California Proposition 61 (2016) and Ohio Issue 2 (2017)), both of which failed.

In 2017, AHF created a new organization named the Healthy Housing Foundation, which has been creating housing for homeless and low-income individuals, primarily in Los Angeles. AHF also shifted its political focus to attempting to block housing construction through lawsuits against several new projects, as well as an initiative seeking to block local development in Los Angeles (2017 Los Angeles Measure S), and three seeking to allow for the expansion of rent control in California (2018 California Proposition 10, 2020 California Proposition 21, and 2024 California Proposition 33); all of these failed at the polls. [12] Regarding the housing initiatives, critics have questioned whether the group is misusing foundation and taxpayer money by sponsoring ballot initiatives they consider unrelated to the stated mission of the organization. [13] [14] [15] Weinstein argues, however, that housing is linked to a "sustainable public health structure." [16]

History

Early years: AIDS Hospice Foundation and Chris Brownlie Hospice

During the late 1980s and early 1990s, AHF emerged as an advocate for gay and bisexual men who were hit hardest at the start of the HIV/AIDS epidemic. [17] In 1987, activists Chris Brownlie, Michael Weinstein, Sharon Raphael, PhD, Mina Meyer, MA, and other advocates were among the earliest champions of the AIDS hospice movement. [18] [19] They co-founded the Los Angeles AIDS Hospice Committee, which was the catalyst for the AIDS Hospice Foundation that we know today as the AIDS Healthcare Foundation. [20]

Members of the inaugural AIDS Hospice Committee—Brownlie, Weinstein, Myer, Raphael, Paul Coleman, and others—negotiated for the opening of Chris Brownlie Hospice by protesting and picketing of then-Supervisor Mike Antonovich's home. Following an emotional plea for hospice care to Los Angeles County Commission on AIDS, which included the Los Angeles County Board of Supervisors, they secured a $2 million commitment to AIDS care on the grounds of the Barlow Respiratory Hospital. [21]

The 25-bed hospice—the first of three operated by AHF, including the Carl Bean House and Linn House, which opened in 1992 and 1995, respectively—provided 24-hour medical and palliative care to people living through the final stages of AIDS. The Carl Bean House was named after then-Reverend Carl Bean, a singer and activist who founded the Minority AIDS Project. [22] [23] Located in South Central Los Angeles, it specifically focused on care for predominantly Black and Latino community members, accepting all terminal AIDS patients regardless if they had health insurance or not. [22]

Brownlie died at the age of 39, on November 26, 1989 because of AIDS-related complications, [24] less than a year after the hospice named in his honor first opened, survived by his father, sister, brothers, his longtime partner, Phill Wilson and countless friends and fellow AIDS activists. In addition to Brownlie, over 1,000 people had been given dignified, specialized, compassionate final care at the Chris Brownlie Hospice by the time it ended hospice operations in September 1996. The building that housed the Brownlie Hospice went through its own rebirths, housing various departments of AHF, including the headquarters for AHF's Public Health Division, before the organization officially turned the property back over to the City of Los Angeles with a sunset memorial ceremony on January 26, 2013. [25]

Expansion

As medical opportunities for managing HIV including anti-retroviral drugs became more available, AHF changed its mission to helping individuals with HIV/AIDS live well with the disease through advanced medical care. This shift was marked with the change of the Foundation's name to AIDS Healthcare Foundation in July 1990. [18] [26]

AHF operates the Out of the Closet thrift store chain. 96 cents of every dollar earned at the thrift stores goes to AHF's HIV/AIDS programs and housing services, on-site pharmacies, and free HIV testing. [27] The first Out of the Closet thrift store opened in 1990 in Los Angeles' Atwater Village to benefit residents living with AIDS at the Chris Brownlie Hospice. [28]  In 1997, Out of the Closet thrift stores began offering free and anonymous HIV testing. [29]

In 1991, AHF opened the Richard Polanco HIV Clinic as a place where people in the early stages of AIDS could receive treatment even without private health insurance. [30]

In 2000, AHF opened its first pharmacy, a move that proved crucial to its underlying business model. [31] The organization's main business is its network of pharmacies and clinics that provide primary care to patients, most of whom have their insurance claims paid by government insurance programs like Medicaid. [31] The excess income from these patients has helped AHF provide free care to millions of patients—the greatest reach of any HIV/AIDS organization. [31] AHF acquired the MOMS Pharmacy chain of pharmacies in 2012, and in 2013, rebranded the chain as AHF Pharmacy. [32]

AHF sponsored HIV awareness-themed Rose Parade floats in 2012 and 2013, each winning the Queen's Trophy for best use of roses. [33] [34] The organization fashioned a tribute to actress Elizabeth Taylor, who championed HIV and AIDS programs in the 1980s. [35]

In 2014, AHF made history during the Rose Parade by hosting a same-sex wedding on its float for the first time in the parade's history. [36] The float, with the theme "Love is the Best Protection," won best presentation of color and color harmony through floral use. [37] A longtime float participant, the organization has earned a reputation for thought-provoking messages surrounding healthcare, homelessness, gay rights, anti-violence, and other issues. [38]

AHF produced the documentary film Keep The Promise: The Global Fight Against AIDS, depicting the AHF-sponsored protest of government anti-HIV funding levels and anti-HIV drug prices at the XIX International AIDS Conference, 2012. The film premiered on March 29, 2013 at the Vail Film Festival. [39]

In August 2024, AHF opened a new all-in-one facility in Austin, Texas, including an HIV healthcare center, pharmacy services, STI testing and treatment, and an Out of the Closet thrift store, where 96 cents of every dollar earned goes back into local patient care. [40] [41]

Global

In the early 2000s, AHF developed a program called Global Immunity, whose goal is to change the course of the HIV/AIDS epidemic by expanding access to treatment for those living with HIV across the globe. [42] [43] As of 2023, the organization operates clinics in 45 countries. [44]

In 2001, AHF became the first international organization to sponsor an HIV/AIDS clinic in South Africa. [45] The clinic, Ithembalabantu (Zulu for "People's Hope"), was opened in Umlazi, Durban where 10% of the population was infected with HIV at the time. [45]

In 2002, AHF opened an HIV/AIDS clinic in Masaka, Uganda under the program Uganda Cares. [46] In 2004, the organization developed an "HIV Medic Program" in Masaka, a task-shifting training program that was awarded a "Best Practice" designation by the World Health Organization (WHO). [46] By 2022, Uganda Cares had tested over seven million Ugandans, started treatment for more than 112,000 Ugandans, and distributed over 45 million condoms. [47]

In 2004, AHF began working in India. [48] Two years later, the Centre of Excellence ART clinic was opened by AHF India Cares in New Delhi, with AHF becoming the first provider to offer free anti-retroviral therapy (ART) in the area. [49]

In May 2023, AHF began a collaboration with the Pan American Health Organization (PAHO) to eliminate HIV/AIDS, tuberculosis, viral hepatitis, monkeypox, and other STIs in Latin America. [50] The partnership set out to implement WHO recommendations through advocacy, including improvement of prevention programs, quality of care, and treatment outcomes. [50]

Housing

AHF is a proponent of increasing the housing supply for low-income and homeless individuals, and also advocates for rent control. [51] [52] [53] The organization states that their housing platform is based on what they call the "3 Ps": Protect, preserve, and produce. [54] They explain this as addressing gentrification and homelessness by promoting rent control and discouraging evictions; supporting sustainable land-use policies without disrupting neighborhoods; and creating affordable housing through cost-effective new construction and the adaptive reuse of existing buildings. [54]

Weinstein likens the homelessness and housing affordability crises to the "moral outrage of AIDS in the [1980s]," with many homeless youth identifying as LGBTQ. [16] Under his leadership, AHF has sued to prevent the destruction of available housing units by developers who favor luxury housing. [16]

In recognition of the interconnectedness between housing stability and overall health outcomes for individuals living with HIV/AIDS, AIDS Healthcare Foundation established the Healthy Housing Foundation (HHF). [55] HHF is responsible for finding or building affordable housing units in several places across the country, including Los Angeles and Miami-Dade County, where the organization has made a multi-million dollar commitment to house people in need. [56] [57]

In 2017, AHF created a new organization named the Healthy Housing Foundation (HHF) which started acquiring hotels (often single-room occupancy) in the Los Angeles area for conversion to affordable housing units, renting them for about $400–600 per month. [58] [59] By 2020, it owned seven such properties totaling 800 units. [58] As of 2022, it owns over a dozen in Los Angeles, Hollywood, and Skid Row neighborhoods, and by 2023 has spend more than $180 million on the purchase and renovation of these properties. [60] : 1  [5] AHF has specialized in buying old (and sometimes vacant) hotels and converting them to housing (for a total investment of $110,000 per unit) as a much more cost-effective way to provide housing than the City of Los Angeles, which pays about $500,000 per unit for constructing new affordable housing. [51]

In 2020, tenants in one of the AHF's apartment buildings (an almost century-old hotel named The Madison) sued the AHF over slum-like conditions. [58] [60] The tenants had reached a settlement with the previous owner for similar problems, and allege that the previous owner defrauded AHF by not disclosing that settlement, though others say that AHF should have known from due diligence. [60] : 1  AHF has argued against accusations about lingering maintenance problems in the organization's Skid Row residential buildings, blaming city officials for failing to permit planned upgrades. [61] [62] In 2022, the city and public utility paid AHF $100,000 to settle claims that they had delayed needed improvements to an elevator at The Madison. [62]

In December 2023, AHF purchased the Morrison Hotel, made famous by The Doors' 1970 album cover, with plans to convert the building into 111 units of affordable housing. [63] The Doors drummer John Densmore and rock photographer Henry Diltz helped HHF make the announcement, with the hotel becoming the 15th affordable housing property owned and managed by the organization in Los Angeles. [63]

Other activities

AIDS Healthcare Foundation actively participates in the World AIDS Day to mobilize communities and promote a greater understanding of the impact of HIV/AIDS worldwide. [64] AHF hosted its 2022 World AIDS Day Concert on Wednesday, November 30, at the concert hall of The Kennedy Center in Washington, D.C., where multi-Grammy Award-winning vocalists Patti LaBelle and Gladys Knight delivered performances. [65] In December 2023, AHF hosted its World AIDS Day Concert at NRG Arena in Houston, Texas, featuring Janet Jackson, Debbie Allen, and Blair Underwood. [66] Underwood received the organization's Lifetime Achievement Award at the event. [67]

The organization paid $110,000 to Kevin de León for consultancy work in the period after he won election to the Los Angeles City Council, but before he took office. Once in office, De León allegedly pressured his staff not to investigate various health and code violations at properties owned by the foundation in De León's district. [68] Internal communications revealed by the L.A. Times showed that De León told a staff member that angry messages are "coming from the top" about a staff member's visit to one of the foundation's properties. Ethics experts expressed concerns about conflicts of interests in the relationship between the two and the failure to disclose the payment. [59]

De León's consulting contract with AHF ended before taking office as a council member. [69] He maintains he showed no favoritism to AHF in addressing tenant complaints, showing that his staff monitored concerns and referred tenants to city enforcement officials. [68] According to Pete Brown, a de León spokesman, his meetings with city officials on AHF's behalf were only intended as briefings. [69]

In 2023, AHF organized a "We The People" national rally in response to bills introduced in state legislatures that the organization claims discriminate against women, immigrants, LGBTQ individuals, and others. [70] More than 4,000 people marched in Fort Lauderdale, Florida in July 2023, including activist organizations and individuals like David Hogg and Debbie Allen. [71] Labor leader and civil rights activist Dolores Huerta also joined the rally. [72]

Safer sex advocacy

AHF hosts global events to both commemorate those lost to HIV/AIDS and educate the public about the importance of safer sex with condom use. Each year on December 1, AHF marks World AIDS Day with a series of international events throughout many of the countries where AHF operates. It is an opportunity to reflect on the progress made in battling HIV/AIDS over the years and be a reminder of the work left to be done amid the 1.7 million new HIV infections every year. [73]

International Condom Day, which is celebrated on February 13, was established by the AIDS Healthcare Foundation. [74] [75] As a part of their advocacy efforts, AIDS Healthcare Foundation offers free condoms to the public at their International Condom Day (ICD) events and year around at their pharmacies, healthcare centers, and wellness centers. [76] [77]

International Condom Day is an AHF holiday celebrated on February 13. It was created to promote safer sex and provide access to condoms and free Rapid Testing. AHF uses World AIDS Day and International Condom Day as fun ways to engage with people, get them tested for HIV, and get them connected to care if they need it. [78]

PrEP

In 2014, the organization was noted as being unique amongst H.I.V.-prevention groups in advocating against pre-exposure prophylaxis (PrEP), a drug that greatly reduces the risk of contracting H.I.V. [79] AHF does, however, prescribe PrEP, and as of 2022 is the largest provider of PrEP in the U.S. [80] [81] According to AHF's founder and president, Michael Weinstein in 2019, "It's a mischaracterization to say that we were opposed to PrEP." [16] He stated that "PrEP would help individuals who were certain not to use condoms," and "We said that we did not believe it would be a successful public health strategy." [16]

Weinstein's opposition to PrEP and his calling it a "party drug" made him disliked by many within the anti-AIDS space. [79] [80] [16] He believes that usage of PrEP will reduce the use of condoms (what he calls "condom culture") and thereby increase new AIDS cases. [79] The global clinical trial for PrEP found that usage did not lead to riskier sex, which was explained by the fact that condom use among gay men is generally low. [79]

Advocacy for reducing drug prices

AHF engages in public advocacy for government programs to address the HIV/AIDS epidemic, including efforts to reduce drug costs. [17] The organization has filed lawsuits against pharmaceutical companies regarding the pricing of HIV treatments, such as tenofovir. [82] In November 2006, AHF asked Indian anti-HIV drug manufacturer Cipla to reduce the price of its combination drug Viraday from its launch price of about Rs 62,000 per year. Cipla CEO Y. K. Hamied cited taxes and custom duties on raw materials as reasons for the high price, but agreed to a price cut. [83]

In January 2007, AHF filed suit in Los Angeles over Pfizer's direct-to-consumer marketing of Viagra, accusing Pfizer of promoting off-label, recreational use of Viagra, and suggesting a link between Viagra, methamphetamine, and unsafe sex. Pfizer denied AHF's claims, and mentioned that AHF had recently asked Pfizer to fund an educational program about meth. [84]

In August 2007, AHF began purchasing full-page ads in Indian newspapers accusing Cipla of overpricing. According to AHF, a year's worth of Viraday cost Rs 54,000 when sold in India, but only Rs 21,000 when exported to Africa. [85] Some NGOs declined to join AHF in criticizing Cipla's drug prices, citing a potential conflict of interest: Cipla's opposition to the patent application for Viread, a component of Viraday, filed by AHF contributor Gilead Sciences. Gilead denied involvement in AHF's complaint, and an AHF regional chief stated that AHF also opposed Gilead's patent application for Viread. [86]

In March 2008, AHF petitioned drug manufacturers including Abbott, Boehringer Ingelheim, Bristol-Myers Squibb, Gilead, GSK, Merck, Pfizer, Roche and Tibotec to freeze the price of their HIV drugs in the U.S, stating that as a result of regular drug price increases "HIV/AIDS assistance programs will essentially be flat funded and unable to provide access to additional people in need of lifesaving drugs." [87]

In September 2013, AHF filed a lawsuit in California against GSK alleging that the company "... failed to fully satisfy its obligations with respect to discounts for drugs it sold to AIDS Healthcare Foundation over a period of many years," under the 340B Drug Pricing Program, a federal drug discount program designed to stretch scarce federal resources as far as possible for community healthcare providers such as AHF. [88] The organization is a participant in the 340B Program, claiming it improves the "clinical outcomes of vulnerable Americans" while "cost[ing] the American taxpayer nothing." [89] [90]

In May 1999, AHF filed a lawsuit against the City of Los Angeles over the mismanagement of AIDS Housing Funds. Following a state legislator's audit, the Los Angeles City Controller revealed that more than $17 million in federal funds for people with AIDS went unspent as an AIDS homeless crisis raged in Los Angeles. [91]

Condom laws litigation in Los Angeles and Las Vegas

In 2004, Darren James and three other adult film actors tested positive for HIV. In response to the outbreak, AHF began lobbying in favor of laws requiring condom use by male actors during sex scenes in adult films. [92]

In 2010, AHF unsuccessfully sued the Los Angeles County government to compel its health department to mandate condom use in adult film productions. [92]

In 2012, AHF supported a Los Angeles city ordinance requiring condoms in certain adult films. [93] Later the same year, the organization spent US$1,654,681 funding the successful campaign to pass Measure B, a ballot initiative that expanded the condom requirement countywide. [94]

AHF again sued the Los Angeles County government, alleging that an August 2012 audit conducted by the county was an illegal retaliation for AHF's support for Measure B. [95] [96] In 2013, AHF began collecting signatures for a ballot measure to create a Los Angeles city health department that would take over part of the county health department's jurisdiction. [97] The City of Los Angeles and County of Los Angeles oppose the measure, and the city has filed a lawsuit seeking to invalidate the measure. [98]

In August 2014, the AIDS Healthcare Foundation filed a formal complaint with Nevada OSHA, [99] against Cybernet Entertainment LLC, which does business as Kink.com and related spin-offs. The complaint alleges the California porn company did not require its actors to use condoms during an adult film shoot in Las Vegas.

2013 Los Angeles lawsuit

In 2013, AHF found itself entangled in dual lawsuits when AHF allegedly attempted to use its clout to force the City of Los Angeles to develop health services independent from the county. Health officials in affected departments filed responsive suits, arguing massive wastes would result in a transition or duplication of services. [100]

2014 lawsuits

In 2014, the AIDS Healthcare Foundation filed suit against the City of San Francisco. AHF claimed that city restrictions on chain stores targeted them unfairly when the organization attempted to open a retail store. [101] [102]

In 2014, the AIDS Healthcare Foundation filed suit against the County of Dallas. AHF claimed that the County did not give the agency a fair chance to bid for federal AIDS funding. [103]

In 2014, AHF was audited by Los Angeles county and billed $1.7 million for duplicated services. AHF filed suit, arguing that they were targeted on the basis of their political actions in the 2013 lawsuit. The lawsuit filed by AHF was thrown out by a judge. [104] The billing case was dismissed, finding AHF had not billed the county for $6 million in allowable services with neither the foundation nor the county having to repay funds. [105]

2015 Broward County Court

In 2015, a whistleblower lawsuit was filed by three former AHF managers. The employees allege AHF engaged and even documented kickback processes for positive HIV test results for social workers. [106] AHF ultimately won the case. [107]

2016 East Baton Rouge lawsuit

In 2016, the AIDS healthcare foundation filed suit against East Baton Rouge Parish in Louisiana, claiming it was discriminated against in the awarding of healthcare contracts. The suit specifically targeted funds given to longstanding local AIDS service organizations such as HIV/AIDS Alliance for Region Two, Family Service of Greater Baton Rouge, and others. [108] [109] The suit was settled with funding left unchanged. [110]

2016 Los Angeles Palladium Development lawsuit

The AIDS Healthcare Foundation (AHF) filed suit against the City of Los Angeles, alleging that the city violated laws and the city charter when it approved the development of two residential towers that are expected to be up to 30 stories tall. The City Council changed existing zoning and height limitations to allow the development, which would be next to AHF's Hollywood headquarters. A spokesperson for the development accused Michael Weinstein of filing the suit to maintain the view from his office, but Weinstein countered that opposing "luxury housing" development is part of AHF's mission. [111] In 2019, the California Supreme Court refused to hear the case, leaving in place a lower court decision against the foundation. [112]

2019 CVS lawsuit

In 2019, AHF filed a lawsuit with the American Arbitration Association against Caremark LLC, a CVS subsidiary, over unfair reimbursement practices. [113] CVS was eventually ordered to compensate AHF $23 million. [114]

2022 L.A. City Council Housing Element dispute

In 2022, the AHF sued to block Los Angeles's Housing Element, which is a new strategy by the L.A. City Council to increase housing supply in L.A. with a goal of producing 500,000 new housing units by 2030, with 200,000 of those being affordable units. [15] AHF argued that city officials did not properly assess the environmental impacts of their strategy. [115]

Ballot initiatives

Condom use in adult films

2012 Los Angeles County Measure B "County of Los Angeles Safer Sex In the Adult Film Industry Act" – succeeded

AHF spent $2.3 million sponsoring an initiative that requires the use of condoms in all vaginal and anal sex scenes in pornography productions filmed in Los Angeles County, California. [116] [117] It passed 57% – 43%.

2016 California Proposition 60 "Adult Film Condom Requirements" – failed

AHF spent $5.0 million (almost ten times what the total opposition spent) as the only financial backer of a statewide initiative that would have allowed Cal/OSHA to prosecute an enforcement action any time a condom is not visible in a pornographic film. [118] It failed, 54% to 46%.

Drug pricing

2013 San Francisco Proposition D – succeeded

In 2013 AHF sponsored Proposition D in the City of San Francisco, which required the city to negotiate directly with drug manufacturers and set a city policy to request that state and federal lawmakers create laws that would reduce drug prices. [119] It passed 80% – 20%. [119]

2016 California Proposition 61 "California Drug Price Relief Act" – failed

AHF spent $19.5 million as the almost sole supporter of the California Drug Price Relief Act, (the opposition spent $110 million, making this the most expensive ballot measure to date across California and the United States) a statewide 2016 ballot initiative that would have revised California law to require state programs to pay no more for prescription medications than the prices negotiated by the United States Department of Veterans Affairs (notwithstanding any other provision of law and insofar as permissible under federal law), while exempting managed care programs funded through Medi-Cal. [120] [117] It failed by a 6% margin. [121]

2017 Ohio Issue 2 "Ohio Drug Price Relief Act" – failed

AHF spent $18 million as the almost exclusive sponsor of the Ohio Drug Price Relief Act (the opposition raised $59 million). [122] According to the Ohio petition language, "The Ohio Drug Price Relief Act would ... require that notwithstanding any other provision of law and in so far as permissible under federal law, the State of Ohio shall not enter into any agreement for the purchase of prescription drugs or agree to pay, directly or indirectly, for prescription drugs, including where the state is the ultimate payer, unless the net cost is the same or less than the lowest price paid for the same drug by the U. S. Department of Veterans Affairs." [123] The initiative failed, 79% – 21%. [122]

Housing

2017 Los Angeles city Measure S "Neighborhood Integrity Initiative" – failed

In 2016, the foundation sponsored and provided more than 95% of the funding ($5.5 million) [124] for an anti-development ballot initiative, Measure S, which was rejected with 70.4% voting against. [125] [126] Real estate developers and others spent over $8 million opposing Measure S. [127] This initiative would have imposed a two-year moratorium on spot zoning as well as developments requiring height and density variances and other changes that would, it claimed, prevent the city from gentrifying and growing too fast. "As we work to house patients in L.A., City Hall focuses on approving $3,500 apartments that sit empty," Weinstein wrote in a Los Angeles Times op-ed. [128] Opponents, who included many advocacy groups for the homeless as well as the city's business community, building trades unions, and developers, said that while the measure addressed some real problems, it went too far and would have not only prevented the construction of new affordable housing but made the city's overall quality of life worse by aggravating an existing housing shortage. [129] They questioned whether the money spent by the AIDS Healthcare Foundation to get the initiative on the ballot was related to the foundation's mission. [130] [13]

At an April 2024 event for The Sanders Institute, Weinstein stated that the primary reason for his and AHF's involvement in affordable housing is that "housing is the largest predeterminant of health," calling housing a "human right." In an interview with The Advocate in 2016, regarding Measure S, Weinstein claimed: "Why isn't there development in South L.A.? Why isn't there development in Boyle Heights? Why concentrate all this development in Hollywood? You have a [transit line] in the Valley and a [transit line] in South L.A." [131] [132]

Dana Cuff, an urban planning professor at the University of California, Los Angeles stated that Weinstein's housing opposition "is not understandable ... I'd go further than that; it's actually a misuse of their funds. ... They're putting a lot of energy into stopping this project," says Cuff. "If they put that same energy into getting some of this project to be affordable, I would understand [their motivation]. But to just stop it—they couldn't possibly be concerned about affordable housing." [131] [132] Those and other similar statements have led opponents to characterize Weinstein as a rich NIMBY who opposes development because it would add traffic to his commute and block the views from his office building, rather than because he cares about the plight of poor renters or people with HIV. [13] [131] [132] : 1  Weinstein argues that he is against building more luxury housing, not schools, hospitals, homeless shelters, or affordable housing projects. [133]

2018 California Proposition 10 "Repeal of Costa-Hawkins Rental Housing Act" – failed

AHF contributed $22.5 million to the campaign for Proposition 10, a ballot initiative which sought to repeal the 1995 Costa-Hawkins Act. [134] The measure would have allowed local governments to adopt rent control on any kind of building. [134] Costa-Hawkins is a state law which disallows local governments (cities and counties) from enacting rent control on buildings constructed after 1995, all single-family homes (regardless of construction date), and disallows laws that keep a property under rent control when tenants change (vacancy control). [135] : 1  The proposition failed, 59% to 41%. [136]

2020 California Proposition 21 "Expands Local Governments' Authority to Enact Rent Control on Residential Property" – failed

In 2019, the California legislature passed and the governor signed AB 1482, which created a statewide rent cap for the next 10 years. [137] The Tenant Protection Act of 2019 caps annual rent increases at 5% plus regional inflation, pegged to the rental rate as of March 2019. [137] The new law does not apply to buildings built within the prior 15 years, or to single-family homes (unless owned by corporations or institutional investors) and retains "vacancy decontrol," meaning that rents can increase to market rate between tenants. [137]

In 2020, Michael Weinstein, AHF's founder, sponsored and financed a second ballot initiative to allow more rent control, because he felt that AB 1482 (above) did not provide enough tenant protections, such as limiting rent increases between tenants. [137]

AHF spent $40 million (99.8% of the supporters' funding) in support of Proposition 21 (the opposition spent $85 million). It appeared on the ballot on November 3, 2020 and would have allowed local governments to establish rent control on residential properties that have been occupied for over 15 years. It would also have allowed landlords who own no more than two homes to exempt themselves from such policies, and would also have capped rent increases between tenancies at 15% over three years (vacancy control). [138] [139] [140] Proposition 21 was rejected by 60% of California voters, like Proposition 10 (above) before it. [141]

2024 California Proposition 33 "Justice for Renters Act" – failed

AHF sponsored and has contributed more than $47 million to the "Justice for Renters Act," a 2024 ballot measure in California (Proposition 33) that would repeal the Costa–Hawkins Rental Housing Act and allow localities to enact rent control on single-family homes, apartments built after 1995, and to control rent increases between tenancies, all currently banned by Costa-Hawkins. [142] [143] California currently limits rent increases to 10 percent a year for tenants living in apartments built before 1995; Proposition 33 would allow cities and counties to create local rent control laws for any form of housing no matter when it was constructed. [144] [143] This would include rent increase caps on newer buildings not covered under Costa-Hawkins. [143]

Proposition 33 is supported by labor and tenant organizations such as Unite Here Local 11, the California Nurses Association, the California Alliance for Retired Americans, the Coalition for Economic Survival, Consumer Watchdog, Tenants Together, and Veterans' Voices. [145] [146] [147] Organizations like the California Democratic Party, the California Working Families Party, and the ACLU of California have also endorsed the measure, in addition to Los Angeles County and San Francisco County. [148] [149]

In April 2024, Michael Weinstein attended a two-day strategy session with other housing activists in Los Angeles, including Los Angeles Mayor Karen Bass, Sen. Bernie Sanders, and Rep. Ro Khanna. [150] During the session, Weinstein claimed the Justice for Renters campaign is a "battle for the poor and working-class people" who find housing in California unaffordable. [151] AHF also refers to Proposition 33 as a "social justice issue" for unhoused and low-income communities. [152]

Proposition 33 is opposed by California state senator Toni Atkins, San Diego mayor Todd Gloria, and other local leaders. [144] Opponents state that it will reduce housing construction, thereby worsening California's housing shortage. [142] [143] [144]

Proposition 33 was defeated 62 to 38 percent. [153] Weinstein blamed the defeat on California Governor Gavin Newsom, claiming the initiative was more popular before the governor voiced his opposition. [154] In Weinstein's words: "Big real estate gave [Newsom] millions over the years, and they called in their chits." [155]

2024 California Proposition 34 "Restricts Spending of Prescription Drug Revenues By Certain Health Care Providers"

In an effort to prevent AHF from continuing to use its profits (money that AHF receives under the 340B Drug Pricing Program intended for healthcare providers to expand their services to disadvantaged groups) to fund the above-mentioned three rent-control initiatives, the California Apartment Association (CAA) sponsored and funded Proposition 34. [156] [157] [158] This law would require some California healthcare providers to spend 98% of that revenue on direct patient care. [156] Several news organizations have stated that the only organization that would seem to be affected by this law is AHF. [159] [157]

See also

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<span class="mw-page-title-main">2016 California Proposition 60</span>

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<span class="mw-page-title-main">2018 California elections</span>

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<span class="mw-page-title-main">2020 California Proposition 21</span> Ballot measure on rent control

Proposition 21, an initiative statute for local rent control officially called the Expands Local Governments’ Authority to Enact Rent Control on Residential Property, was a California ballot proposition that appeared on the ballot for the general election on November 3, 2020 and was rejected. If approved, it would allow local governments to establish rent control on residential properties that have been occupied for over 15 years. It would also allow landlords who own no more than two homes to exempt themselves from such policies. This would essentially repeal some of the provisions in the 1995 Costa–Hawkins Rental Housing Act. Proposition 21 was rejected by 60% of California voters, just like Proposition 10 was before it.

<span class="mw-page-title-main">2024 California elections</span>

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<span class="mw-page-title-main">2024 California Proposition 33</span> 2024 California referendum

Proposition 33, titled Expands Local Governments’ Authority to Enact Rent Control on Residential Property, and also marketed as the "Justice for Renters Act", was a California ballot proposition and initiative statute in the 2024 general election that would have repealed the Costa–Hawkins Rental Housing Act and allowed localities to enact rent control on single-family homes, apartments built after 1995, and to control rent increases between tenancies, all currently banned by Costa-Hawkins. It would also have prohibited the state from limiting local rent control.

<span class="mw-page-title-main">2024 California Proposition 34</span> 2024 California referendum

Proposition 34, titled Restricts Spending of Prescription Drug Revenues By Certain Health Care Providers, was a California ballot proposition and initiative statute in the 2024 general election on November 5. The proposition requires health care providers that have spent over $100 million in any 10-year period on anything other than direct patient care, and operated multifamily housing with over 500 high-severity health and safety violations, to spend 98% of the revenues from federal discount prescription drug program on direct patient care.

<span class="mw-page-title-main">2024 California Proposition 5</span>

Proposition 5 is a California ballot proposition that was voted on as part of the 2024 California elections on November 5. It failed, with 55.0% of voters voting "no." If passed, the proposition would have amended the California Constitution to reduce the supermajority requirement from two-thirds of the vote to 55% for local bond measures to fund affordable housing and some types of public infrastructure.

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  122. 1 2 "Ohio Issue 2, Drug Price Standards Initiative (2017)". Ballotpedia . Retrieved September 15, 2022.
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  124. ↑ Reyes, Emily Alpert (March 3, 2017). "Here are the biggest spenders in the battle over building restrictions in L.A." Los Angeles Times. Archived from the original on April 9, 2017. Retrieved May 11, 2018. Real estate development company Crescent Heights has been at odds with the AIDS Healthcare Foundation over its plans to build two towers next to the foundation headquarters on Sunset Boulevard. So far, Crescent Heights has contributed more than $2.5 million to oppose Measure S. The AIDS Healthcare Foundation, in turn, has chipped in more than $5.5 million to support it.
  125. ↑ "Los Angeles County Election Results". Los Angeles County Clerk's Office. March 7, 2017. Archived from the original on May 3, 2017. Retrieved March 23, 2017.
  126. ↑ Chandler, Jenna (March 7, 2017). "A decisive defeat for Measure S: LA voters reject anti-development measure". Curbed LA. Retrieved January 8, 2024.
  127. ↑ Reyes, Emily Alpert; Poston, Ben; Zahniser, David (March 8, 2017). "Measure S defeated after a heated, costly battle over future L.A. development". Los Angeles Times. Retrieved January 8, 2024.
  128. ↑ Weinstein, Michael (March 2, 2017). "Why the AIDS Healthcare Foundation is behind Measure S". Los Angeles Times . Archived from the original on March 4, 2017. Retrieved March 23, 2017.
  129. ↑ Phillips, Shane (January 17, 2017). "Don't listen to the backers of Measure S. Los Angeles isn't overdeveloped; we're in a housing slump". Los Angeles Times . Archived from the original on January 26, 2017. Retrieved March 24, 2017.
  130. ↑ The Times Editorial Board (February 25, 2017). "An AIDS advocacy foundation is bankrolling L.A.'s draconian anti-development measure. How is this social justice?". Los Angeles Times . Archived from the original on May 9, 2018. Retrieved March 24, 2017. ... the AIDS Healthcare Foundation has never been a significant voice advocating for more affordable housing and homeless housing in L.A. Nor has the group played a role in planning and land-use issues — at least not until a developer proposed building two 30-story towers right next to Weinstein's office.
  131. 1 2 3 Broverman, Neal (January 13, 2016). "AHF's Michael Weinstein Has a New Fight, and It's Not About HIV". The Advocate (LGBT magazine) .
  132. 1 2 3 Broverman, Neal (March 8, 2017). "World's Largest AIDS Organization Just Flushed Millions Down the Toilet - The AIDS Healthcare Foundation poured $5.5 million into a Los Angeles ballot initiative that has little to do with HIV. After AHF's measure went down in flames Tuesday, the organization has some explaining to do". The Advocate (LGBT magazine) .
  133. ↑ "AHF's Michael Weinstein Has a New Fight, and It's Not About HIV". www.advocate.com. Retrieved December 27, 2023.
  134. 1 2 "California Proposition 10, Local Rent Control Initiative (2018)". Ballotpedia. Retrieved April 21, 2019.
  135. ↑ Murphy, Katy (November 6, 2018). "California's rent-control measure defeated". San Jose Mercury News . Archived from the original on November 17, 2018. Retrieved November 25, 2018.
  136. ↑ "State Ballot Measures" (PDF). Secretary of State of California. Archived (PDF) from the original on January 8, 2019. Retrieved March 3, 2019. State Totals 4,949,543 7,251,443 Percent 40.6% 59.4%
  137. 1 2 3 4 Dillon, Liam (October 8, 2019). "California will limit rent increases under bill signed by Gov. Gavin Newsom". Los Angeles Times . The Los Angeles-based AIDS Healthcare Foundation is currently collecting signatures for a measure to appear on the November 2020 statewide ballot that would, among other things, limit how much a landlord could increase rents when a new tenant moves in — something now prohibited under state law. Michael Weinstein, the foundation's president, opposed the rent cap legislation because he believed its protections were inadequate.
  138. ↑ "Qualified Statewide Ballot Measures". Secretary of State of California . Retrieved July 2, 2020.
  139. ↑ "California Local Rent Control Initiative (2020)". Ballotpedia . Retrieved June 27, 2020. The ballot measure would have required local governments that adopt rent control to allow landlords to increase rental rates by 15 percent during the first three years following a vacancy.
  140. ↑ Menezes, Ryan; Moore, Maloy; Do, Phi (November 3, 2020). "Billions have been spent on California's ballot measure battles. But this year is unlike any other". Los Angeles Times . Proposition 21 - $125,436,982 - Supporters $40M - Supporters AIDS Healthcare Foundation $40,187,371 California Nurses Assn. $50,000 California Democratic Party $27,025
  141. ↑ Hooks, Chris Nichols, Kris. "What We Know About California Proposition Results". www.capradio.org. Retrieved November 11, 2020.{{cite web}}: CS1 maint: multiple names: authors list (link)
  142. 1 2 Asch, Andrew (July 28, 2023). "Justice for Renters Qualifies for 2024 California Ballot". The Real Deal. Retrieved September 27, 2023.
  143. 1 2 3 4 "Your guide to Proposition 33: Effort to expand rent control". Los Angeles Times. July 5, 2024. Retrieved October 4, 2024.
  144. 1 2 3 "With Proposition 33 voters could give counties and cities more power to limit rent increases. Should they?". KPBS Public Media. September 26, 2024. Retrieved October 4, 2024.
  145. ↑ "Your guide to Proposition 33: Effort to expand rent control". Los Angeles Times. July 5, 2024. Retrieved October 4, 2024.
  146. ↑ Chavez, Isidra (August 14, 2024). "Prop 33: California Rent Control Measure Addresses Housing Shortage and Affordability". Courage California. Retrieved October 4, 2024.
  147. ↑ klow. "2024 California Voter Guide: Proposition 33 | KQED". www.kqed.org. Retrieved October 8, 2024.
  148. ↑ Nixon, Nicole. "Proposition 33 explained: What California's rent control ballot measure is asking you". The Sacramento Bee.
  149. ↑ Jeong, Helen; Nolan • •, Conan (October 8, 2024). "Prop 33: Contentious California ballot measure over rent control". NBC Los Angeles. Retrieved October 8, 2024.
  150. ↑ "A Tale of Two Labor Candidates in the East Bay". jacobin.com. Retrieved May 7, 2024.
  151. ↑ "A Tale of Two Labor Candidates in the East Bay". jacobin.com. Retrieved May 7, 2024.
  152. ↑ Foster, Tim (September 30, 2024). "Special Episode: Propositions 33 & 34 - Rent Control and AIDS Healthcare Foundation Rules". Capitol Weekly. Retrieved October 4, 2024.
  153. ↑ Regimbal, Alec (November 6, 2024). "California voters reject Prop. 33, the measure to expand rent control". SF Gate. Retrieved November 12, 2024.
  154. ↑ Trombola, Nick (November 6, 2024). "California's Rent Control Initiative Fails at Ballot Box". Commercial Observer. Retrieved November 13, 2024.
  155. ↑ Trombola, Nick (November 6, 2024). "California's Rent Control Initiative Fails at Ballot Box". Commercial Observer. Retrieved November 13, 2024.
  156. 1 2 Nehring, Abigail (November 19, 2024). "With Prop. 34, California landlords notch last victory against AHF - Results show 51% of voters support ending nonprofit's flow of healthcare cash into politics". The Real Deal (magazine) .
  157. 1 2 Cadelago, Christopher (August 30, 2023). "California proposal would sideline a prolific ballot measure player - The ballot initiative would block one man from using his nonprofit to fund his political agenda". Politico . AHF relies on the decades-old federal drug discount program designed to help hospitals and other healthcare nonprofits treat low-income patients. Known as 340B, it allows the organization to purchase prescriptions at a deep discount and charge public programs the standard amount. AHF has long argued that it spends 340B funds for their intended purpose and that the foundation is allowed to spend a certain percentage on political activity. But its spending on campaigns, a growing portfolio of property and to bring in paid consultants such as former California Senate Pro Tem Kevin de León, now a member of the Los Angeles City Council, has drawn persistent scrutiny.
  158. ↑ Kendall, Marisa (November 5, 2024). "California voters weigh in on healthcare spending via Prop. 34". CalMatters. Retrieved December 5, 2024.
  159. ↑ "Require certain providers to use prescription drug revenue for patients". CalMatters . November 5, 2024.
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