DBI reports lawsuit against SRO owner, highlights high‑value permits and budget pressures as residents and staff raise concerns

Department of Building Inspection Director Patrick O'Riordan told the commission on Oct. 18 that DBI joined the city attorney’s office in filing litigation against a property ownership group for failing to properly maintain three single‑room occupancy hotels in Chinatown.

"We will not stand for it and are committed to making sure that tenants' rights are protected in the city," O'Riordan said, describing the suit as the result of years of notices and attempts to bring the properties into compliance.

DBI also reported permitting activity in September 2023 that included permit applications or issuances for multiple high‑value affordable housing projects: a proposed 95‑unit senior affordable building at 967 Mission Street (estimated $61 million), a 146‑unit affordable project at 1633 Valencia Street (permit issued, $53 million valuation), and multiple other rehabilitation or conversion projects. Acting inspection leadership said September inspection volumes were high and response targets were being met in many divisions.

Deputy Director for Administration Alex Koskinen briefed commissioners on DBI finances, noting that charge‑for‑service revenue had recovered to about 23% and that the department is fully staffed with labor as the primary expenditure. He said the city's mayoral budget office asked general fund departments to propose 3% expenditure reductions; the mayor’s office has told DBI that its 3% reduction would amount to $160,000 from CBO grants if enacted.

Public commenters pressed DBI on complaint handling and internal controls. Jerry Drentler cited an October 9, 2023 SF Standard article and DBI reports, saying DBI receives about 11,000 complaints a year, that complaints close on average in 40 days, and that 20% are never closed. He urged monthly reporting stratified by days-to-close.

Chris Schroeder, a long‑time city building inspector, delivered strongly worded allegations about workplace practices, saying three field inspectors had died by suicide within about five years and that some inspectors felt pressured by management. DBI leadership did not dispute the number of deaths but declined to discuss personnel investigations in public; Director O'Riordan later noted that the department's HR team uses the citywide employee assistance program and that counselors have been brought in when needed.

DBI said it will continue tracking compliance, work with partners such as the Chinatown Community Development Corporation and the city attorney’s office on enforcement, and follow up on budget and outreach issues at future meetings.

What’s next: DBI will continue enforcement actions in the Chinatown case, report back on budget and fee‑study implications and coordinate with stakeholder groups about outreach and complaint‑closure reporting.