Supervisors press housing authority and Eugene Berger on safety, vacant units and alleged illegal rentals

San Francisco supervisors on May 20 pressed the San Francisco Housing Authority and contractor Eugene Berger Management Corporation about persistent safety and management problems at Sunnydale and Potrero Hill public-housing sites, including allegations that staff illegally rented vacant units.

Supervisor Shimon Walton opened the hearing by citing a 2023 compliance report and resident complaints, saying "there has not been strong enough measures to address the problems of property management and service delivery at the sites." He asked SFHA and MOHCD what steps they've taken since the prior hearing and what remains to be done.

SFHA representatives described daily monitoring, boarding practices and coordination with SFPD and outreach services to address unauthorized occupants. The authority said Sunnydale currently has about 133 units slated for demolition and Potrero Hill about 231 units, and that staffing pressures have reduced dedicated housing officers on-site from 16 to 2; SFHA said it is conducting surprise audits and rotating inspection teams.

Teresa Pegler, representing Eugene Berger Management Corporation, said EBMC has adopted a vacant-unit monitoring plan with rotating staff, daily visual checks, written tracking of legal actions and weekly statistics provided to SFHA and HUD. On allegations that EBMC staff illegally leased vacant units, Pegler said, "At this point, I'm not allowed to, because it's an ongoing investigation," and added that the company is cooperating with the housing authority and the city attorney.

Multiple residents testified to problems including slow or incomplete work orders, trash and rodent problems, intimidation by property managers and fear of retaliation. Kiwa Smith, an 11:01 Connecticut resident, said a property manager sent an email indicating she might "lose my housing," and called some staff "rude" and intimidating. Community providers described unsafe living conditions and illegal dumping that they said threaten resident safety.

Developers and service providers at the hearing'including representatives of Bridge/Bridal and Mercy Housing'described relocation planning, community services and progress on demolitions and new construction. Mercy said it has about 40 staff focused on resident services and property management across the affected sites and is building a community center expected to open this fall.

Supervisor Walton directed SFHA and MOHCD to provide written follow-up and recommended quarterly reports tracking maintenance requests, vacant-unit monitoring, evictions, relocation outcomes and contract compliance. The committee voted to continue the matter to the call of the chair to allow departments time to produce requested data and updates.

No formal findings were announced; multiple supervisors said they will review the forthcoming reports and consider contract actions based on investigation findings.