Company that runs $700 a month sleeping pods in SF could face eviction for unpaid rent
The startup is facing eviction as the tiny
By Tim Johns
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SAN FRANCISCO (KGO) — A company that went viral for offering $700 a month sleeping pods as a solution to San Francisco’s high rent prices is now accused of failing to pay rent itself.
The startup is facing eviction as the tiny, dorm-like living quarters have been the center of a years-long fight with the city of San Francisco.
Tucked away in a corner of Mint Plaza sits what was supposed to be a revolutionary way to help fix San Francisco’s chronic housing crisis.
“Our idea was to turn these empty office buildings into housing in a way that isn’t too expensive so we can charge lower cost rents that people can afford that need to be in the city,” said Brownstone Housing CEO James Stallworth.
Brownstone Housing is the startup behind 12 Mint Plaza.
The unique location has 26 so-called sleeping pods — spaces people can rent and live out of for only $700 a month.
But now, 12 Mint Plaza could be on the verge of shutting down after Brownstone was hit with a lawsuit by its landlord for more than $150,000 in unpaid rent.
“Them having to even file it, I would take accountability for that,” Stallworth said.
Stallworth wouldn’t tell ABC7 News whether the company was paying its rent, but he did say that since the lawsuit was filed last week, he’s spoken with the building’s landlord.
“I think that ultimately it’s just about communication, we definitely could have done better,” he said. “There were some issues where we may have missed some notices from the landlord where we could have addressed it without it having to get to this point.”
The landlord is only one of the problems Brownstone is facing though.
San Francisco’s planning department says the company is currently accruing daily penalties of up to $1,000 a day for breaking several city codes.
Some of those include: Failing to obtain a building permit, continuing to advertise the pods for rent online, and not providing an updated list of current leases.
“The city, ultimately, they just want to make sure it’s safe,” Stallworth said. “And it’s new and it’s very difficult to try and do anything new. And so, in hindsight, we should have expected a lot of the difficulties.”
Outside 12 Mint Plaza, tenant Clay Martin told ABC7 News he was just taking things one day at a time and trying not to worry.
“I just don’t live that way, so if I’m out tomorrow, I’m out tomorrow. I’ll figure it out,” Martin said. “But I’m sure some of the guys are stressed out about it a little bit because you never know, you could get a knock on your door and then you’re out.”
Lawyers for Brownstone’s landlord declined to give comment to ABC7 News on Monday evening.
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