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male announcer: you're special report: "kicked out." angelique rochelle: well, 10 years of my kids in school, and my whole community there. bigad shaban: your whole life was there. angelique yeah, my whole life was there. announcer: families torn apart, evicted from their homes. female: cut, cut, i shouldn't have brought that up. announcer: we review hundreds of government records for evictions all across san francisco. michael bott: what we found, you know, was pretty astonishing. announcer: we spent 6 months going door to door to expose a loophole allowing some landlords to make big bucks while getting away with fraud. male: i don't know anything about it. announcer: tonight, we hold the powerful accountable. bigad: can you tell me how many cases you've actually looked into? alex bastian: i don't have a number for you, unfortunately. bigad: is it possible that it's zero? announcer: our investigation prompts government hearings and new laws. female: without objection, the ordinance finally passes unanimously. announcer: marking one of san francisco's biggest housing reform efforts in recent history. aaron peskin: until nbc bay area came along, city hall wasn't doing its job. announcer: major changes are now in store for hundreds of thousands of renters. here's investigative reporter bigad shaban. bigad: here in san francisco, an average 2-bedroom apartment will cost you about $4,500 a month. rent prices in this city are the most expensive in the country, but much of san francisco is under rent control. so if you've been living in your place for a couple of years, chances are, you're paying a lot less. so there's a huge financial incentive to evict long-time tenants in order to charge new tenants a lot more. last year, san francisco's eviction rate was the highest in a decade. now, we're exposing how some landlords are profiting off a loophole that may have led to hundreds of wrongful evictions, families that once called san francisco home now kicked out. angelique: all righty, you can have this. you wanna eat this first? bigad: angelique rochelle and her daughter leona have lived in this oakland apartment for 2 years, but they still don't consider it home. this is where they say they should be living, a san francisco apartment that was their home for nearly a decade until they were forced to leave. angelique: i was trying to do my best to stay there with 10 years of my kids in school, and my whole community there. bigad: your whole life was there. angelique: yeah, my whole life was there, and it's still there. bigad: in san francisco, landlords can legally kick out their tenants if they, or in some cases, their relatives, want to move in. it's called an owner move-in eviction, and when rochelle, a single mom, got her eviction notice, she and her three kids had to leave their home that had been under rent control for 10 years. bigad: you couldn't find a place that you could afford that could fit all of you after that. angelique: yeah, it'd been impossible. bigad: her two oldest children went to live with their dad in san francisco, and rochelle moved to oakland with her youngest daughter. angelique: it's kinda like having your kids taken away from you, it's hard. bigad: san francisco is home to 348 owner move-in evictions last year. that's 155% spike from just 5 years ago. to find out what's behind the increase, we obtained city records for an entire year's worth of evictions. the hundreds of pages list every landlord or family member that was supposed to move into a home as part of an eviction in 2014. by law, they had to intend to live there for at least 3 years before renting to someone new. but our investigation uncovered what appears to be widespread abuse. michael: what we found, you know, was pretty astonishing. bigad: that's my producer, michael bott. we, along with other members of our investigative unit spent 6 months traveling all across the city. we went door to door to nearly 300 of those homes to find out who's actually living there. we interviewed more than 100 people about their living situation, and in 24 cases, that's nearly 1 in 4 of all the evictions we looked into, the landlord or family member was not living in the home, an apparent violation of the city's own housing laws. that rate of abuse means hundreds of people may have been wrongfully evicted just over the past few years. bigad: does anyone actually check if the people that should have moved in are the ones actually living there? robert collins: no, we don't check. bigad: robert collins is the executive director of the san francisco rent board, the agency in charge of investigating wrongful evictions. the office doesn't require any proof of residency after an eviction, but does investigate cases when someone files a complaint. bigad: so, the people who were evicted basically have to take it upon themselves to be their own sort of private investigator. robert: at this point, yes. bigad: collins says the best option for people is to take their landlords to court. if you've been wrongly evicted, san francisco law allows you to collect hefty damages that can total millions of dollars. male: we are talking about people's houses, people's homes, if you would, and we're facing an affordability crisis. so, you know, there's really no way to minimize how important that is. jane kim: it's tragic and very unfortunate. bigad: we showed our findings to san francisco supervisor jane kim. bigad: where has the city been? why doesn't there appear to be oversight? jane: like many laws on the books, we are a complaint-driven enforcement system. but i think it would help if we started doing these random audits and prosecuting owners that we're finding that are flagrantly evading the law. bigad: each month, the san francisco rent board submits a random sampling of owner move-in evictions to the district attorney's office so they can investigate whether landlords are illegally evicting tenants. bigad: it doesn't seem to be working. alex: i'm not necessarily disagreeing with you at all on that point. bigad: alex bastian is an assistant da. he says a decade-old supreme court ruling makes it nearly impossible to prove a landlord actually intended to commit fraud. plus, he says the random list of evictions his office receives each month doesn't actually provide any leads. alex: we need to have a reasonable suspicion that a crime is occurring. bigad: the whole reason they're giving it to you is so that your team can investigate and find criminal wrongdoing. alex: correct, and we do look into the forms, and we do look into this area of the law to see what we can do as far as prosecuting cases. bigad: can you tell me how many cases you've actually looked into? alex: i don't have a number for you, unfortunately. bigad: is it possible that it's zero? alex: i wouldn't say anything is-- i wouldn't say that's correct. bigad: but you can't tell me what the number is. alex: i can't. bigad: but he could tell us how many landlords the da's office has prosecuted for using this kind of eviction to wrongfully kick out tenants, zero. over the past 10 years, not a single person. announcer: coming up, the financial and emotional cost of battling a wrongful eviction. bigad: how much have you spent fighting this over the years? elizabeth lee: i'm up to $42,000 for sure. i used all my savings, and so it's been really difficult. announcer: and still ahead, frustration fills city hall. female: we need to catch these bad actors, and we need to make them pay. announcer: lawmakers call a special hearing after our investigation exposes what's likely widespread abuse. aaron: until nbc bay area came along, city hall wasn't doing its job. full of nightmares. the stacks of documents include eviction letters and lawsuits, all involving her landlord, who has repeatedly tried to evict her from her san francisco home of 27 years. elizabeth: where would i go? i mean, there's no way i could afford to live in the city. bigad: lee is under rent control, paying just $1,200 a month for her 2-bedroom apartment. she says her landlord, martin eng, started trying to get her to leave soon after he bought her building. he sued her in 2010, arguing the long-time flight attendant violated several parts of her lease, including using her home for illegal activities. bigad: he said you were using this apartment to run a prostitution ring, basically? elizabeth: yes, yes, and drug use. bigad: lee denies the accusations, but says to avoid a pricy legal battle, her renter's insurance decided to settle that lawsuit, which allowed her to stay in her home. but the landlord didn't stop trying to kick her out. bigad: you started getting eviction notices in the mail. elizabeth: yes, in the mail, taped to my door, you know, slid under the door. bigad: her landlord served her four different eviction notices over 2 years, telling her she had to move out because now he wanted to move in, but lee didn't believe it. elizabeth: in the middle unit, middle floor, no, he would--he has no intention of moving in. bigad: our series exposed a critical lack of oversight that allowed landlords to abuse the system. we revealed how rent-controlled tenants, potentially hundreds over the past few years, were wrongfully kicked out in order to have new people move in at a much higher rent. female: we need to catch these bad actors, and we need to make them pay. bigad: after our first few reports aired, frustration filled city hall when more than 60 renters and housing advocates lined up to share their eviction stories. male: though i'm suspicious of the landlord's motives, i don't wanna fight her in court. bigad: lawmakers called this special hearing after our investigation revealed nearly 1 in 4 owner move-in evictions appeared to violate the city's own laws. female: and while they are not a city agency, i should also recognize and thank nbc investigative unit for taking the time to do the work that i would hope that we would be doing, but clearly helping us to highlight this issue. bigad: remember, our investigation revealed that during the past decade, the district attorney's office hasn't prosecuted a single landlord for abusing these kinds of evictions, which amazes elizabeth lee, since the san francisco rent board actually recommended the da's office consider taking action against her landlord. a judge for the rent board found he engaged in fraud, intimidation, and coercion. taking her landlord to court kept lee in her home, but she was still left with a mountain of legal bills and the lingering fear that her landlord will try to evict her again. bigad: how much have you spent fighting this over the years? elizabeth: i'm up to $42,000 for sure. i used all my savings, and, you know, so it's been really difficult. bigad: lee's landlord, martin eng, told us he'd sit down with us for an interview, but then stopped returning our calls. over the phone, he told us, "i'm probably one of the best, honest landlords in san francisco. they're trying to say i had bad intentions, but how do they know if i'm gonna move in or not? this is a tenant from hell... she is as nasty as anything." announcer: coming up, forced out and fed up. nicole delisi: until the laws are changed to protect us, it's going to continue. announcer: a schoolteacher tries to fend off her eviction in court. why she says winning can still feel a lot like losing. nicole: it was one of the worst experiences of my life. and then open the book. bigad: long-time teacher nicole delisi says talk of the bay area's housing crisis has even reached her 4th-grade classroom. she's overheard students and their families chatting about soaring rent and the fear of being evicted from their rent-controlled apartments. bigad: how often would you hear parents talking about it? nicole: regularly. bigad: but it still came as a shock when those fears became her reality. nicole's san francisco apartment was sold to a new owner, who decided to evict nicole about a year later. nicole: there's not a day that goes by i don't miss it. bigad: so, what was the reason your landlord gave for evicting you? nicole: his brother-in-law was going to move in. bigad: landlords and their relatives haven't had to provide any proof they actually moved into their home after evicting their tenants. we discovered san francisco hasn't seen this kind of surge in owner move-in evictions in more than 15 years. mark farrell: no one tolerates fraud. bigad: san francisco supervisor mark farrell posed a new law to fight illegal evictions. the changes would make it easier for the district attorney's office to file criminal charges against landlords who wrongfully try to kick out tenants. mark farrell: it was the great work of nbc that really turned up the volume, i think, to really talk about and identify and expose the amount of fraudulent practices that is happening in this area. bigad: nicole delisi was only paying $1,450 per month for her 1-bedroom apartment, so she says it was clear her landlord could have made a lot more money by renting to someone new. nicole: the people above me that had recently moved in were paying over $3,000 for the exact same unit. i wondered if there was any ulterior motive. bigad: so, to find out, nicole's only option was to sue her landlord, which meant her attorney got to question the brother-in-law to see if he really was going to move in. male: i don't know anything about it. bigad: neither he nor the landlord would talk to us for our story, but when questioned by nicole's attorney, the brother-in-law couldn't answer basic questions about the apartment he was supposed to be moving into. mark hooshmand: have you ever been told about the layout? male: no. mark hooshmand: have you ever been told how many bedrooms it is? male: no. mark hooshmand: he hadn't seen the unit before moving in. bigad: mark hooshmand is nicole's lawyer. mark hooshmand: i think this is a way that landlords are circumventing the rules to maximize their profits. bigad: he ultimately won nicole's case. she won't reveal how much she was awarded, but says no amount of money makes up for being forced out of her home. nicole: it was one of the worst experiences of my life. bigad: nicole says she couldn't afford to stay in the city. she now lives across the bay in alameda, but believes more oversight could have kept her out of court and in san francisco, her home of 15 years. nicole: until the laws are changed to protect us, it's going to continue. announcer: coming up: female: please call the roll. announcer: a major vote to rewrite san francisco's housing laws. bigad: what's at stake here? aaron: what's at stake is people's lives. announcer: and still ahead, then mayor ed lee on san francisco's housing crisis and his own legacy in his final sit-down interview before his death. bigad: was the previous system essentially set up to fail? mayor ed lee: we didn't think people would abuse their own--and use their own families to abuse the system. bigad: in a united and symbolic vote, the san francisco board of supervisors made way for sweeping changes. female: the ordinance as amended passes unanimously on the first reading. bigad: that will soon affect hundreds of thousands of renters and landlords across the city. mark farrell: these reforms take away the incentive to turn a quick buck and put people over profits. bigad: supervisor mark farrell authored the legislation that aims to reduce the number of fraudulent evictions in the city. mark farrell: and i believe we have to do everything in our power to stem the tide of wrongful evictions and to give tenants a fighting chance of staying in our city. bigad: the new law requires homeowners to sign a declaration under penalty of perjury that they intend to move in within 3 months of the eviction and stay there for at least 3 years. landlords will also have to submit an electric bill or voter registration as proof they moved in. aaron: until nbc bay area came along and actually gave us some hard numbers, city hall wasn't doing its job. bigad: supervisors aaron peskin and jane kim helped develop many of the ideas now included in the legislation. they originally pushed their own competing plan, but a board compromise melded their legislation with farrell's. they hope the reforms make it easier for the district attorney to prosecute landlords who evict tenants but never actually move in. aaron: this is now the most expensive place to live in the united states of america, and that has given incentive for speculators to unceremoniously kick people out in any way that they can. bigad: what's at stake here? aaron: what's at stake is people's lives. because san francisco has rent control, there's a profit motive, and so you have landlords who come in, claim that they're going to move in to the unit or move their parents into the unit, but it's just a ruse in order to get a tenant out. bigad: over the past few months, dozens of tenants and housing advocates testified at city hall. female: no one disagrees with the findings of the nbc television investigation, and no one disagrees that these omi evictions have skyrocketed. bigad: crowds even rallied on the front steps of city hall to support reform. female: the nbc story last fall shocked many people, including our political leaders. female: because we need effective legislation. and when do we need it? all: now! bigad: and even if you haven't been kicked out of your home, the new law could impact you too. if you're renting where someone was wrongfully evicted, you're entitled to their cheaper rent for up to 5 years after that eviction. that means some tenants could cut their rent by half or even more. the legislation also allows nonprofits to sue landlords on behalf of tenants who believe they have been wrongfully evicted. mayor lee: there is a housing crisis in san francisco. it's been a crisis in the making. bigad: just 2 months before his sudden death, then mayor ed lee spoke with us during what would be his final sit-down interview. we discussed our investigation and the legacy he hoped to leave after signing the housing reforms into law. mayor lee: we believe that the protections that we're putting in will help seriously curb abuse. bigad: why wasn't anything done before our investigation? mayor lee: i simply think that both the board of supervisors and the mayor's office believed when owners said they had a relative to move in that that was, that's a legitimate reason. based on not only your investigation, but