City Attorney Dennis Herrera has filed a lawsuit to prevent the owner of a 164-unit residential building at 639 Geary St. from increasing rents beyond the means of 33 low-income residents.
In 1988, The City issued $18 million in tax-exempt bonds to help fund the development in exchange for 20 percent of the units being rented to low-income tenants at affordable rates.
But Geary Courtyard Associates, which owns the building, argues that the agreement expired in April. It has notified 33 residents that their rents will increase “beyond the means of the low-income tenants,” according to court filings.
On Thursday, the City Attorney is planning to ask a San Francisco Superior Court judge to rescind the rent increases as the legal proceedings continue. A deadline today for tenants to agree to rent hikes or move out was postponed.