Civil Grand Jury Report Blasts Parkmerced Proposal -- Inadequate Tenant Protections

The Civil Grand Jury of San Francisco has just released a report, entitled Government-By-Developer, criticizing the proposal at Parkmerced to demolish over 1500 rent controlled homes. The report concludes that "the proposed Development Agreement does not give adequate rent control protection to the residents of the Parkmerced property."

Tenant advocates have warned of the significant risks that the developer or a future owner would use state law to invalidate commitments to relocate existing tenants into new rent-controlled housing. The concerns are based on recent court cases that have allowed developers to avoid obligations to provide affordable rental units in newly constructed units, despite clear written agreements and local city laws. After extensive criticism from tenant advocates, city staff finally acknowledged that there was some risk that the rent control promises on new construction might not be enforceable, though Michael Yarne of the Mayor's Office of Economic and Workforce Development, who has taken the lead on the project, claims that the risk is minimal.

Validating the tenants' concerns, the Civil Grand Jury specifically found that "By not explaining how it will override/resolve potentially conflicting provisions of state law, the Development Agreement does not protect tenants against rent increases as it claims."

The findings stand in stark contrast the developer's recent doorhanger, distributed throughout Parkmerced, characterizing replacement rent control units as guaranteed.

The report also criticized the lack of a project alternative that does not involve mass demolition.

The Development Agreement presumes demolition is necessary, and presents no alternative, or combination of alternatives, that might satisfy the programmatic goals of redevelopment without the demolition of 1583 occupied units.

The Board of Supervisors is scheduled to vote whether to approve the project on May 24, 2011.

Santa Barbara and Ventura Landlord Hall of Shame Nominee Spotlighted by Local Media

The Santa Barbara Independent has spotlighted Dario Pini, a Santa Barbara and Ventura mega landlord recently nominated to Tenants Together’s Landlord Hall of Shame.

As noted by the Santa Barabara Independent:

Pini is known for consistently racking up complaints against his dozens of properties throughout Santa Barbara and Ventura counties, often neglecting basic upkeep and turning a blind eye to overcrowding. At one point he and his company, Dario Pini Investments, were targeted in a massive police investigation that ended in nearly 800 building code violations and a jail sentence. Pini famously chose to spend 30 days behind bars instead of going on house arrest in one of his rentals.

The need for Tenants Together to shine a public spotlight on California's bad landlords is clear. Since launching it's Landlord Hall of Shame, hundreds of California tenants have suggested nominees and local media outlets have responded to its nominations with great, investigative coverage.

All California tenants can suggest nominees for the Landlord Hall of Shame by going to http://hallofshame.tenantstogether.org. Based on the information submitted and its own research, Tenants Together announces Official Nominees throughout the year. Annually, members of Tenants Together vote to determine which of the Official Nominees will be inducted into the Hall of Shame. Last year’s inductees were Donald Sterling, a Los Angeles area mega landlord and owner of the LA Clippers and David Taran, a East Palo Alto mega landlord and owner of Page Mill Properties.

L.A. Sues Deutsche for Abusing Tenants

Huge news out of Los Angeles. The City Attorney has sued Deutsche Bank for its treatment of tenants after foreclosure. Tenants Together welcomes this major step toward holding banks accountable for abusing tenants after foreclosure.

Click here for L.A. Times Coverage, and here for the City Attorney's press release.

According to the City Attorney's Office, "Deutsche Bank has become one of the largest slumlords in the City of Los Angeles."

In addition to holding Deutsche accountable for its conduct, this case should serve as a warning to all financial institutions acquiring foreclosed properties that they had better start acting like responsible landlords when they acquire renter-occupied properties.