The San Francisco City Attorney’s office has launched an investigation into allegations that a property management employee was illegally collecting rent from squatters at Potrero Hill public housing apartments, which are slated for demolition. The focus is on claims that Lance Whittenberg, a former employee of Eugene Burger Management Corporation (EBMC), was taking rent payments from squatters and pocketing the money.
Allegations of Illegal Rent Collection
Squatters’ Claims and Eviction Battles
Dozens of families residing at Potrero Annex faced eviction, asserting they had been paying rent to a landlord who was not authorized to collect it. These families believed they were legal tenants and were fighting eviction in court, claiming their tenancies were legitimate due to their payment of rent. The city attorney’s office conducted a thorough investigation, interviewing eight off-lease residents, more than 50 witnesses, and other relevant individuals. Despite extensive inquiries, none of the alleged rent-payers could provide concrete evidence to substantiate their claims. Some even accused Whittenberg of collecting rent during periods when he was no longer employed by the management company, further discrediting their assertions.
Investigation Findings
The investigation revealed an even darker side to the situation: three residents reported being extorted under threats of violence by unknown men. These men, whose identities remain unclear, forced the squatters to pay rent, escalating the already complicated situation at Potrero Annex. The motivations and identities of these men are yet unknown, raising concerns about the community’s safety. In response to the investigation’s results and the alarming reports of extortion, SFHA CEO Tonia Lediju expressed relief over the findings but also highlighted the troubling nature of the extortion claims. Lediju emphasized the importance of keeping the uninhabitable, slated-for-demolition units vacant to ensure the safety of both lease-holding residents and unauthorized non-leaseholders.
Impact on Eugene Burger Management Corporation
Media Coverage and Public Perception
Stephen Burger, president of the Eugene Burger Management Corporation, voiced his concerns regarding the impact of the media coverage on the situation. He argued that the publicity surrounding the allegations incited additional squatters to falsely claim that they had been paying Whittenberg in a bid to avoid eviction. This increased the complexity of the case and detracted from the company’s and the Housing Authority’s reputation. The company, which has managed affordable housing properties for over half a century, expressed that the negative media exposure had undermined its credibility, despite its longstanding history of reputable service in the housing sector. The allegations have not only put Eugene Burger Management under scrutiny but have also attracted negative attention to the San Francisco Housing Authority.
Legal and Community Reactions
Attorneys representing the families who insisted on having paid Whittenberg refuted the city attorney’s findings, questioning the thoroughness of the investigation, as not all their clients had allegedly been interviewed. Jessica Santillo, an eviction defense collaborative attorney, expressed uncertainty over who had been contacted in the investigation. On a broader scale, the article situates the Potrero Annex within the context of the “Hope SF” rebuild project, a significant urban redevelopment initiative aimed at replacing the existing WWII-era public housing complex with more modern and ample housing options. The plan intends to replace 1,900 public housing units with 5,300 units, including both affordable and market-rate apartments.
Broader Implications and Future Actions
Challenges of Redevelopment
The situation at Potrero Annex underscores the challenges inherent in such a significant redevelopment effort, particularly conflicts over residency and the rights of squatters versus leaseholders. The investigation concluded there was no substantiated evidence of illicit rent collection by Whittenberg or any other Eugene Burger employee, although the claims of extortion under threat of violence add a layer of complexity and concern to the situation. Community leaders and housing advocates can ill-afford safety disputes or fraudulent activity as they try to navigate the complications that arise during the redevelopment processes.
Community Safety and Corporate Reputation
The San Francisco City Attorney’s office has initiated an investigation into claims that a property management employee engaged in illegal activities by collecting rent from squatters in Potrero Hill public housing. These housing units are scheduled to be demolished soon. Allegations are directed at Lance Whittenberg, who is a former employee of the Eugene Burger Management Corporation (EBMC). It is claimed that Whittenberg was accepting rent payments from these squatters and was keeping the money for himself, bypassing any legal channels. The City Attorney’s office is now focused on uncovering the truth behind these serious allegations and determining the extent of the misconduct. The investigation aims to ensure justice and proper legal action against any wrongdoing. The outcome of the probe could have significant implications for both EBMC and Whittenberg. As the investigation progresses, the city is striving to maintain transparency and hold accountable those responsible for any unlawful actions. Meanwhile, community members are calling for increased oversight to prevent such incidents in the future.
