The Trib has run a rather lengthy correction over a story that ran over two months ago. Better late than never? Sure. Better sooner than later? Please.
The Nov. 21, 2004, article headlined "Poor live in housing nightmare while investors reap benefits" may have given the impression that Cecil C. Butler is sole owner of 1,200 apartments in Lawndale. In fact, the legal owner of the apartments is the Lawndale Restoration Limited Partnership. Butler is the president of the general partner responsible for the management of the partnership's affairs. Butler has served as signatory for partnerships, management agreements and financings for the apartments dating to the 1970s.
The article incorrectly said that Butler departed as president of Community Bank of Lawndale in 1985 amid bookkeeping problems. Butler left to avoid conflict of interest questions from regulators after the bank issued loans to Lawndale Restoration Properties.
The article was imprecise when it stated that investors "leveraged" the Lawndale apartments to buy Gold Coast condominiums. No debt was incurred on the Lawndale apartments to complete the Gold Coast purchase. Investors exchanged tax benefits from the Lawndale apartments to the Gold Coast condos.
Also, a headline in the article incorrectly stated that $150 million in federal funds was meant to repair the apartments. In fact, the funds were mostly rent payments meant to cover mortgage payments, operating costs and routine maintenance. Other federally insured loan funds were used for repairs.
