foreclosure

Editorial: SF’s foreclosure crisis–the city shouldn’t put another penny in banks that are destroying San Francisco

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Here’s a great issue for the San Francisco mayor’s race: The big banks that the city uses to hold nearly half a billion in cash deposits are part of a group of financial institutions that are costing the taxpayers $115 million.

That’s the amount the city will wind up paying to cover the lost property taxes and other costs associated with home foreclosures, according to a new report. And the authors of the report, the Community Reinvestment Coalition and the Alliance of Californians for Community Empowerment, estimate that San Francisco homeowners are going to lose a total of $6.9 billion in value because of the foreclosure crisis.

Most of the discussion around foreclosures has focused on the national picture — but there’s plenty the city can do.

The numbers are alarming: 16,355 San Francisco homeowners are underwater on their mortgages, meaning they owe more than the house is currently worth. By 2012, the report estimates, 12,410 local homes will be in foreclosure.

That means 12,400 families facing displacement — which adds to the homeless crisis, puts more pressure on the rental housing market and most likely will force many people who work in the city to find housing a long commute away.

Foreclosures also drive down the value of neighboring property — which means the city collects less property tax. The cost of sending deputy sheriffs out to evict families, of patrolling and monitoring vacant houses, dealing with increased crime in the area — all of that adds up. According to the report, every foreclosure costs the city $19,229. Add up the loss of property taxes and the direct costs to taxpayers and the bill exceeds $115 million.

Two of the top four banks involved in foreclosures in California are Wells Fargo and Bank of America. Those just happen to be two of the three banks that have to contract to handle the city’s cash accounts — which contain $406 million, according to an Aug. 16, 2011 report by Budget Analyst Harvey Rose. So the city is giving its money to banks that are costing the city money.

The banks aren’t paupers, either — and have accepted huge amounts of federal tax money. B of A and Wells together received $270 billion in bailout money — and both are now making nice profits (enough that the CEO of Wells, John Stumpf, earned $17 million last year). They can afford to write down the underwater mortgages and arrange for foreclosure relief for people behind on the bills.

The report suggests that the banks be charged a fee — between $10,000 and $20,000 — for each foreclosure. That would offset the costs and provide a disincentive for throwing families out on the street. The candidates for mayor ought to be pushing that — but the city can do more.

The supervisors ought to call a hearing on the crisis and demand that the B of A and Wells executives come down and explain why they’re moving so slowly on write-downs and relief. And they should be told, in very clear terms, that the city will no longer put a penny of its money in banks that are damaging, instead of investing in, San Francisco.

 

A new progressive agenda

Andrew Lam
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A new progressive agenda

Over the past three months, the Guardian has been hosting a series of forums on progressive issues for the mayor’s race. We’ve brought together a broad base of people from different communities and issue-based organizations all over town in an effort to draft a platform that would include a comprehensive progressive agenda for the next mayor. All told, more than 100 people participated.

It was, as far as we know, the first time anyone tried to do this — to come up with a mayoral platform not with a few people in a room but with a series of open forums designed for community participation.

The platform we’ve drafted isn’t perfect, and there are no doubt things that are left out. But our goal was to create a document that the voters could use to determine which candidates really deserve the progressive vote.

That’s a critical question, since nearly all of the top contenders are using the word “progressive” on a regular basis. They’re fighting for votes from the neighborhoods, the activists, the independent-minded people who share a vision for San Francisco that isn’t driven by big-business interests.

But those of us on what is broadly defined as the city’s left are looking for more than lip service and catchy phrases. We want to hear specifics; we want to know that the next mayor is serious about changing the direction of city policy.

The groups who endorsed this effort and helped plan the forums that led to this platform were the Harvey Milk LGBT Club, SEIU Local 1021, the San Francisco Tenants Union, the Human Services Network, the Community Congress 2010, the Council of Community Housing Organizations, San Francisco Rising, Jobs with Justice, and the Center for Political Education.

The panelists who led the discussions were: Shaw-san Liu, Calvin Welch, Fernando Marti, Gabriel Haaland, Brenda Barros, Debbi Lerman, Jenny Friedenbach, Sarah Shortt, Ted Gullicksen, Nick Pagoulatos, Sue Hestor, Sherilyn Adams, Angela Chan, David Campos, Mario Yedidia, Pecolio Mangio, Antonio Diaz, Alicia Garza, Aaron Peskin, Saul Bloom, and Tim Redmond.

We held five events looking at five broad policy areas — economy and jobs; land use, housing and tenants; budget and social services; immigration, education and youth; and environment, energy and climate change. Panelists and audience participants offered great ideas and the debates were lively.

The results are below — an outline of what the progressives in San Francisco want to see from their next mayor.

 

 

ECONOMY AND JOBS

Background: In the first decade of this century, San Francisco lost some 51,000 jobs, overwhelmingly in the private sector. When Gavin Newsom was sworn in as mayor in January 2004, unemployment was at 6.4 percent; when he left, in January 2011, it was at 9.5 percent — a 63 percent increase.

Clearly, part of the problem was the collapse of the national economy. But the failed Newsom Model only made things worse. His approach was based on the mistaken notion that if the city provided direct subsidies to private developers, new workers would flock to San Francisco. In fact, the fastest-growing sector of the local economy is the public sector, especially education and health care. Five of the 10 largest employers in San Francisco are public agencies.

Local economic development policy, which has been characterized by the destruction of the blue-collar sector in light industry and maritime uses (ironically, overwhelmingly privately owned) to free up land for new industries in business services and high tech sectors that have never actually appeared — or have been devastated by quickly repeating boom and bust cycle.

Instead of concentrating on our existing workforce and its incredible human capital, recent San Francisco mayors have sought to attract a new workforce.

The Mayor’s Office has, as a matter of policy, been destroying blue-collar jobs to promote residential development for people who work outside of the city.

There’s a huge disconnect between what many people earn and what they need. The minimum wage in San Francisco is $9.92, when the actual cost of living is closer to $20. Wage theft is far too common.

There is a lack of leadership, oversight and accountability in a number of city departments. For example, there is no officiating body or commission overseeing the work of the Office of Economic and Workforce Development. Similarly the Arts Commission, the chartered entity for overseeing cultural affairs, is responsible for less than 25 percent of the budget reserved for this purpose

There’s no accountability in the city to protect the most vulnerable people.

The city’s main business tax is highly regressive — it’s a flat tax on payroll but has so many exceptions and loopholes that only 8,500 businesses actually pay it, and many of the largest and richest outfits pay no city tax at all.

 

Agenda items:

1. Reform the Mayor’s Office of Economic and Workforce Development to create a department with workforce development as a primary objective. Work with the San Francisco Unified School District, City College and San Francisco State to create sustainable paths to training and employment.

2. Create a municipal bank that offers credit for locally developed small businesses instead of relying on tax breaks. As a first step, mandate that all city short-term funds and payroll accounts go only to banks or credit unions that will agree to devote a reasonable percentage of their local loan portfolios for small business loans.

3. Reform procurement to prioritize local ownership.

4. Link economic development of healthcare facilities to the economic development of surrounding communities.

5. Link overall approval of projects to a larger economic development policy that takes as its centerpiece the employment of current San Francisco residents.

6. Enforce city labor laws and fund the agency that enforces the laws.

7. Establish the Board of Supervisors as the policy board of a re-organized Redevelopment Agency and create community-based project area oversight committees.

8. Dramatically expand Muni in the southeast portion of the city and reconfigure routes to link neighborhoods without having to go through downtown. Put special emphasis on direct Muni routes to City College and San Francisco State.

9. Reform the payroll tax so all businesses share the burden and the largest pay their fair share.

10. Consolidate the city’s various arts entities into a single Department of Arts & Culture that includes as part of its mandate a clear directive to achieve maximum economic development through leveraging the city’s existing cultural assets and creative strengths and re-imagining San Francisco’s competitive position as a regional, national and international hub of creative thinking. Sponsor and promote signature arts programs and opportunities to attract and retain visitors who will generate maximum economic activity in the local economy; restore San Francisco’s community-based cultural economy by re-enacting the successful Neighborhood Arts Program; and leverage the current 1-2 percent for art fees on various on-site building projects to be directed towards non-construction-site arts activity.

 

 

LAND USE, HOUSING AND TENANTS

Background: Since the office market tanked, the big land-use issue has become market-rate housing. San Francisco is building housing for people who don’t live here — in significant part, for either very wealthy people who want a short-term pied a terre in the city or for commuters who work in Silicon Valley. The city’s own General Plan calls for 60 percent of all new housing to be below-market-rate — but the vast majority of the new housing that’s been constructed or is in the planning pipeline is high-end condos.

There’s no connection between the housing needs of city residents and the local workforce and the type of housing that’s being constructed. Family housing is in short supply and rental housing is being destroyed faster than it’s being built — a total of 21,000 rental units have been lost to condos and tenancies in common.

Public housing is getting demolished and rebuilt with 2500 fewer units. “Hotelization” is growing as housing units become transitory housing.

Planning has become an appendage of the Mayor’s Office of Economic Development, which has no commission, no public hearings and no community oversight.

Projects are getting approved with no connection to schools, transit or affordable housing.

There’s no monitoring of Ellis Act evictions.

Transit-oriented development is a big scam that doesn’t include equity or the needs of people who live in the areas slated for more development. Cities have incentives to create dense housing with no affordability. Communities of concern are right in the path of this “smart growth” — and there are no protections for the people who live there now.

Agenda items:

1. Re emphasize that the Planning Department is the lead land-use approval agency and that the Mayor’s Office of Economic and Workforce Development should not be used to short-circuit public participation in the process.

2. Enact a freeze on condo conversions and a freeze on the demolition of existing affordable rental housing.

3. Ban evictions if the use or occupation of the property will be for less than 30 days.

4. Index market-rate to affordable housing; slow down one when the other is too far ahead.

5. Disclose what level of permanent affordability is offered at each project.

6. Stabilize existing communities with community benefits agreements before new development is approved.

 

 

BUDGET AND SOCIAL SERVICES

Background: There have been profound cuts in the social safety net in San Francisco over the past decade. One third of the city’s shelter beds have been lost; six homeless centers have closed. Homeless mental health and substance abuse services have lost $32 million, and the health system has lost $33 million.

None of the budget proposals coming from the Mayor’s Office have even begun to address restoring the past cuts.

There’s not enough access to primary care for people in Healthy San Francisco.

Nonprofit contracts with the city are flat-funded, so there’s no room for increases in the cost of doing business.

The mayor has all the staff and the supervisors don’t have enough. The supervisors have the ability to add back budget items — but the mayor can then make unilateral cuts.

The wealthy in San Francisco have done very well under the Bush tax cuts and more than 14 billionaires live in this city. The gap between the rich and the poor, which is destroying the national economy, exists in San Francisco, too. But while city officials are taking a national lead on issues like the environment and civil rights, there is virtually no discussion at the policy level of using city policy to bring in revenue from those who can afford it and to equalize the wealth disparities right here in town.

Agenda items:

1. Establish as policy that San Francisco will step in where the state and federal government have left people behind — and that local taxation policy should reflect progressive values.

2. Make budget set-asides a budget floor rather than a percentage of the budget.

3. Examine what top city executives are paid.

4. Promote public power, public broadband and public cable as a way to bring the city millions of dollars.

5. Support progressive taxes that will bring in at least $250 million a year in permanent new revenue.

6. Change the City Charter to eliminate unilateral mid-year cuts by the mayor.

8. Pass a Charter amendment that: (a) Requires the development of a comprehensive long-term plan that sets the policies and strategies to guide the implementation of health and human services for San Francisco’s vulnerable residents over the next 10 years, and (b) creates a planning body with the responsibility and authority to develop the plan, monitor and evaluate its implementation, coordinate between policy makers and departments, and ensure that annual budgets are consistent with the plan.

9. Collect existing money better.

10. Enact a foreclosure transfer tax.

 

 

YOUTH, IMMIGRATION, AND EDUCATION

Background: In the past 10 years, San Francisco has lost 24,000 people ages 12-24. Among current youth, 5,800 live in poverty; 6,000 have no high school degree; 7,000 are not working or attending school; 1,200 are on adult probation.

A full 50 percent of public school students are not qualified for college studies. Too often, the outcome is dictated by race; school-to-prison is far too common.

Trust between immigrants and the police is a low point, particularly since former Mayor Gavin Newsom gutted the sanctuary ordinance in 2008 after anti-immigrant stories in the San Francisco Chronicle.

Some 70 percent of students depend on Muni, but the price of a youth pass just went from $10 to $21.

Agenda items:

1. Recognize that there’s a separate role for probation and immigration, and keep local law enforcement from joining or working with immigration enforcement.

2. Improve public transportation for education and prioritize free Muni for youth.

3. Create family-friendly affordable housing.

4. Restore the recreation direction for the Recreation and Parks Department.

5. Implement police training to treat youth with respect.

6. Don’t cut off benefits for youth who commit crimes.

7. Shift state re-alignment money from jails to education.

 

ENERGY, ENVIRONMENT AND CLIMATE CHANGE

Background: When it comes to land use, the laws on the books are pretty good. The General Plan is a good document. But those laws aren’t enforced. Big projects get changed by the project sponsor after they’re approved.

Land use is really about who will live here and who will vote. But on a policy level, it’s clear that the city doesn’t value the people who currently live here.

Climate change is going to affect San Francisco — people who live near toxic materials are at risk in floods and earthquakes.

San Francisco has a separate but unequal transportation system. Muni is designed to get people downtown, not around town — despite the fact that job growth isn’t happening downtown.

San Francisco has a deepwater port and could be the Silicon Valley of green shipping.

San Francisco has a remarkable opportunity to promote renewable energy, but that will never happen unless the city owns the distribution system.

 

Agenda items:

1. Promote the rebirth of heavy industry by turning the port into a center for green-shipping retrofits.

2. Public land should be for public benefit, and agencies that own or control that land should work with community-based planning efforts.

3. Planning should be for the community, not developers.

4. Energy efficiency programs should be targeted to disadvantaged communities.

5. Pay attention to the urban food revolution, encourage resident owned farmers markets. Use unused public land for local food and community gardens.

6. Provide complete information on what parts of the city are fill, and stop allowing development in areas that are going to be inundated with sea level rise.

7. Prioritize local distributed generation of electricity and public ownership of the power grid.

8. Change Clean Energy San Francisco from a purchasing pool system to a generating system.

Team Avalos

Andrew Lam
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Team Avalos

When Supervisor John Avalos chaired the Budget & Finance Committee in 2009 and 2010, his office became a bustling place in the thick of the budget process. To gain insight on the real-life effects of the mayor’s proposed spending cuts, Avalos and his City Hall staff played host to neighborhood service providers, youth workers, homeless advocates, labor leaders, and other San Franciscans who stood to be directly impacted by the axe that would fall when the final budget was approved. They camped out in City Hall together for hours, puzzling over which items they could live without, and which required a steadfast demand for funding restoration.

“One year, we even brought them into the mayor’s office,” for an eleventh-hour negotiating session held in the wee morning hours, recounted Avalos’ legislative aide, Raquel Redondiez. That move came much to the dismay of Steve Kawa, mayoral chief of staff.

Avalos, the 47-year-old District 11 supervisor, exudes a down-to-earth vibe that’s rare in politicians, and tends to display a balanced temperament even in the heat of high-stakes political clashes. He travels to and from mayoral debates by bicycle. He quotes classic song lyrics during full board meetings, keeps a record player and vinyl collection in his office, and recently showed up at the Mission dive bar El Rio to judge a dance competition for the wildly popular Hard French dance party.

Yet casual observers may not be as familiar with the style Avalos brings to conducting day-to-day business at City Hall, an approach exemplified that summer night in 2010 when he showed up to the mayor’s office flanked by grassroots advocates bent on preserving key programs.

“My role is, I’m an insider, … but it’s really been about bringing in the outside to have a voice on the inside,” Avalos said in a recent interview. “People have always been camped out in my office. These are people who represent constituencies — seniors, recipients of mental health care, unions, people concerned about violence. It’s how we change things in City Hall. It’s making government more effective at promoting opportunities, justice, and greater livelihood.” Part of the thrust behind his candidacy, he added, is this: “We want to be able to have a campaign that’s about a movement.”

That makes Avalos different from the other candidates — but it also raises a crucial question. Some of the most important advances in progressive politics in San Francisco have come not just from electoral victories, but from losing campaigns that galvanized the left. Tom Ammiano in 1999 and Matt Gonzalez in 2003 played that role. Can Avalos mount both a winning campaign — and one that, win or lose, will have a lasting impact on the city?

Workers and families

No budget with such deep spending cuts could have left all stakeholders happy once the dust settled, but Avalos and other progressive supervisors did manage to siphon some funding away from the city’s robust police and fire departments in order to restore key programs in a highly controversial move.

“There’s a Johnny Cash song I really like, written by Tom Petty, called ‘I Won’t Back Down.’ I sang it during that time, because I didn’t back down,” Avalos said at an Aug. 30 mayoral forum hosted by the Potrero Hill Democratic Club. “We made … a symbolic cut, showing that there was a real inequity about how we were doing our budgets. Without impacting public safety services, we were able to get $6 million from the Fire Department. A lot of that went into Rec & Park, and health care programs, and to education programs, and we were able to … find more fat in the Police Department budget than anybody had ever found before, about $3 million.”

Last November, Avalos placed a successful measure on the ballot to increase the city’s real-estate transfer tax, which so far has amassed around $45 million in new revenue for city coffers, softening the blow to critical programs in the latest round of budget negotiations. “Without these measures that community groups, residents, and labor organizations worked for, Mayor Ed Lee would not have been able to balance the budget,” Avalos said.

More recently, he emerged as a champion of the city’s Local Hire Ordinance, designed as a tool for job creation that requires employers at new construction projects to select San Francisco residents for half their work crews, to be phased in over the next several years. That landmark legislation was a year in the making, Redondiez said, describing how union representatives, workers, contractors, unemployed residents of Chinatown and the Bayview, and others cycled through Avalos’ City Hall office to provide input.

His collaborative style stems in part from his background. Avalos formerly worked for Service Employees International Union Local 1877, where he organized janitors, and served as political director for Coleman Advocates for Children & Youth. He was also a legislative aide to former District 6 Sup. Chris Daly, who remains a lightning rod in the San Francisco political landscape.

Before wading into the fray of San Francisco politics, Avalos earned a masters degree in social work from San Francisco State University. But when he first arrived in the city in 1989, with few connections and barely any money to his name, he took a gig at a coffee cart. He was a Latino kid originally from Wilmington, Calif. whose dad was a longshoreman and whose mom was an office worker, and he’d endured a climate of discrimination throughout his teenage years at Andover High in Andover, Mass.

Roughly a decade ago, Avalos and a group of youth advocates were arrested in Oakland following a protest against Proposition 21, which increased criminal penalties for crimes committed by youth. Booked into custody along with him was his wife, Karen Zapata, whom he married around the same time. She is now a public school teacher in San Francisco and the mother of their two children, ages 6 and 9, both enrolled in public schools.

“John has consistently been a voice for disenfranchised populations in this city,” said Sharen Hewitt, who’s known Avalos for more than a decade and serves as executive director of The Community Leadership Academy & Emergency Response Project (CLAER), an organization formed to respond to a rash of homicides and alleviate violence. “He understands that San Francisco is at a major turning point in terms of its ability to keep families and low-income communities housed. With the local hiring ordinance, most of us who have been working around violence prevention agree — at the core of this horrible set of symptoms are root causes, stemming from economic disparity.”

Asked about his top priorities, Avalos will invariably express his desire to keep working families rooted in San Francisco. District 11, which spans the Excelsior, Ingleside, and other southeastern neighborhoods, encompasses multiracial neighborhoods made up of single-family homes — and many have been blunted with foreclosure since the onset of the economic crisis.

“Our motto for building housing in San Francisco is we build all this luxury housing — it’s a form of voodoo economics,” Avalos told a small group of supporters at a recent campaign stop in Bernal Heights. “I want to have a new model for how we build housing in San Francisco. How can we help [working-class homeowners] modify their loans to make if more flexible, so they can stay here?” He’s floated the idea of creating an affordable housing bond to aid in the construction of new affordable housing units as well as loan modifications to prevent foreclosures.

“That’s what is the biggest threat to San Francisco, is losing the working-class,” said community activist Giuliana Milanese, who previously worked with Avalos at Coleman Advocates for Youth and has volunteered for his campaign. “And he’s the best fighter. Basically, economic justice is his bottom line.”

Tenants Union director Ted Gullicksen gave Avalos his seal of approval when contacted by the Guardian, saying he has “a 100 percent voting record for tenants,” despite having fewer tenants in his district than some of his colleagues. “David Chiu, had he not voted for Parkmerced, could have been competitive with John,” Gullicksen said. “But the Parkmerced thing was huge, so now it’s very difficult to even have David in same ballpark. Dennis [Herrera] has always taken the right positions — but he’s never had to vote on anything,” he said. “After that, nobody comes close.”

Cash poor, community rich

There’s no question: The Avalos for Mayor campaign faces an uphill climb. Recent poll figures offering an early snapshot of the crowded field peg him at roughly 4 percent, trailing behind candidates with stronger citywide name recognition like City Attorney Dennis Herrera or the incumbent, Mayor Ed Lee, who hasn’t accepted public financing and stands to benefit from deep-pocketed backers with ties to big business.

Yet as Assembly Member Tom Ammiano phrased it, “he’s actually given progressives a place to roost. He doesn’t pussy-foot around on the issues that are important,” making him a natural choice for San Francisco voters who care more about stemming the tides of privatization and gentrification than, say, rolling out the red carpet for hi-tech companies.

One of Avalos’ greatest challenges is that he lacks a pile of campaign cash, having received less than $90,000 in contributions as of June 30, according to an Ethics Commission filing. “He can’t call in the big checks,” said Julian Davis, board president of Booker T. Washington Community Service Center, “because he hasn’t been doing the bidding of big business interests.” A roster of financial contributions filed with the Ethics Commission shows that his donor base is comprised mainly of teachers, nonprofit employees, health-care workers, tenant advocates, and other similar groups, with almost no representatives of real-estate development interests or major corporations.

Despite being strapped for cash, he’s collected endorsements ranging from the Democratic County Central Committee, to the Harvey Milk Democratic Club, to the city’s largest labor union, SEIU 1021; he’s also won the backing of quintessential San Francisco characters such as renowned author Rebecca Solnit; San Francisco’s radical bohemian poet laureate, Diane di Prima; and countercultural icon Diamond Dave.

While some of Avalos’ core supporters describe his campaign as “historic,” other longtime political observers have voiced a sort of disenchantment with his candidacy, saying it doesn’t measure up to the sweeping mobilizations that galvanized around Gonzalez or Ammiano. Ammiano has strongly endorsed Avalos, but Gonzalez — who now works for Public Defender (and mayoral candidate) Jeff Adachi — has remained tepid about his candidacy, stating publicly in an interview on Fog City Journal, “I like [Green Party candidate Terrie Baum] and John fine. I just don’t believe in them.”

Ironically, Sup. Sean Elsbernd, often Avalos’ political opposite on board votes, had kinder words for him. “John is intelligent, John is honest, and John has integrity,” Elsbernd told the Guardian. “I don’t think he knows the city well enough to serve as chief executive … but I’ve seen the good work he’s done in his district.”

Meanwhile, Avalos is still grappling with the fallout from the spending cut he initiated against the police and fire departments in 2009. Whereas those unions sent sound trucks rolling through his neighborhood clamoring for his recall from office during that budget fight, the San Francisco Police Officers Association (SFPOA), the San Francisco Fire Fighters union, and the plumbers’ union, Local 38, have teamed up now that Avalos is running for mayor to form an independent expenditure committee targeting him and Public Defender Jeff Adachi, a latecomer to the race.

“We’ll make sure we do everything we can to make sure he never sees Room 200,” SFPOA President Gary Delagnes told the Guardian. “I would spend as much money as I could possibly summon to make sure neither ever takes office.” Delagnes added that he believes the political makeup of San Francisco is shifting in a more moderate direction, to Avalos’ disadvantage. “People spend a lot of money to live here,” he said, “and they don’t want to be walking over 15 homeless people, or having people ask them for money.”

If it’s true that the flanks of the left in San Francisco have already been supplanted with wealthy residents whose primary concern is that they are annoyed by the sight of destitute people, then more has already been lost for the progressive movement than it stands to lose under the scenario of an Avalos defeat.

The great progressive hope?

Despite these looming challenges, the Avalos campaign has amassed a volunteer base that’s more than 1,000 strong, in many cases drawing from grassroots networks already engaged in efforts to defend tenant rights, advance workplace protections for non-union employees, create youth programs that aim to prevent violence in low-income communities, and advance opportunities for immigrants. According to some volunteers, linking these myriad grassroots efforts is part of the point. Aside from the obvious goal of electing Avalos for mayor, his supporters say they hope his campaign will be a force to re-energize and redefine progressive politics in San Francisco.

“All the candidates that are running are trying to appeal to the progressive base,” Avalos said. But what does it really mean? To him, being progressive “is a commitment to a cause that’s greater,” he offered. “It’s about how to alter the relationship of power in San Francisco. My vision of progressivism is more inclusive, and more accountable to real concerns.”

N’Tanya Lee, former executive director of Coleman Advocates, was among the people Avalos consulted when he was considering a run for mayor. “The real progressives in San Francisco are the folks on the ground every day, like the moms working for public schools … everyday families, individual people, often people of color, who are doing the work without fanfare. They are the unsung heroes … and the rising progressive leaders of our city,” she said. “John represents the best of what’s to come. It’s not just about race or class. It’s about people standing for solutions.”

When deciding whether to run, Avalos also turned to his wife, Zapata, who has held leadership positions in the San Francisco teacher’s union in the past. She suggested rounding up community leaders and talking it through. “The campaign needed to be a movement campaign,” Zapata told the Guardian. “John Avalos was not running because he thought John Avalos was the most important person in the world to do this job. Our question was, if John were to do this, how would it help people most affected by economic injustice?”

Hewitt, the executive director of CLAER, also weighed in. “My concern is that he has been painted as a leftist, rooted in some outdated ideology,” she said. “I think [that characterization] is one-dimensional, and I think he’s broader than that. My perception of John is that he’s a pragmatist — rooted in listening, and attempting to respond.”

Others echoed this characterization. “He doesn’t need to be the great progressive hope,” said Rafael Mandelman, an attorney who ran as a progressive in District 8 last year. “If people are looking for the next Matt Gonzalez, I’m not sure that’s what John is about. He’s about the communities he’s representing.”

As to whether or not he has a shot at victory, Mandelman said, “It’s a very wide field, and I think John is going to have a very strong base. I think he will get enough first-choice votes to be one of the top contenders. And with ranked choice voting, anything can happen.”

 

Stopping foreclosure secrecy

Jesse Hawthorne Ficks
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Stopping foreclosure secrecy

OPINION Thanks to a shadowy corporate mortgage recording system, millions of Californians have no idea who owns their home loans.

As we suffer through this recession triggered by reckless subprime lending and Wall Street speculation, our recovery is being held back in part because people are struggling with foreclosures and underwater home values — exacerbated by a lack of mortgage transparency.

The mess created by Wall Street is causing wrongful foreclosures and wreaking havoc. Real people — often lower-income families and communities of color — are enduring the devastation of foreclosure processes because of the excesses of bankers and investment firms.

In San Francisco, we’ve seen the highest number of foreclosures in the Ingleside-Excelsior, Bayview, Tenderloin, and Mission neighborhoods — many of the places where home values have fallen most. Whether or not you face foreclosure, we all pay for this crisis by losing vital tax revenue that could go to support our schools, protect our neighborhoods, or build our economy.

When Wall Street realized it could make billions by bundling mortgages and selling them to investors, banks and financial institutions needed a way around recording the ownership and assignment of home loans. What the banks and Wall Street came up with is a shadowy, industry-backed reporting system called MERS — mortgage electronic reporting system.

Simply stated, subprime and predatory lending allowed banks to create millions of questionable mortgages, Wall Street bundled these risky mortgages together to sell to investors, and MERS made it quicker and easier to conduct these risky transactions with impunity.

As San Francisco’s assessor-recorder and a financial advocate for low-income communities, we have seen harmful industry practices wreak havoc on families trying to stay in their homes — whether by use of MERS that clouds property titles, wrongful foreclosures, or denied loan modifications.

The state Legislature considered several good foreclosure bills this year. One proposal placed a $20,000 fee on financial institutions attempting a foreclosure. This would have discouraged foreclosure and helped defray costs to communities if the process went ahead.

State Sen. Mark Leno( D-SF) and Senate President pro tem Darrell Steinberg (D-Sacramento) offered legislation stopping banks from proceeding with foreclosures when a homeowner is attempting to modify his or her mortgage.

Assessor-Recorder Ting is sponsoring a bill requiring that all mortgage assignments and transfers be recorded with counties, thus taking this process out of the murky MERS system.

Unfortunately, the banks and their armies of lawyers and lobbyists have been able to stymie these reforms.

We must continue to fight these wealthy, powerful lobbies so that the long road to recovery in our housing markets and communities can begin. We cannot let Sacramento forget it was financial institutions that fueled the housing bubble, crashed the stock market, and sent shockwaves throughout the economy with their reckless practices.

Few states have been ravaged by subprime lending and the meltdown of mortgage-backed securities the way California has, so we must continue reforming the practices of banks and Wall Street that have thrown our economy and communities into turmoil.

Phil Ting is San Francisco assessor-recorder. Kevin Stein works with the California Reinvestment Coalition.

Held underwater

Maria Poblet
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1
Held underwater

sarah@sfbg.com

Since the recession began four years ago, 2,000 homes have been lost to foreclosure in San Francisco. These numbers sound insignificant compared to other counties in the Bay Area, but they primarily have hit communities of color already struggling to remain in this expensive city.

As panelists at a recent seminar on foreclosures noted, the first wave hit the Bayview and the Excelsior, while the second hit the Richmond and the Sunset. And as the recession drags on and more borrowers go underwater, another 2,000 foreclosures are on the local horizon.

Although foreclosures continue to destabilize communities and drain resources from local governments, the banking lobby continues to oppose legislative reforms that would allow more people to remain in their homes. And this deep-pocketed resistance has labor, religious, and educational organizations forming the New Bottom Line coalition in an effort to find grassroots solutions to the crisis.

“Foreclosures are the new f-word,” said Regina Davis, CEO of Bayview’s San Francisco Housing Development Corporation, at SFHDC’s April 29 foreclosure seminar.

Sups. John Avalos and Malia Cohen illustrated that there is no shortage of horror stories about predatory lending and dual tracking, in which borrowers apply for loan modifications while the bank continues to pursue foreclosure. Representatives for Sup. Ross Mirkarimi and Assessor-Recorder Phil Ting noted that the banking lobby has blocked even the most modest reforms, even as uncertainty continues to devastate the housing market.

Avalos said his family underwent a housing crisis in 2009, when his wife left her job to home school their special-needs daughter. “We tried to get a loan modification and were told we could only get it by going into default,” he said, recalling how Mission Economic Development Agency (MEDA) helped them navigate the process. “If this could happen to an elected official, it could happen to anyone.”

Cohen, who lost her condo in the Bayview to foreclosure earlier this year, described foreclosure as “an incredible beast that has ravaged and wrecked the finances of many Latino, African American, and Asian communities who were sold the American dream of homeownership but then had the rug pulled away.”

Mirkarimi aide Robert Selna, a former San Francisco Chronicle reporter, said the banking industry spent $70 million last year to kill legislation by state Sen. Mark Leno (D-SF) and Senate President Darrell Steinberg (D-Sacramento) to end dual tracking. This year, the industry has been opposing SB729, Leno and Steinberg’s latest attempt to require banks to give people a definitive answer on loan modification, identify who owns the loan, and give borrowers legal recourse if banks don’t take these steps.

“SB729 gets to the heart of helping to keep people in their homes, but it’s difficult to combat the spending power of the banking industry,” Selna said.

Ben Weber, an analyst in the Assessor-Recorder’s Office, said approximately 277,000 homes in California are going through the foreclosure process; an estimated 1.8 million California residents are underwater on their mortgage; and California is sixth in “negative equity” nationwide. “Negative equity is one of the best indicators of foreclosures — so can we expect another 1.5 million to 1.6 million foreclosures statewide?” he asked.

Weber noted that Ting is supporting AB 1321 by Assemblymember Bob Wieckowski (D-Fremont), which would require that all mortgage assignments be recorded within 30 days of their execution; prevent notices of default from being recorded until 45 days after any deed of trust has been recorded; and provide consumers with better transparency about who owns their debt. Yet Ting’s office reports that the banking industry has lobbied against this and other foreclosure-related legislation

Weber said the legislation is a response to problems with the industry’s Mortgage Electronic Registration System (MERS), which was introduced 15 years ago. “The mortgage industry wanted to expedite the transfer of mortgages between entities so that they could be sold and resold on Wall Street,” Weber said, noting that the system also allowed the industry to avoid paying recording fees to counties.

MERS records an average of 6,700 deeds of trust annually in San Francisco, and MERS deeds of trust are usually transferred two to four times, Weber observed. “So MERS members avoided — conservatively — $134,000 per year in fees.”

Grace Martinez of Alliance of Californians for Community Empowerment noted that the banking lobby already killed AB935 by Assemblymember Bob Blumenfield (D-Northridge), which sought to charge a $20,000 fee to compensate for the estimated cost of a foreclosure to local government. “That money would have gone back to the city,” she said.

In an April 14 letter, the banking lobby claimed Blumenfield’s bill was a tax that increases the costs of homeownership for new borrowers. “It also serves to discourage the importation of capital into California at a time when the federal government is winding down their involvement in mortgage finance and protracts and complicates California’s economic recovery,” stated the letter, which the California Bankers Association, the California Chamber of Commerce, and other business groups signed.

But Dan Byrd, research director at Berkeley’s Greenlining Institute, reminded the mostly black and brown crowd at SFHDC’s foreclosure seminar that declining property values due to foreclosures have drained $193 billion from African American and $180 billion from Latino communities nationwide. “Folks from these communities who had credit good enough to qualify for a prime loan were given subprime loans with adjustable mortgage rates,” he said

Byrd stressed that homeowners facing foreclosures need to be more financially literate. “A lot of loan documents are written in language that people can’t understand, and they don’t have the money to hire a lawyer,” Byrd said, as he urged politicians to fund organizations that provide financial counseling and education. “Our elected federal officials just cut the budget that supports SFHDC and similar groups.”

SFHDC housing counselor Ed Donaldson said appraisal values make it hard to sell the below-market-rate units that are coming online. “So if we don’t do something about the foreclosure problem, the housing market will continue to unwind,” he said, urging people to protests banks and show up at City Hall and in Sacramento to support reform.

The Rev. Arnold Townsend, vice president of the local branch of the National Association for the Advancement of Colored People, said San Francisco likes to pretend that the foreclosure crisis didn’t really affect the city. “But it did,” he said. “It badly hit people of color that the city, by its policies, doesn’t seem to care if they leave.”

Attorney Henri Norris noted that bankruptcy can be an alternative to foreclosure. “A bankruptcy can stop a foreclosure, at least temporarily,” Norris said. He recommends that people make their loans current and try to get a loan modification approved. “But it’s going to take running a marathon.”

Avalos, who is running for mayor, noted that the city does not fund enough affordable housing and he proposed an affordable housing bond that would include assistance for mortgage assistance, ownership downpayment, seismic retrofitting, and energy efficiency. “I understand that voters see no personal benefit, but it would raise wealth in property values,” he said.

Cohen observed that the federal Homeowners Affordable Modification Program (HAMP), which President Obama unveiled in March 2009, “hasn’t worked” and that most of the important reform proposals are “happening at the state level.” She encouraged people to show support for SB729, but wasn’t ready to declare support for Avalos’ housing bond.

“I want to make sure the climate is ripe, that Sups. Carmen Chu and Eric Mar are included, because their districts will be impacted by foreclosures, and that the support is broad-based,” she said. “But folks can divest from banks that have not treated us right.”

Noting that divestment was the most effective way to end apartheid in South Africa, SFHDC’s Davis invited seminar participants to a free screening of Charles Ferguson’s documentary Inside Job, which shows how subprime loans, dual tracking, and mortgage bundling triggered the 2008 financial meltdown — and how many of the main players are still calling the shots.

But despite SFHDC’s informative seminar and the New Bottom Line campaign’s May 3 protest at Wells Fargo’s annual shareholder meetings in San Francisco, SB729 failed to make it out of committee May 4, when Sen. Alex Padilla (D-Van Nuys) announced he would introduce an alternative dual tracking bill. In addition, Wieckowski turned his MERS reform into a two-year bill, suggesting the votes weren’t there to approve it.

Paul Leonard, California director of the Center for Responsible Lending, observed that SB729 supporters include a broad array of consumer, civil rights, labor, faith-based groups, and homeowners, but the only groups in opposition were the California Bankers Association, the Mortgage Bankers Association, and the Chamber of Commerce.

“I find it remarkable that after the exposure of deep-seeded scandals about robo-signing and the systematic shortcomings of mortgage loan service operators, none of the bills intended to address these issues got out of their first committee hearing,” Leonard said.

In an April 20 letter, the banking lobby claimed that SB729 was “unnecessarily complex,” could overlap and contradict actions by federal regulators and state attorneys general, and promote strategic defaults that would negatively affect communities and cloud title for a year following a foreclosure, leaving properties vacant.

Dustin Hobbs of the California Mortgage Bankers Association claims the average time for a foreclosure is more than 300 days. “This would have dragged it out further, and the last thing we need is more vacant homes and more homes in foreclosure,” he said.

Ting noted that Wieckowski made the call to turn AB1321 into a two-year bill. “But you would have thought we were offering the end of home ownership,” Ting said, noting that the banking industry was shocked when advocates produced a MERS memo that encourages banks to record documents and pay fees. “It basically recommended our legislation,” Ting observed.

“Assignments out of MERS name should be recorded in the county land records, even if the state law does not require such a recording,” a Feb. 16 MERS memo said.

Ting describes MERS as “a Wall Street set-up, the ultimate in smoke and mirrors.”

“We did a little poking around in MERS and found that it would help if the name of the loan owner was recorded,” Ting said, noting that the confusion MERS created is bad for consumers, the real estate industry, and homeowners.

“Part of the problem is computer systems doing what banks used to do,” Ting said. “It ended up with robo-signing and foreclosures being sent to the wrong people. I thought AB1321 was a no-brainer, but we had to take it to five or six legislators before anyone would pick it up. This is a prime example of how a particular industry has made a huge amount of money and is unwilling to bend any rules to give consumers any recourse.”

But CMBA’s Hobbs described AB1321 as “part of a broader attack on MERS.” And an April 21 opposition letter from the banking industry describes it as “creating impediments for attracting capital to California’s mortgage marketplace and imposing significant new workloads on county recorders and clerks.”

Ting says he has heard lobbyists make that argument. “But my assessor recorders organization supported it — and they are mostly not elected officials,” he said, noting the group usually doesn’t get involved in promoting legislation.

Ting admits that it’s hard to get the national reforms that are needed. “San Francisco still has a big part to play. And our legislators are still very powerful, so we have no excuse not to be fighting in Sacramento where the Democrats have a supermajority. I mean, how could these bills not get out of committee? It’s not like we didn’t take amendments, but no level of amendments would have made anything happen.”

“Foreclosures typify this financial and political era,” he continued. “They are about all the things we should have seen coming — and some of us did. But even then, and now, there is political amnesia. For all the families that lost their homes, shouldn’t we do something to make sure this doesn’t happen again? Wall Street was bailed out two years ago, but Main Street is still waiting.”

Ideale

Maria Poblet
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0
Ideale

paulr@sfbg.com

Grant Street is so strongly associated with Chinatown that it’s easy to forget there’s a segment of it north of Columbus. There, running along the west shoulder of Telegraph Hill, it becomes a part of — and maybe the heart of — Little Italy. In its narrowness and festive congestion, the street does come to seem Roman, and, as in Rome, it has better restaurants than the bigger, gaudier boulevard nearby. American tourists in Rome, it is said, will not leave the well-lighted thoroughfares to investigate dimmer side streets, so those thoroughfares are where you’re most likely to find rip-off joints with “turistica” menus in English.

Our own Columbus Avenue, while splendid in its way, is a kind of Fisherman’s Wharf of Italian cooking, so it’s no surprise that a restaurant like Ideale would situate itself on nearby Grant, out of sight of the hoi polloi, who are attracted to neon and other manifestations of brightness the way moths are to porch lamps. Ideale, which opened in late in the 1990s, is the kind of place you would seek out if you were in Rome; it draws the locals, and it is a curious fact of even the most touristy neighborhoods that they’re filled with locals. Locals are the fourth dimension in such one-dimensional universes.

The restaurant is bigger than it appears, because its second dining room, in the adjoining storefront, is fully separated from the main one and the entryway. And (huzzah!) its walls are hung with splendid paintings, which we supposed to be oil on stretched canvas, with impasto visible even from distant tables, like the little nubs you see in linen. There are few spectacles more discouraging to me than bare restaurant walls. The sweeps of emptiness make me think of prison, or foreclosure.

Chef Maurizio Bruschi is said to have learned to cook from his grandmother, and his style accordingly emphasizes the Italian classics, at least as those are understood in this country. Your first clue about the cooking can be found in the house-baked bread, which in true Italian fashion we found to be adequately salted. Salt makes an enormous difference in most foods, but particularly in bread, which is almost impossible to season after the fact. And Italian chefs, in my experience, aren’t afraid to salt their food. We took Bruschi’s bread to be a good omen. (Is he any relation of Tedy Bruschi? Probably not.)

Good bread implies good pizza, and Ideale’s pies are intense. (Naples is said to be the birthplace of Italian pizza, but Roman pies are reliably sensational.) We were particularly smitten with the funghi e salsiccia version ($14), which combined a crispy thin crust, a judicious ladling of well-seasoned and garlicky tomato sauce, enough mozzarella to glue things together, and a tossing of mushroom slices and bits of sausage that didn’t taste overwhelmingly of fennel — a frequent fault of Italian-style sausage as made in this country, in my view.

We noticed several effusions of fresh arugula. One thatch appeared beside the eggplant parmigiana ($11), which was baked in a crock like a little lasagna — not remarkable, but any halfway decent handling of eggplant gets at least one gold star from me. More arugula turned up with the grilled local calamari ($12), mostly tubes, nicely charred but still tender and lemony.

Risotto alla pescatore has to be, at $17.75, one of the better buys on this or any comparable menu. For one thing, it was just choked with seafood, including black mussels, clams, calamari, and prawns. For another, the rice was cooked in flavorful liquid. The menu card mentioned pinot grigio and garlic, but I suspected the presence, too, of some kind of seafood stock, whether shrimp, clam, or fish. Makers of risotto tend to be obsessed with the complex mechanics, in particular the need to stir the rice constantly for 18 minutes, and to keep the stock at a simmer as you add it cupful by cupful, so you produce the characteristic creaminess. You can make perfectly creamy risotto with plain water, then tart it up Milanese-style with butter, pepper, and parmesan. But there is nothing like cooking rice, whether arborio or some other kind, in flavorful stock or broth, as here.

The flaps of veal in saltimbocca ($23) were generously overlaid with flaps of prosciutto,, whose saltiness helped balance the sauce, a frascati wine reduction infused with rosemary. Frascati is the wonderfully fruity white wine produced in Lazio, the region around Rome — highly drinkable, but if it isn’t on the wine list, having it as a sauce isn’t a bad fallback position. The plate was finished with coins of roasted potato and asparagus tips, the pinnacle of adequacy.

Dessert: how about profiteroles ($7)? With a twist: the pastry balls were filled with pastry cream, while the vanilla ice cream (as a scoop) had to wait outside. Lots of chocolate sauce. too, just the way Nonna used to do it.

IDEALE

Dinner: Mon.–Thurs., 5:30–10:30 p.m.;

Fri.–Sat., 5:30–11 p.m.; Sun., 5–10 p.m.

1315 Grant, SF

(415) 391-4129

www.idealerestaurant.com

Beer and wine

AE/DS/MC/V

Noisy

Wheelchair accessible

 

Hundreds Protest Wells Fargo Shareholder Meeting in SF

Mary Magee
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6
Hundreds Protest Wells Fargo Shareholder Meeting in SF

The New Bottom Line, a national campaign to hold banks accountable for foreclosures, kicked off in San Francisco this week, as hundredsmarched through the Financial District to demand that Wells Fargo change corporate policies that bankrupt families, dismantle neighborhoods, and empty public coffers.
During the bank’s annual May 3 shareholder meeting, a group of homeowners and clergy addressed Wells Fargo CEO John Stumpf to demand a foreclosure moratorium.
According to protest organizers, which include Contra Costa Interfaith, ACCE (Alliance of Californians for Community Empowerment) and other members of the New Bottom Line Campaign, unlike other national banks, Wells Fargo has not changed its foreclosure procedures despite reports of “robo-signing” and other foreclosure irregulalities.
“Since 2005, I have been fighting Wells for wrongful foreclosure,” San Leandro resident Donna Vieira said in a press statement. “But through this process, I have learned that I am not alone. A quarter of foreclosures in this country happen right here in California and 700,000 families are in foreclosure right now. We need these banks to have a new bottom line that includes investing in our communities.”
The New Bottom Line Campaign notes that, according to the U.S. Departments of Treasury and Housing and Urban Development, 350,169 Wells Fargo homeowners were eligible for the Home Affordable Modification Program (HAMP) by the end of 2009. But as of Feb 2011, only 77,402 homeowners have received permanent modifications.
Protestors note this only amounts to a 22 percent modification rate, more than two years after the HAMP program began. They also charge that Wells Fargo has canceled 118,697 trial modifications and denied 175,336 homeowners from accessing HAMP.But during this same two-year period, Wells Fargo received nearly $43.7 billion in federal bailout funds, according to a study by the nonpartisan think tank, Nomi Prins of Demos.And in 2010, Wells Fargo reported to the Securities and Exchange Commission that it paid its CEO John Stumpf more than $17 million, including a $14 million bonus.
Protestors also claimed that, over the last ten years, Wells Fargo has paid the lowest worldwide tax rate of the top five biggest banks and did not pay federal taxes in 2009.
Protestors said the May 3 action was supported by a coalition of community organizations, congregations, labor unions, and individuals working to challenge established big bank interests on behalf of struggling and middle-class communities.
“Together, we work to restructure Wall Street to help American families build wealth, close the country’s growing income inequality gap and advance a vision for how our economy can better serve the many rather than the few,” campaign organizers stated.
The New Bottom Line campaign, whic includes National People’s Action, PICO National Network, Alliance for a Just Society, ACCE, and Industrial Areas Foundation of the Southeast (IAF-SE), is making five main demands of Wells Fargo.


1.KEEP FAMILIES IN THEIR HOMES:
“We are demanding that Wells Fargo establish a moratorium on all foreclosures until it negotiates with our coalition to establish comprehensive reforms to their loan modification practices, including offering principal reduction; affordable, fixed interest rates; and provide proof of ownership of the loan,” NBL said in a press release. “We are also calling on Wells Fargo to cease all illegal evictions of tenants in foreclosed properties and commit to working with real estate companies and servicers who follow local and state tenant protection laws.”


2. STOP PREDATORY LENDING:
“We are demanding that Wells Fargo stop financing predatory payday lending companies and stop providing predatory payday loans to their own customers,” NBL stated.


3. REBUILD OUR NEIGHBORHOODS:
“Cities and counties estimate that it costs approximately $34,000 per each foreclosed home that becomes vacant and a potential blight on our communities,” NBL continued. “We are demanding you maintain and PAY the fines on your blighted properties and help share in the cost to our cities and counties starting with Cities and Counties throughout California with Foreclosure Blight and Building Registration Ordinances.”


4. PAY YOUR FAIR SHARE:
“Wells Fargo needs to stop exploiting loop‐holes in property tax laws and federal tax shelters to avoid paying its fair share of local, state and federal taxes,” NBL stated.


5. RESPECT HUMAN RIGHTS:
“We are calling on Wells Fargo to stop investing in the GEO Group and other corporations that are profiting off of immigrant detention centers and private prisons that detain immigrants and separate families,” NBL concluded.


During the May 3 action, eight protestors were reportedly arrested for civil disobedience.

Homeowner defense groups to target Wells Fargo shareholders

Mary Magee
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8
Homeowner defense groups to target Wells Fargo shareholders

“Foreclosures are the new F-Word.” So said Regina Davis, executive director of the San Francisco Housing Development Corporation, at an April 29 seminar at SFHDC’s office on Third Street that explored ways to prevent more foreclosures in San Francisco, California and beyond.

Since the economic meltdown in 2008, there have been 2,000 foreclosures in San Francisco. And the majority have impacted low-income folks and communities of color, who were sold more predatory loans than other groups, Davis and a panel of foreclosure experts warned
And as the recession drags on, another 2,000 foreclosures could be in the works, further destabilizing communities and draining more resources from the city, in terms of lost property values and related tax revenues.

And while deep-pocketed lobbyists have been making it hard to pass laws that would offer at-risk homeowners more protections, homeowner defender groups have decided to target, and now protest against, the group they believe stand directly in the way of equitable reforms: the banks.
 “Wells-Fargo CEO John Stumpf took home $21 million in 2009 while his bank received $25 billion in TARP funds,” stated a flier that ACCE (formerly ACORN) and the Home Defenders League are distributing to urge folks to meet at Justin Herman Plaza at 11: 30 a.m., May 3 and march to the Wells Fargo shareholder meeting where protesters plan to personally deliver a list of their demands to WF CEO Stumpf.

“He and his cronies fought tooth and nail to kill consumer protection bills in California and around the country and are currently trying to gut a 50-state Attorneys General settlement with homeowners that have been defrauded,” the flier concluded.
It noted that ACCE and the Home Defenders League sponsored this event, in partnership with the California State Labor Federation, the California Nurses Association, Contra Costa Interfaith Supporting Community Organizing, Causa Justa: Just Cause, ENLACE, Jobs for Justice, National Education Association, Oakland Education Association PICO California, PICO National Network, SEIU United Service Workers West and Local 1021 and Tenants Together.

“We are also part of The New Bottom Line, a national campaign focused on creating an economy that works for the many, and not the few,” the flier stated.

Drawing a line in the toxic triangle

Andrew Lam
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5
Drawing a line in the toxic triangle

rebeccab@sfbg.com

GREEN ISSUE California is often viewed as being among the brightest shades of green. The Golden State’s landmark climate-change legislation has proven magnetic for green-tech startups, while Northern California is defined in part by its longstanding love affair with natural foods and solar power. San Francisco boasts a well-used network of bike routes, a ban on plastic bags, mandated composting of kitchen scraps, and a host of urban agriculture projects.

While much of the Bay Area’s environmental reputation is well-deserved, things look different from poor neighborhoods where homes are clustered beside hulking industrial facilities and public health suffers. For years, grassroots organizations working in Richmond, Oakland, and Bayview-Hunters Point have sought to improve air quality and promote environmental justice in neighborhoods plagued by higher-than-average rates of respiratory disease, cancer, and other preventable illnesses.

The Rev. Daniel Buford of Oakland’s Allen Temple Baptist Church told the Guardian that he began talking about the polluted areas of Richmond, Oakland, and San Francisco as a “toxic triangle” two decades ago. It was an analogy, he explained, that plays off the mysterious deaths that the Bermuda Triangle is famous for. Yet the label also served a purpose — to unite three communities of color that were fighting separate yet similar battles against health hazards associated with their surroundings.

“There were a lot of things that weren’t in place with public consciousness that are in place now,” Buford said.

Today, he isn’t the only one uttering the catch phrase. A host of community organizations banded together as the Toxic Triangle Coalition last year to organize three forums on environmental justice in the three cities. Advocates cast the neighborhood-specific problems as three parts of a regionwide phenomenon, highlighting how pollution from shipping, crude oil processing, freeway transportation, abandoned manufacturing sites, hazardous waste handlers, and other industrial facilities disproportionately affect communities of color, where poverty and unemployment rates are already high.

Buford views the Toxic Triangle Coalition as a strategy to mount pressure for stronger enforcement of environmental laws in disproportionately affected areas. “We live in the whole Bay Area — we don’t live in one little part of the Bay Area,” he noted. “Our coalition strongly urges our state representatives in each of the counties to call for a hearing at the state level.”

 

OIL WARS

In Richmond, California’s top greenhouse-gas emitter looms as an expansive backdrop of the city, a tangled network of smokestacks and machinery near a hillside cluster of large, cylindrical oil storage containers. Chevron Corporation’s Richmond Refinery was built more than a century ago. A few years ago, the oil company began making noise about how it was in need of an upgrade.

Weaving through a blue-collar residential area of Richmond in her sedan, Jessica Guadalupe Tovar recounted how Communities for a Better Environment (CBE), the nonprofit she works for, revealed that Chevron hadn’t told the whole story when it was petitioning for a permit to expand the refinery. The oil company’s long-term goals, CBE learned from a financial report, included gaining capability to process thicker crude that tends to be sourced from places like Canada’s Alberta tar sands.

“We call it dirty crude,” she said. “But it’s really dirtier crude.”

Converting thicker crude to fuel requires higher temperatures and pressures — and that translates to higher greenhouse-gas emissions and a heightened risk of flaring and fires.

The refinery expansion could have meant an air-quality situation going from bad to worse. Public health problems such as asthma and cancer have spurred campaigns led by the West County Toxics Coalition, CBE, and other environmental justice groups. Tovar explained how CBE orchestrated an air-monitoring program in 2006, collecting samples from 40 homes in Richmond and 10 in Bolinas as a point of comparison.

While trace amounts of chemicals from household cleaners were present in both, samples from the Richmond residences also contained the same toxic compounds that spew from Chevron’s refinery. “We found pollution known to come from the oil refinery settling inside people’s homes,” Tovar explained. “Once it’s trapped in your home, it starts to accumulate.”

Chevron won its expansion permit by a slim margin in 2008 with a city council dominated by officials who had reputations for being friendly to the oil giant. Yet environmental organizations filed suit, saying the environmental impact report (EIR) approval was based on was illegal because it failed to analyze the company’s likely plans for heavier crude processing. A Contra Costa County judge ruled in favor of the environmentalists, halting the expansion project in 2009. Chevron appealed, but the decision was upheld in 2010.

Stopping the expansion was a substantial victory, but environmental justice advocates remain wary of Chevron — particularly after the company attempted to blame job losses on the green coalition that filed suit. “Chevron pit workers against us,” Tovar noted. “And also started saying, ‘This is why environmental laws are bad for the economy.'”

 

GLOBAL TRADE, LOCAL FUMES

Each day, the Port of Oakland fills with trucks waiting to load up on goods shipped in from around the globe on massive cargo vessels. It’s a local symbol of a globalized economy. But for the West Oakland neighborhoods surrounding the port, the daily gathering of diesel rigs means an unhealthy infusion of particulate matter into the air.

A report issued by the East Bay Alliance for a Sustainable Economy (EBASE), the Pacific Institute, and the Coalition for Clean and Safe Ports found that West Oakland residents are exposed to particulate matter concentrations nearly three times higher than the regional average. Health studies have shown that asthma rates in West Oakland are five times higher than that of people living in the Oakland hills, and cancer risks are threefold compared to other Bay Area cities. For the truck drivers, the risk of cancer is significantly higher than average.

A state air-quality law that went into effect in early 2010 banned pre-1994, heavily polluting diesel trucks from the port, thanks in part to years of environmental campaigning that has publicized public-health impacts associated with the diesel pollution. Yet the new regulation brought an unintended consequence: for truck drivers who must purchase their own gas and pay for their own upgrades, the new rule was ruinous. A survey by the Public Welfare Foundation found that since the new environmental regulation went into effect, 25 percent of Oakland truck drivers had declared bankruptcy, been evicted, or faced foreclosure.

Retrofitting the trucks with new air filters is a five-figure prospect, while the cost of a new truck can clear $100,000. “At the end of the day … a lot of them will only take home about $25,000 a year,” explained EBASE spokesperson Nikki Bas. “It’s an immigrant workforce who are living in poverty.”

So the Coalition for Clean and Safe Ports, which pushed for tougher air-quality regulations, is now pressuring for a reform of the trucking industry to place the cost of clean upgrades onto powerful trucking companies instead of low-wage drivers. The coalition’s campaign has sought to link the needs of the drivers and the surrounding community, organizing rallies with blue-green signs bearing the motto “Good Jobs & Clean Air” to call for a change to the truckers’ employment classification from independent contractors to employees, which would shift the cost of compliance onto employers instead of drivers.

West Oakland isn’t the only East Bay area inflicted by excessive levels of diesel particulate matter from trucks entering the Port of Oakland. The fumes also affect East Oakland neighborhoods bisected by the big rigs’ primary thoroughfares. In addition to truck traffic and freeways, East Oakland is also the site of numerous hazardous-waste handlers and abandoned industrial sites.

Nehanda Imara, an organizer with CBE who also helped put together the Toxic Triangle Coalition forums, described how her organization recruited volunteers to count the number of trucks passing through a heavily traveled East Oakland strip as a way to quantify the source of particulate matter pollution. They reached a tally of around 11,700 over the course of 10 days.

Some progress has been made to limit the exposure of diesel pollution for East Oakland residents. The city is working on a comprehensive plan to assess trucking routes, and a campaign to limit truck idling is helping to limit unnecessary tailpipe emissions.

Yet youth hospitalizations for asthma in East Oakland are 150 percent to 200 percent higher than Alameda County taken as a whole, and an air-monitoring project in that area revealed high levels of particulate matter exceeding state and federal standards.

“That’s also an environmental injustice,” Imara said. “When the laws are there, but not being enforced.”

 

TOXIC SOUP

In San Francisco’s Bayview-Hunters Point neighborhood, environmental justice groups have spotlighted the toxic stew associated with the naval shipyard and other pollution sources for years. A 2004 report produced jointly by Greenaction for Health and Environmental Justice, the Bayview-Hunters Point Mothers Environmental Justice Committee, and the Huntersview Tenants Association outlined a “toxic inventory” of the area. The inventory depicts a more complicated web of toxic sources than the asbestos dust and naval shipyard cleanup that have been focal points of news coverage surrounding Lennar Corp.’s massive redevelopment plans for that neighborhood.

“Over half of the land in San Francisco that is zoned for industrial use is in Bayview-Hunters Point,” this report noted. “The neighborhood is home to one federal Superfund site, the Hunters Point Naval Shipyard … a sewage treatment plant that handles 80 percent of the city’s solid wastes, 100 brownfield sites [a brownfield is an abandoned, idled, or underused commercial facility where expansion or redevelopment is limited because of environmental contamination], 187 leaking underground fuel tanks, and more than 124 hazardous waste handlers regulated by the U.S. Environmental Protection Agency.”

The shipyard, meanwhile, has been the central focus of controversy surrounding plans to clean up and redevelop the area. People Organized to Win Employment Rights (POWER) and Greenaction are currently challenging the EIR for Lennar’s massive redevelopment plan for the neighborhood, charging that the study is inadequate because a cleanup effort on the part of the U.S. Navy has yet to determine the level of toxicity that will need to be addressed, so the assessment is based on incomplete information. Asthma is commonplace in the Bayview, and health surveys have shown that the rates of cervical and breast cancer are twice as high as other places in the Bay Area.

“Our environmental issues are massive still, and it’s not just Bayview- Hunters Point,” notes Marie Harrison, a long-time organizer for Greenaction and a Bayview resident.

Harrison recalled the many times she’d gotten out of bed in the middle of the night to drive a friend’s or neighbor’s asthmatic child to the hospital. “That story has repeated itself tenfold in Richmond and in Oakland,” she added. Nor is the problem simply limited to those Bay Area cities, she said, noting that communities of color throughout the Environmental Protection Agency’s Region 9 face similar issues.

As awareness about the scope of the problem has increased over the years, she said, “We start to say, my God, this triangle has to become a circle.”

 

The Parkmerced investors

Jesse Hawthorne Ficks
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8
The Parkmerced investors

rebeccab@sfbg.com

Parkmerced is one of the largest rental properties west of the Mississippi, and with more than 1,500 rent-controlled units, it’s an important piece of the city’s affordable-housing stock. Among the residents who live in the neighborhood-scale apartment complex are seniors, young families, and working-class San Franciscans, some of whom have called it home for decades.

A plan for an extraordinary overhaul of the property envisions tearing down the existing low-rise apartments and nearly tripling the number of units with a construction project that could take up to 30 years. On March 29, after Guardian press time, the Board of Supervisors was scheduled to vote on whether to uphold the plan’s environmental impact report (EIR), a key milestone of the approval process.

The Planning Commission voted 4-3 to certify the EIR, and if the board followed suit by rejecting four different appeals filed against it, Parkmerced would be on track to clear final approval sometime in May.

San Francisco Tomorrow was among the groups that filed appeals against the Parkmerced plan. “They want to destroy a neighborhood without sufficient justification or mitigation,” said Jennifer Clary, the group’s president, citing concerns about traffic congestion, loss of an historic landscape, and the destruction of rent-controlled housing.

Julian Lagos, a resident of 18 years, filed an appeal on behalf of the Coalition to Save Parkmerced. “It’s a very blue-collar community, and they want to replace it with wall-to-wall luxury high-rise condos,” said Lagos, who lives in a unit that would be targeted for demolition under the development plan. “I call it ground zero,” he said. “And I tell my neighbors, ‘You’re living at ground zero.’ “

Mayoral development advisor Michael Yarne noted that most points highlighted in the EIR appeals had already been addressed, except one charging that there hadn’t been adequate consideration over whether a Pacific Gas & Electric Co. gas pipeline running underground near Parkmerced could be jeopardized by construction activity. “The answer to that is, that’s a really good question for PG&E,” Yarne said. But he asserted that it wasn’t a project EIR issue.

Elected officials’ reactions to the overall plan were mixed. Lagos noted that campaign filings showed that Sups. Carmen Chu and Sean Elsbernd had accepted donations from people related to the project, and he predicted that Board of Supervisors President David Chiu would be a swing vote on the issue. Chiu spent several hours touring Parkmerced the Friday before the vote. He did not return Guardian calls seeking comment.

A development agreement between the city and the developer, Parkmerced Investors LLC, promises that existing tenants will keep their rent control at the same monthly rates — even after the apartments they now reside in are razed to make way for new residential towers.

Such a plan typically wouldn’t fly under state law because the Costa-Hawkins Act prohibits a city from imposing rent control on newly constructed housing. Yet city officials, with input from the City Attorney’s Office, say they’ve constructed this deal so that it falls within one of the exceptions written into the state law, offering a legal defense in the event of a court challenge and a guarantee against affordable housing loss.

“The development agreement is like a constitution for land use,” said Yarne. “You can’t get rid of it.” If the project changed hands or the developer went bankrupt, the new owner would be bound by the same terms, Yarne said.

However, Mitchell Omerberg of the Affordable Housing Alliance cautioned that he didn’t believe there was any guarantee that rent-control housing qualified as an exception under Costa-Hawkins. “Like parking a semitruck in a motorcycle space, it’s a poor fit and a risky bet — even before you consider the antipathy to rent control of the California courts,” Omerberg wrote in an argument against the plan.

Tenants advocacy groups have pointed to recent court decisions negating affordable-housing agreements in development projects, saying the legal precedent makes the Parkmerced pact vulnerable to a court challenge. In response, Yarne said those cases had strengthened the city’s legal strategy for formulating the agreement to guard against such a challenge. “This agreement is actually greatly improved because of those cases,” he said.

Nevertheless, there’s a clear financial incentive for the developer to strip away the rent-control unit replacement and other valuable community benefits it is required to deliver under the terms of its agreement with the city. An independent analysis of the project’s financial plan found that if Parkmerced Investors LLC adheres to all the terms of the agreement as planned, its financial rate of return would be less than ideal.

Drafted by consultant CB Richard Ellis (CBRE) to provide an objective financial picture for the city, the report found that the developer’s estimated 17.8 percent rate of return was “slightly below the threshold required to attract the necessary private investment” because investors aim for at least 20 percent in this market. “This means that, based on current and reasonably foreseeable short-term market conditions, the project may not be economically feasible,” the report noted. It added a disclaimer saying that cash flow from rent payments could offset that risk.

That lower rate of return isn’t a cause for concern, Yarne said, but rather a sign of the city’s negotiating prowess, since “we’ve gotten as much as we can in terms of public benefits. That 17.8 percent rate of return shows that we’re probably at the max.”

At the same time, the financial analysis showed that the developer’s prospects improved under hypothetical “tested scenarios” where the expensive community benefits promised in the development agreement weren’t a factor. As part of the analysis, CBRE looked at how the numbers would change if the developer decided to build new market-rate units instead of replacing all the existing rent-controlled units, and found it would fetch a 19 percent rate of return. In a scenario where it stripped out additional costs such as a community garden and new transit line, the rate of return would jump to an eye-catching 23 percent.

But those scenarios are just a hypothetical way to arrive at conclusions about a project’s value, said consultant Mary Smitheran, who drafted the report. “The development agreement specifies that those items need to be provided,” she said.

City officials have given the impression that they’re nailing down a set of requirements that the developer, or any future property owner, cannot get out of. But the people behind this project are some savvy Wall Street investors who are no strangers to controversy.

Fortress Investment Group, a New York City-based hedge fund and private equity firm with directors hailing from Lehman Brothers and Goldman Sachs, gained a controlling interest in Parkmerced last year after Stellar Management couldn’t make the payment on its $550 million debt.

Stellar jointly purchased the property in 2005 with financial partner Rockpoint Group, setting up Parkmerced Investors LLC as the official ownership company. Stellar still manages the property, but Fortress has seized financial control. A recent report on the Commercial Real Estate Direct website noted that its $550 million debt had been modified recently with a five-year extension to 2016.

Fortress made headlines in 2009 after it stopped providing funds to Millennium Development Corp. for the Olympic Village project in Vancouver, British Columbia leaving the city on the hook for hundreds of millions to finish the job in time for the winter games. Meanwhile, Fortress CEO Daniel Mudd recently got formal notification from the U.S. Securities & Exchange Commission (SEC) that he could potentially face civil action relating to his former job as CEO of Fannie Mae, the government-backed mortgage giant, for allegedly providing misleading information about subprime loans.

Stellar, a New York City company run by real-estate tycoon Larry Gluck, was profiled in a 2009 Mother Jones article about Riverton Homes, a 1,230-unit Manhattan rental housing project built in a similar style to Parkmerced, which Stellar purchased in 2005. Although Stellar assured residents that their affordable rental payments would remain unaffected, hidden from view was its business plan estimating that half the tenants would be paying almost triple the rental rates by 2011. Since rents couldn’t ultimately be raised high enough to cover the debt payments, the complex went into foreclosure — but Stellar was shielded against loss because, on paper, Riverton was owned by a separate LLC.

Linh Le, a 36-year resident of Parkmerced and former Chevron employee, wrote to the Board of Supervisors in advance of the March 29 hearing to warn of the financial troubles the investors had experienced before.

“This project reflects a pipe dream that was hatched during an era of reckless spending, fake prosperity, and seemingly limitless money that has since crashed and nearly destroyed America,” he wrote. “The business model that Parkmerced based this plan on has failed and nearly ruined their enterprise. That era is over and the world has changed.”

Class of 2010: Malia Cohen

Jesse Hawthorne Ficks
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4
Class of 2010: Malia Cohen

sarah@sfbg.com

It took two weeks and 19 updates of San Francisco’s ranked-choice voting system before Malia Cohen, a former Mayor Gavin Newsom staffer and partner in a firm that helps businesses and nonprofits create public policy, was declared the winner of the hotly contested race to represent District 10, which includes Bayview, Hunters Point and Ingleside. The nail-biting time lag was a byproduct of complex calculations that involved 22 candidates, no clear front-runners, and a slew of absentee and provisional ballots.

But when the RCV dust settled, the results proved that the D10 vote continues to break down along class, race, and gender lines. These RCV patterns personally benefited Cohen’s success in picking up second- and third-place votes.

But they also helped D10’s African American community, now smaller than its growing Asian community but still larger that the black community in any other distinct in the city, send an African American supervisor back to City Hall. And it avoided a run-off between Lynette Sweet and Tony Kelly, who won most first-place votes.

Some chalk up Cohen’s victory to her polished appearance, the middle-of-the road positions she took on the campaign trail, and an impressive list of endorsements that include the San Francisco Democratic Party, the Labor Council, the Building and Construction Trades Council, state Sen. Leland Yee (D-SF), Assembly Speaker Pro Tempore Fiona Ma (D-SF), Board of Supervisors President David Chiu, SF Democratic Party Chair Aaron Peskin, and BART Board President James Fang.

But Cohen told us she thinks coalition building was the key. “Endorsements only account for a quarter of the reasons why you win,” she said. “It’s all about building an organization, a net that goes deep and wide.”

Some progressives were alarmed by a Dec. 1 fundraiser to help settle Cohen’s campaign debt whose guest list included Newsom, former Mayor Willie Brown, Sup. Sean Elsbernd, Ma, Building Owners and Managers Association director Ken Cleaveland, Kevin Westlye of the Golden Gate Restaurant Association, and Janan New of San Francisco Apartment Association.

Cohen dismissed concerns over this conservative showing of après-campaign support. “Fear not,” she said. “It is a fundraiser event. And now that I’m a newly elected supervisor, I look forward to meeting everyone. And I will do a great job representing everyone.

So what should we expect from Cohen, who ran as a fourth-generation “daughter of the district from a labor family” on a platform of health, safety, and employment — and will soon represent the diverse southeast sector, which has the highest unemployment, crime, recidivism, foreclosure and African American out-migration rates citywide and is ground zero for Lennar Corp.’s plan to build thousands of condos at Candlestick and the shipyard?

“I’m a bridge-builder,” said Cohen, who attributes her surprisingly tough but open-minded edge to being the oldest of five sisters.

So far, she’s not going out on a progressive limb. She told us she favors a caretaker mayor: “I’d like someone to maintain the business of the city, someone who has zero political ambition,” she said. “That way it creates an even playing field for the mayoral race.”

Cohen says she is determined to address quality of life concerns, including filling potholes, re-striping crosswalks and introducing traffic calming measures, and taking on critical criminal justice issues, including City Attorney Dennis Herrera’s gang injunction in the Sunnydale public housing project in Visitacion Valley. She opposes Herrera’s strategy but notes: “If not gang injunctions, then what? I can’t dispute that they get short-term results, but what about the long-term impacts? We need long-term solutions.”

Cohen supports Sup. John Avalos’ efforts to pass mandatory local hire legislation but is open to “creative solutions” to help get it over the finishing line. “People who live here should be working here,” Cohen said. “But is 50 percent the magic mandatory hire number? I don’t know.”

Cohen, who just survived a foreclosure attempt, has promised to be a “fierce advocate” for constituents facing similar challenges, including those who met predatory loan brokers at church.

But asked how she would cut spending or raise revenue to address the city’s massive budget deficit, she had no specific answer.

Yet Cohen disagrees with detractors who say she lacks experience. “I may look cute, but don’t be misled. I have a public policy background and fire in my belly. I’m a union candidate, I’m smart, I’m talented, and above all, I love the people in D10 and the rest of San Francisco. I want everyone to prosper and receive benefits. So give me a shot.”

Overcoming a foreclosure, Cohen promises to be a “fierce advocate”

Mary Magee
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Overcoming a foreclosure, Cohen promises to be a “fierce advocate”

D10 candidate Malia Cohen deserves kudos for publicly confronting rumors that she was facing a foreclosure–and for vowing to be a strong advocate, in future.

“I first addressed the rumors publicly a month ago,” said Cohen, who returned to the topic of her foreclosure earlier this week at a San Francisco Housing Coalition candidate night.

You can watch the entire proceedings of the Housing Coalition’s candidate night by clicking on the video clip at the end of this post.

But what Cohen personally told me today not only typifies many of the foreclosure horror stories that have been making national headlines. It also illustrates the abysmal lack of local leadership on this issue–and that’s something that Cohen says she’ll change.

“During the apex of the economic boom, I was the recipient of a predatory loan,” Cohen explained. “I bought a house in the Bayview in 2006 and started the process to modify my home loan. It took one year to get the banks to answer my questions, my paperwork has been lost, and I have a housing counselor I’m working with.”

“Months ago, I got word that my foreclosure has been rescinded and the property is back in my name, so I look forward to being a housing advocate, if elected,” Cohen continued.”Because what the housing crisis has done locally has been to decimate and destabilize our local neighborhoods.”

She notes that 1400 homes have already been lost in the Bayview, and another 1200 are currently teetering on the edge, but so far efforts to reform foreclosure laws have failed in the California legislature.

“Senator Mark Leno proposed SB 1275, which laid out a homeowner’s Bill of Rights, but the bank lobby was too strong,” Cohen said.

‘It’s such a helpless feeling, it’s been a nightmare, “ Cohen continued. “And once again there was no leadership locally to protect our interests, which is another reason why Malia Cohen is in this race. I am going to work hard to advocate on behalf of the community. It’s a crime the amount of money that was transferred out of the Latino and African American community during this crisis. Someone needs to be held accountable.”

Hotel Frank fires key union organizer

Sasha Cuttler
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Managers at Hotel Frank, who have been sparring with their employees since taking over the financially troubled hotel following a bank foreclosure earlier this year, last week fired an outspoken union organizer on the day after the hotel was targeted by a boisterous picket line. But the employee, longtime bellman Marc Norton, said this transparent effort to intimidate the workers won’t work.

“They think if they get rid of me their problems will go away, but it’s closer to the opposite that’s true,” Norton, a longtime local progressive activist, told the Guardian. “They think they got rid of me, but now they’ve turned me into a full-time organizer.”

Norton and his union, Unite-Here Local 2, will fight back starting tomorrow (Tues/5) with another protest in front of the hotel, 386 Geary Street, starting at 4:15 pm. Hotel Frank, which was named after notorious landlord Frank Lembi, is one of 10 local hotels on the boycott list of Local 2, whose workers have been agitating for a new contract since theirs expired last year.

The Hotel Frank and its sister Hotel Metropolis in May were taken over by Wells Fargo, which turned over management to the Portland, Ore-based Provenance Hotels, whose local managers unilaterally increased workloads and slashed employee benefits at the unionized hotels, according the employees and their union. Provenance officials refused to comment for my last story and did not return another phone call today on the firing of Norton and another union organizer.

In addition to the protests, Norton has filed a complaint with the National Labor Relations Board alleging that his dismissive was illegal retaliation for legally protected union organizing, a complaint that Norton believes will be decided in his favor: “It’ll happen, it’s just a matter of when.”

Dollars or sense?

Jesse Hawthorne Ficks
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28
Dollars or sense?

rebeccab@sfbg.com

It’s no secret that San Francisco is a particularly costly place to live. It consistently ranks in the top 10 most expensive cities nationwide, and it isn’t uncommon to see people renting out their walk-in closets as makeshift bedrooms to make ends meet.

There’s ample evidence that the city’s market-rate housing is out of reach for many families, middle-class workers, and low-income populations, particularly during the recession. Yet the shortage of affordable housing is a problem that is going largely unaddressed at City Hall.

The city’s General Plan estimates that a full 61 percent of new housing would have to be affordable to satisfy the housing needs of city residents, but even the most demanding development standards fall far short, producing only about half that amount. And while most new affordable housing is built for low-income people, a sizable portion is intended for first-time homebuyers with salaries at the highest threshold of affordability. In recent years, about one-third of new “affordable housing” was built to sell to people with “moderate” incomes.

So as big plans are mapped out for new residential developments composed of mostly market-rate units, what’s the strategy for addressing the underlying affordability gap? And will it ever be enough to keep from further turning San Francisco into a city of rich people while its workers are forced to live elsewhere?

This map, which appears in San Francisco’s Five-Year Consolidated Plan, charts concentrations of low- and moderate-income households in the city using HUD 2000 income data. Under federal guidelines, people with low and moderate income could be eligible for affordable housing.

A San Francisco Unified School District proposal to create new housing for San Francisco teachers underscores just how mismatched housing prices are to income. The National Low Income Housing Coalition (NLIHC) estimates that San Francisco renters paying market rate in 2010 would have to earn $56,240 to afford rent a one-bedroom apartment, $70,400 for a two-bedroom unit, and $94,000 for a three-bedroom unit, assuming they spend no more than about one-third of their income on housing.

A starting teacher’s salary in San Francisco is $50,000, so early-career educators may feel the squeeze. A survey of teachers conducted for the proposal found that 81 percent of respondents were renters, most living with unrelated roommates. More than half had plans to relocate in five years to a city where they could afford to be homeowners.

Housing was a hot-button issue at the Sept. 16 Planning Commission hearing on the environmental impact review for a hospital and housing complex that California Pacific Medical Center wants to build near Van Ness Avenue.

“The CPMC EIR fails miserably to analyze the income of the CPMC work force, and where it’s supposed to be housed,” affordable housing advocate Calvin Welch told the Guardian. “It’s a profoundly important question. If they are [providing] jobs that produce incomes that are insufficient to pay for average market-rate housing in San Francisco, who’s responsibility is it going to be to build housing for that workforce?”

 

WHO CAN AFFORD IT?

San Francisco has a reputation as a diverse, politically engaged hub that supports emerging artists, independent thinkers, and advocates for youth, workers’ rights, healthy ecosystems, protections for the most vulnerable segments of society, and hundreds of other causes. Without economic diversity — which is only possible when housing is available to people with a range of incomes — it might be a different place.

NLIHC estimates that 65 percent of San Francisco households are renters, and a significant number are what the Mayor’s Office of Housing (MOH) calls “cost-burdened,” shelling out more than a third of their incomes on rent. To get by, tenants have been known to cram roommates in like sardines, or cling tenaciously to a rent-controlled unit.

In a thick report outlining affordable housing goals for 2010–14, MOH and two other city agencies clearly articulate the housing challenges facing low-income renters. For one thing, the report says rents are going up despite the economic recession and declining home prices. And most people’s salaries don’t stretch far enough to cover those high prices. Even though there are 16 billionaires and some fabulously wealthy CEOs residing in San Francisco, the majority of people work in more mundane occupations like waiting tables, retail, office work, nonprofit jobs, teaching, health care, or public service.

The MOH report notes that despite the city’s relatively high median income, there’s a widening gap between top earners and people on the lower end of the spectrum, so few households actually wind up in that middle zone. “In fact, over a quarter of San Francisco’s population earns under 50 percent of [area median income],” the report states. For individuals in 2010, this translates to one in four people earning $34,800 or less. Compounding that problem are recent unemployment figures indicating that nearly one in 10 is jobless.

About one half of San Francisco’s population is considered low- or moderate-income, the housing report notes, using the standards used to formulate affordable housing prices. MOH uses a tiered income matrix, calculated using federal guidelines, to determine who could qualify for housing below the market rate. If you make $20,900 or less, you’re counted as “extremely low income.” You’re “very low income” if you make between $21,000 and $34,800, “low income” if you earn between $35,496 and $55,700, and if you make between $56,376 and $83,500, you count as “moderate income.” Even these figures are skewed higher because they include data from wealthy Marin County. As a point of comparison, U.S. Census data estimates that the median income for American workers was $29,530 over the last several years.

Most of the new affordable housing constructed in San Francisco is aimed toward people in the lowest ranges, but in recent years one-third was built for those with moderate incomes, which could gentrify some parts of the city. “Supervisorial Districts 3, 6 and 10 had rates of more than 40 percent extremely low and low-income,” the MOH report notes. “These three districts make up the entire eastern part of the city.”

A Guardian analysis of Bureau of Labor Statistics occupational and wage estimates for 2009 suggests that about 71 percent of people who work in San Francisco (many commute from less expensive places) earned less than that highest “moderate” salary limit of $83,500. It suggests that the vast majority of the workforce could not afford market-rate housing unless they sought it in pairs or groups.

“A big issue is the inability of San Francisco’s employment market to produce jobs that pay people enough to afford housing,” Welch says. “There’s a mismatch between market-rate income and market-rate housing costs. We’re housing somebody else’s workforce.”

Another stab at assessing the affordable housing need gazes into the future. The Housing Element of the San Francisco General Plan includes an estimate for the city’s future housing needs for the better part of the decade. The city should build 31,200 new housing units to meet its need, the General Plan says, and “at least 39 percent of these new units must be affordable to very low and low-income households. Another 22 percent should be affordable to households with moderate incomes.”

What this adds up to is a full 61 percent of new residential development in San Francisco ought to be dedicated to some form of affordable housing. The calculation reveals a lot about the condition San Francisco is in, but it might as well be chalked up as a hollow academic exercise. Indeed, the report deems this goal “unrealistic.” The reality of the market and chronic government deficits ensures that there will not even be an attempt to meet it.

 

IF YOU BUILD IT

The trouble with affordable housing is that developers won’t build it unless there is a financial incentive. “The only way it works is not in the marketplace,” Welch said. “There’s no such thing as affordable land, affordable sheetrock, affordable architects, or affordable engineers. The profound condition … is that the market cannot produce affordable housing.” As long as developers can make higher profits building market-rate, they will.

That’s why government steps in to subsidize or mandate new affordable housing construction or preserve existing stock. Under the Inclusionary Housing Ordinance, if developers decide not to build the required 15 percent of affordable units, they must pay an in-lieu fee that gets funneled into an affordable housing fund.

In a good year, MOH Executive Director Douglas Shoemaker told the Guardian, the city receives $10 to $15 million from these fees, which is used in partnership with developers to build affordable projects. That system hasn’t worked so well lately. Last year funds for affordable housing were depleted instead of bolstered. Developers who paid their fees in anticipation of building new projects requested refunds after their projects were stalled, Shoemaker told the Guardian, so MOH gave back up to $12 million to developers instead of using that money to build new affordable housing.

This year, Mayor Gavin Newsom introduced what he called an “economic stimulus” program that allowed developers to defer payment of in-lieu fees. This guarantees that it will be a long, long time before new affordable housing can be built using those funds. So as it stands, the inclusionary housing law isn’t so effective at producing new affordable housing.

Projects done in conjunction with the San Francisco Redevelopment Agency, meanwhile, do include higher portions of affordable housing. With all of the planned Redevelopment projects combined — Treasure Island, the Hunter’s Point shipyard, and others — the city can expect to see perhaps 7,000 new affordable housing units in coming years, a portion of which will be condos meant for people in the “moderate” income range. It may well be better than other cities have offered, but it doesn’t begin to address the true need for more than 19,000 units outlined in the General Plan.

Shoemaker noted that San Francisco is a cut above the rest when it comes to affordable-housing requirements. “I just don’t think you could find a city that has more aggressive goals,” he said, noting that in major redevelopment areas, “We’re getting like 30 percent of homes to be affordable on some level.” Yet Shoemaker acknowledged, “the need is intense,” and “there’s more people we would like to serve.”

Olson Lee, deputy executive director of the San Francisco Redevelopment Agency, also described San Francisco as taking a very aggressive stance on affordable housing. Redevelopment devotes 50 percent of its tax-increment financing to affordable housing, where the state requires just 20 percent, Lee said. And some Redevelopment project areas include twice as much affordable housing as is required by state law, he added. “The city has done a tremendous amount of affordable housing,” he said. However, “the fact of the matter is, there’s a greater demand for affordable housing than the number of units.”

From 2005 to 2009, there were 3,607 new affordable housing units constructed, mostly for people at the lowest end of the pay scale, MOH reports. But in that same time frame, 3,465 rental units were converted to condominiums. One could argue that the city essentially broke even with its affordable housing stock in a decade where housing prices almost doubled. As San Francisco housing prices skyrocketed, the city’s 170,000 rent-controlled units served as the saving grace for the majority who couldn’t afford market-rate, and condo conversions continue to threaten the erosion of that very significant housing stock.

Debra Walker, a candidate for District 6 and a tenant representative on the Building Inspection Commission, told the Guardian that she believes a new financing system is needed for affordable housing. “The argument for development is that we get affordable housing money out of it,” she said, but “the inclusionary doesn’t get us enough housing. We cannot include affordable in those high-rises, because they’re so expensive to build.”

She has talked up the idea of a real estate transfer tax that would create a dedicated fund that could then be used in partnerships with affordable-housing developers. Shoemaker, for his part, noted that having a dedicated revenue stream for affordable housing would be very helpful. A committee comprised of the San Francisco Planning and Urban Research Association, Welch, developer Oz Erickson, and Shoemaker was formed earlier this year and actually arrived at a deal, but Newsom ultimately rejected it. Other creative solutions, Walker says, might include reusing shuttered commercial properties or building cheaper by design using different building materials. “It’s about looking at what it is we need,” she said, “and realizing people are in a pinch.”

The greatest complicating factor of the current system, in which the city relies on market-rate development to get new affordable housing, is that even though there a some 40,000 new residential units in the pipeline, developers can’t secure financing to start building them. For now, in the down economy, they only exist on paper.

“They’ll never get built,” Welch predicts, and as long as Newsom continues to extend entitlements for those planned projects in hopes that the market will get a jump, “it’s freezing September 2008 conditions, evidently forever,” limiting opportunities to build something more reasonable.

“They’re zombies,” Welch added. “Who the fuck is going to pay $2 million for a new condo when they can buy a $4 million building for $1 million in foreclosure?” But if the need for affordable housing began to be addressed, he said, something might start to happen. “If you converted half the pipeline units to rental,” he theorized, “they might get built.”

Lembi’s legacy

Jesse Hawthorne Ficks
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5
Lembi’s legacy

steve@sfb.com

Two of the most outrageous and intransigent political narratives in progressive San Francisco converge at the Hotel Frank near Union Square.

The first involves the relatively new namesake of a boutique hotel formerly known as the Maxwell Hotel San Francisco, Frank Lembi, the nonagenarian who was once one of the city’s largest and most notorious landlords, running CitiApartments, Skyline Realty, Lembi Group, and other related corporations with his recently deceased son, Walter, and others.

Since the Guardian first reported on allegations of illegal and unethical tactics intended to force protected renters from their homes in an award-winning three-part series (“The Scumlords,” March 2006), Lembi’s empire was sued by the City Attorney’s Office and its former tenants (“SF vs. Frank Lembi,” 10/6/09), followed by a financial crash that involved banks foreclosing on dozens of the group’s properties (“Triumph of tenacity,” 6/1/10).

That downfall has now dovetailed into a second prominent San Francisco story: the ongoing contractual impasse and labor unrest between the city’s corporate-owned hotels and workers represented by Unite-Here Local 2, whose list of boycotted local hotels grew to 10 with the addition of the Hotel Frank earlier this month.

After the Hotel Frank and Hotel Metropolis were foreclosed on by Wells Fargo Bank earlier this year, longtime union workers at the two hotels say their rights have been violated, their benefits slashed, and their workloads increased unilaterally by the bank’s management company, Provenance Hotels, whose representatives refused to comment for this story.

“These are troubling signs of the kind of relations they want to have with Local 2,” Anand Singh, a lead organizer with the union, told the Guardian.

Together, the stories that converge at the Hotel Frank are about the plight of renters and workers in San Francisco, and whether they can maintain their economic standing against attacks from powerful corporate interests.

Corporations run by members of the Lembi family once controlled more apartments in San Francisco than any other landlord, growing rapidly in the 1990s and early 2000s using highly leveraged real estate purchases and renting units under CitiApartments and other names.

Tenants in rent-controlled apartments are protected under various San Francisco laws, but as the Guardian has reported and the city’s ongoing lawsuit against the Lembi empire alleges, the group’s business model was based on trying to force, intimidate, and cajole tenants into vacating those units in order to increase rents. Those complaints were also the subject of well-attended City Hall hearings in 2006 and a campaign called CitiStop organized by the San Francisco Tenants Union.

A separate class action lawsuit by former Lembi tenants brought by the San Francisco law firm Seegar Salvas LLP in 2009 alleges that the Lembi corporations also routinely refused to return the security deposits of former tenants. Both lawsuits are ongoing, with plaintiffs’ attorneys noting that the courts have fined the Lembi corporations for not cooperating with the discovery process.

Yet while the name Frank Lembi had been tarnished in progressive political circles, it was until only recently celebrated in the business press and by downtown organizations such as the San Francisco Apartment Association, which lauded Lembi as a tough-minded visionary. And it was a name that Frank Lembi’s daughter sought to memorialize in 2007 when the company she ran, Personality Hotels, added the York and Maxwell hotels to its string of four boutique hotels near Union Square.

Yvonne Lembi-Detert changed the name of the Maxwell to the Frank Hotel and rechristened the York as Hotel Vertigo after the Alfred Hitchcock movie set in San Francisco. Those familiar with the deal say she paid top dollar for the hotels — $35 million for the Maxwell, which had sold a few years earlier for $18 million. She then borrowed another $10 million to renovate the hotel she had renamed for her father, putting up the Hotel Metropolis in the Tenderloin as collateral.

“This was a vanity project, nothing more and nothing less, Yvonne’s legacy to father Frank,” one worker at the hotels told the Guardian.

Officials at Personality said Lembi-Detert was on vacation and unavailable for comment, but Director of Operations David Chin told us, “The purchase price was what the market bore at the time” and that the renovations were prudent. “The factor that drove the hotel to foreclosure was really the economy.”

Although the loans for the hotels came from a Japanese-based corporation called Nomura, they were packaged along with other troubled loans into collateralized debt obligations (CDOs) — those toxic financial instruments that played such a key role in the crash of the banking system in 2008 — eventually coming to be controlled by Well Fargo.

As the Hotel Frank was put through extensive and expensive renovations that were never completed, the economy turned sour and the Lembis fell far behind in their loan payments. Wells Fargo finally took ownership of both the Frank and the Metropolis in May, contracting the management out to Provenance, which moved quickly to try to turn the financially troubled hotels around.

Workers at the two hotels, most of whom had been there for decades, say the new management team took an aggressive posture from day one, announcing increased workloads, longer work days, suspended vacation pay, and new medical plans with steeply higher costs to workers.

But they arrived in a town with a hotel union energized by clashes with management at hotels all over the city, so the workers at the hotels resisted the changes and their Local 2 colleagues have rallied to their defense. When thousands of workers and their progressive supporters marched through the streets of San Francisco to the Grand Hyatt in July, they stopped at the Hotel Frank along the way and unfurled a banner that read “Frank and Metropolis Hotel Workers United to Fight Provenance and Wells Fargo.” And on Sept. 8, both hotels were added to Local 2’s boycott list.

Singh said Provenance is unfairly trying to hold workers at the hotel responsible for the bad financial decisions that the Lembis made, and he called on Wells Fargo to absorb those financial losses without having its agents attack the union.

“It was not based on anything the workers have done,” Singh said of the financial situation at the hotels. “This huge bank is asking the workers to bear the brunt of this financial strategy even after being bailed out by taxpayers.”

New debate surrounds New Mission Theater

Sasha Cuttler And Mary Magee
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New debate surrounds New Mission Theater

The New Mission Theater, a dilapidated landmark that sits on the 2500 block of Mission Street, has been vacant for years, but controversy surrounding its fate is alive as ever and will be discussed at this afternoon’s July 29 City College of San Francisco Board of Trustees meeting.

In 2004, the city designated the theater as historically significant for its ties to the Mission’s early 20th century “vaudeville and movie house district.” Once upon a time, patrons regularly circulated through its palacial interior, which features Art Deco-syle ornamental metalwork at the ballustrades, plaster moldings imprinted with Greek key motifs, etched Art Deco glass panel doors, ceiling ornaments with floral motifs, and a balcony adorned with a frieze of garlands and urns, according to a landmark designation file.

Plans to restore and reopen the theater have been in the works for several years, and a 100-percent affordable housing development adjacent to the theater could move forward if everything falls into place. That’s turning out to be a big ‘if.’

In 2005, CCSF sold the theater, along with an adjacent shuttered Giant Value store, to Gus Murad — Medjool restaurant owner and a former small business commissioner appointed by Mayor Gavin Newsom — for $4.35 million, according to CCSF counsel Greg Stubbs. Now, CCSF is considering initiating foreclosure proceedings against Murad due to nonpayment. He owes more than $2 million on the property, according to notice of default issued June 21. During open and closed sessions at the July 29 Board of Trustees meeting, trustees will decide whether to proceed with taking back the property from Murad or grant him a 120-day extension. Murad is expected to offer his pitch for an extension at the meeting.

CCSF board member John Rizzo told the Guardian he was fed up with the missed payments. “Gus Murad keeps assuring us, oh yes, it’s going to happen, we’re on the verge,” Rizzo said. “But the affordable housing is not being built,” he said. If CCSF took the property back, “we wouldn’t sell it for market-rate housing,” he added. “We would want to see affordable housing.”

P.J. Johnston, a spokesperson for Gus Murad, declined to answer questions about possible foreclosure but told the Guardian that the central goal is to create 85 to 100 affordable units in the heart of the Mission. “We’ve been working with Mission Housing and hopefully are very close to a reaching an agreement with Mission Housing and the Mayor’s Office of Housing, which would obviously be a chief funder of the project,” he said.

Securing financing and reaching a deal with Mission Housing and the Mayor’s Office of Housing would allow Murad to square things away with CCSF, get the ball rolling on the development, and get something out of his investment.

Murad initially planned to develop market-rate housing on the lot curently occupied by the Giant Value storefront, but switched to an affordable housing project 1.5 years ago, Johnston said. Plans have always included rehabbing the theater. Negotiations with Bernal Housing came close to a deal, but ultimately fell through, he said. Now, Murad is hopeful that CCSF will grant a 120-day extension and a deal with Mission Housing can be secured in time.

“It has been a challenging time for the economy as it relates to land use,” Johnston said. “And it’s been a very difficult couple of years for restaurants.”

Mayor’s Office on Housing Director Doug Shoemaker declined to comment for this story.

Chris Jackson, a trustee, said he worried that if CCSF were to move ahead with foreclosure, “it’ll probably scuttle the affordable housing project. I’d rather wait an extra four months to bring affordable housing than just put the screws to the guy,” Jackson said. “If it was a market-rate project, I’d be like no, give us the money.” Jackson said under state law, any funds generated by a sale of the property — which was originally purchased with bond money — would have to go back into the capital project fund, and couldn’t go into college’s operations budget. “It won’t go to save one class at City College,” he explained. “It just goes into capital project reserves.”

Rizzo noted that certain “political forces” aligned with Newsom had been contacting board members in advance of the meeting to try and persuade trustees to grant an extension for Murad, who will clearly benefit if he is allowed to hold onto the property. Murad has hosted campaign fundraisers for Newsom in the past and has contributed to campaigns of the mayor’s political allies. It isn’t the first time the New Mission Theater development has generated political buzz.

When an earlier incarnation of Murad’s plans for the New Mission Theater and adjacent lot came before the Board of Supervisors in Feburary of 2009, it generated some controversy. Murad had won approval from planning staff for a 20-foot height extension that would have brought his housing project to 85 feet, but that was rejected by the Board of Supervisors. In an odd twist, a typo kept the 85-foot limit intact, so the Board was required to vote again to bring it down to the 65 feet they approved. When Mayor Newsom vetoed the board’s second vote, Sup. Chris Daly lambasted Newsom for engaging in “pay-to-play politics.”

Closing the wealth gap

David Talbot
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0

Dick Meister, former labor editor of the SF Chronicle and KQED-TV Newsroom, has covered labor and politics for a half-century. Contact him through his website, www.dickmeister.com, which includes more than 250 of his recent columns.


Although the wage gap between white and African-American workers remains wide, it has been shrinking. But that’s not so for the more significant black and white wealth gap.

A new study by researchers at Brandeis University shows that the wealth gap has been growing steadily, leaving African-American families with increasingly fewer resources than white families to cope with serious economic problems such as many families face today.

The Brandeis study found that in the quarter-century from 1984 to 2007, the African-American and white wealth gap more than quadrupled, from $20,000 to $95,000.

Middle-income white households had $74,000 in financial assets by 2007. That was far higher than even the average high income African-American family, which had only $18,000 in assets. At least 25 percent of the black families had no assets at all – no wealth, that is.

The study notes that wealth – “what you own minus what you owe” – is what “allows people to start a business, buy a home, send children to college, and ensure an economically secure retirement. Without wealth, families and communities cannot become and remain economically secure . . . The gap is opportunity denied and assures racial inequality for the next generation.”

The main reasons cited by the researchers for the four-fold increase in the African-American and white wealth gap are unfortunately not surprising: Racial discrimination and tax policies that favor the rich, who are disproportionately white.

The study noted the advantages given the wealthy through tax cuts on investment income and inheritances, retirement accounts, home mortgages and college savings. In contrast, African-American families typically face disadvantages – the disadvantages of “persistent discrimination.”

For example: During the period beginning in 1984, African Americans “were at least twice as likely to receive high cost home mortgages as whites with similar incomes. These high-cost loans unnecessarily impeded wealth building in minority communities and triggered the foreclosure crisis that is wiping out the largest source of wealth for minorities.”

Lacking sufficient assets, African Americans in general have had no choice but to rely heavily on expensive credit. The total amount of their debt just about doubled between 1984 and 2007 to at least $3,600 each.

To make it worse, African Americans, like other non-white credit users, generally have to pay more than white borrowers in interest payments and other charges. Many have no choice but to borrow from predatory lenders who charge exorbitant interest rates.

The study suggests several remedies, including creation of a Consumer Financial Protection Agency designed to ensure fairness for all in their financial dealings. That would include helping “equalize and regularize the terms on which cash-strapped families are borrowing to make ends meet.”

Efforts to help low and moderate income families increase their assets so as to gain economic stability and mobility have been increasing. But the study shows the efforts must be intensified, for they are “not yet strong enough or at a scale to make a significant difference in people’s lives.”

The study shows as well that the wealth gap between African Americans and whites persists even among African Americans who hold well-paying jobs.   Thus “wealth opportunities must be targeted to families of color whose lives are made even more precarious by not having enough assets to make ends meet when economic challenges arise.”

True enough, there are public policies now in place “that provide incentives and subsidies for asset building.” But reforms are needed to make certain that the policies benefit all Americans equally – reforms that might at last close the wealth gap between African-American and white workers and their families.

The Brandeis study has it right: “Public policies have played and continue to play a major role in creating and sustaining the racial wealth gap, and they must play a major role in closing it.”

Dick Meister, former labor editor of the SF Chronicle and KQED-TV Newsroom, has covered labor and politics for a half-century. Contact him through his website, www.dickmeister.com, which includes more than 250 of his recent columns.

Sexy, seedy, comical

Jesse Hawthorne Ficks
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Sexy, seedy, comical

arts@sfbg.com

THEATER Downwind from a sprawling industrial pig farm stands a shabby little motel under new management. It’s maybe not what Business Week would call an auspicious location, but then proprietor Asuncion Boyle (Chad Deverman) is not your average entrepreneur. His enterprise — registered in marketing decisions like a bar that serves only one drink: “The Pissed-off Son of a Bitch” — is the overthrow of capitalism, one loathsome pig farmer at a time. Moreover, his first target, swaggering Texas dealmaker Charles Masterson (an extremely impressive Keith Burkland), is far from arbitrary. Asuncion — or “Assy” as his kinky lover and Charles’ trophy wife Lola (a compelling Madeline H.D. Brown) likes to call him — stalks the man he blames for his mother’s suicide many years before.

“This is about social justice, not revenge,” insists our somewhat addled if cocksure protagonist. It’s pretty clear no one else believes him, but Lola still proves a willing accomplice, even after she learns of the origin of their affair in his plot to buy her husband’s pig farm in foreclosure and turn it into a desert park for the community. This unexpectedly straightforward and hopelessly naïve stratagem comes backed by a frame-up ploy that recapitulates the violent act Asuncion saw through a motel window as a child, as well as by an inscrutable neo-Marxist treatise he penned called The Apotheosis of Pig Husbandry. The document is the fruit of 10 years of dedicated study in the Albuquerque public library. (History repeats itself indeed, but the second time is definitely as farce, a detail Assy seems to have forgotten.)

The Apotheosis of Pig Husbandry, the latest effort by industrious and popular local playwright William Bivins (Pulp Scripture; The Position), is less a play of ideas than a winking bit of Texan Panhandle neo-noir, a sardonic psychodrama cum thriller, something in the vein of Tracy Letts’ Killer Joe or Dennis Lehane’s Coronado (which SF Playhouse, the producing company, mounted a couple of seasons back). If Assy’s schooling of his materialistic, sadomasochistic, platinum blonde disciple and his verbal sparring with the vigorous and canny Charles come comically peppered with Marxist clichés, it’s the surprisingly tender, tortured relationships between all three on which history will actually turn.

But in also going for something beyond just another seedy, sexy, comical thrill ride, Apotheosis, part of SF Playhouse’s intriguing Sandbox Series of new works, winds up less than completely satisfying, despite a sporadic verve and emotional complexity as well as very engaging performances by a fine cast under direction from Bill English. Circling around the subject of political and personal commitment and the real engines of social change (or lack thereof), Apotheosis can strain after meaning to the detriment of its more forceful aspects — including its merits as a seedy, sexy, comical thrill ride. You’ll have to make allowances for some awkward, even confusing plot points in this table-turner, and forgive a main character who amusingly urges his partner-in-crime to “stay in the abstract” but who is in fact a little too abstract himself to be believed.

Deverman makes it possible to forgive a lot, actually, since he applies a good deal of charm to the part. But Asuncion is simply more concept than character, especially compared with Lola and Charles, who both breath more fully onstage (the dependably astute Burkland is doing some of his finest work in the latter role). Asuncion, by contrast, seems both out of place and off the page. This is doubtless part of the point. But in the end, it’s maybe both too arch and too telling that Assy writes everything, inexplicably and improbably enough, on a manual typewriter. If you can buy that detail, there’s a pig farm next door you should consider. 

THE APOTHEOSIS OF PIG HUSBANDRY

Through June 12

Wed-Sat, 8 p.m., $20–$30

SF Playhouse

533 Sutter, SF

www.sfplayhouse.org

 

Triumph of tenacity

Jesse Hawthorne Ficks
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Triumph of tenacity

rebeccab@sfbg.com

Nearly four years after City Attorney Dennis Herrera filed suit against Frank and Walter Lembi and their dizzying array of companies affiliated with CitiApartments for “an outrageous pattern of corporate lawlessness,” the powerful and notorious San Francisco landlords have watched their empire crumble.

The Lembi empire consisted of more 300 apartment buildings in San Francisco at its peak. Four Lembi subsidiaries that owned 16 buildings filed for Chapter 11 bankruptcy in February. Twenty Lembi properties were taken over by Lennar spin-off LNR in late May; another 24 buildings are slated to be foreclosed in early June; 51 were deeded back to UBS bank in lieu of foreclosure early last year; and still others are now held by court-appointed receivers and managed by Laramar, an unaffiliated property-management company.

CitiApartments still owns and manages a large portion of the buildings it controlled in its heyday, but it’s had to either restructure loans or get payment extensions to hold onto many of them, according to general counsel Ed Singer. The Lembi Group staff has dwindled, and a team of 18 dedicated solely to relocating tenants is now long gone.

For many renters in foreclosed units who managed to ride out what San Francisco Tenants Union director Ted Guillicksen has labeled CitiApartments’ “war of terror” against its occupants, the dust has finally settled. Gullicksen says that living in limbo is better than living under Lembi.

There are no more harassing phone calls pressuring them to move. No more sudden utility shutoffs. No armed agents showing up at the doorstep unannounced. No illegal construction projects clamoring away on the other side of paper-thin walls, destroying any hope of tranquility at home.

These are tactics CitiApartments used to drive people out, according Herrera’s 2006 complaint and an award-winning Guardian series (“The Scumlords,” March 25), in order to vacate units so they could be renovated and removed from rent control protections. A San Francisco Rent Board roster of 174 current and former Lembi properties as of May 25 lists no fewer than 1,890 cases associated with those buildings, the majority of them now settled.

While the sordid history of CitiApartments’ strong-arm tactics has been well-documented, tenant-rights advocates say the untold story of the Lembis’ rise and demise is that its entire business model hinged on evicting and relocating existing tenants — but that strategy failed, in large part because of a grassroots organizing effort that emboldened renters to stand their ground.

“The economic downturn played a role in it because the money stopped flowing,” says Gullicksen, who helped form the CitiStop Campaign in 2004 in response to reports of outrageous tactics. “But if the money kept flowing, I think they would have failed anyway. The end result was inevitable, given the tenant resistance.”

Darin Dawson moved into his apartment at 2 Guerrero St. in 1994 on a lease secured through the federal Housing Opportunities for People With AIDS program. Dawson, who was diagnosed in 1987, said things turned sour in 1998 when Trophy Properties I DE LLC — one of the Lembis’ dozens of subsidiaries — snapped it up.

Their first contact was to inform him that he would have to move “because we don’t allow those kinds of leases in our buildings,” he recalled. He fought it with the help of the Housing Authority and managed to stay put. It was the first in a series of standoffs that ultimately stopped last September when the property was repossessed.

“Basically, I just dug my heels in and knew that I couldn’t get evicted,” Dawson said. Nonetheless, he spent years embroiled in conflict with the Lembi subsidiary while also battling AIDS-related illnesses.

There was the time he was ordered to vacate his apartment for two weeks during a seismic retrofit only to find it trashed when he returned. “The floors were ripped up,” he said. “The ceiling was hanging in some places. There was black grease smeared all over the walls.” He repaired it himself. Then came the constant phone calls, which started off artificially cheerful but turned threatening if he refused to accept money to relocate.

Dawson pays a base amount of $635 per month for his rent-controlled studio, so he suspected he might be a target. Once a residential manager discreetly warned him that his name was on a “hit list” of tenants whom the owners wanted gone, he said.

According to a confidential document leaked to advocates by an anonymous source, tenants who paid the least came under the greatest pressure to relocate since San Francisco rent-control laws prohibit raising existing occupants’ rents to market rate. The document outlines how loan repayment and estimated profits were calculated wholly on the expectation that existing tenants would vacate, rather than relying on normal projections like natural turnover.

“Tenants with significantly below market rents are chosen for thorough screening to see if they might be relocated,” according to the document, a 2008 Credit Suisse prospectus concerning a pool of 24 buildings under Lembi ownership that have since been foreclosed. “Those tenants most below market and/or with the longest history are the priority for relocation.”

All 24 buildings in question — including properties on Larkin, Market, Cesar Chavez, Post, and Leavenworth streets, in addition to others — were subject to rent control. “At acquisition [Aug. 30, 2007], the portfolio was approximately 5 percent vacant,” it notes. “As of May 2008 the portfolio was 19 percent vacant, as a result of Lembi successfully executing their business plan of vacating units and rolling them to market.”

Although the paperwork spelling this out in stark terms didn’t surface until recently, advocates who worked on the CitiStop campaign essentially figured it out years ago. A collaboration between the Tenants Union, Pride at Work, and other advocacy groups, the campaign sent organizers door-to-door to inform tenants of their rights, hosted potlucks where people could swap horror stories and forge alliances, and staged demonstrations outside CitiApartments’ Market Street offices.

They tracked public records from the Assessor-Recorder Office and swooped in to warn tenants whose buildings had fallen into the Lembis’ clutches. It didn’t always work. According to the Credit Suisse document, Lembi had relocated 2,500 units as of August 2008, a fact pointed to as evidence of its “successful track record.” But the relocation team only drove out a small number of the lowest-paying tenants; the vast majority of those who took buyout offers left units that paid closer to market rate.

“They really needed to get more turnover than what they accomplished,” Gullicksen said. “The fact that they couldn’t is attributable to the CitiStop campaign.”

Singer rejected this assessment, saying the real problem was the economic downturn and the loss of capital availability. “I can see why they want to say that, why they want to take credit for bringing down the Lembis,” he said. “But I don’t think it would have made any difference if [tenants] left or not.”

A common complaint nowadays is that former tenants haven’t gotten their security deposits back, a matter that has spurred a class-action lawsuit against 57 corporate defendants associated with the Lembi Group.

“They’re claiming that they have no money,” Brian Devine, an attorney with Seeger Salvas LLP, told the Guardian. Devine estimates that he will end up representing several thousand tenants who are entitled to their deposits. In March, a judge awarded sanctions of $30,000 to Devine’s firm because the Lembi Group refused to cooperate with discovery, withholding documents necessary for the case to proceed.

Herrera has encountered a similar recalcitrance in his own suit and won court sanctions of $50,000 in February for the same reason. “We have been engaged in discovery for a long, long time,” noted city attorney spokesperson Matt Dorsey. “We’re hoping that the judge is at the edge of his patience.”

Singer said the problem was that there wasn’t enough “people power” to photocopy thousands of documents. The Lembis were never up to any nefarious purpose, Singer insisted — they only wanted to make the buildings nicer. As for the tenants who endured the most brutal relocation tactics? “I can understand why they didn’t want to leave,” he said. “Some of them didn’t leave — and they’re still there.”

Housing relief – for tenants

David Talbot
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Housing relief – for tenants

OPINION Since the burst of the housing bubble, we’ve seen a lot of attention paid to the plight of homeowners hit hard by the recession and facing foreclosure. Indeed, President Obama recently enacted a protection for homeowners that requires banks to let unemployed homeowners delay their mortgage payments. But until now there has been little talk and even less action on how we can help tenants who are also in danger of losing their homes.

Tenants need economic relief too. Renters have been particularly hard hit by the housing bubble and the ensuing recession. During the bubble, real estate speculation caused San Francisco rents to increase by an average of 50 percent. When the bubble burst, tenants saw their jobs disappear and incomes drop — but rents remained at record high levels. Evictions for nonpayment of rent shot up as renter after renter found it impossible to keep up with San Francisco’s housing costs.

The June 8 election will give voters a chance to change that. Proposition F will give tenants the right to postpone rent increases when they’ve lost their jobs or seen their wages or hours cut.

Many tenants struggle to pay San Francisco’s sky-high rents in the best of times and, when hit with a layoff or reduction in pay, it becomes even more difficult. Any further rent increases would be devastating and put their housing at risk. Prop. F will provide needed relief to those tenants trying to pay high rents with vastly reduced incomes. Unemployed tenants or those who have seen their wages cut by 20 percent or more will be able to get any rent increase delayed simply by filing a petition with the San Francisco Rent Board and documenting that they are unemployed or have had wages cut.

With the difficulties renters face in one of the country’s most expensive housing markets, Prop. F is a mild and measured response to a very real crisis. Prop. F essentially does what any decent landlord would do anyway: give a break to tenants who’ve just lost their jobs and hold off on rent increases until back on their feet.

San Francisco voters should also give a break to tenants on the verge of losing their homes. Vote Yes on Prop. F.

Ted Gullicksen runs the San Francisco Tenants Union.

Loose in Obamalandia: Dead man walking through CA

Zelda Bronstein
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Loose in Obamalandia: Dead man walking through CA

I am on a low-rent book tour with my new cult classic El Monstruo – Dread & Redemption In Mexico City.  For the next three months, I will stumble across this land from sea to stinking sea probing the underbelly of Obama’s America.  The findings will be posted on these pages.

1.
First stop was the near north woods, Humboldt County USA, to wheedle the medicos into granting me a clean bill of health before I hit the road.  A year ago this February, my doctor who has poked and probed my old broken cadaver for nearly 20 years, pronounced me dead. “Liver Cancer” he parsed gravely — but I am still alive and kicking. The class enemy be warned: I am not dead yet.

Humboldt had just been wracked by a 6.5 earthquake that cut a swath through Oldtown Eureka’s antique shops but was not quite Haiti.  Nonetheless, the shake-up worked its usual bad mojo and implanted the seeds of fear and loathing in every soul.  On January 22nd, three separate police agencies shut down the north end of Arcata and evacuated hundreds of residents after a scruffy hippie-type tried to fed ex a suspicious package to Berkeley that leaked, according to the clerk at Kinko’s, “a chemical odor.” The offending package was blown up in a back alley.

The next day, the local rag commonly known as the Times-Slander conceded in front-page headlines that the “bomb” was “Actually a brake light.” The paranoia was symptomatic.  A commercial jetliner to Kentucky was forced down by air force jet fighters after an orthodox Jewish kid pulled out his Tefillin to pray and, in a spasm of extreme religious irony, the panicked stewardess took him for some Muslim terrorist and confused the leather straps and little prayer boxes with bomb components that would blow the paying customers to kingdom come. 

Nine years ago, just weeks after 9/11, I got on the road to preach Zapatismo to the North Americanos. Flags flew from every home, a sort of Talisman against the terrorist devils.  It was not a healthy ambiance for spreading revolution and resistance in Amerikkka.  Prospects for the Monster Tour suddenly turned ominous.

2.  
San Francisco’s Mission District gets shabbier day by day as the “Great Recession” (read “Depression”) gallops towards economic Armageddon. The Miracle Mile is lined with empty storefronts and 98 Cent Stores (marked down from 99.)  The homeless sleep under their shopping carts – the Mission Local reports that 40 homeless families are living in 16th Street Single Room Occupancy hotels, twice the occupancy rate of a year ago.  In this Sanctuary City for the rich, the yuppie Mayor, who now aspires to be nothing more than a yuppie clerk in a yuppie wine store, is deporting undocumented teenagers convicted of no crime and the class divide seems more brutal than ever.

We posted up on Market Street in front of the Commonwealth Club, where torture enabler John Yoo was hawking his new book to the City’s elite. Financial District drones en route back to the ‘burbs asked Yoo Who?
I checked my watch.  It was time to hit the rails.

3.
The Central Valley was the first stop on the Monster Tour, the most deadly stretch of soil in North American California. The water plumes are all poisoned by agrochemicals and when one turns on the faucet on the west side of the valley, deformed babies pop out. 

This cesspool of chemical effluvia is populated by perhaps the most ethnically diverse crazyquilt in all of Obama’s America.  Anglo bigwigs and white Armenians rule the roost but down below Mixteco is spoken on the radio, communicating the bad news to the out-of-work Oaxacans who once toiled in the fields and packing sheds. The humongous Hmung community is up in arms over the FBI’s harassment of their spiritual leader, General Vang Pau who authorities accuse of conspiring to overthrow the doctrinaire Communist government of Laos.  Unemployed Palestinians and Pakistanis, Filipinos, white trash, and historic enclaves of Blacks, survive in this fulminating chemical stew by their wits. On every street corner, the down-at-the-heels don shabby green gowns and sagging Styrofoam Statue-of-Liberty crowns, holding up cardboard arrows pointing towards strip mall tax return scammers.

I stepped out into Catherine Campbell’s unplanted garden.  Police helicopters hovered overhead, searching out suspected gangbangers. Catherine is a veteran prison rights attorney who pays particular attention to what goes on behind bars at Corcoran and Chowchilla, two of the cruelest his & her lock-ups in the state. Recently, she put her know-how to work defending anarchists who had been beaten into the sidewalk by the Fresno pigs for handing out graphic leaflets depicting the torture of elephants during Ringling Brothers Barnum & Bailey’s annual visit to town, and she and a gaggle of advocates have been trying to keep the cops off a venerable homeless encampment. Now the City Council is seeking to felonize panhandling on Fresno’s median strips as a “safety hazard.” 

The Fresno gendarmes are particularly keen on persecuting young adults of color for alleged gang activities. An article in the Morning Bee reported on the so-called “Bulldog Gang” (the bulldog is the icon of the Fresno State football team so gang colors are readily available) whose members were accused of smashing windows and barking at the cops over on the decrepit west side.  Catherine says the bulldogs’ bark is more a growl.  Such are the sounds of hope in the second year of Obama’s lacerated reign.

Sam Stoker is a child of the Valley. One night last summer, I bought him a beer at the counter of my beloved Café La Blanca back home in the Centro Historico of Mexico City.  Sam, an acculturated Chicano, had journeyed to Mexico to connect with his family in Tamaulipas and bum around, sniffing out what was left of the 2006 rebellion in Oaxaca. When he went home to Winton near Merced, he spoke enough Spanish to delight his grandma. 

Sam is also an anarchist and a budding journalist who has been up to his neck in the struggle for justice for Oscar Grant in Oakland. Now he had come to the Valley to spread the virus of anarchism. Rebellion in the fields could bring California to its knees, he confided. I was only too happy to help out. 

Anarchism has a beachhead in Fresno at the Infoshop where 70 folks turned out to hear me preach revolution. Not all of the fellow workers were young punks. One gentleman in attendance told me he had been an organizer for Cuauhtemoc Cardenas’s foiled presidential campaign in 1988 in Sinaloa and fled Mexico when dozens of his companeros were gunned down by the mal gobierno.  He was still here, still waiting for the revolution. 

Over in Merced, I shouted out my poems in a long dark bar, The Partisan, on Superbowl Sunday.  A “digital remix” of Guy Debord’s “Society of The Spectacle ” preceded my incendiary words.  Maybe Sam Stoker’s pipedream is not as wacky as it sounds.

4.
So it was goodbye to Fresno and hello to Hollywood. I accessed the City of Fallen Angels over the Grapevine with a pit stop at Bob Hope airport and a bar in Santa Monica to watch the Lakers kick booty. My gigs were spread out all over this pedestrian unfriendly megalopolis and the signs of hard times were hard to avoid.  On the beach in Santa Monica, excruciatingly gaunt old men jogged against debilitating cancers and aging hippies scoured the sands with metal detectors for spare change.

Even out in ritzy Claremont, where I hobnobbed with a Palestinian restaurateur about the Nakba, Obama’s America seemed out of synch.  A student at Pomona College where I spieled had just been handcuffed and interrogated by transit security cops in Philadelphia for transporting 200 Arabic-English flashcards across state lines and some cad ripped off my cane down at the train station.  The Inland Empire, which abuts this restricted enclave, has the fifth highest mortgage foreclosure rates in the nation.

In Hollywood, where I spent a night on my favorite sofa, the glitz was tempered by the homeless with all their possessions piled high atop their shopping carts around the new Metro station. How many of them were out-of-work script doctors is not yet known.

Down in South Central, where anger is endemic, I spoke to a handful of Afro-Americans at Eso Won, an admirable black bookstore. The proprietor sported a prototypical pork pie hat and told me that when he sees the Mexicans coming over the border, he sees black people. We talked animatedly for a few hours about Afro-Mexicans who were a third of the population of Mexico at liberation from Spain in 1810 and whose history has been pointedly ignored south of the border.             

L.A. is gearing up for the trial of killer BART cop Johannes Mehserle, Oscar Grant’s assassin, that will be held in the same court house where O.J. won acquittal — if it’s not moved to Ensenada, taking a cue from outgoing Governor Terminator’s plan to build California prisons south of the border.

Students at Cal State L.A., the most Chicano university in Califas, honed in attentively when I expounded on the revolution that is brewing down south.  1810-1910-2010 – every hundred years on the tenth year of the century, Mexico explodes in violent social upheaval and even the Wall Street Journal is worried (see WSJ front pager January 15th.)

Looking at Obamalandia through the eyes of students is a useful handle for understanding what comes next.  Classes and services have been bludgeoned by budget cuts and the profs at Cal State furlough one day a week to make ends meet in this damaged economy that the President lies is booming again because only a half a million workers filed first time unemployment claims last month.  The light at the end of the tunnel is a bullet train pointed straight at the heart of the people.

All of this bad news is healthy for fightback.  The day I hit El Ley, Muslim students at U.C.-Irvine rose up against the Israeli consul ten times in a single speech until the university president sicced the campus cops on them. The next day a whole coast away, kids at Georgetown shouted down General Betrayus. Throw in the cutbacks and the furloughs and the hopelessness and it could be a long, hot spring semester and it won’t be just because of global warming.  I will do my best to fan the flames as I stumble front one campus to the next in the coming months.

On my last days in the late great golden state, I slept in a yoga house under a colorful banner of Ganesh, the elephant guy who gets fat eating others’ obstacles.  Lets hope he’s on my side. A year ago I was sentenced to death and although I’m still kicking, the future is laced with sharpened punji sticks, not the least of which incubates on my liver.

Talking truth to power is still the best medicine to beat back Nuestra Senora Santa Muerte.

John Ross and The Monstruo will be visiting the Narciso Martinez Cultural Center in the heart of the Rio Grande Valley Sat. Feb 20th. The Monster Tour plays El Paso, Las Cruces, and Albuquerque from Feb. 21st-28th.  Consult the Nation Books page for details or write johnross@igc.org

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