Josh Koehn

Running an affordable housing nonprofit in San Francisco comes with plenty of responsibilities, but also some perks. In the case of John Elberling, the president of Tenants and Owners Development Corporation (TODCO), one of those perks is a free apartment.

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Running an affordable housing nonprofit in San Francisco comes with plenty of responsibilities, but also some perks. In the case of John Elberling, the president of Tenants and Owners Development Corporation (TODCO), one of those perks is a free apartment.

Elberling currently lives in a rent-free studio apartment in Mendelsohn House, a federally subsidized senior home on Folsom Street that is one of TODCO’s eight properties in the South of Market area. He has often referred to the apartment as a “pied-à-terre,” and for those who don’t speak the French, that translates to a small apartment kept for occasional use.&nbsp;

Elberling currently lives in a rent-free studio apartment in Mendelsohn House, a federally subsidized senior home on Folsom Street that is one of TODCO’s eight properties in the South of Market area. He has often referred to the apartment as a “pied-à-terre,” and for those who don’t speak the French, that translates to a small apartment kept for occasional use.&nbsp;

However, Elberling lives in the studio full-time. And while he doesn’t have to pay for the unit, he does have to report the fair market value of the apartment to the IRS for tax purposes.

However, Elberling lives in the studio full-time. And while he doesn’t have to pay for the unit, he does have to report the fair market value of the apartment to the IRS for tax purposes.

READ: <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">SF Housing Nonprofit Spends Big on Politics. Tenants Deal With Infestations, Overdoses</a>

READ: <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">SF Housing Nonprofit Spends Big on Politics. Tenants Deal With Infestations, Overdoses</a>

On Thursday, The Standard published <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">an investigative report</a> detailing how TODCO has seen its revenue more than double over the last decade while steadily decreasing the share of revenue it dedicates to helping its low-income, elderly and disabled residents—some of whom complained of unsafe and unhealthy living conditions. Meanwhile, TODCO has splurged on political spending, lobbying, staff salaries and grants to other groups.&nbsp;

On Thursday, The Standard published <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">an investigative report</a> detailing how TODCO has seen its revenue more than double over the last decade while steadily decreasing the share of revenue it dedicates to helping its low-income, elderly and disabled residents—some of whom complained of unsafe and unhealthy living conditions. Meanwhile, TODCO has splurged on political spending, lobbying, staff salaries and grants to other groups.&nbsp;

A Google Streetview of TODCO's Mendelsohn House at 737 Folsom St. in San Francisco. | Google Streetview

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/03/INLINED1_TodcoPartTwo03082023.jpg" alt="" class="wp-image-135866"/><figcaption class="wp-element-caption">A Google Street View of TODCO&#8217;s Mendelsohn House at 737 Folsom St. in San Francisco | Google Street View</figcaption></figure>

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<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/03/INLINED1_TodcoPartTwo03082023.jpg" alt="" class="wp-image-135866"/><figcaption class="wp-element-caption">A Google Street View of TODCO's Mendelsohn House at 737 Folsom St. in San Francisco | Google Street View</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/03/INLINED1_TodcoPartTwo03082023.jpg" alt="" class="wp-image-135866"/><figcaption class="wp-element-caption">A Google Street View of TODCO&#8217;s Mendelsohn House at 737 Folsom St. in San Francisco | Google Street View</figcaption></figure>

In the reporting of that story, The Standard found some unusual accounting in regards to Elberling’s rent-free apartment.&nbsp;

In the reporting of that story, The Standard found some unusual accounting in regards to Elberling’s rent-free apartment.&nbsp;

The most recent <a href="https://www.documentcloud.org/documents/23698569-todcoybc-3-form-990-for-2020">IRS filings for TODCO/YBC 3</a>—a TODCO affiliate nonprofit that owns and operates Mendelsohn House—show that the organization valued Elberling&#8217;s apartment at $10,248. The Standard consulted with professional tax attorneys and nonprofit experts to confirm these numbers.

The most recent <a href="https://www.documentcloud.org/documents/23698569-todcoybc-3-form-990-for-2020">IRS filings for TODCO/YBC 3</a>—a TODCO affiliate nonprofit that owns and operates Mendelsohn House—show that the organization valued Elberling's apartment at $10,248. The Standard consulted with professional tax attorneys and nonprofit experts to confirm these numbers.

The most recent <a href="https://www.documentcloud.org/documents/23698569-todcoybc-3-form-990-for-2020">IRS filings for TODCO/YBC 3</a>—a TODCO affiliate nonprofit that owns and operates Mendelsohn House—show that the organization valued Elberling&#8217;s apartment at $10,248. The Standard consulted with professional tax attorneys and nonprofit experts to confirm these numbers.

<figure class="wp-block-image"><img src="https://lh5.googleusercontent.com/_KxZGtcU_uw_tui4Cs4XFch3jZlhYRXrQvfti7pWjyixoQ1fAU1G-jCqzyQSuWkNrjwkRzACY4AEK4NrUi1NsShc3diPOFtAslyXpuoKqIvNJ2Ug_Vv6v4rlhIDy7ngYcU6D98Yy8mYPj7X7YCKsKFQ" alt=""/><figcaption class="wp-element-caption">A recent IRS filing for the TODCO nonprofit that owns Mendelsohn House shows the organization reported that John Elberling&#8217;s free apartment has a taxable value of $10,248. | Screenshot</figcaption></figure>

<figure class="wp-block-image"><img src="https://lh5.googleusercontent.com/_KxZGtcU_uw_tui4Cs4XFch3jZlhYRXrQvfti7pWjyixoQ1fAU1G-jCqzyQSuWkNrjwkRzACY4AEK4NrUi1NsShc3diPOFtAslyXpuoKqIvNJ2Ug_Vv6v4rlhIDy7ngYcU6D98Yy8mYPj7X7YCKsKFQ" alt=""/><figcaption class="wp-element-caption">A recent IRS filing for the TODCO nonprofit that owns Mendelsohn House shows the organization reported that John Elberling's free apartment has a taxable value of $10,248. | Screenshot</figcaption></figure>

<figure class="wp-block-image"><img src="https://lh5.googleusercontent.com/_KxZGtcU_uw_tui4Cs4XFch3jZlhYRXrQvfti7pWjyixoQ1fAU1G-jCqzyQSuWkNrjwkRzACY4AEK4NrUi1NsShc3diPOFtAslyXpuoKqIvNJ2Ug_Vv6v4rlhIDy7ngYcU6D98Yy8mYPj7X7YCKsKFQ" alt=""/><figcaption class="wp-element-caption">A recent IRS filing for the TODCO nonprofit that owns Mendelsohn House shows the organization reported that John Elberling&#8217;s free apartment has a taxable value of $10,248. | Screenshot</figcaption></figure>

If the reported value of Elberling’s free apartment seems low, that’s because it is. The average cost of a studio in SoMa runs about $3,200 a month, according to <a href="https://www.zumper.com/rent-research/san-francisco-ca">real estate website Zumper</a>, which would equate to $38,400 in annual value.&nbsp;

If the reported value of Elberling’s free apartment seems low, that’s because it is. The average cost of a studio in SoMa runs about $3,200 a month, according to <a href="https://www.zumper.com/rent-research/san-francisco-ca">real estate website Zumper</a>, which would equate to $38,400 in annual value.&nbsp;

Mendelsohn House charges fair-market rates for its apartments, but in order to live there, tenants have to qualify for Section 8 subsidies, according to <a href="https://www.todco.org/housing-pricing-table">TODCO’s website</a>. Tenants only end up paying 30% of their monthly income, and the U.S. Department of Housing and Urban Development picks up the rest of the tab.

Mendelsohn House charges fair-market rates for its apartments, but in order to live there, tenants have to qualify for Section 8 subsidies, according to <a href="https://www.todco.org/housing-pricing-table">TODCO’s website</a>. Tenants only end up paying 30% of their monthly income, and the U.S. Department of Housing and Urban Development picks up the rest of the tab.

Elberling wouldn’t qualify to live in Mendelsohn House were it not for his job. The building’s waitlist is closed, and he has reported annual earnings above $200,000 a year. Individual tenants at Mendelsohn House can’t apply if they make more than $97,600 a year.

Elberling wouldn’t qualify to live in Mendelsohn House were it not for his job. The building’s waitlist is closed, and he has reported annual earnings above $200,000 a year. Individual tenants at Mendelsohn House can’t apply if they make more than $97,600 a year.

Based on TODCO’s IRS filings, it appears the nonprofit has been underreporting the value of Elberling’s free apartment for years.

Based on TODCO’s IRS filings, it appears the nonprofit has been underreporting the value of Elberling’s free apartment for years.

Even more odd, the reported value of Elberling’s apartment has actually dipped slightly over the years, according to TODCO’s IRS filings.

Even more odd, the reported value of Elberling’s apartment has actually dipped slightly over the years, according to TODCO’s IRS filings.

A <a href="https://www.documentcloud.org/documents/23698948-todco-ybc-3-irs-form-990-2002">Form 990 for the same nonprofit back in 2002</a> listed Elberling’s housing allowance as having a value of $10,860. It’s unclear how TODCO got to this number, or whether it has applied some kind of rent control accounting to an apartment that should be valued at fair-market rates.

A <a href="https://www.documentcloud.org/documents/23698948-todco-ybc-3-irs-form-990-2002">Form 990 for the same nonprofit back in 2002</a> listed Elberling’s housing allowance as having a value of $10,860. It’s unclear how TODCO got to this number, or whether it has applied some kind of rent control accounting to an apartment that should be valued at fair-market rates.

<figure class="wp-block-image"><img src="https://lh4.googleusercontent.com/pgGIDltKXbIry5kcx4KKVC9qO48C8-yO2rE31DWl1cjOAK5hJUx4GeRzfuKxIYk9zMCeTWneRQRtFR66xn9Ue9Djzv73a4hIepBli5PUJ5Tf_Z94-Nv7ogJJup0Kv4JUKjlVFQnHJmwtj-OX2LcqPKI" alt=""/><figcaption class="wp-element-caption">A 2002 IRS filing for TODCO shows the organization reported that John Elberling&#8217;s free apartment had a taxable value of $10,860, which is more than it was listed at in recent years. | Screenshot</figcaption></figure>

<figure class="wp-block-image"><img src="https://lh4.googleusercontent.com/pgGIDltKXbIry5kcx4KKVC9qO48C8-yO2rE31DWl1cjOAK5hJUx4GeRzfuKxIYk9zMCeTWneRQRtFR66xn9Ue9Djzv73a4hIepBli5PUJ5Tf_Z94-Nv7ogJJup0Kv4JUKjlVFQnHJmwtj-OX2LcqPKI" alt=""/><figcaption class="wp-element-caption">A 2002 IRS filing for TODCO shows the organization reported that John Elberling's free apartment had a taxable value of $10,860, which is more than it was listed at in recent years. | Screenshot</figcaption></figure>

<figure class="wp-block-image"><img src="https://lh4.googleusercontent.com/pgGIDltKXbIry5kcx4KKVC9qO48C8-yO2rE31DWl1cjOAK5hJUx4GeRzfuKxIYk9zMCeTWneRQRtFR66xn9Ue9Djzv73a4hIepBli5PUJ5Tf_Z94-Nv7ogJJup0Kv4JUKjlVFQnHJmwtj-OX2LcqPKI" alt=""/><figcaption class="wp-element-caption">A 2002 IRS filing for TODCO shows the organization reported that John Elberling&#8217;s free apartment had a taxable value of $10,860, which is more than it was listed at in recent years. | Screenshot</figcaption></figure>

“What&#8217;s the big deal? He should just pay taxes on it,” said Sonja Trauss, a housing advocate who has been critical of TODCO. “It&#8217;s already sort of gross, the whole situation.”

“What's the big deal? He should just pay taxes on it,” said Sonja Trauss, a housing advocate who has been critical of TODCO. “It's already sort of gross, the whole situation.”

“What&#8217;s the big deal? He should just pay taxes on it,” said Sonja Trauss, a housing advocate who has been critical of TODCO. “It&#8217;s already sort of gross, the whole situation.”

The value placed on Elberling’s federally subsidized apartment in IRS filings appears to be substantially lower than the value placed on a TODCO property manager who lives and works at Mendelsohn House.

The value placed on Elberling’s federally subsidized apartment in IRS filings appears to be substantially lower than the value placed on a TODCO property manager who lives and works at Mendelsohn House.

<a href="https://www.documentcloud.org/documents/23698570-todco-ybc3-internal-audit-2022">A financial audit</a> for the nonprofit overseeing Mendelsohn House notes that the property manager receives a rent-free apartment like Elberling. Unlike the TODCO boss, this individual had to report a value of more than $30,000 to the IRS in recent years.

<a href="https://www.documentcloud.org/documents/23698570-todco-ybc3-internal-audit-2022">A financial audit</a> for the nonprofit overseeing Mendelsohn House notes that the property manager receives a rent-free apartment like Elberling. Unlike the TODCO boss, this individual had to report a value of more than $30,000 to the IRS in recent years.

“The Organization provides an apartment unit to its manager free of charge,” the audit states. “The value of the free rent was $32,844 and $31,524 in 2022 and 2021, respectively, for the manager unit.”

“The Organization provides an apartment unit to its manager free of charge,” the audit states. “The value of the free rent was $32,844 and $31,524 in 2022 and 2021, respectively, for the manager unit.”

<figure class="wp-block-image"><img src="https://lh4.googleusercontent.com/ztBf_YJ4OelT9grObOKTm_wOVwwLY19N_l_Q5PNnU5apSz0XHokiKIZSUEjNmrORv8-15v2xBfCnMdfhdoDW3U_wdNm-sX7LwRA9ue3cadGsloy79E5hmemfGY7AGv4Gpo1S99dlSwTpkqXw_a2gPSo" alt=""/><figcaption class="wp-element-caption">A financial 2020-21 audit of the TODCO nonprofit overseeing Mendelsohn House listed the value of a property manager&#8217;s apartment at more than $30,000 annually, which is far higher than the apartment given to TODCO president John Elberling. | Screenshot</figcaption></figure>

<figure class="wp-block-image"><img src="https://lh4.googleusercontent.com/ztBf_YJ4OelT9grObOKTm_wOVwwLY19N_l_Q5PNnU5apSz0XHokiKIZSUEjNmrORv8-15v2xBfCnMdfhdoDW3U_wdNm-sX7LwRA9ue3cadGsloy79E5hmemfGY7AGv4Gpo1S99dlSwTpkqXw_a2gPSo" alt=""/><figcaption class="wp-element-caption">A financial 2020-21 audit of the TODCO nonprofit overseeing Mendelsohn House listed the value of a property manager's apartment at more than $30,000 annually, which is far higher than the apartment given to TODCO president John Elberling. | Screenshot</figcaption></figure>

<figure class="wp-block-image"><img src="https://lh4.googleusercontent.com/ztBf_YJ4OelT9grObOKTm_wOVwwLY19N_l_Q5PNnU5apSz0XHokiKIZSUEjNmrORv8-15v2xBfCnMdfhdoDW3U_wdNm-sX7LwRA9ue3cadGsloy79E5hmemfGY7AGv4Gpo1S99dlSwTpkqXw_a2gPSo" alt=""/><figcaption class="wp-element-caption">A financial 2020-21 audit of the TODCO nonprofit overseeing Mendelsohn House listed the value of a property manager&#8217;s apartment at more than $30,000 annually, which is far higher than the apartment given to TODCO president John Elberling. | Screenshot</figcaption></figure>

In an email, Elberling said he was “proud” to live with TODCO tenants, and he noted that his apartment is smaller than the two-bedroom unit occupied by the property manager.&nbsp;

In an email, Elberling said he was “proud” to live with TODCO tenants, and he noted that his apartment is smaller than the two-bedroom unit occupied by the property manager.&nbsp;

He also noted that “project auditors” set his apartment’s value at $26,496 for last year’s tax filing period, but he did not explain why the reported value has been so much lower for two decades.

He also noted that “project auditors” set his apartment’s value at $26,496 for last year’s tax filing period, but he did not explain why the reported value has been so much lower for two decades.

“My neighbors are not just program statistics to me, they are real people who I [have] come to know over the course of years,” Elberling wrote. “We share the same everyday life experiences as residents of Mendelsohn House and our Yerba Buena Neighborhood, and all the same everyday practical concerns for good building operation and community safety and services. I’m in the same boat with them.”

“My neighbors are not just program statistics to me, they are real people who I [have] come to know over the course of years,” Elberling wrote. “We share the same everyday life experiences as residents of Mendelsohn House and our Yerba Buena Neighborhood, and all the same everyday practical concerns for good building operation and community safety and services. I’m in the same boat with them.”

Professional tax attorneys consulted for The Standard’s stories on TODCO opined that Elberling’s explanation on value of his apartment compared to IRS filings doesn’t add up. Auditors of the nonprofit that controls Mendelssohn House do not assess values for TODCO, but instead fact-check information provided by the organization.

Professional tax attorneys consulted for The Standard’s stories on TODCO opined that Elberling’s explanation on value of his apartment compared to IRS filings doesn’t add up. Auditors of the nonprofit that controls Mendelssohn House do not assess values for TODCO, but instead fact-check information provided by the organization.

John Elberling stands in the community garden attached to Mendelsohn House, a low-income senior home in San Francisco's South of Market area, on Aug. 29, 2022. Elberling receives a free apartment in his role as president of TODCO. | Camille Cohen/The Standard

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/03/INLINED2_TodcoPartTwo03082023.jpg" alt="" class="wp-image-135869"/><figcaption class="wp-element-caption">John Elberling stands in the community garden attached to Mendelsohn House, a low-income senior home in San Francisco&#8217;s South of Market area, on Aug. 29, 2022. Elberling receives a free apartment in his role as president of TODCO. | Camille Cohen/The Standard</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/03/INLINED2_TodcoPartTwo03082023.jpg" alt="" class="wp-image-135869"/><figcaption class="wp-element-caption">John Elberling stands in the community garden attached to Mendelsohn House, a low-income senior home in San Francisco's South of Market area, on Aug. 29, 2022. Elberling receives a free apartment in his role as president of TODCO. | Camille Cohen/The Standard</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/03/INLINED2_TodcoPartTwo03082023.jpg" alt="" class="wp-image-135869"/><figcaption class="wp-element-caption">John Elberling stands in the community garden attached to Mendelsohn House, a low-income senior home in San Francisco&#8217;s South of Market area, on Aug. 29, 2022. Elberling receives a free apartment in his role as president of TODCO. | Camille Cohen/The Standard</figcaption></figure>

Joan Harrington, a nonprofits expert and former director at the Markkula Center for Applied Ethics at Santa Clara University, called the reported value of Elberling’s apartment “problematic.”

Joan Harrington, a nonprofits expert and former director at the Markkula Center for Applied Ethics at Santa Clara University, called the reported value of Elberling’s apartment “problematic.”

&#8220;It&#8217;s pretty unreasonable to think that it stayed at $10,000 for all of these years,” she said.

"It's pretty unreasonable to think that it stayed at $10,000 for all of these years,” she said.

&#8220;It&#8217;s pretty unreasonable to think that it stayed at $10,000 for all of these years,” she said.

Officials for the Department of Housing and Urban Development did not specifically comment on TODCO findings provided by The Standard, but they did note that “anyone who believes entities or individuals using public resources for other than intended purposes should contact <a href="mailto:IG@hudoig.gov">HUD’s Inspector General</a>.”

Officials for the Department of Housing and Urban Development did not specifically comment on TODCO findings provided by The Standard, but they did note that “anyone who believes entities or individuals using public resources for other than intended purposes should contact <a href="mailto:IG@hudoig.gov">HUD’s Inspector General</a>.”

Sam Moss, executive director of Mission Housing Development Corporation, called TODCO and Elberling’s actions “egregious.”

Sam Moss, executive director of Mission Housing Development Corporation, called TODCO and Elberling’s actions “egregious.”

“I’m truly blown away that HUD just keeps cutting these checks,” Moss said.

“I’m truly blown away that HUD just keeps cutting these checks,” Moss said.

SF housing boss gets sweetheart deal on free apartment. Is that legal?

Elected officials in San Francisco are calling for investigations into the Tenants and Owners Development Corporation (TODCO) following reports by The Standard that found <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">large increases in the nonprofit’s political spending</a> as tenants have complained of substandard living conditions.

Elected officials in San Francisco are calling for investigations into the Tenants and Owners Development Corporation (TODCO) following reports by The Standard that found <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">large increases in the nonprofit’s political spending</a> as tenants have complained of substandard living conditions.

Supervisor Catherine Stefani said on Tuesday that she wants a multi-agency hearing and review of TODCO’s contracts with the city’s Department of Homelessness and Supportive Housing, which has facilitated multimillion-dollar grants to the nonprofit.

Supervisor Catherine Stefani said on Tuesday that she wants a multi-agency hearing and review of TODCO’s contracts with the city’s Department of Homelessness and Supportive Housing, which has facilitated multimillion-dollar grants to the nonprofit.

“I want to be very clear: Public resources must not be used for political or personal gain, period,” Stefani said. “Profiting from the taxpayer and public subsidies and at the expense of the city’s most vulnerable is absolutely shameful.”

“I want to be very clear: Public resources must not be used for political or personal gain, period,” Stefani said. “Profiting from the taxpayer and public subsidies and at the expense of the city’s most vulnerable is absolutely shameful.”

Meanwhile, state Sen. Scott Wiener told The Standard he believes the <a href="https://oig.justice.gov/" target="_blank" rel="noreferrer noopener">U.S. Inspector General</a> should launch a federal investigation into TODCO, which receives millions of dollars from the Department of Housing and Urban Development to subsidize the rent of its elderly, disabled and formerly homeless tenants.

Meanwhile, state Sen. Scott Wiener told The Standard he believes the <a href="https://oig.justice.gov/" target="_blank" rel="noreferrer noopener">U.S. Inspector General</a> should launch a federal investigation into TODCO, which receives millions of dollars from the Department of Housing and Urban Development to subsidize the rent of its elderly, disabled and formerly homeless tenants.

TODCO’s expenditures on lobbying, political campaigns, salaries for executives and grants to other political groups have surged over the last decade, while the organization steadily decreased the share of revenue it spends on tenants living in its eight buildings in the South of Market area.&nbsp;

TODCO’s expenditures on lobbying, political campaigns, salaries for executives and grants to other political groups have surged over the last decade, while the organization steadily decreased the share of revenue it spends on tenants living in its eight buildings in the South of Market area.&nbsp;

“An investigation would absolutely be warranted,” Wiener said.

“An investigation would absolutely be warranted,” Wiener said.

Residents of one of TODCO’s single-room occupancy buildings said they deal with constant infestations, and city records show that 15 of the nonprofit’s tenants have died from drug overdoses since the beginning of 2020. Taxpayer money that goes to TODCO not only includes subsidies to cover gaps in rent, but also is intended to fund services and programs for residents.

Residents of one of TODCO’s single-room occupancy buildings said they deal with constant infestations, and city records show that 15 of the nonprofit’s tenants have died from drug overdoses since the beginning of 2020. Taxpayer money that goes to TODCO not only includes subsidies to cover gaps in rent, but also is intended to fund services and programs for residents.

The Standard found that TODCO has seen its revenue more than double over the last decade thanks to the soaring cost of rent in San Francisco. Meanwhile, the organization appears to have underreported the value of <a href="https://sfstandard.com/politics/sf-housing-boss-todco-sweetheart-deal-legal-irs-hud/">a free apartment given to its president, John Elberling</a>.

The Standard found that TODCO has seen its revenue more than double over the last decade thanks to the soaring cost of rent in San Francisco. Meanwhile, the organization appears to have underreported the value of <a href="https://sfstandard.com/politics/sf-housing-boss-todco-sweetheart-deal-legal-irs-hud/">a free apartment given to its president, John Elberling</a>.

“We welcome any honest discussion about our work,” Elberling said in an email Tuesday evening.&nbsp;“The facts will speak for themselves.”

“We welcome any honest discussion about our work,” Elberling said in an email Tuesday evening.&nbsp;“The facts will speak for themselves.”

A report published Tuesday also noted that <a href="https://sfstandard.com/housing-development/todco-affordable-housing-nonprofit-jon-jacobo-rape-accusation/">Jon Jacobo</a>, one of the nonprofit’s directors who was accused of rape in 2021, is being groomed to help lead the organization into the future after Elberling’s retirement.

A report published Tuesday also noted that <a href="https://sfstandard.com/housing-development/todco-affordable-housing-nonprofit-jon-jacobo-rape-accusation/">Jon Jacobo</a>, one of the nonprofit’s directors who was accused of rape in 2021, is being groomed to help lead the organization into the future after Elberling’s retirement.

SF officials call for federal probe, hearing into housing nonprofit

The first time Sasha Perigo met Jon Jacobo, she couldn’t help but feel impressed.&nbsp;

The first time Sasha Perigo met Jon Jacobo, she couldn’t help but feel impressed.&nbsp;

As a young journalist who supported his stances on social justice in addition to his work as a director of an affordable housing nonprofit, Perigo had heard of Jacobo and knew he was a rising star in San Francisco’s political scene.

As a young journalist who supported his stances on social justice in addition to his work as a director of an affordable housing nonprofit, Perigo had heard of Jacobo and knew he was a rising star in San Francisco’s political scene.

But what started as a friendship after Perigo interviewed Jacobo’s boss at the <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">Tenants and Owners Development Corporation (TODCO)</a> soon turned into a nightmare that she said would traumatize her body, psyche and bank account. An invitation to come over to Jacobo’s house one night in April 2021 led to a terrifying incident, Perigo said, in which she repeatedly tried to resist Jacobo’s sexual advances before eventually being raped.

But what started as a friendship after Perigo interviewed Jacobo’s boss at the <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">Tenants and Owners Development Corporation (TODCO)</a> soon turned into a nightmare that she said would traumatize her body, psyche and bank account. An invitation to come over to Jacobo’s house one night in April 2021 led to a terrifying incident, Perigo said, in which she repeatedly tried to resist Jacobo’s sexual advances before eventually being raped.

“I cannot emphasize how much this was not a misunderstanding,” Perigo said. “He looked me in my eyes when I said ‘no’ and took off my pants. It was so clearly intentional. He was not drunk. There was no mistaking. I was not laughing. I was not being playful about it. Like, there was just no way.”

“I cannot emphasize how much this was not a misunderstanding,” Perigo said. “He looked me in my eyes when I said ‘no’ and took off my pants. It was so clearly intentional. He was not drunk. There was no mistaking. I was not laughing. I was not being playful about it. Like, there was just no way.”

Months would go by before Perigo publicly came forward in a letter posted to Twitter and an interview with the <a href="https://www.sfchronicle.com/bayarea/article/Jon-Jacobo-rising-San-Francisco-political-star-16371828.php" target="_blank" rel="noreferrer noopener">San Francisco Chronicle</a>.&nbsp;

Months would go by before Perigo publicly came forward in a letter posted to Twitter and an interview with the <a href="https://www.sfchronicle.com/bayarea/article/Jon-Jacobo-rising-San-Francisco-political-star-16371828.php" target="_blank" rel="noreferrer noopener">San Francisco Chronicle</a>.&nbsp;

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<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
https://twitter.com/sashaperigo/status/1423674978948435973?s=20
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">(TW: sexual assault) I&#39;m heartbroken to share that the man who raped me in April is <a href="https://twitter.com/Jon_Jacobo?ref_src=twsrc%5Etfw">@Jon_Jacobo</a>. Prior to my rape, I considered Jon a great friend and a great person, which is why it&#39;s so important for me to come forward. Please RT and share widely!<a href="https://t.co/rKatrJkCuk">https://t.co/rKatrJkCuk</a>&mdash; Sasha Perigo (@sashaperigo) <a href="https://twitter.com/sashaperigo/status/1423674978948435973?ref_src=twsrc%5Etfw">August 6, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Jacobo denied the allegations, saying his “memory of these events is different.” In a text message to The Standard last week, he referred back to his statement.

Jacobo denied the allegations, saying his “memory of these events is different.” In a text message to The Standard last week, he referred back to his statement.

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https://twitter.com/Jon_Jacobo/status/1423828115109793798?s=20
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While the fallout was swift, it was hardly severe.&nbsp;

While the fallout was swift, it was hardly severe.&nbsp;

Police launched an investigation for potential charges, but no case moved forward. Perigo declined to work with law enforcement because of her deep distrust of police. Jacobo resigned from his seat on the Building Inspection Commission, and his political allies at City Hall distanced themselves from him.

Police launched an investigation for potential charges, but no case moved forward. Perigo declined to work with law enforcement because of her deep distrust of police. Jacobo resigned from his seat on the Building Inspection Commission, and his political allies at City Hall distanced themselves from him.

In the 19 months since the rape allegations surfaced, Jacobo has mostly operated in the background as the TODCO’s director of community development, working to renovate three of the organization’s buildings. But in interviews with his boss, TODCO President John Elberling, and nonprofit and political officials, it’s clear that Jacobo’s career is far from canceled. Rather, it appears the alleged rapist’s career trajectory is once again on the ascent.

In the 19 months since the rape allegations surfaced, Jacobo has mostly operated in the background as the TODCO’s director of community development, working to renovate three of the organization’s buildings. But in interviews with his boss, TODCO President John Elberling, and nonprofit and political officials, it’s clear that Jacobo’s career is far from canceled. Rather, it appears the alleged rapist’s career trajectory is once again on the ascent.

<h2 class="wp-block-heading" id="h-transition-to-power">Transition to Power</h2>

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<h2 id="h-transition-to-power">Transition to Power</h2>

Serving in a top role at TODCO puts Jacobo in a uniquely powerful position.

Serving in a top role at TODCO puts Jacobo in a uniquely powerful position.

Few nonprofits in the city have more political clout than TODCO, an affordable housing nonprofit that makes no attempt to build more housing on its own. Instead, the organization has leveraged its eight properties in the South of Market area to benefit from city and federal subsidies on top of a refinancing scheme that has created a piggy bank worth millions.

Few nonprofits in the city have more political clout than TODCO, an affordable housing nonprofit that makes no attempt to build more housing on its own. Instead, the organization has leveraged its eight properties in the South of Market area to benefit from city and federal subsidies on top of a refinancing scheme that has created a piggy bank worth millions.

A recent <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">investigation by The Standard</a> found that TODCO has dramatically increased spending on lobbying, political campaigns, salaries for executives and grants to other political groups over the last decade. Meanwhile, the organization steadily decreased the share of revenue it spends on its low-income, elderly, disabled and formerly homeless tenants, some of whom complained of rampant rodent infestations and drug overdoses in its buildings due to a lack of resident services.

A recent <a href="https://sfstandard.com/politics/sf-housing-nonprofit-todco-politics-tenants-infestations-drug-overdose/">investigation by The Standard</a> found that TODCO has dramatically increased spending on lobbying, political campaigns, salaries for executives and grants to other political groups over the last decade. Meanwhile, the organization steadily decreased the share of revenue it spends on its low-income, elderly, disabled and formerly homeless tenants, some of whom complained of rampant rodent infestations and drug overdoses in its buildings due to a lack of resident services.

Sasha Perigo, a tenants' rights activist, at her home in San Francisco on March 10, 2023. In 2021, Perigo accused Jon Jacobo, a director for affordable housing nonprofit TODCO, of sexually assaulting her. | Shelby Knowles for The Standard

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/03/FEATURED_TodcoPartThree03072023-2500x1667.jpg" alt="" class="wp-image-137984"/><figcaption class="wp-element-caption">Sasha Perigo, a tenants rights activist, sits at her home in San Francisco on March 10, 2023. In 2021, Perigo accused Jon Jacobo, a director for affordable housing nonprofit TODCO, of sexually assaulting her. | Shelby Knowles for The Standard</figcaption></figure>

In a <a href="https://sfstandard.com/politics/san-francisco-housing-todco-amazon-tax-prop-k-guaranteed-income/">two-hour interview last August</a>, Elberling told The Standard that he was starting to near retirement. The TODCO boss said newly installed CEO Anna Yee, who declined interview requests, would play a major role in future operations, and the organization was also grooming Jacobo to help oversee financial operations.

In a <a href="https://sfstandard.com/politics/san-francisco-housing-todco-amazon-tax-prop-k-guaranteed-income/">two-hour interview last August</a>, Elberling told The Standard that he was starting to near retirement. The TODCO boss said newly installed CEO Anna Yee, who declined interview requests, would play a major role in future operations, and the organization was also grooming Jacobo to help oversee financial operations.

“He’s transitioning. We need someone to pick up our housing development work, the renovations and [refinancing],” Elberling said. “He’s now going through development courses on how to be a nonprofit affordable housing developer. And we’re also going to bring on an outside consultant to work with him.”

“He’s transitioning. We need someone to pick up our housing development work, the renovations and [refinancing],” Elberling said. “He’s now going through development courses on how to be a nonprofit affordable housing developer. And we’re also going to bring on an outside consultant to work with him.”

Before the rape allegations, Elberling previously saw Jacobo as a promising candidate to run for the Board of Supervisors. TODCO had once counted former Supervisor Jane Kim amongst its allies on the board, and Jacobo worked in her office near the end of her final term.

Before the rape allegations, Elberling previously saw Jacobo as a promising candidate to run for the Board of Supervisors. TODCO had once counted former Supervisor Jane Kim amongst its allies on the board, and Jacobo worked in her office near the end of her final term.

Kim, who has been prominently featured in TODCO&#8217;s political mailers, was forced to apologize after <a href="https://www.sfchronicle.com/sf/article/S-F-s-Jane-Kim-apologizes-for-bringing-man-16543560.php">bringing Jacobo to a political event</a> just weeks after the rape allegations became public. She declined comment for this story.

Kim, who has been prominently featured in TODCO's political mailers, was forced to apologize after <a href="https://www.sfchronicle.com/sf/article/S-F-s-Jane-Kim-apologizes-for-bringing-man-16543560.php">bringing Jacobo to a political event</a> just weeks after the rape allegations became public. She declined comment for this story.

Kim, who has been prominently featured in TODCO&#8217;s political mailers, was forced to apologize after <a href="https://www.sfchronicle.com/sf/article/S-F-s-Jane-Kim-apologizes-for-bringing-man-16543560.php">bringing Jacobo to a political event</a> just weeks after the rape allegations became public. She declined comment for this story.

TODCO paid for this 2016 political mailer to support Proposition C while also prominently featuring then-Supervisor Jane Kim, who was running for state Senate that year. | Courtesy photo

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/03/TODCO-Mailer-2-2500x1406.jpeg" alt="" class="wp-image-135879"/><figcaption class="wp-element-caption">TODCO paid for this 2016 political mailer to support Proposition C while also prominently featuring then-Supervisor Jane Kim, who was running for state Senate that year. | Courtesy photo</figcaption></figure>

As Jacobo’s star rose and talk grew of him running for supervisor, Jacobo offered TODCO’s boss an opportunity to have an ally overseeing the Mission and, perhaps in time, a progressively aligned mayor.&nbsp;

As Jacobo’s star rose and talk grew of him running for supervisor, Jacobo offered TODCO’s boss an opportunity to have an ally overseeing the Mission and, perhaps in time, a progressively aligned mayor.&nbsp;

“Not now,” Elberling said last summer, declining comment on the rape allegations against Jacobo.

“Not now,” Elberling said last summer, declining comment on the rape allegations against Jacobo.

However, multiple people involved in local political campaigns told The Standard that they have been hearing talk of Jacobo once again running for supervisor after Hillary Ronen terms out of the District 9 seat at the beginning of 2025.

However, multiple people involved in local political campaigns told The Standard that they have been hearing talk of Jacobo once again running for supervisor after Hillary Ronen terms out of the District 9 seat at the beginning of 2025.

The idea of Jacobo serving in elected office or having a prominent role in leading TODCO into the future is alarming to many people in San Francisco’s political and nonprofit circles.

The idea of Jacobo serving in elected office or having a prominent role in leading TODCO into the future is alarming to many people in San Francisco’s political and nonprofit circles.

State Sen. Scott Wiener called the possibility of Jacobo leading TODCO into the future “deeply concerning.”

State Sen. Scott Wiener called the possibility of Jacobo leading TODCO into the future “deeply concerning.”

Sonja Trauss, a housing activist and executive director of YIMBY Law, said the grooming of Jacobo to help lead TODCO into the future fits a pattern for Elberling.

Sonja Trauss, a housing activist and executive director of YIMBY Law, said the grooming of Jacobo to help lead TODCO into the future fits a pattern for Elberling.

“He&#8217;s not one of these people in politics who’s a coalition builder,” she said. “I guess if you want to continue that brand, Jon Jacobo is a good choice.”

“He's not one of these people in politics who’s a coalition builder,” she said. “I guess if you want to continue that brand, Jon Jacobo is a good choice.”

“He&#8217;s not one of these people in politics who’s a coalition builder,” she said. “I guess if you want to continue that brand, Jon Jacobo is a good choice.”

Jacobo declined an interview about the rape allegations and his career.

Jacobo declined an interview about the rape allegations and his career.

“For the last year,” he said in a text message, “I&#8217;ve worked with TODCO&#8217;s director of housing development on TODCO&#8217;s three on-going property rehabilitation projects, and will continue that for the long term.”

“For the last year,” he said in a text message, “I've worked with TODCO's director of housing development on TODCO's three on-going property rehabilitation projects, and will continue that for the long term.”

“For the last year,” he said in a text message, “I&#8217;ve worked with TODCO&#8217;s director of housing development on TODCO&#8217;s three on-going property rehabilitation projects, and will continue that for the long term.”

<h2 class="wp-block-heading" id="h-ticket-to-city-hall">Ticket to City Hall</h2>

<h2 id="h-ticket-to-city-hall">Ticket to City Hall</h2>

Sasha Perigo and Jacobo were having drinks after midnight at his house, she said, but it wasn’t anything excessive. It got late, and he offered to let her stay. Perigo had a boyfriend at the time, and while she and Jacobo had hooked up before, she told him she had no intention of doing so again.

Sasha Perigo and Jacobo were having drinks after midnight at his house, she said, but it wasn’t anything excessive. It got late, and he offered to let her stay. Perigo had a boyfriend at the time, and while she and Jacobo had hooked up before, she told him she had no intention of doing so again.

As they laid in bed, Jacobo allegedly became aggressive.

As they laid in bed, Jacobo allegedly became aggressive.

“I wasn&#8217;t like screaming at him or punching him, but I definitely was pushing him off of me and said ‘no’ dozens of times,” Perigo told The Standard. “He&#8217;s like, ‘Oh, you&#8217;ve never cheated before? It would be so hot to be your first.’”

“I wasn't like screaming at him or punching him, but I definitely was pushing him off of me and said ‘no’ dozens of times,” Perigo told The Standard. “He's like, ‘Oh, you've never cheated before? It would be so hot to be your first.’”

“I wasn&#8217;t like screaming at him or punching him, but I definitely was pushing him off of me and said ‘no’ dozens of times,” Perigo told The Standard. “He&#8217;s like, ‘Oh, you&#8217;ve never cheated before? It would be so hot to be your first.’”

Eventually, Perigo said, Jacobo stopped, and they fell asleep. But in the morning, he allegedly pounced and raped her.

Eventually, Perigo said, Jacobo stopped, and they fell asleep. But in the morning, he allegedly pounced and raped her.

Records show Perigo went to the hospital for a rape kit, and she started telling friends and family almost immediately after the alleged attack. About two to three weeks after the alleged rape, Perigo said, she and Jacobo met, as word of the incident was getting around amongst people they knew.

Records show Perigo went to the hospital for a rape kit, and she started telling friends and family almost immediately after the alleged attack. About two to three weeks after the alleged rape, Perigo said, she and Jacobo met, as word of the incident was getting around amongst people they knew.

Sasha Perigo, in a protrait at her home in San Francisco on March 10, 2023, said she received an outpouring of support after coming forward with allegations that she was raped by Jon Jacobo. | Shelby Knowles for The Standard

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/03/INLINED2_TodcoPartThree03072023-2500x1667.jpg" alt="" class="wp-image-137991"/><figcaption class="wp-element-caption">Sasha Perigo, seen in a portrait at her home in San Francisco on March 10, 2023, said she received an outpouring of support after coming forward with allegations that she was raped by Jon Jacobo. | Shelby Knowles for The Standard</figcaption></figure>

“He told me that at the time he thought it was consensual,” Perigo said. “But after he heard my explanation and my friends’ explanation, he agreed that it was rape. He told me that to my face. He was crying.”

“He told me that at the time he thought it was consensual,” Perigo said. “But after he heard my explanation and my friends’ explanation, he agreed that it was rape. He told me that to my face. He was crying.”

Jacobo told her he had started therapy and stopped drinking, she said.

Jacobo told her he had started therapy and stopped drinking, she said.

“My intention was never to come forward,” said Perigo, who couldn’t focus and lost contracts for work because of the trauma she was experiencing. “My intention was like, OK, I just want to forget about it.”

“My intention was never to come forward,” said Perigo, who couldn’t focus and lost contracts for work because of the trauma she was experiencing. “My intention was like, OK, I just want to forget about it.”

Months would go by, Perigo said, before she learned that Jacobo had been in a serious relationship at the time of the alleged attack. She not only worried about this woman’s well-being, but also felt “anger” about the trauma she had quietly endured. Within hours, she drafted a letter and posted it to Twitter the next morning.&nbsp;

Months would go by, Perigo said, before she learned that Jacobo had been in a serious relationship at the time of the alleged attack. She not only worried about this woman’s well-being, but also felt “anger” about the trauma she had quietly endured. Within hours, she drafted a letter and posted it to Twitter the next morning.&nbsp;

Friends, family, nonprofit colleagues and city supervisors all reached out to her to offer support. Perigo included her email address in her letter, and she said other women reached out to her with their own stories of uncomfortable encounters with Jacobo. Thanks to her time as a journalist, she had collected more documentation than most survivors do, which gave her a fair amount of credibility.

Friends, family, nonprofit colleagues and city supervisors all reached out to her to offer support. Perigo included her email address in her letter, and she said other women reached out to her with their own stories of uncomfortable encounters with Jacobo. Thanks to her time as a journalist, she had collected more documentation than most survivors do, which gave her a fair amount of credibility.

“I was really lucky,” Perigo said. “I was met with a lot more support than most people get.”

“I was really lucky,” Perigo said. “I was met with a lot more support than most people get.”

But in the nearly two years that have passed since the alleged rape, Perigo said, she has seen nothing come close to any sense of “restorative justice.” Jacobo continues to deny her allegations, and he is now being elevated at TODCO, reestablishing himself on social media and attending events for affordable housing—a space in which they both now work.

But in the nearly two years that have passed since the alleged rape, Perigo said, she has seen nothing come close to any sense of “restorative justice.” Jacobo continues to deny her allegations, and he is now being elevated at TODCO, reestablishing himself on social media and attending events for affordable housing—a space in which they both now work.

“If you don&#8217;t believe me, frankly, I wonder what survivors you would believe,” Perigo said. “And if you do believe me and you don&#8217;t care, what does that say about this organization and these enablers of Jon?”

“If you don't believe me, frankly, I wonder what survivors you would believe,” Perigo said. “And if you do believe me and you don't care, what does that say about this organization and these enablers of Jon?”

“If you don&#8217;t believe me, frankly, I wonder what survivors you would believe,” Perigo said. “And if you do believe me and you don&#8217;t care, what does that say about this organization and these enablers of Jon?”

Perigo has also heard the rumors of Jacobo’s resurrection as a potential political candidate.

Perigo has also heard the rumors of Jacobo’s resurrection as a potential political candidate.

“It&#8217;s like [Elberling] wants the ticket to City Hall,” she said, “and he thinks Jon’s still better than nothing.”

“It's like [Elberling] wants the ticket to City Hall,” she said, “and he thinks Jon’s still better than nothing.”

“It&#8217;s like [Elberling] wants the ticket to City Hall,” she said, “and he thinks Jon’s still better than nothing.”

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