SF Housing Authority approves Bell Properties contract, extends EBMC for 60-day transition

The Housing Authority of the City and County of San Francisco on Jan. 13 approved a contract for Bell Properties to manage four public housing developments and authorized a separate two-month extension to the current manager to ensure an orderly transition.

The board voted unanimously to authorize the chief executive officer to enter into a management agreement between the authority and Bell Properties for Sunnydale, Velasco, Potrero Terrace and Potrero Annex. Commissioners also approved amendment No. 2 to contract No. 29-20 to extend the term of the existing contract with Eugene Berger Management Corporation (EBMC) through March 31, 2025, to overlap with Bell Properties’ start date.

The Bell Properties agreement is described in the staff report as an initial two-year term with up to three additional one-year options (a maximum five-year term) and a total amount not to exceed $2,100,000. Housing operations director Kendra Crawford told commissioners the Request for Proposal (RFP) was posted Oct. 22, 2024, notified roughly 1,670 vendors, was reviewed by 35 vendors and produced one responsive proposal from Bell Properties. Crawford said the anticipated contract start date for Bell Properties is Feb. 3, 2025.

General counsel Linda Mason said service delivery would not be interrupted: “Services are not pausing. The services contracts are through the mayor’s office of housing and community development, and they are continuing without any pause. They've been informed of this transition.” Mason and staff told the board residents had been notified by certified mail and, staff later added, by hand delivery to minimize disruption.

Staff described active steps to smooth the handover. Mason and other staff said Bell Properties has begun interviewing current on-site vendors and employees, will offer positions to existing employees after an interview process, and has scheduled bilingual interview support. James Davis, chief operating officer of Bell Properties, thanked the authority: “I just wanted to express our gratitude for the opportunity to serve the communities of Sunnydale and Potrero Terrace.”

The board also approved an amendment extending EBMC’s contract for 60 days to March 31, 2025. The extension will include payment for vacant units at the same rate used for occupied units to secure EBMC’s continued cooperation during the transition and to ensure transfer of records and audit materials. Mason said the extension was negotiated to ensure EBMC remained available to complete outstanding audit needs and to assist with the transition.

The two actions were accompanied by discussion about overlapping indemnification. Mason said Bell Properties’ contract will include indemnification for the authority beginning Feb. 3. The authority removed an indemnification requirement from EBMC’s two-month extension, meaning EBMC will not indemnify the authority for that additional 60-day period. Commissioners and counsel discussed the “gray area” of potential claims arising during the overlap and noted that, in practice, claims are usually tendered to the company that is indemnifying the authority at the time of the claim.

Public commenters raised several resident concerns during the meeting’s general public comment period. Howard Hill, who identified himself as a property manager for 25 Sanchez Street, said a building had been without heat for eight days; staff said they would follow up with the property manager and vendors. A longtime resident and self-identified Fillmore Corridor ambassador, Ace, asked for a written update on the Rental Assistance Demonstration (RAD) program and monitoring of redevelopment activity at Sunnydale and other sites.

The board’s votes were unanimous on both items. The Bell Properties contract was approved by roll call (Mary Anne Pikes: yes; Commissioner Kim: yes; Commissioner Lee Raylindo: yes; President Joaquin Torres: aye). The EBMC two-month extension similarly passed by unanimous roll call.

Staff said the authority will continue daily transition check-ins and weekly focused reviews to address operations, vendor continuity and resident communications. The authority emphasized that phone numbers and office addresses for residents will remain the same during the transition to minimize confusion.

The meeting adjourned after brief commissioner remarks.