San Francisco Officials Call for Federal Investigation and Hearing of Housing Nonprofit

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Elected officials in San Francisco are calling for an investigation into the Tenant and Owner Development Corporation (TODCO) following reports from The Standard that found a significant increase in the nonprofit’s political spending as tenants complained about substandard living conditions.

Chief Katherine Stefani said Tuesday she wants an interagency hearing and review of TODCO’s contracts with the city’s Department of Homeless Affairs and Assisted Housing, which has contributed multimillion-dollar grants to the nonprofit.

“I want to be clear: public resources cannot be used for political or personal gain, period,” Stephanie said. “To profit from taxpayers and government subsidies at the expense of the most vulnerable segments of the population is absolutely shameful.”

Meanwhile, State Senator Scott Wiener told The Standard that he believes the U.S. Inspector General should launch a federal investigation into TODCO, which receives millions of dollars from the Department of Housing and Urban Development to subsidize the rent of its elderly, disabled and former homeless tenants. . .

TODCO’s spending on lobbying, political campaigning, executive salaries, and grants to other political groups has risen over the past decade, while the organization has steadily reduced the share of income it spends on tenants living in its eight buildings in the south-of-market area.

“The investigation is absolutely justified,” Viner said.

Residents of one of TODCO’s one-room buildings have said they are dealing with persistent infections, and city records show 15 non-profit residents have died of drug overdoses since early 2020. The taxpayer money that goes to TODCO includes not only subsidies to cover rent gaps, but is also intended to fund services and programs for residents.

The Standard found that TODCO’s revenue has more than doubled in the last decade, driven by skyrocketing rents in San Francisco. Meanwhile, the organization appears to have understated the cost of a free apartment given to its president, John Elberling.

Elberling and TODCO CEO Anna Yi did not respond to a request for comment for this story.

The report, released Tuesday, also notes that John Jacobo, one of the directors of the nonprofit who was accused of rape in 2021, is being groomed to help lead the organization in the future after Elberling retires.

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