An AIDS foundation that has tangled with the city over real estate development and lambasted its handling of the homelessness crisis is now suing Los Angeles, arguing that it was improperly turned down for funding to house homeless people.

In its lawsuit, the AIDS Healthcare Foundation accused the city of violating L.A. rules when the foundation was rejected for nearly $25 million in funding from Proposition HHH, a $1.2-billion bond measure approved by voters.

The foundation had sought the money to build more than 200 units of supportive housing in skid row, planning for a tower filled with “microunits.” The city gave its proposal a score of 63 out of 100, docking it points under categories including “financing structure and cost efficiency” and “organizational structure, experience and capacity.”

The group said in its lawsuit that the city had failed to produce specific records it had requested about the bidding process, but that a housing department staffer told the foundation that it was concerned about its “perceived lack of experience as a developer” and its proposed method of construction.

Read the full story at LATimes.com.