Tenderloin Housing Clinic

several quotes, regarding the vote last night at the DCCC from Fog City Journal

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lifted from the Chronicle, a series of comments about Randy Shaw, who was featured in an article about a new uptown Tenderloin museum

zip6

5:52 PM on August 6, 2010


I have no idea where Randy Shaw lives, but for those of us who do live here in the Loin, he can go elsewhere. We're managing to have our own scene grow without the need for millions of dollars to be pumped in to one singular project. In fact, that's the problem in this neighborhood in that there is so much "fight homelessness" money put here that the bulk of those with less in this city have flocked here. Take it out. Spread it over the city and let us continue to support our businesses and grow our own local economy in this vibrant neighborhood. In other words, we don't want your museum or tours Mr. Shaw. Anyone who says otherwise either doesn't live here or just wants a piece of that tasty tasty pie you're chasing.
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Shaw lives in a big house in the East Bay hills.

The largest industry in SF in the "Not For Profit" industry, of which homeless and drug services are a massive portion.

Shaw is a major reason that the Tenderloin is as terrible as it is. He uses City grants and the insane criminal aspects of the Rent Control laws to extract large sums from landlords. He uses the proceeds to prevent any one from gentrifying the Tenderloin.


While at Hastings I saw a revolving door of hard luck cases move in and out of the neighborhood. They just kept coming and coming.

As for violence? I was held up twice at gunpoint, and more than once threatened with violence. Incidentally it was never by a homeless person or a drug crazed addict, it was by black kids.

I have seen no other major modern city this backwards. I'm stunned when I go to NY or any European city. The Tenderloin is the apotheosis of Shaw's failed 70's era liberalism and it is nothing to be proud of. His is a special kind of evil.

Read more: http://www.sfgate.com/cgi-bin/article/comments/view?f=/c/a/2010/08/06/DDEM1EK248.DTL&plckFindCommentKey=CommentKey:8bc05136-94fc-48f7-abe5-023b8f072558#ixzz0vwe39hhm

Randy Shaw is San Francisco's biggest poverty pimp. No one has profited more from prolonging the misery of the city's poor and indigent. He has made money off of SRO hotels, which are the worst hell hole anyone can imagine, now he wants to give people tours of the same places for kicks. It reminds me of the Dead Kennedy's song "Holiday in Cambodia" where rich white kids tour other people's misery. Read all about one of Randy's joints, the Mission Hotel:

http://www.sfweekly.com/2007-10-10/news/the-vice-hotel/

Read more: http://www.sfgate.com/cgi-bin/article/comments/view?f=/c/a/2010/08/06/DDEM1EK248.DTL&plckFindCommentKey=CommentKey:8bc05136-94fc-48f7-abe5-023b8f072558#ixzz0vweCYkU7

ChristineBeatty

11:43 AM on August 7, 2010

Eddy & Leavenworth? It's going to take far more than a storefront museum to "revitalize" that area. I used to live at 455 Eddy a half block away. Across the street, the notorious Kinney and Jefferson hotels. I used to cop heroin on Leavenworth. Before the TTF police station moved across from Boedekker Park at Eddy & Jones, that stretch of Eddy used to be wall-to-wall dealers. All the TTF did was disperse them. Shaw can't erase forty years of this with his little project.

I got clean & sober on my own, pulled myself up on my own, though I did have the advantage of being white and two years of college on my side, plus being a vet I cleaned up in the VA. Nonetheless nobody gave anything to me to turn my life around. I consider myself something of a liberal but a practical one. My compassion for down and out people only extends so far because I have been there and seen the attitudes of entitlement and sloth.

If Shaw wants to do something useful, let him build drug and vocational rehabs.
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update, Randy Shaw apparently doesn't like comments on SFgate. Unfortunately, many people are personally affected by Randy Shaws personal choices to take large amounts of public money

Quality of Life citations in San Francisco covering three and a half years from January 1, 2007 through May 31, 2010 obtained via sunshine ordinance request > SF CITY ATTORNEY: SF CONTROLLER: San Francisco Quality of Life Crime Citation DB.xls: SFDA SFPD DHS DPH MOCJ HAIGHT Services-Citations-Arrests-Prosecutions-Convictions: 01-01-07 though 05-31-10

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otherwise known as Randy Shaw's high holy day. This is not the unemployment line. Far from it. Care not Cash figures big in this line

There was a protest last week in front of Randy Shaw's Tenderloin Housing Clinic because of health care cuts to the workers at the same time Tenderloin Housing Clinic, publicly funded by the city, is expanding with a larger budget. This of course contravenes Mayor Newsom's own policy on health care which the press has made a big deal about.

The protest was attended by two San Francisco candidates for district elections this November, Debra Walker (district 6) and Chris Jackson (district 10). The fact that these two supervisor candidates attended the protest is significant because it shows that they recognize the problem with Randy Shaw and Tenderloin Housing Clinic. You won't find district 6 hopeful Jane Kim at the protest because she's supported by Randy Shaw and Paul Hogarth, and neither will you find another district 6 hopeful Elaine Zamora because she's on the Tenderloin Housing Clinic board of directors

the first news of the protest came from Indybay



H Brown weighs in on this

boys and girls,

Got this in the overnight mail and thought those
of you really really on the inside might like to
check it out. It's a protest rally that starts
in front of Randy Shaw's Tenderloin Housing Clinic
building and ends up in their offices.

The ironic thing here is that Shaw has posed as
a friend of unions for years (like Bruce Brugmann)
but he fights them in his own non-profit business.
He fired shop steward Nate Holmes last year and
endured protests at his office on Larkin St. and
then at his luxury mansion in the Oakland Hills.
I commented at the time that it was odd that Haaland
attended neither protest. I mean, he's the
political rep of SEIU 1021.

This year with Shaw cutting back on health care
benefits for the workers in his employ Haaland thought
he'd better show up. I mean, if Gabriel's gonna
attack Jeff Adachi, he's gotta at least give Randy
a 'wait a minute bro'. D-6 candidate, Debra Walker
(whom Shaw hates because she refused to accept he and
Joe O'Donoghue's control of DBT) was also there as
was D-10 hopeful Chris Jackson. None of the trio
spoke on this tape which is odd for candidates.

THC got 84 million bucks from Newsom this year and it's
clear Shaw is using it to expand his holdings and not
to take care of his workers. He's a heartless and
completely duplicitous empire builder.

originally posted with the video

SEIU 1021 THC Workers Protest Attacks On Healthcare-Petition ED Randy Shaw- Dozens of SEIU San Francisco Tenderloin Housing Clinic workers on 7/23/2010 and spoke out against the attack on their heatlhcare benefits by the agency and it's director Randy Shaw. They presented a petition and talked about how these attacks threaten their lives and their families. Additional footage about THC YouTube - Nate Holmes takes fight to Randy Shaw http://www.youtube.com/watch?v=K3e5SDunFcE Nate Holmes and community supporters protest unethical practices of Tenderloin Housing Clinic and Nate's wrongful termination YouTube - Nathaniel Holmes vs Randy Shaw, Part 1 http://www.youtube.com/watch?v=oVGRVMvggX8 Action against a union buster. Here's what the flyer for the event said: Let's Send The Message to Randy Shaw: If You're Pro-Labor Then Quit Stalling The Arbitration Process for Nate Holmes! Monday, July 13, 2009 Note: This is about Randy Shaw, not Modern Times Bookstore. Last year Randy Shaw, Executive Director of the Tenderloin Housing Clinic (THC), unjustly terminated Nate Holmes' for being an active, militant union member in the workplace. Shaw is known for writing on progressive issues and has a new book out on Cesar Chavez that he will be presenting at Modern Times bookstore as part of LaborFest this year. This is precisely why Shaw should know better than to treat workers, especially workers of color like Nate, with contempt and to flagrantly violate the union contract that protects them. Please join community activists and union members to let Randy Shaw know that writing books doesn't let him off the hook. His event will be at 7pm, but we will be meeting at 6:30pm outside of Modern Times bookstore to let those who are coming to hear Shaw's presentation know the truth! To read more about the situation go to: http://www.bluoz.com/blog/index.php?/archives/572-Randy-Shaw-and-the-SEIU.html (corrected) If you are interested in coming or what more information feel free to call us at: 415.221.5519 or email winnfieldnate [at] gmail.com Production of Labor Video Project, P.O. Box 720027, San Francisco, CA 94172

The main page for Nate Holmes and that related protest against Randy Shaw is still located here

Bonus, a little more from H Brown, somewhat related to this because you won't find any of the current Board of Supervisors at a protest like this because of the following. It's a big difference if you think about it

A week or so back Randy Shaw (boss at the taxpayer sponsored BeyondChron.com) wrote an
article in which he concluded that the BOS ‘Class of 2008′ is the best group to have
ever served on the Board.

What a crock of shit! Let’s get real and out front here. Shaw likes this Board
and this Mayor because they gave his group 84 million dollars and a 4 year contract in
the latest budget. Tenderloin Housing Corporation which Shaw founded and runs is
the worst manager of SRO’s in the City. In the Mission he hires gang bangers to run
his buildings (he’s had to go to court to uproot one group). In my Tenderloin,
gangsters and drug dealers roam the halls of the Seneca Hotel beating residents.
When one resident filmed these incidents and put them on the internet Randy threatened
lawsuits and refused to release his own company’s videos of the evil that regularly
occurs on the premises he oversees.

So Shaw puts on his knee pads and gives metaphorical head to what is, in fact, an
absolutely horrible BOS incarantion. Not surprising really. Randy’s chief
deputy, Paul Hogarth wrote a column (paid for by you) in Beyond Chron during the last
mayoral contest suggesting that Progressives not run a candidate but rely upon the
Mayor’s generosity. He was right as far as THC goes. The flood of largesse
from Room 200 to Shaw and THC became a tidal wave. Oh, and let me not forget to
congratulate Hogarth on capturing an award as the ‘Top Policitical Blogger in the
State’. I understand it was given by the ‘Healthy Penis Society’. These guys
tick me off when they use public money and advanced yoga to print article after article
blowing smoke up their own asses.

That said and off my chest let me just segue into my specific predictions regarding
today’s Board votes by saying that the ‘Class of 2008′ which Shaw loves so much is a
throwback to the Barbara Kaufman Board of a decade or so back. Not since Babs had
to install extra benches in front of her office at City Hall to hold all the guys in
$3,000 suits with checks to pay her off has there been such a rubber-stamp BOS.

The irony is that while Barbara never denied being a handmaiden of the developers
(Christ, her husband – Ron – was one) … Shaw’s ‘esteemed’ Class of 2008 still wears
the sheeps clothing over their ‘Demon Sheep’ black inner souls.

“Damn, h. … back off!”

update, rumours?...latest from H Brown this morning

Things just keep rolling in about Shaw and his
dealings through his SF/CA/US funded Tenderloin
Neighborhood Clinic/Beyond Chron/SRO Colloboratives.
Seems lotsa folks think there be fishy things uh
goin' on there.

One party said that instead of seeking to have
Adachi audited that Chris Daly should make having
Shaw and his outfit audited a going away present to
THC and other SRO tenants.

Another says that slumlord Paul Boschetti, a close
business partner of Shaw's has been doing crooked
property deals behind the scenes for years. It's
said that Boschetti shielded secret Shaw real estate
holdings that included the building which houses the
THC and that Randy has ignored illegal Boschetti
conversions of his holdings in the Verona and Fusion
hotels from SRO to tourist/boutique status.

and yes, there already is request for a full audit of Tenderloin Housing Clinic

Tenderloin Housing Clinic edition.

update, aug4, 2010 > this 'crackheads of the day' section has a bunch of comments on Reddit

San Francisco has been fed a lie for a long time now by people like Randy Shaw and it goes like this, "San Francisco needs more affordable housing to get the homeless off the streets". Everybody from Mayor Newsom, to the Chronicle, to Rob Anderson has bought the lie (note, this last link and quote has changed from the original. see comments here(in which he again praises Care not Cash). The original quotes here posted this morning came from here

In complementing Mayor Newsom on Care Not Cash in BeyondChron, Randy Shaw is unique among city progressives, probably because he's had first-hand experience with the success of the program through the Tenderloin Housing Clinic.

Rob Anderson, from here

I could never understand why Rob said that, but to his credit, he did mention the Grand Jury Report on Homelessness which talks about this very subject. This report in 2008 came 4 years after Care not Cash was implemented in 2004, which was promptly ignored by the Board of Supervisors, resulting in cynical jokes in the press
Randy Shaw does NOT have first hand knowledge of any of his 16 SRO buildings because he visits them only once a year at most, however Shaw likely does have first hand knowledge of the dope fiends, including Tenderloin Housing Clinic staff because lawsuits suggest first hand knowledge because Shaw signed off on that settlement

This is a Care not Cash recipient and a current resident of Tenderloin Housing Clinic. She is currently housed. She used to live all over the alleys of South of Market and was funneled through Mayor Newsom's Project Homeless Connect and finally housed in Randy Shaw's Tenderloin Housing Clinic and is a current care not Cash recipient



This photo is from yesterday and you can see that she is still in the same South of Market alleys smoking crack, even though she is housed. So no, simply giving many homeless people affordable housing does NOT necessarily take them off the streets. There are no gates, no locks on the front door, nothing to prevent anyone of the thousands of homeless dope fiends who want to go outside at any time day or night and do what they did before they received housing. Furthermore, Randy Shaw's own 'harm reduction' policies on drug abuse further perpetuates the problem by largely ignoring that there IS a problem. Randy Shaw, in fact, has personally intervened and stopped low level counselors in Tenderloin Housing Clinic who attempted to bring in outside groups like Narcotics Anonymous. Management is instructed to literally look the other way and deny there is even a drug problem to begin with, in order to reduce any liability for Randy Shaw. This inevitably results in lots of people who abuse this, including dope dealers who operate right under managements noses



Ironically, for all the bashing Willie Brown got, he was one of the few people I've seen who had something of a clue

"No one wishes to provide the resources," Brown said. "Only in those cities where (homeless people are highly visible) is there any strong advocacy. . . . What you don't get is a uniform, concentrated, massive resource attack or a change in laws of who can be restrained."

As the economy drooped and tourism dipped, Brown was nagged by the tourist and restaurant industries to do more to keep panhandlers and the homeless off the streets.

But Brown says he can't help people who refuse help -- those who are mentally ill, paranoid about government aid or simply refuse to give up their outdoor lifestyle. Police, district attorneys and court officials must follow the state's strict standards for when to arrest and hospitalize people against their will.

Brown said he underestimated the "irrationality quotient" of the homeless.

"When I came into office I assumed that making services available would and could cause a reversal of the situation for most people on the streets," the mayor said. "I was wrong."

Willie Brown

"Neighborhood people and the merchants and owners of homes and businesses detested the existence of homeless people or street people in close proximity to them," Brown said. ". . . You want to do a shelter? You have no place to locate it."

Willie Brown

You know that new Mid Market development called CityPlace promoted by the same Randy Shaw who houses this crackhead? That's a whitewash and diversion tactic by Randy Shaw because unless CityPlace is able to build a parking garage for all of it's customers, they will be parking right here in this alley, on Stevenson, just half a block away, where they will be promptly met with Randy Shaw's own crackheads. Because this is the backside of 1035 Market st, about 500 yards from where CityPlace will be built



By the way, I don't expect anything to change from posts like this. But to say nothing is worse

A new article in Time magazine describes how teen drug and alcohol rehab centers actually make the problem worse.

This is exactly how San Francisco's homeless programs are run, especially Randy Shaw's Tenderloin Housing Clinic and it's takeover of SRO's and the master lease program, literally concentrating hardcore dope fiends with those few who might want to improve their lives. This can also be applied to the entire Tenderloin area which has been repeatedly described as a 'containment zone' for this exact same thing. So basically San Francisco is paying 500 million dollars a year to essentially concentrate and increase the very problem it is paying non profits to solve, guaranteeing it will be paying for the exact same thing in perpetuity


from Time magazine

Increasingly, substance-abuse experts are finding that teen drug treatment may indeed be doing more harm than good. Many programs throw casual dabblers together with hard-core addicts and foster continuous group interaction. It tends to strengthen dysfunctional behavior by concentrating it, researchers say. "Just putting kids in group therapy actually promotes greater drug use," says Dr. Nora Volkow, director of the National Institute on Drug Abuse (NIDA).

Read more: http://www.time.com/time/health/article/0,8599,2003160-1,00.html#ixzz0uKGbgpSi

This article also made Fark.com where some people describe their own experiences with very similar programs and in some cases describe results far worse than what's in Time magazine

There was a big "industry" in the late 1980s and early 1990s in the DC Metro area for "rehabbing" teenage pot smokers. The kids would be sent to rehab facilities for getting caught smoking, and then when they got out of rehab they were told that they must attend as many AA and NA meetings as possible. When they did go to those meetings there was a whole cult that was built up of charismatic meeting-leaders who targeted the cuter teenage chick pot smokers, and would lure then into splinter AA/NA meetings, whereupon these pimps would start sharing the girls as "spoils". There was a whole community setup, of halfway houses and a network of job procurement, that the pimps would use to isolate the kids and keep them under sway. Once the girls were "used up" or got older, they were utilized for things like housework in the group houses. It was an enormous scandal in the DC area, and went on for years. I think it was called "DC Metro Club", and only stopped when the pimp/cult leaders eventually died or left town. I knew of at least half a dozen local teens who did nothing worse than smoke pot a few times, and they got sucked into this rehab-12 step cult that completely destroyed their lives a hundred times worse than being a heroin addict on the streets would have ever done.

and I knew of at least half a dozen homeless people in San Francisco that got sucked into the non profit housing in SRO's and ended up becoming permanent crack heads on the streets of San Francisco. It happens a lot more than people realize

And it goes further. Originally, some of the support staff in the original 'supportive housing' in San Francisco rallied for mixed housing and non-concentration, but Tenderloin Housing Clinic abandoned that within 2 years in 2003, and now is solely concentrating homeless people in SRO's with those of heavy drug addicts and mentally ill people.

The federally funded Corporation for Supportive Housing strongly recommends against this type of housing for homeless people, that is, if one ever wants to help them get out of the situation

http://www.bluoz.com/blog/index.php?/archives/245-unfree-market-housing.html

The largest contractor in San Francisco, Tenderloin Housing Clinic, used to have these documents on file with their management in 2001 when they first started the 'master lease program'

it was abandoned by 2003, and the rest is history. It is why San Francisco is now geared toward a permanent underclass in the middle of downtown

It is a textbook case of how to create a permanent underclass in the middle of a city

here's another example from somebody who's been in quite a few SRO's

as reported in the Bay Guardian the Hotel Fairness Initiative has gathered enough signatures to qualify for the November ballot. The problem is that some of the signatures were gathered by Tenderloin Housing Clinic employees, which is under contract with the City and County of San Francisco. This contract specifically states

no funds appropriated by the City for this Agreement may be expended for organizing, creating, funding, participating in, supporting, or attempting to influence any political campaign for a candidate or for a ballot measure

Continue reading "Hotel Fairness ballot initiative disqualification" »

from the San Francisco Human Services Agency (PDF) April 22, 2010

TENDERLOIN HOUSING
CLINIC
Supportive Housing Program Manager Scott Walton presented the request to modify the Tenderloin Housing Clinic grant.
On motion by Vice President Yamasaki, seconded and carried, the Commission granted authorization to modify the grant with
TENDERLOIN HOUSING CLINIC for Leasing, Property Management and Operation of the Mayfair Hotel in the additional amount of $ 3,755,566; during
the period of July 1, 2010 through June 30, 2015; for a revised total grant amount not to exceed $92,935,158.

Continue reading "Tenderloin Housing Clinic - Mayfair Hotel" »

from Marc Solomon on Fog City Journal

#
marc, on June 15th, 2010 at 11:19 am Said:

I do not read Beyondchron anymore because it is little more than a political instrument wielded by the Tenderloin Housing Clinic to drum up business for itself by attempting to influence the political discourse.

While we can boycott the Chronicle, San Francisco�s taxpayers, from the largest recently purchased mansion to the SRO dweller paying sales tax on a pack of gum are all forced to subsidize this self serving propaganda organ.

I agree with Chris that with the progressive sweep and expansion of DCCC seats, combined with Rafael�s securing the Sierra Club endorsement and the so-called �moderates*� divided amongst themselves, Mandelman has an advantage.

Progressives always run better when we think we�re the underdogs.

-marc
* �moderate� in San Francisco means that one is a Reagan style pro-business trickle-down supply-sider who supports same sex marriage.

Randy Shaw and Beyondchron.org, both funded by Tenderloin Housing Clinic, one of the largest contractors for the City and County of San Francisco, is now being sued for defamation in San Francisco Superior Court.

Scroll down the filing to see specifics of the case. Also mentioned in the SF Weekly

San Francisco's publicly funded credibility problem


oflynn.v.shaw -

Not very many homeless people have an online presence in San Francisco. but The Unknown Homeless person does.; Check him out

John Joebee Homeless in SF blog

and of course, Tenderloin Housing Clinic figures large in his writings, because Paul Hogarth and Randy Shaw INC is the largest homeless contractor in SF

and while the syntax and grammar isn't perfect, it's certainly understandable and describes far more than anyone so far of what San Francisco is paying 12 million per year for

The Mission Hotel was Fixed up by THCs maintenance just to be trashed by the Care not cash druggies.Not all of the Care not cash clients are Fuck ups no!! Some of the clients applied themselves and did what is required.We Say Thank You to Them for Being Responsible.Then The City has the System Abusers who never intend to ever work again.There only mission is to Use drugs and Get Freebies.There whole life Revolves Around Drugs.The Mission Hotel Did Have a Poor working class and now the Poor working class is limited.They were chased away by the Druggies.That is a FACT!!!

there's even direct appeals for Randy Shaw to use best practices

the latest motion from May 12, 2010, US district court in Oakland where some of the charges against SEIU union were dismissed, others were upheld, and most of the charges against Tenderloin Housing Clinic and Randy Shaw still stand

background info and main page on this story


holmes.v.thc.5.12.2010

note - this post has expanded since first posted

The San Francisco City Controllers office is currently asking for letters of support requesting a full audit of Tenderloin Housing Clinic, which is one of the largest contractors in the City of San Francisco. The initial request, submitted yesterday, is outlined below and can be copied in any emails of support to the controllers office. Previous postings related to this request for a full audit, including documentation can be found in this section > http://www.bluoz.com/blog/index.php?/categories/6-Tenderloin-Housing-Clinic

emails should be sent to controller@sfgov.org (attention : Ben Rosenfield)

the original email header was: Ben Rosenfield-Request for Full Audit RE: Tenderloin Housing Clinic and Potential Mismanagment of City Funds; (over $100 million in City Grants in Question)

it also might help to include the original CC's as follows in order to keep the process open and public . These are all San Francisco government email and as such are required to be kept on file, stored, and subject to future Sunshine Ordinance requests

controller@sfgov.org, trent.rhorer@sfgov.org, cityattorney@sfgov.org, home@prosf.org, board.of.supervisors@sfgov.org, gavin.newsom@sfgov.org, hotline@hudoig.gov, assessor@sfgov.org, eoclass@irs.gov, dshoemaker@sfgov.org

Controller:

As the controller's office has a stated roll in the City's multimillion dollar contracts with the Tenderloin Housing Clinic, I thought it might be appropriate to make your office aware of the following.

I have the two most recent audited financial reports for the THC. These reports outline ongoing significant deficiencies in the THC's internal control over financial reporting including with their Modified Payment Program bank reconciliation and with their Rent Rolls and Property Management. In addition, the THC failed to report the receipt of real property with an estimated value of $20million as an asset; the THC only recently recorded this transfer with the City however the value recorded with the City is significantly lower than that noted for the initial transfer and has not reported this as an asset to the IRS or when applying for grants; no transfer tax seems to have been paid either by the THC or the donor of the property. The THC currently rents out the property to a company that parks their heavy equipment there. The THC also purchased 1/2 interest in a property in 1996 but only recently recorded this transaction with the City.

I have copies of several of the THC's grant agreements with the City. The THC appears to be grossly non-compliant with several provisions such as the following:




1. Each of the City contracts with the THC specifically states: "no funds appropriated by the City for this Agreement may be expended for organizing, creating, funding, participating in, supporting, or attempting to influence any political campaign for a candidate or for a ballot measure." As you will see from the e-mail string below this is an ongoing problem
2. Each of the City contracts with the THC specifically states, "Within sixty (60) days following the end of each Fiscal Year, Grantee shall deliver to City an unaudited balance sheet and the related statements of income and cash flows for such Fiscal Year, in all reasonable detail acceptable to City, certified by an appropriate financial officer of the Grantee as accurately presenting the financial position of the Grantee." The THC has admitted that they did not prepare this for the most recent fiscal year and I don't believe they have ever been compliant with this contingency. The City agencies granting the funds to THC do not have any unaudited financial statements from the THC on file. Timing is important and interesting as the THC renews or is newly awarded grants within the first 3 months of a calendar year without benefit of the unaudited financial reports and in prior to the receipt of the audited financial report.
3. Until recently, the THC had documented significant lobbying expenses on their audited financial reports (I have some of these). When Supervisor Alliioto-Pier asked for an investigation as to whether City funds were used for THC's lobbying activities, she was shut down by Randy Shaw (head of THC and BeyondChron) (I have a copy of the letter sent Shaw sent to Allioto-Pier) and the request for investigation was not taken any further\ by the City.
4. Many of the City contracts with the THC, usually those involving HUD funding, specifically states, "Program income shall be substantially disbursed for eligible activities before additional cash disbursements may be requested under this Agreement." For the fiscal year ending 2007 and 2008, THC reported Attorney Fees Receivable of approximately $100,000 for the fiscal years of 2007 and 2008. The City has no documentation to show that these fees were used by the THC to further grant-related activities prior to drawing down additional grant funds from the City.
5. Each of the City contracts with the THC specifically states, "Any services to be provided by a law firm or attorney must be reviewed and approved in writing in advance by the City Attorney". If you go on the SF Superior Court, Civil Court Website and search by name using Tenderloin Housing Clinic, you will see extensive legal activity by the Tenderloin Housing Clinic, including evictions and lawsuits against the City; none of which have been approved in writing by the City Attorney. It should be noted that, nowhere in the budgets provided for grant consideration does the Tenderloin Housing Clinic mention the hundreds of thousands of dollars it spends on outside attorneys to evict tenants from the buildings they manage; the THC is, in fact, one of the most prolific evictors of the disadvantaged. The THC's most recent law suit against the City was to claim damages over the fact that the City awarded a grant to another agency to manage a small, women's only SRO. The case is closed but it raised questions as to whether the THC used any City funding to sue the City.


Each of the grant agreements allow for auditing by the City as well as a wide range of penalties for non-compliance. I have copies of the City's audit reports of the THC for the fiscal years 2007 and 2008. The report for 2007 raises considerable concerns regarding the THC and while the 2008 report seems to just gloss over things that the audited financial reports say are ongoing. No action has been taken by any of the City departments in regards to THCs non-compliance.

This is just the tip of the iceberg for the THC. We are talking about over $100 million in grants (much of it Federal money given to the City) the City gives to the THC (this doesn't include the interest free loans the City makes to THC which will be "forgiven" as long as they are compliant with the terms and conditions of those loans). I have made the City Attorney aware of these repeated acts of non-compliance with contracts, but no action has been taken. Openly progressive, the THC, through BeyondChron, is very influential in City politics and policy and as this is an election year, the City may be a little gun shy of the THC. With the City facing billions of dollars in deficits and cuts to essential services, the public should be interested in the blind eye the City is turning to this matter. Hopefully, the Controller's office will take appropriate action.

The following is part of the email string as referenced above (Mr Souvall is with PG&E, but this was included in the above request)

PROP 16- Potentially City Funded On-Line Mis-Information



Dear Mr. Souvall:

The article below appeared in today's on-line issue of BeyondChron (www.beyondchron.com). My reason for writing is that BeyondChron is an LLC of the Tenderloin Housing Clinic which receives millions in funding, including a recent funding of $82,000,000, from the City and County of San Francisco. In their contracts for their funding of the Tenderloin Housing Clinic, the City and Count of San Francisco specifically states, "... no funds appropriated by the City for this Agreement may be expended for organizing, creating, funding, participating in, supporting, or attempting to influence any political campaign for a candidate or for a ballot measure." The article by Mr. Hogarth does appear to be an attempt to influence a ballot measure, and, as you will see by the e-mail string below, this is not an isolated incident.

In their audited statements (the most recent of which I have attached to this e-mail) the Tenderloin Housing Clinic does not clearly identify the source of funding for BeyondChron. The City Attorney and the heads of the City agencies providing the bulk of funding have been made aware of this and other potential areas of gross non-compliance with grant agreement on the part of the Tenderloin Housing Cinic with their City contracts however, it may be in the public interest for PG&E to be aware of the situation as well.

I have additional information regarding this matter and am available to speak with you at your convenience.

With Kind Regards,



PG&E�s Disgusting Campaign for Prop 16
by Paul Hogarth� Apr. 20� 2010
0diggsdiggReview it on NewsTrust

Almost every day, I get mailers that urge me to vote �yes� on Proposition 16 � the worst initiative on the June ballot. Prop 16 would effectively block any local government from providing energy � a public option that would compete with PG&E�s monopoly. Their most recent mailing asks if you are �tired of feeling powerless over how government spends your money.� To date, PG&E has spent $30 million to pass Prop 16 � funds that come from ratepayers without our consent. Unlike politicians (who can be voted out of office if taxpayers are unhappy with how they spend our money), PG&E is completely unaccountable. But State Senator Mark Leno has a solution � SB 1441, which will be heard today in committee. If passed, the legislation would require a two-thirds vote of ratepayers � before utility companies can transfer funds to their holding company for other purposes. So if PG&E wants to spend $30 million of our money on a political campaign, they would have to get a two-thirds vote from all ratepayers. And frankly, I�m tired of feeling powerless over how PG&E spends my money.

All the �Yes on 16� mailings come with a legal disclaimer that says � �major funding from Pacific Gas and Electric Company, a coalition of taxpayers, business and labor.� That�s not true. 100% of the Prop 16 campaign budget comes from PG&E. Where is the �coalition� giving them that money?

Rita O'Flynn 415-386-8224 Cell: 415-260-7608



From: rita_august@msn.com
To: dshoemaker@sfgov.org; cityattorney@sfgov.org
CC: home@prosf.org; auweia1@gmail.com; districtattorney@sfgov.org; board.of.supervisors@sfgov.org; ross.mirkarimi@sfgov.org; bevan.dufty@sfgov.org; angela.alioto-pier@sfgov.org; arron.peskin@sfgov.org; david.chiu@sfgov.org; carmen.chu@sfgov.org; hotline@hudoig.gov; matt.dorsey@sfgov.org
Subject: RE: Tenderloin Housing Clinic Potential Non-Compliance with MOCI/ MOH Grant Terms and Conditions
Date: Mon, 1 Mar 2010 07:43:01 -0800

Dear Mr. Herrera and Mr. Shoemaker;

I am writing in follow up to the e-mail below with further examples to support my concerns regarding the Tenderloin Housing Clinic's compliance with grants from the City. To recap, THC's grants with MOCI/MOH specifically states, "... no funds appropriated by the City for this Agreement may be expended for organizing, creating, funding, participating in, supporting, or attempting to influence any political campaign for a candidate or for a ballot measure."

Within the past few days, the following articles have appeared in BeyondChron:

Sit/Lie: Bad Old Law Resurfaces
by Tommi Avicolli-Mecca� Mar. 01� 2010
"Ultimately, this law will not solve anything. There are already laws on the books to deal with aggressive or threatening behavior on the street. Sit/lie won�t get anyone into housing or services, but it could negatively impact someone�s chances to get housing if they end up with an arrest record. It won�t stop the troublemakers, it merely forces them to remain standing when they�re causing problems.

The Board should simply say �No� to sit/lie."

Will Dufty Protect North Beach Seniors from Eviction?
by Paul Hogarth� Feb. 25� 2010
"I seriously doubt that Bevan Dufty knew Pollard is taking advantage of current law to quietly displace these tenants (although Pollard and his sister, who manages SF Garage, did each contribute $100 to his mayoral campaign.) I called Dufty yesterday afternoon and left a message about Chiu�s measure, but did not get a call before the end of the day. But he can vote for Chiu�s legislation, as the Union Street case clearly shows the need."

These publications appear, at the very least to be examples of "attempting to influence" specifically prohibited by contract. As you should know, the City's contracts with THC provide the opportunity for investigation and corrective action on the part of your departments.

As Mr. Herrera himself, stated in BeyondChron, "...San Francisco expects its grant recipients to live up to their obligations...".


With Kind Regards,

Rita O'Flynn

additional information

The attached and the following outlines and summarizes the areas of concern prompting the request for full audit of the Tenderloin Housing Clinic:

1. CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR�S REPORTS-Fiscal Year Ending June 30, 2008 and June 30, 2009

a. Failure to Fully Disclose Assets: In both of the audited financial reports, the auditors indicate that during the fiscal year ending June 30, 2008, the TENDERLOIN HOUSING CLINIC received a donation of real property (900 Innes, San Francisco) that has not be recorded on the financial statements. In the opinion of the auditors, Daoro Zydell & Holland, �accounting principles generally accepted (GAAP) in the United States of America require that such donated property be recorded at fair value.

i. In both of these reports, the auditors indicate that the value of donated property was assessed at $20,000,000.

ii. In both of these reports, the amount listed for total assets does not include the $20,000,000 in real property, thus potentially under reporting the total assets of the TENDERLOIN HOUSING CLINIC by over 60%.

b. Non-Compliance with Federal Reporting Requirements for Federal Grant Recipients: In both of the audited financial reports disclosed instances of ongoing non-compliance with US Offices of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of the TENDERLOIN HOUSING CLINIC�s major federal programs, many of which are funneled to the TENDERLOIN HOUSING CLINIC via the City and County of San Francisco. Thus, there is a liability to the City and County of San Francisco in terms of loss of federal funding due to non-compliance on the part of the TENDERLOIN HOUSING CLINIC.

c. Control and Significant Deficiencies in Internal Controls over Financial Reporting: A control deficiency is exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect non-compliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the entity�s ability to administer a federal program such that there is more than a remote likelihood that non-compliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity�s internal control.

i. Significant Deficiency Noted for the Modified Payment Program (MPP) Band Reconciliation: In both of the audited financial reports, the auditors indicate that the TENDERLOIN HOUSING CLINIC is not able to prepare a complete and accurate bank reconciliation for its MPP bank account. Specifically, the TENDERLOIN HOUSING CLINIC is not able to generate a detailed list of funds of funds within individual client accounts that make up the balances in the MMP band and corresponding MMP liability accounts. The TENDERLOIN HOUSING CLINIC admits that this has been an ongoing problem since 2006 for which they have received additional funding from the City and County of San Francisco to address, but, as of the fiscal year ending June 30, 2009 this remains a significant deficiency.

ii. Significant Deficiency Noted for Rent Rolls and Property Management: In both of the audited financial reports, the auditors indicated that the TENDERLOIN HOUSING CLINIC does not prepare �rent rolls� as the term is defined by the industry, of any of its master lease hotel properties or the Galvin Apartments (which is wholly owned by the TENDERLOIN HOUSING CLINIC and for which the TENDERLOIN HOUSING CLINIC realized over $5,000,000 in rents). Without a rent roll, the TENDERLOIN HOUSING CLINIC is unable to readily determine its tenant rents receivable at specific internals, tie to bad debts to specific units or to easily track vacant units. The TENDERLOIN HOUSING CLINIC admits it has been aware of this problem since 1999; as of the fiscal year ending June 30, 2009 this remains a significant deficiency.

d. HUD Grants: According to the independent auditors, the significant deficiencies noted for MMP and Rent Rolls and Property Management also applies to HUD Grants: CFDA#14.218 and CFDA# 4.238.

e. Recording of Real Property with the City and County of San Francisco:

i. According the audited reports, in 1995, the TENDERLOIN HOUSING CLINIC purchased 50% ownership interest in 126 Hyde Street, San Francisco, however the TENDERLOIN HOUSING CLINIC�s ownership was not officially entered into the title records until January 14, 2009 at which time the TENDERLOIN HOUSING CLINIC recorded the value at its original 1995 cost of $163,500.00. For the fiscal year ending June 30, 2009 the TENDERLOIN HOUSING CLINIC has reclassified 126 Hyde Street as an asset but at its 1995 value. The TENDERLOIN HOUSING CLINIC �rents� most of this building for its office space and includes some or all of this rent as an expense in budgets presented to the City and County of San Francisco as part of grant award contracts.

ii. As noted above, the transfer of 900 Innes was not recorded in a timely fashion with the City and County of San Francisco and the value recorded is in conflict with the assessed value stated in the auditing reports.



2. CITY AND COUNTY OF SAN FRANCISCO GRANT AWARD CONTRACTS

The City and County of San Francisco currently has approximately $100,000,000 in grant contracts with the TENDERLOIN HOUSING CLINIC. Most of these contracts contain standard provisions with which the TENDERLOIN HOUSING CLINIC appears to be non-compliant.

a. Failure to Provide Required Unaudited Financial Information: Each of the City contracts with the TENDERLOIN HOUSING CLINIC specifically states, "Within sixty (60) days following the end of each Fiscal Year, Grantee shall deliver to City an unaudited balance sheet and the related statements of income and cash flows for such Fiscal Year, in all reasonable detail acceptable to City, certified by an appropriate financial officer of the Grantee as accurately presenting the financial position of the Grantee." The TENDERLOIN HOUSING CLINIC has admitted in writing that they do not prepare this. The City agencies granting the funds to TENDERLOIN HOUSING CLINIC do not have any unaudited financial statements from the TENDERLOIN HOUSING CLINIC on file. Timing is important and interesting as the TENDERLOIN HOUSING CLINIC renews or is newly awarded grants within the first 3 months of a calendar year without benefit of the unaudited financial reports and in prior to the receipt of the audited financial report. For this year, the City and County of San Francisco approved $82,000,000 as a single grant (in addition to others) to the TENDERLOIN HOUSING CLINIC in the setting of the deficiencies noted in item 1 above.

b. Failure to Secure City Attorney Approval for Legal Services: Each of the City contracts with the TENDERLOIN HOUSING CLINIC specifically states, "Any services to be provided by a law firm or attorney must be reviewed and approved in writing in advance by the City Attorney". If you go on the SF Superior Court, Civil Court Website and search by name using TENDERLOIN HOUSING CLINIC, you will see extensive legal activity by the TENDERLOIN HOUSING CLINIC, including evictions and lawsuits against the City; none of which have been approved in writing by the City Attorney.

c. Failure to use Program Income Generated by a Grant Prior to Drawing Down Additional Funding From a Grant: "Program income shall be substantially disbursed for eligible activities before additional cash disbursements may be requested under this Agreement." TENDERLOIN HOUSING CLINIC reported Attorney Fees Receivable of approximately $100,000 for the fiscal years of 2007 and 2008. The City has no documentation to show that these fees were used by the TENDERLOIN HOUSING CLINIC to further grant-related activities prior to drawing down additional grant funds from the City.

d. Failure to Comply with Grant Agreement Provisions Regarding Political Campaigns and Ballot Measures: Each of the City contracts with the TENDERLOIN HOUSING CLINIC specifically states: "no funds appropriated by the City for this Agreement may be expended for organizing, creating, funding, participating in, supporting, or attempting to influence any political campaign for a candidate or for a ballot measure." BeyondChron, the LLC internet news service of the TENDERLOIN HOUSING CLINIC has a long history of clear violations of this contract provision. (Examples available upon request)

e. Potential Use of Grant Funds for Non-Grant Approved Activities: According the audited financial reports for 2008 and 2009, the TENDERLOIN HOUSING CLINIC pays an outside attorney hundreds of thousands of dollars for legal services. A review of the City and County of San Francisco Civil Court website, shows that most of TENDERLOIN HOUSING CLINIC�s outside legal actions are for evictions from the properties managed by the TENDERLOIN HOUSING CLINIC. The TENDERLOIN HOUSING CLINIC may, in fact, be one of the City�s most prolific evictors. TENDERLOIN HOUSING CLINIC, in many of its grant requests, indicates funding received will be used to maintain tenants in properties and prevent evictions; there is no mention of use of City funding for evictions. Thus, the source of money for the multitudes of evictions by the TENDERLOIN HOUSING CLINIC is not clear from the available financial records for the TENDERLOIN HOUSING; the City has an obligation to ensure that grant funding has not been used for evictions.

f. Potential Use of City Funds to Sue the City: The TENDERLOIN HOUSING CLINIC's most recent law suit against the City (Superior Court Case No. 509616) was to claim damages because the City awarded a grant to another agency to manage a small, women's only SRO. The case is closed but it raised questions as to whether the TENDERLOIN HOUSING CLINIC used any City funding to sue the City.

Consolidated Financial Statements and Independent Auditor_rof

also on Indybay and Scribed

sf controller request for full audit of tenderloin housing clinic potential mismanagment of $100 million in...

all over the blogs today, including a nice one in Gawker about the New York Times article on Sunday

be sure to check out the comments on the blogs, because they reflect the best and most accurate local post on the subject from Broke Ass Stuart (NSFW) (is anything in the TL SFW?). Broke Ass Stuart does a good job predicting what an outside tour might look like, but Randy Shaw, who was interviewed in the article, suggests a tour INSIDE the SRO's

We can bring people into an SRO and show them where people are living now," Mr. Shaw said, referring to the single-room occupancy dwellings, or residential hotels, in the area. "And that's a real plus."

Yes, it would be a real plus, especially when it involves Mr Shaws own Tenderloin Housing Clinic run SRO's. And what would a tour of inside MR Shaws own hotels look like?

it would look like this



and this




and this



and this



and this



and this






and when you take the guided tour inside Mr Shaws SRO's, bring a video camera, cause you're going to want to show your grand kids this one

also mentioned in the Sentinal and Bronsteins blog and Curbed and all the way from Austin, Texas and also Faster Times and 7 X 7. Plus somebody wrote on Indybay about how SF somehow found 3 million for a TL museum

But wait, there's more!...be sure to redeem your bonus ticket from the tour and follow up on the inevitable mass evictions, which, of course, solves the homeless problem in a way that only Randy Shaw and San Francisco can

update. In response to the Gawker and Bronstein articles, Randy Shaw, still clueless, wrote a follow up. Among other choice quotes is this one

The San Francisco Chronicle frequently bashes progressive politicians for being anti-business. Yet Bronstein�s comments injure businesses in an entire neighborhood. He particularly hurts the primarily immigrant owned restaurants that depend on patronage from non-residents for survival.

the fact of the matter, backed up by proof, is that Randy Shaws own clients are the ones who are doing real damage to local businesses. Here's an example of one of Randy Shaws own clients ripping off the pizza place next door



here's another one of Randy Shaws own clients beating the shit out of another resident on the sidewalk in front of the pizza place

Despite this assessment, as well as his claim that �now it�s mostly poor people coping as best they can,� Bronstein nevertheless concludes that tourists could �possibly die� by visiting the community.

that's because of the murders taking place in Randy Shaws own housing units, as a direct result of Randy Shaws own policy of allowing the worst kinds of drugs into and outside his own buildings