A large city landlord that is the target of multiple lawsuits for an alleged pattern of intimidating and harassing tenants has partnered with a gay fundraiser in a charity program for the homeless that some call a cynical attempt to redeem the company's reputation.
Benefit magazine editor Tim Gaskin initiated the "protocol," as he called it, with David Raynal, a 30-year managing partner of CitiApartments, to offer – so far – two apartments to homeless families for $1 in rent per year for each unit.
CitiApartments and its parent company Skyline Realty have allegedly employed harrowing tactics to intimidate tenants into surrendering their rent-controlled units, according to two lawsuits filed earlier this year. According to the complaint filed by City Attorney Dennis Herrera in August, tactics included unannounced visits by armed paramilitary-like agents, unauthorized entry into rental units, shutting of utilities without notice and for extended periods, changing locks while depriving tenants of keys, and retaliating against tenants who refused to accept offered buy-outs.
The other lawsuit was filed by several tenants in May.
Raynal, who has previously refuted all allegations detailed in the lawsuits, defended the charity apartment program.
"I can understand their skepticism," said Raynal, assuring, "this program has been in process with Raphael House long before any lawsuits," and that conversations with Gaskin began "many months ago."
Raphael House is a nonprofit that provides housing for families. Two of its clients are beneficiaries of the apartments.
The collaboration creates a protocol for CitiApartments to rent a total of 10 to 12 hard-to-rent units to homeless people, including those with HIV and AIDS, said Gaskin. The AIDS Emergency Fund has been contacted, he said, although nothing has been finalized.
"It may work out or it may not happen through the AIDS Emergency Fund," said AEF Executive Director Mike Smith of negotiations with Gaskin, a former AEF board member.
Benefit magazine was launched in September to "increase the charitable impulse in others." It has many of the same features about food, wine, and travel as other glossies, but "all through point of view of nonprofits," said Gaskin, who also hosts the Comcast channel 11 talk show OutSpoken.
"I know that nonprofits need more help and the help they need is media," said Gaskin, a renter himself who claims he also faced the threat of eviction two years ago.
Discussions about the collaboration started before renter complaints made news, said Gaskin, calling the program's timeliness during the company's legal troubles a coincidence, "completely unrelated to what is happening in the media."
But attorneys representing tenants in the lawsuits tell a different story.
CitiApartments' tactics "make my jaw drop," said Kenneth Greenstein, a 10-year tenants rights attorney representing many CitiAparments tenants. "The stuff they do is so extreme and outrageous and Raynal has to know about it."
Greenstein said that in depositions, his clients state that one of CitiApartments' tactics is to have an employee set up a table in an apartment lobby and copy every tenant's driver's license number. Other allegations include knocking on doors claiming to be Homeland Security, ignoring habitability defects until there are major plumbing leaks, doing serious disruptive construction, or shutting off utilities unnecessarily.
The city's lawsuit, available online, states that a tenant came home in 2005 to find two large men in the lobby, wearing bulletproof vests, armed with guns and billy clubs, demanding to see the tenant's ID prior to being allowed entry beyond the lobby, and followed the tenant up three flights of stairs persisting in their demand. A tenant was offered $1,000 to vacate, declined, and shortly after a CitiApartments employee appeared at the tenant's door armed in full combat fatigues demanding proof of residency. Another pre-paid her rent for three months, went on a trip, and returned to find all her belongings moved to the basement, with her residency documents missing.
"They rule with a fist pounding the hell out of tenants in San Francisco," said Greenstein. "Anybody who believes the propaganda and disinformation coming out of CitiApartments and the Lembi family is just naive, and doesn't understand their business practices."
Frank and Walter Lembi are the owners of Skyline Reality, CitiApartments' parent company.
"They make life so miserable for people, they'll just move. Tenants are really scared of what CitiApartments might do. They run their business like the mafia. I've talked to people too scared to be in the lawsuit," said Greenstein.
Gaskin feels that Raynal should not be implicated in allegations of his employer's wrongdoing.
"The values of these two are beyond reproach," said Gaskin of Raynal and his wife. "His core values are the opposite of what the lawsuits are about. He's a man who wants to give back. He's concerned for the well being of tenants. I know the history. I know the problem tenants make it unsafe for other tenants."
The formerly homeless Raphael House clients, two fathers, each with a child, ages 3 and 8, will continue to dine at the agency in the evenings, a four-minute walk away from the units, which have no cooking facilities. They will continue to receive case and financial management, use of laundry facilities, and after-school activities for their children, said Terri DiMartini, director of Raphael House's children and family services.
The fathers have a goal of saving 60 percent to 80 percent of their earnings, building their rental record, and ideally being able to afford their own place in a maximum of 12 months.
Raphael House holds the lease for the two apartments, while the tenants sublease the units. Every family agrees to refrain from using drugs, but no curfew applies and "for all purposes they are on their own," DiMartini added.
DiMartini said Raphael House has had a "very different" experience with CitiApartments than the one described by tenants and the city in the lawsuits.
Interior designer Sophie Azouaou supplied the units with dinette sets, bunk beds, dressers and nightstands from Ikea and Furniture Mart showrooms. At a Walnut Creek Target store they bought microwaves, mini refrigerators, coffeemakers, TVs, VCRs, mini decorated Christmas trees, towel racks, shower heads, shower curtains, clothes for the kids, cleaning products, plates, silverware, and toiletries.
While the program may help homeless families, some wonder what happens when the year is over.
"A logical question is what if the families don't want to leave?" said Delene Wolf, executive director of the Residential Rent Stabilization and Arbitration Board. "At end of the year people might like to stay."
Raphael House staff said the new tenants are motivated to succeed.
"Obviously, it's something we're going to catch early on," DiMartini said of any sign that the families need more support.
Some gay homeless activists think CitiApartments' effort is being done for the publicity.
"I take a cynical approach," said housing activist Tommi Avicolli Mecca, who called the program a "nice PR gesture."
"When it sounds too good to be true, it often is. It's all well and good they want to be generous but before you get enthusiastic, I have learned from seven years of experience – always read the contract. Find out what your rights are. If you are guests of someone then you have no rights."
Raynal said that the units are rent controlled before, during and, if the program ends, after. "I just wish the best for these families and that they get back on their feet."