San Francisco's Below Market Rate Homes Illegally Up For Rent

About 10 percent of the below market rate units in San Francisco are under investigation for misuse. Susie Steimle reports. (10/31/17)

[@D.VA_00]

“ yeah I live a there” while in front of the BMW lol

[@michaelplunkett8059]

Check her tags. Bet it is to the house, not her illegal sublet.

[@mk202]

Well...if BMR’s are only supposed to be a ‘stepping stone’ how is it that they aren’t subject to review and verification? How is it that a tenant could become a millionaire and continue to retain a low income unit when the units are designed for transitioning occupants?

[@questioningeverything4200]

mk toohtwo because the people who run the system make sure they can abuse it while we can barely even use it let alone know about it

[@ThatGirlJD]

Why should the government cause you to move if own and live in an affordable property if you obtained it legally? If your deed restrictions and home owners association state you must live in your home at the time of purchase and you choose to move and rent it out then yes you should be prosecuted. If this is your first property but you choose to purchase other properties and continue to live in this one and rent those out then that should be your business. If your HOA and deed don't say no Airbnb like rental agreements while you ocuppy the property or go on vacation or have to travel for work then they need to leave them alone if this is their primary residence. The next person is just going to get around all these rules by purchasing property in someone else's name, like a child and still make the same money. People should not be punished for finding a way to be successful and forced to buy a more expensive home.

[@joannlewis3559]

@@ThatGirlJD yeah, they should. And the reason they don't get punished is because people like you make excuses.

[@grandmalovesmebest]

mk toohtwo Bc ppl who know scams use them and ppl of power wont even look at a poor person much less care who is destroying their lives. Unless, of course,,it is a juicy news story and somebody wants a byline for their resume.

[@ThatGirlJD]

@@joannlewis3559 No it's not an excuse, unless someone is legally contracted to do something when they purchase the home the government can't do much unless they pass a law regarding those properties through a vote. Even then grandfather clauses exist. Future sales need to have it in writing that they can't sublet and once they reach a certain income level they need to sell the property.

[@jaymeez]

Get these Greedy people out!!! This is gentrification with the help of the city, Get Em Out!!!

[@jntj3007]

jaymeez - Exactly! The local government acts as if they intend to root out, and prosecute these folks, when in reality, they're continually making it possible for them to conduct this particular type of corrupt business.

[@jfree1998]

It's not gentrification. It's just opportunists taking advantage.

[@ELLPD316]

Yep, I agree.

[@bronsplan2683]

This shit beyond gentrified now

[@ariannareardon6055]

i live in a billion dollar house

[@lothean2099]

This is why California is in the state it's in.

[@largol33t1]

Not totally, half the problem is they keep reelecting the same dumbasses year after year, decade after decade. They wouldn't care that the state is on fire, whoops, it IS on fire right now...

[@gloriadevos1790]

You said it! I was born in Sacramento in the 60's and I saw the gradual liberal takeover and now the final down the toilet bowl now. They quit their fire management programs and infrastructure repairs and expansions to fund bullshit programs like this one! Nothing but greed drives these people.

[@V.E.R.O.]

@@largol33t1 We have a top two primary so we're stuck with the same jerks every election and in some offices only one person is running with no challengers. The only way to get rid of the dinosaurs is to set term limits for each office. I mean Feinstein is 87 and has been in office since 1992! No disrespect to the elderly but you can't tell me an 87 year old still has all their mental faculties intact!

[@toddlavigne6441]

Corrupt to the bone, money that gets pissed away, these people need to pay a massive fine and do some time. The justification is the amount of people abusing the system is small. But factor that out into the whole State with every way possible and it amounts to billions per year. Construction fraud, road works fraud, welfare, and it goes on and on.

[@bilalahmed2123]

This makes it worse for the people who actually need low income housing, for them to own property.

[@myahmyah]

She claim the amount of abuse is so small. That small she talks about affects that "so small" group who are homeless. This is ridiculous...

[@lequanmooney5237]

You know the homeless have no business in homes like that ,wake up,they would trash it up

[@Zero11_ss]

She probably gave units to her friends and family thats why.

[@scottyee707]

All talk no action

[@ryanbarker5217]

if they spent half as much time doing their jobs as they did making excuses the problem wouldn't exist....

[@stevenkaminsky6319]

As she gets in her new BMW.

[@randomoverpopulatedworldid3286]

Im appalled but not surprised.

[@randomoverpopulatedworldid3286]

Dude yeah totally blonde English speaking illegals. So stupid...

[@elena-lc4uk]

I dont get it you are suppossed to be poor and afford 2.5 million house ???

[@mscstarz7151]

2.5 million in The bay area is poor

[@grandmalovesmebest]

elena 240 You start off poor, then make use of the system, then you get rich, and then you get richer by exploiting the other poor ppl. Isnt that the American way? Capitalism at its finest. 😡

[@MsTubbytube]

These are not for poor people they are "Below Market Rate", and since Market rate is skyrocketing that means "Below Market Rate" is for fairly affluent but not rich people.

[@chopperman8042]

@@grandmalovesmebest you can label it capitalism, but the truth is its corruption and it's all in California baby.

[@V.E.R.O.]

@Never lose sleep over the small stuff Google is your friend.

[@JVONROCK]

Don’t pay rent, see what happens. “You’re not renting this, how can I owe you rent ?

[@truejayoh]

If im a renter of a bmr i wouldnt pay rent or threaten to blackmail to get a very low rent forever. Lol.

[@tuvelat7302]

Heh. Not a bad idea. It's really hard to evict someone in California.

[@mortsdans]

Oh my God someone took advantage of a government handout? Who could have predicted this??

[@einnAnnie]

Stephon TheDon How did those places become "affordable"? Did the prior owners of those houses suddenly feel charitable? Did the mayor put a gun to their heads and threaten them? Did God come down from heaven and pit an un-changeable price tag on them? It's a government run program which means it's subsidized. Not like Section 8, but in the form of grants and rebates.

[@robertb7230]

@Tradin War Stories Its a government handout. The government forced the owners of those properties to rent at below market rates. The government took their money, and gave it to someone else. That someone else, in his case, exploited the government's actions to profit.

[@Mr_pai_pai]

But this time it was rich people

[@animangafan342]

Takes out ebt card with the same hand that sports the apple watch😂 Idk bruh The system ftw😂

[@animangafan342]

@Arthur Vega it is if ur not working lol Also because u probably don't even pay the difference, the city covers in costs, in ur taxes. Especially if ur living in one of these. That's why it's important that the people who live and pay their own full rent, pay taxes on top of their un-discounted living expenses.

[@tednguyen208]

Simple. Put a sign on the build telling renters it’s BMR and renting is illegal. What renters would rent and pay $3100 knowing they have no protection.

[@mikhailzapata1993]

Update this story please!! I bet nothing has happened since. That housing lady should lose her job.

[@Chinunit22]

Since when its allowed to rent Goverment Subsidized Housing?

[@grandmalovesmebest]

Дядя Федя who is watching?who is going to tell? The places are just holes for crime. So if the crims dont take from you the staff will. I wonder where we are going to put all the illegals when they come through the wall. Oh,wait,we dont have a wall.

[@ryanbarker5217]

since it states that you have to live there. did you not pay attention to the video?

[@janetbrandes929]

They're investigating? Well, the reporters just did it for you! Get on it! The government can't even control this problem, and they want us to trust them with healthcare? Sheesh!

[@toddlavigne6441]

@@grandmalovesmebest actually that one condo was actually pretty nice

[@Gibbo1]

It's done all the time in England, if you can't be bothered to earn it then sponge off the state

[@stevelozano9523]

Sometimes it takes a while for it to become a lawsuit. It seems more like someone in the department was lazy to do some sort of follow up check with these owners.

[@AbbyInWonderland14]

just remember - you can't take it with you!

[@bigpoppa4094]

what.... you cant take anything with you. You can pass it on to someone else.

[@bass13mary]

Call your attorney, man body. Who wants to live in a feces covered town? It was nice in the 70s.

[@C33dis]

The smart move would be to occupy the bmr, and rent out the other property.

[@Crismodin]

"We're watching but we really don't want to get involved over something that won't line our pockets enough."

[@californiadoll6273]

Embarrassing when people say " I'm going to call my lawyer " like shut up and stop embarrassing yourself with blatant lies. Even if you have a lawyer, so? They aren't there with you!

[@Misfit636]

Jeez those million dollar homes, are small an crappy. Here you can get a new bigger home for a quarter of that

[@toddlavigne6441]

move to texas

[@felipenunez2058]

Where is here. California has an average home cost of 800k. So anywhere except New York city.

[@clouddragonz]

Thank you for reporting these. This shows one of the the best of journalism. Sad how tax payer moneys were used.

[@s1rosegoldragonmlrose580]

Why are people alound to do BS. like this, but not one of them are going to prison

[@ninobrown876]

How much is the BMR director getting in kickbacks?

[@LynRuiz]

How are they getting approved for the BMR as 1st Time Home Buyers but they all have million+ dollar homes ?

[@bigpoppa4094]

you can make as much money as you want after getting the house. maybe no way for the city to attain a list of all assets from banks or wherever

[@IncredibleDrone]

"Sometimes it take awhile to get to a lawsuit." It should always take awhile to get to a lawsuit. I think the woman help regulate all of it, is in on it she been paid off.

[@theeyeinthesky3854]

Millionaires low income? So I must be a millionaire then. since I'm a low income.get it?

[@saynotop2w]

You'd be surprised how many bmws, benz, and porches are in parking lot of these lottery-won low income housings. System abusers are parasites that hurt the goodwill.

[@grandmalovesmebest]

Manhwa Fan And a lot of those cars are stolen!

[@susiehiggins1202]

The Grove in CA. same thing apts and condos rented out to certain people in the high income bracket making well over 120,00 a year paying low income rent guess who they are

[@Zero11_ss]

The system shouldnt exist, its increasing one small groups networth while the rest all pay for it.

[@scottdilinger5920]

These people should be put in jail for 10 years

[@brian81877]

This program shouldn't even exist in the first place. Why should tax payers subsidize these people's properties.

[@johnkenny4017]

Those homes were never meant for poor people they were meant for friends with politicians

[@dancingbears539]

Omg she lives on my street 😳😳😳 yea I can’t wait to leave sf this year! It’s insane

[@californiadoll6273]

It's now been 2 year's since comment. Did you leave? Jw

[@megokura824]

EVERYONE I know who has one of those apartments is doing exactly this in NY. They all have a second house, living a life. It is so profitable. Even the ones who live in one most of the year, they still get "paid" more to take vacations.

[@friscokid9665]

The program is not fair to san Francisco residents who are low income especially for veterans who live in the city. I was placed on the list at the rank of 682

[@digabledoug]

Unconscionable.

[@kenji4861]

So what's the penalty here? They are just going to lose the BMR unit? Doesn't seem that bad of a risk for them.

[@flipmode00]

That girl do sound Spanish? Wait $3100 thats insane and the court are going to protect them

[@SongSydney]

This was over 2 years ago. Nothing much seems to have been done, the internet news search on the lawsuits have no results or outcome.

[@galenwong7905]

Does anyone else not believe Maria saying that the numbers are small, or they are trying to do something?

[@johntran1352]

The fraud number is so low. Low is not a number. It's a relative comparison.

[@s1rosegoldragonmlrose580]

I don't trust the mayor's office

[@julie.1081]

All they need to do is hire a couple people to do checks at different times then send ONE registered letter saying they need to prove they live in the unit. THAT DAY! Or else the unit goes back to the city.

[@mikalascotland3085]

How crazy when she says it's such a small percentage of ppl cheating.

[@tepanganiban]

Get em CBS!

[@Churros1616]

With every program you have people who abuse it, doesn’t mean you should end the whole program. There are bad apples everywhere, track them down and kick them out.

[@eddiet4708]

For some (greedy lowlifes), too much is never enough.

[@mrvapor4791]

They would rather take something from you to deprive you of its benefit

[@sauersig3919]

Ed Lee and the city of SF know it the whole time. Stop pretending like you know nothing about. This crap happens every where, every day in California.

[@rickycardenas5154]

Low income housing should never be allowed to be owned. They should be city property until the people are able to afford better housing

[@bluetickfreddy101]

Here in libtardville where zero accountability reigns superior Corruption at soooooo many levels

[@tonitesmokinup]

Lawsuit? It’s criminal fraud. Should they be going to prison?

[@lemazingkingdom4318]

A $500,000 home for middle income people? Honey, if you can afford the mortgage on a 500k home, you're not middle income.

[@bikboi7598]

If you dont own it....and can't afford to play rent.... then get out. That's the real world. You dont have to live in SF. If u wanna struggle ,,that's on u.

[@pamelahomeyer748]

This is so sad. There are plenty of people who need the help through no fault of their own. Basically these people are getting away with stealing from the state

[@jeanthree]

The owners should be able do what they want it their property Its unconstitutional

[@Da808Legend]

happen all over Hawaii, thats why a lot of my family and friends moved away😡. so sad for locals in my aina😞

[@shannonrush1299]

I’m shocked people are scamming the system

[@truejayoh]

Oh man... we should sign a lease on a bmr unit and not pay any rent. That would teach them a lesson.

[@johnwonder8720]

Decades ? Sometimes it takes awhile? Wow. I am sure that Lady in Red thinks she is doing a great job too.

[@ryuj1n.sr208]

I seen some of my parents neighborhood in this clip...a damn shame that i couldnt afford to stay closer to them but at least i know there's a lot more reason than just my effort

[@CuriousJenJen]

It is sad what has happened to the housing market. In the lack of action from the people that are supposed to protect the public.

[@dogan6070]

No thanks. 1million for garbage condos.

[@mortsdans]

Seriously though why is there below market rate housing anyways what a stupid idea. Deregulate and people are gonna build some tall ass apartment buildings real quick

[@PatriciaHenry]

This is terrible. These greedy people will be living dirt soon.

[@pamelahomeyer748]

Bulshit get them out even if they know somebody or contribute to their campaign. I don't care who they're related to. It's time for them to give someone else a chance to move up

[@n8mayfield]

If we only had more government we’d all be happy and safe

[@LiverAndOnions69]

Wtf is going on in San Francisco? What happened to that place ?

[@lostintheprobabilityfield1070]

Corruption in a leftist enclave?? Naaaahh, say it ain't so.... HAHAHAHAHAHA!!!!

[@d.lawrence5670]

"leftist", "right-ist", none of that shit matters. You're either human garbage or you're not. Which one is your "president"?

[@artvandalay13]

And do you really think these were liberals taking advantage of this? Do you really think that those owners are left-leaning? LOL give me a break.

[@ChronLogic]

If you can't marry a rich man and take his home, then find another way I guess. Very aspiring women.

[@MartinAston00]

Disgusting.... SF is just getting more despicable and more disgusting in every possible way and form.

[@SFV_Aurora]

I bet you this is still going on… smh

[@allissanguyen7116]

Many many more, need to be investigate 🤷🏻‍♀️🤷🏻‍♀️🤷🏻‍♀️🤷🏻‍♀️🤷🏻‍♀️🤷🏻‍♀️

[@Ops535]

Investigate those who process paper work .

[@jasonmarks1893]

Lock them up 20 years jail , fraudulent

[@kwcbomb]

Dammit America sent San Francisco all of its garbage.

[@grandmalovesmebest]

kwcbomb Nah,it is pretty well spread all over the country.

[@squirtmph]

Build a wall against greedy ppl!

[@angelomadrid2567]

It's hard to believe that the city of SF haven't got more than these people sooner, after all SF city official are much smarter than that

[@lequanmooney5237]

At least they are keeping the places quite clean

[@interamerica6027]

Reporter: "So this is not your house" Caroline Novak: "Mmm... huh...I am just staying here (stumbles)... for a couple of days" Hahaha, couldn't sound more guilty if she tried

[@kelliehu8749]

When they sell the properties do they have to sell them at below market rate back to the council or can they sell them on at market rate?

[@jazztocountry1047]

In the early ones they could sell at market rates. In later ones there is a limit on the markup allowed

[@panddoracrazycheck2685]

That’s good they don’t really give the help to the right people who need the help

[@tublisvaj8966]

Exactly how did they get it in the first place

[@user-et6se3hl1v]

Check some politicians they own all kinds of property.

[@carolbuser3956]

you couldn't pay me enough to live in California, much less San Francisco

[@marialaurel6440]

Wow! and most are foreigners. Yeah, city workers never catch or do anything. So what's new??

[@businesschannel8168]

The problem isn't with these people its the local government and policies. $500,000.000 for below market rate units 🤦‍♂️? All the major companies have already left or in the process of leaving. This country is going to implode soon nothing makes sense anymore.

[@estellepatella2520]

I got priced out of SF in 2013. I would give anything to be able to move back home. But I know it will never happen.

[@warmachine6988]

Yes

[@darknagaadventures7884]

"The number is so small" means you know they are cheating but not interested in preventing it.

[@TRIPLEDIGITS]

Then do something about it, if you know about it

[@V.E.R.O.]

1:47 Caroline looks like a stockier Michael Jackson! 😂

[@heidihernandez5895]

Haha!!🤦‍♀️

[@queenbeethatme1009]

All of them are commiting a crime.

[@rockerchick4368]

Thousands of men do this. You got 3 ladies. 3 men told me to do this. I said NO.

[@21momil]

No regulation...😢

[@garygolfer3243]

Maria Benjamin is a large part of the problem. Monitoring of program participants, investigation of violations and filing subsequent lawsuits are all hard work and she is only willing to put in effort when her job/lifestyle is threatened. I know two people who were subletting their BMR's for years and never heard a peep from any city official. One of them bought a very nice boat with his extra cash. Now, did anyone notice she immediately downplayed the glaring theft right in front of her eyes by saying how few are abusing the program? Fast forward to 2020 and the problem she largely ignored is now rampant. Welcome to San Francisco!

[@shawnmariucci9954]

So small but we still cant find them

[@carlosquintana6930]

The Citie is not gonna do nothing about it because like I say money talks bullsh!!!walks

[@kabysummit5801]

Shame on SF officials

[@peskylogicchillinsky6007Futube]

that ladies face does not look trusting lol

[@houseoffolly]

Frisco and other cities take care of their cronies and families.