Entertainment Commission approves Habibi Lounge permits with conditions after compliance concerns

The San Francisco Entertainment Commission on Jan. 6 approved place-of-entertainment and extended-hours permit applications for Habibi Lounge, 26 Sixth Street, with conditions negotiated among the owner, neighboring property managers and commission staff. The vote passed 5–2 after discussion about repeated violations and an onsite compliance check on New Year’s Eve.

The commission approved the permits with the conditions that were negotiated with Tenderloin Housing Clinic and the Windsor Hotel and listed in the staff packet. The amended indoor-entertainment hours the commission adopted in the motion were: Thursday–Friday 5 p.m.–2 a.m.; Saturday 11 a.m.–2 a.m.; and Sunday 11 a.m.–10 p.m. Outdoor amplified sound hours were set in the staff recommendations as read into the record: Sunday–Wednesday 11 a.m.–10 p.m., Thursday 11 a.m.–11 p.m., and Friday–Saturday 11 a.m.–1 a.m., with a per-day cap of eight hours. The commission recorded five ayes and two nays (Commissioners Davis and Poggio).

The commission and staff emphasized that the decision to approve does not immediately authorize entertainment or late-night service. Deputy director Azevedo and staff clarified that the permits will not be issued until required Department of Building Inspection (DBI) and other safety inspections are completed and cleared. Until those sign-offs are received, Habibi Lounge remains subject to the same restrictions it had prior to the vote: no authorized entertainment, no approved outdoor amplified sound and no EHP late-night food service after 2 a.m.

The item prompted extended discussion from commissioners about the business’s recent compliance record. Commission staff and the senior inspector advised the commission that inspectors observed amplified music playing on the rooftop patio at about 12:38 a.m. on New Year’s Eve and that staff were initially denied entry during a compliance visit; staff issued a $500 citation at that time. Staff told the commission the business has received five citations since October 2024 and that while all fines have been paid the office has not yet seen consistent corrective actions.

Owner Ali told the commission he unplugged and removed the outdoor speaker after the inspection and said he has given neighbors his direct phone number. "I unplugged the whole speaker. Since then, we don't have a outdoor speaker, and I unplugged it, you know, completely just to, you know, stay away from that issue," Ali said. Architect Joseph Beneveniste told commissioners the applicant has a letter of support from a San Francisco Police Department lieutenant and that the police chief had visited the business; Beneveniste asked commissioners to consider that positive record alongside the violations.

Tenderloin Housing Clinic organizer Praty Bateke told the commission the group met with Habibi Lounge on Jan. 2 and called the meeting a constructive step: "We are not in support. We are not in opposition. We are happy that we come to some kind of conclusion," Bateke said, while cautioning that tenants may hesitate to call 311 when problems occur.

A nearby resident who spoke remotely, Kelly Burce, described repeated late-night noise, loitering and parking problems near Stevenson Alley and said the situation had made the block "unlivable, frankly." Burce told commissioners she had observed patrons loitering and using drugs late at night and reported that an officer could hear the music from her closed apartment window during one complaint call.

Commissioners said they are granting the permit in part to allow the parties to continue the good-faith arrangements negotiated with neighbors, while warning that any further violations will prompt swift follow-up. A number of commissioners said they preferred to hold the owner to the permit conditions and to use the permitting process to enforce compliance rather than continue denying applications that could push a small business into noncompliance. Commissioners also stressed that inspectors must be allowed access at any time an inspector presents credentials.

The staff file and the hearing record show a set of agreed permit conditions that include a good-neighbor policy; required signage and active monitoring of Stevenson Alley to prevent loitering and smoking; directing queuing to Sixth Street; a minimum of one security guard Thursday–Saturday 6 p.m. until closing; internal sound limits set by staff (in accordance with MPC Article 29); and other staff-recommended controls. Tenderloin Housing Clinic and the Windsor Hotel had signaled support for those conditions in emails included in the staff packet.

The commission vote was 5–2 in favor of the motion as amended. President Bridal, Vice President Wong, Commissioner Perez, Commissioner Schlander and Commissioner Thomas voted aye; Commissioners Davis and Poggio voted nay. Staff emphasized to the owner that DBI and other inspection sign-offs are required before any permit can be issued and that compliance checks will continue. The commission asked staff to follow up with the business the next day to review post-hearing steps and to guide the owner through the DBI process.

Action taken: the commission approved the POE and EHP permits with the conditions read into the record, amending indoor-entertainment hours per the motion; the permits remain unissued until required safety and DBI sign-offs are received.