Entertainment Commission approves Habibi Lounge permit after months of compliance checks; permit issuance awaits DBI signoff

The San Francisco Entertainment Commission on Wednesday approved a place-of-entertainment (POE) and extended-hours-premises (EHP) permit for Habibi Lounge, a two-story restaurant and rooftop patio at 26 Sixth Street, by a 5–2 vote. The approval includes amended entertainment hours and several conditions negotiated among the business, the Tenderloin Housing Clinic (THC) and the adjacent Windsor Hotel, but the permits will not be issued until the Department of Building Inspection (DBI) and other required agencies sign off.

The vote followed sustained discussion about a record of noncompliance at Habibi Lounge, including five citations since October 2024 and a compliance check on Jan. 1 when inspectors said they found amplified outdoor music being played after an earlier one-time permit had expired. Deputy Director Azevedo and commission members described the commission's dual responsibility to support nightlife while enforcing conditions meant to protect nearby residents.

Commissioners said THC and the Windsor Hotel negotiated a set of conditions with the owner that staff recommended to the commission. Those conditions, read into the record by staff, allow indoor entertainment and extended food service on specified days and times, permit outdoor amplified sound on the rooftop terrace under a day-by-day limit and require security, queuing rules and active monitoring of Stevenson Alley to prevent loitering. Deputy Director Azevedo told the commission that the applicant and neighborhood representatives had reached agreement on those conditions in recent days.

Owner Ali told the commission he had unplugged the rooftop speaker after inspectors cited the business and said he had met with neighbors and provided them his phone number to report problems directly. Architect Joseph Benveniste and a representative from THC described recent meetings at the business; THC said it would continue to educate tenants about using 311 to report problems.

Commissioners who opposed immediate approval pointed to repeated violations and to at least one instance when inspectors were initially denied entry during the New Year's compliance check. Several commissioners urged the owner to treat city inspectors respectfully and to demonstrate a month of compliance before the commission extended full privileges. Others said issuing the permit and holding the business strictly accountable to permit conditions would be the better enforcement path.

Staff emphasized a legal and procedural limit: even if the commission votes to approve the permits, the department cannot issue them until DBI and other required inspections are complete. That means Habibi Lounge must remain without entertainment or late-night food service until those signoffs are received. Deputy Director Azevedo reminded the owner that continued noncompliance after issuance could prompt rapid follow-up, including reduced hours or revocation.

Votes at the hearing recorded President Blyman, Vice President Wong, Commissioner Perez, Commissioner Schlander and Commissioner Thomas as voting yes; Commissioner Davis and Commissioner Poggio voted no. The commission recorded the motion as an approval of staff recommendations with an amendment changing the indoor entertainment hours to end at 2 a.m. on the nights specified in the motion.

The commission also listed several operational requirements to be enforced if and when the permit is issued: (1) a good-neighbor policy and posted signs discouraging loitering and smoking in Stevenson Alley; (2) security staffing Thursday through Saturday from 6 p.m. until close; (3) a queuing plan that directs patrons to line on Sixth Street rather than Stevenson Alley; (4) an internal sound limit and a requirement that staff keep outdoor amplified sound at or below the marked level on the venue's control dial; and (5) staff and security will actively monitor the alley and enforce the no-loitering policy.

Commissioners and staff said they would follow up with the owner the next day to explain the remaining inspections and next steps. THC said it would continue to monitor tenant concerns and encourage 311 reporting.

Clarifying details from the hearing: staff said Habibi's one-time outdoor entertainment permit had expired Dec. 21, 2024; inspectors reported a compliance visit on Jan. 1, 2025, at about 12:25 a.m.; the commission recorded five citations issued to Habibi since October 2024; and the Windsor Hotel has 60 rooms, of which staff said 43 are residential and 17 are tourist rooms, per the owner's representation to staff.

The commission recorded that the permit package remains subject to DBI and other agency inspections; staff cannot issue a POE/EHP until those signoffs are complete. If subsequent compliance checks find further violations, commissioners said they may recall the permit for more restrictive conditions.

The commission adjourned after commissioner comments and a reminder from staff that compliance checks are routine and will continue.