City Attorney secures million dollar victories in code enforcement lawsuits

Judgments bring accountability to landlords who profited off unsafe units

City Attorney David Chiu announced today that his office secured three separate court victories, collectively worth over $2.5 million, against landlords who created serious health and safety issues for the tenants living at their properties.

City Attorney David Chiu speaks at a press conference in October 2023.

In San Francisco v. 320 Alemany LLC, the City entered into a stipulated judgment, approved by the San Francisco Superior Court, with the landlord of four residential buildings in Bernal Heights. The Court found that 320 Alemany LLC and its sole manager, Jack Tseng, created a public nuisance and violated multiple State and City laws by illegally converting units creating significant fire safety issues. Under the stipulated judgment, the landlord will pay the City $1.2 million in penalties. The parties also earlier entered into a stipulated injunction requiring the landlord to cure code violations, obtain necessary permits, and create a plan to legalize the dwelling units.

In San Francisco v. Jamali, a San Francisco Superior Court Judge determined that two Ingleside Heights landlords must pay the City over $1 million in penalties following the City’s December 2023 trial victory against Defendants Naim and Sana Jamali. The Jamalis own a 22-unit building at 333 Randolph Street, where they created a public nuisance and violated multiple State and City laws by allowing commercial and storage units to be used as residential spaces. In addition to the penalties, the Court issued an injunction requiring the Jamalis to cure all outstanding code violations and create a plan to legalize the dwelling units while protecting the many immigrant tenants residing at the property.

In San Francisco v. Marathon Hotel & Apartments, LLC, the City reached a settlement agreement with the owner of the Marathon Hotel after the City alleged the owner created a public nuisance and violated multiple State and City laws by neglecting the property and endangering the health and safety of the tenants. Under the settlement agreement, the owner will pay the City $550,000 in penalties and attorneys’ fees. The Court also issued a stipulated injunction requiring Marathon Hotel & Apartments, LLC and its owner, Nasir Patel, to cure all outstanding code violations.

“The unsafe conditions created by these landlords were tragedies waiting to happen,” said City Attorney Chiu. “All of these landlords profited from illegal conversions with disregard for the safety of their tenants. I am grateful our Code Enforcement Team is holding these property owners accountable and working tirelessly to make our communities safer.”

“Unscrupulous building owners and landlords should beware that San Francisco will not tolerate knowing violation of our laws and putting tenants at serious life safety risk solely to turn a bigger profit,” said Supervisor Hillary Ronen, whose constituents include the tenants living at 320 Alemany. “Thank you to our City Attorney’s Code Enforcement Team for all of your hard work seeking justice on behalf of our City and our tenants.”

320 Alemany
The property at 316-328 Alemany Boulevard consists of four neighboring, residential, multi-unit buildings. The owner illegally converted 13 authorized residential units into 32 illegal residential units, resulting in a plethora of building code violations and safety hazards at the property. The City issued 26 Notices of Violation (NOVs) of building, electrical, fire, health, housing, planning, and plumbing codes.

Several of the units contained bedrooms with no emergency exits, raising concerns that first responders could not rescue tenants in the event of a fire. The fire hazards were so severe that the Department of Building Inspection issued emergency orders requiring two of the units to be vacated immediately. Additional violations included inaccessible emergency exits, a fire escape that did not reach bedroom windows, extensive unpermitted work, and pest infestations.

The Court found Defendants created a public nuisance by violating State Housing Law, California’s Unfair Competition Law, San Francisco Building Code, San Francisco Electrical Code, San Francisco Fire Code, San Francisco Housing Code, and San Francisco Planning Code. Since the City filed its lawsuit in June 2023, the owner abated a majority of the violations and must now acquire appropriate permits through the San Francisco Planning Department. The stipulated injunction will be in place for five years.

City Attorney’s Office employees Morris Allen, Jennifer Choi, Wade Chow, Yvonne Meré, Megan Ryan, Gloria Torres and Carol Stuart worked on this litigation to hold Defendants accountable for the unsafe conditions created.

The case is City and County of San Francisco and the People of the State of California v. 320 Alemany LLC and Jack Tseng, San Francisco Superior Court, Case No. CGC-23-606810. The order can be found here.

333 Randolph
The property at 333 Randolph Street consists of four residential units and 18 commercial and basement storage units. Despite this, the owners allowed at least 13 of the commercial spaces and windowless basement rooms to be used as residences. Leases in the City’s possession reveal the Jamalis charged tenants thousands of dollars per month.

A city inspection revealed that the electrical system was inadequate for the tenants’ needs, which caused the tenants to rely on extension cords, creating fire risks. Additional code violations include the lack of adequate fire escape routes, absence of smoke and carbon monoxide detectors, structural hazards, unpermitted kitchens and bathrooms, and improper waste and vent piping.

In addition to the lawsuit filed by the City, several of the landlords’ tenants sued them over habitability issues in the past. Several tenants alleged that the owners targeted immigrants with limited English proficiency and entered into commercial leases knowing that the tenants would be living in commercial units.

In December 2023, after a two-week bench trial, the Court found Defendants created a public nuisance by violating State Housing Law, California’s Unfair Competition Law, San Francisco Building Code, San Francisco Electrical Code, San Francisco Fire Code, San Francisco Housing Code, and San Francisco Planning Code. The Court’s injunction will be in place for five years.

City Attorney’s Office employees Morris Allen, Jennifer Choi, Wade Chow, Yvonne Meré, Borys Procak, Megan Ryan, and Gloria Torres worked on this litigation to hold Defendants accountable for the unsafe conditions at 333 Randolph.

The case is City and County of San Francisco and the People of the State of California v. Naim Jamali, et al., San Francisco Superior Court, No. CGC-22-599795. The Court’s orders can be found here.

710 Ellis Street
The Marathon Hotel located at 710 Ellis Street is a single room occupancy (SRO) hotel in the Tenderloin. Dating back to 2019, multiple City departments have issued NOVs for health, safety, and building infractions at the Marathon Hotel. The owners neglected the property creating hazardous conditions for vulnerable residents and refused to abate the violations and improve conditions for tenants.

The violations include excessive garbage, pest and rodent infestations, inoperative bathrooms, insufficient heat, broken and dangerous stairs, damaged doors, missing hardware, broken windows and frames, lack of smoke and carbon monoxide detectors, poor security infrastructure, malfunctioning appliances, water damage, and unpermitted electrical and plumbing work.

The Court found the owners violated state housing law, multiple municipal codes, and California’s Unfair Competition Law.

City Attorney’s Office employees Morris Allen, Jennifer Choi, Wade Chow, Yvonne Meré, Will Reader, Hunter Sims, Gloria Torres, and Michael Weiss worked on this litigation to hold Defendants accountable for the unsafe conditions at 710 Ellis Street.

The case is City and County of San Francisco v. Marathon Hotel & Apartments, LLC, et al., San Francisco Superior Court, Case No. CGC-22-599679. The order can be found here.

The San Francisco City Attorney’s Office Code Enforcement Team
The San Francisco City Attorney’s Office Code Enforcement Team pursues legal action on behalf of the City to ensure safety and improve conditions in areas where San Francisco’s Fire, Building, Housing and Planning Codes, or California Health and Safety Codes have been violated. The Team also handles the majority of the Office’s gun violence restraining order (GVRO) cases, which seek to remove firearms from individuals who pose a danger to themselves or others.

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