A long-standing and vital resource for emerging artists and those without adequate studio space has turned its back on its original charter and the artists it was built to serve.
This is the Iron Law of Oligarchy in action. It crops up everywhere. I wrote about it in the context of campaign finance reform. Unfortunately, I don’t think there is any escape from this in a capitalist system. As long as the art world is tied to money (and it is), this is going to happen to any well-meaning organization.
You have to keep your expectations in line with reality, which is that corruption is inevitable in a capitalist world, or else you will be disappointed when people who administrate organizations, companies, and governments start looking out for themselves, their friends, and their own interests over and above serving the stated goals or charters of said organizations.
As much as I agree with your outrage at the state of this situation, it’s tantamount to yelling into a windstorm to vilify one organization for failing to adhere to its founding principles when the entire system is set up to make this an inevitability for every organization.