Oakland and the new San Francisco dilemma

The city of Oakland is undergoing a dramatic process of economic displacement. One building sold on June, 10th of 2014 became a prime example, of the aggressive landlord practices now plaguing the city of Oakland. On June, 12th 2014 The First Class Lodi LLC successfully completed Escrow and purchased Lake Park Apartments. In the first day of obtaining the 66 unit multifamily building, an extensive process of capital improvements were rapidly set under way. A plethora of large scale ambitious multilayered project were established, which lead to a chaotic noisy environment, inundated with construction materials negligently left unattended. The entire building was power washed in preparation for a full scale paint job of the building, which included the courtyards. The corporate office along with the lobby and property management office were renovated. New energy sustainable windows alongside new sliding doors were installed in the common areas and every tenant’s apartment unit. The exterior rock of the building was removed and a completely new landscape was added in its place. The majority of this work was done before the August, 1st 2014 deadline. Under the new Oakland Rent Adjust program’s rules, there would have been less monetary obligations that could have been passed on to tenants.

During the renovation process there were many safety issues, and hazards that were irresponsibly imposed on tenants. Few measures were taken to ensure that tenant’s rights and concerns were being resolved. A high degree of federal regulations, state statutes and municipal codes were breeched, in the rapid completion of a flurry of projects. A large number of tenants at Lake Park Apartments have political organizing, and project coordinating skills; allowing them to rapidly establish themselves as a tenants organization. These tenants quickly began tackling the arduous task of battling loss of Housing services, as well as covert attempts by the new owners to pass on self interest projects as capital improvements. These projects were excessive in nature, and a deceitful attempt to pass through deferred maintenance as capital improvements. This conduct will drastically increase the owner’s overall monthly and annual profit margins. The property management group known as The Apartment Group Inc is a large real-estate company that buys Class C and B buildings and converts them into high yield profit marginal class A buildings. In many cases they act on behalf of the owners, as the property management agency which oversees the buildings management and maintenance.

After the transfer of building ownership, there grew ambiguous sentiment emitted from management to tenants. Some tenants have received a great deal of respect, while others have expressed grievances of feeling marginalized, in their interactions with management. The ongoing perception of tenants pertaining to management has been one of rigidity, which does not factor in the tenants basic interest. Lack luster efforts have been implemented in resolving continuous dissatisfaction; tenants have of the buildings overall management. The greatest pet peeve has been the lack of communication and over all opaqueness between management and tenants. The absence of details in management’s explanation of projects, and services add more fuel to the fire. The most disturbing matter has been the little effort by management to constructively engage with tenants, which reinforces the assumption that management desires to push out the current tenants

In response to the egregious, deplorable acts by management, and the owners of the apartment building at question. The tenants quickly formed a tenant association. The tenants diligently began working on tactics and strategies to protect their homes, and to insure their rights were not being undermined. On August 1st of 2014 The Madison Street Tenants Association took proactive measures by establishing a day of action, which included a march from the 1565 rental complex to the Oakland Rent Adjustment Program Office. At the ORAP office a group of tenants with petitions filled out, had each reviewed by ORAP board alliances. The tenants have also aligned themselves with many tenant advocacy groups such as: Just Cause, and The Oakland Tenants Union, along with many others. Now tenants are in the process of outreaching to the community on these issues, to bring awareness to corrupt practices. One of the major goals is to prevent these practices from blind sighting other tenants in the city of Oakland.

The day of action was coordinated to occur on the day, the new Rent Adjustment law in the city of Oakland was in effect. Under the old law debt service, and 100 percent transference of capital improvement cost could be passed on to tenants by landlords. Under the new law tenants would only be obligated to pay 70 percent of the capital improvement cost, rather than 100 percent. Under the new law a 10 percent cap is placed on annual increases, along with an accumulated threshold limit of 30 percent over a 5 year period. Unlike other cities Oakland does not have rent control, which means if a tenant does not have a rent board in place to oversee and protect their rental interest, when the rent increase exceeds the annual CPI. The Oakland Rent Adjustment Program was written by Landlords, whose intention it was from the initiation of filing a petition, to have the burden of proof stacked against tenants.

Opaqueness has been the main operative, when it comes to interaction between the management and tenants of Lake Park Apartments. The titles of staff members within TAG Inc and the FCL LLC have changed a number of times. Many tenants are not certain of the basic chain of command that frames these two companies. Even though many tenants have done extensive research into the structure of both companies, there has been a consistent denial of the actual titles of members in question. The absence of transparency has fomented an atmosphere of distrust and hostility inhibiting the possibility of a harmonious relationship.

In response to the morally obscene attempts to displace tenants at Lake Park Apartments, September, 24th 2014 over half of the tenants of Lake Park apartments, who qualified submitted their petitions on another day of action. 30 petitions were filed, and now tenants are preparing for their hearing date of January 15th 2015. In front of 250 Frank Ogawa Plaza, concerned citizens, tenants of the affected building and tenant advocacy groups rallied in support for fair and just rental practices in the city of Oakland. This will be an arduous battle that will challenge the conduct, and practices of Land lords in the city of Oakland. Many tenants do not want to see Oakland undergo the sharp housing increases that San Francisco underwent. There is a movement to maintain the cultural and racial diversity, which adds richness to the city of Oakland. At the end of the day many of the Tenants of Lake Park Apartments have nothing to lose, but their dignity and respect.