Real estate company CitiApartments, founded by Frank Lembi, is notorious for being one of the worst residential landlords in San Francisco. Their business model was predicated upon the displacement of tenants from their homes in order to circumvent rent control protections and maximize profits.
The combination of the economic crisis and strong tenant organizing efforts has led CitiApartments to their demise. The owners of 16 properties filed for bankruptcy in February 2010, and 20 properties were acquired by another company (LNM) just a couple of weeks ago. An additional 24 buildings are headed for foreclosure. The tactics once used by CitiApartments and its affiliates to harass tenants out of their apartments, including threatening phone calls, utility shutoffs, unannounced visits, and chronic construction work, have significantly subsided.
But the fight isn’t over. An article in the San Francisco Bay Guardian highlights that tenants have yet to receive their security deposits, spurring a class-action lawsuit against 57 corporate defendants associated with CitiApartments.
Read the full article at sfbg.com.