Indiana Attorney General Files Suit Over Conditions At Indianapolis Apartment Complexes

Indiana Attorney General Todd Rokita filed a lawsuit Tuesday over the conditions of two Indianapolis apartment complexes.

The suit alleges that Aloft Management and Fox Lake endangered the health and welfare of thousands of residents at the Lakeside Pointe and Fox Club apartment complexes by allowing the properties to fall into disrepair. The Attorney General requested a receiver be appointed to take control of the property management companies’ finances, remove the board of directors, and attempt to improve conditions for the residents.

In a statement Rokita said his office's unique role governing nonprofit organizations made it possible to file the lawsuit, which alleges that Fox Lake is unable to fulfill its purpose as a nonprofit providing low-income housing. Fox Lake recently lost its charitable property tax exemption from Marion County. 

"The defendants’ pattern of unlawful conduct, including a failure to maintain even basic habitability standards, is not only unfair, but runs counter to Fox Lake’s stated purpose of providing low-income housing in the Indianapolis community,” Rokita said.

The suit also alleges that Aloft has been engaging in real estate transactions without the required license.

The Attorney General’s Office said a year-long investigation uncovered alleged neglect and mismanagement by the companies that led to hundreds of health department violations and problems that left some homes uninhabitable.

In a statement Indianapolis Mayor Joe Hogsett said the city welcomed the Attorney General’s Office seeking a receivership over the Fox Club and Lakeside Pointe apartment complexes.

"This move will help protect residents while offering hope for improved management of the property. Making sure tenants remain stably housed will continue to be our top priority, and we’re thankful to community stakeholders for their longtime advocacy on behalf of their neighbors,” Hogsett said.

Aloft is the property manager of the Lakeside Pointe apartment complexes on the north side of Indianapolis. Fox Lake is a nonprofit corporation that owns the Lakeside Pointe apartment complex as well as the Fox Club apartment complex on Indianapolis’ south side.