California Hotel tenants fight back

Holding signs saying "Protect our right to stay" and chanting "Housing is a human right," residents of Oakland's California Hotel, the stately old five-story brick landmark at 3501 San Pablo Ave., demonstrated July 14 against being unlawfully kicked out of their homes. The owners attempted to intimidate the 72 remaining residents of the 150-unit building into moving by having property manager the John Stewart Co. threaten to stop paying the property's utilities and security bills.

However, last Friday, an Alameda County Superior Court judge granted a temporary restraining order requiring the owners, Oakland Community Housing Inc. (OCHI), to keep the gas, water and electricity on, according to attorney John Murcko.

"The tenants want to stay here," said Murcko, who also represented the tenants in two previous lawsuits over deplorable conditions at the property. "A lot of them have been here over a decade. Most have no place else to go."

Murcko stated that OCHI is under contract requiring them to manage the property as affordable housing to very low-income tenants. That is a stipulation of the low-cost 30-year government loans OCHI used to buy and maintain the hotel.

Residents initially received a letter June 18 stating, "The John Stewart Company will no longer be the management agent for your community effective July 15, 2008." As if to add confusion and insult to injury, the letter continues, "It has been a pleasure working with you and we wish you the best."

A follow-up letter dated June 20 states, "Cahon Associates, Inc., the owner of the building, cannot afford to hire another management company to operate the California Hotel or subsidize the operating deficit that exists at the property. In addition, local and state law require onsite management for buildings the size of the California Hotel. If the owner does not replace the onsite manager, the building will be out of compliance with local and state law." Cahon Associates is a subsidiary of OCHI.

The letter continues, "As a result, the building may close down shortly after July 15. Tenants should begin to look for another place to live and plan to vacate the building on or before July 15th. Eden Information & Referral (Eden I&R) will be available to provide some tenant assistance to help in your search for new housing."

The City Council approved a little over $893,000 for relocation assistance for residents of properties owned by OCHI. However, as reported in the materials presented to the Council, the scarcity of affordable housing stock has contributed to the difficulty of tenants relocating.

"The closing of seven affordable rental properties will have significant negative impacts," according to the June 17 City Council agenda materials. "Foremost is the tremendous negative impact on the 215 current residents who will have to relocate in a rental market that is already tight."

"There's nothing available," California Hotel tenant Robin Menefee said. "There's nowhere to go." Menefee will stay after the John Stewart Co. abandons the property.

OCHI subsidiary Cahon Associates claims it is broke. "They own 13 buildings probably worth $130 million," said Murcko. "This is a fraud on the city and a fraud on the people of Oakland."

"There's nothing available," California Hotel tenant Robin Menefee said. "There's nowhere to go." Menefee will stay after the John Stewart Co. abandons the property.

OCHI subsidiary Cahon Associates claims it is broke. "They own 13 buildings probably worth $130 million," said Murcko. "This is a fraud on the city and a fraud on the people of Oakland."

Since informing the city, OCHI has received a $1.5 million subsidy to cover management and other operating costs for their numerous properties in Oakland, with most going to the California Hotel, according to the Oakland Tribune. But residents don't feel the money was invested in improving their living conditions. There were many complaints of infestation. Even a major lobby window on the ground floor on San Pablo was broken and boarded up.

The company received $5.1 million from the City of Oakland in the '80s to buy the property and has since received tens of millions in state and federal monies.

The Oakland Tribune reported that Sean Rogan, deputy director of the city's department of Housing and Economic Development, attributes the failure of tenants relocating to bad advice from outside agitators. "It's unfortunate and counterproductive that other organizations are urging the tenants to not sign anything and don't take the tenant relocation assistance," he said.

However, residents attribute their determination to stay to the lack of available housing and their resentment at being forced to move out of their homes. Although they've consistently paid rent, they've never reaped the improvements they've been promised.

"They want me to get the hell out," said Lee Jenkins, a 60-year-old resident who has lived in the building for 16 years. "I don't want to go nowhere. They haven't given me an eviction notice, so I'm going to fight it."

Jenkins, like many of the elderly or disabled living in the building, who are either low income or no-income, has nowhere else to turn.

Oakland Nation of Islam Minister Keith Muhammad, who spoke at the rally, put the events in context of the larger land grab taking place in Oakland:

"When we are removed by what is called urban renewal, we call it what it really is: gentrification," said Muhammad. "They want to turn West Oakland into East San Francisco." The minister also saw a relationship between the removal of tenants and the recent so-called "Nutcracker" sting in June, which resulted in 50 arrests. Muhammad suggests the raids, resulting in the seizure of 40 weapons but no arrests of any actual weapon suppliers is "managed mayhem" that will allow the plan to force low-income people, especially African-Americans, from their homes to escalate and intensify.