SAN FRANCISCO (KGO) — In San Francisco, where the average rent price is $3,000 to $4,000 per month, renting a sleeping cabin for $700 per month is a good deal.

“I used to live in the Presidio and I was looking for cheaper options just so I could continue to work on the things I wanted and open source projects,” said Ben, one of the residents and entrepreneurs.

The majority of people who live in the building have the same goal; create a technology start-up and succeed. So paying high rents is not part of this equation.

“I’m originally from China, but I just graduated from the University of Illinois at Urbana-Champaign and moved here after graduation,” Ruidi said. “Almost everyone is a founder. They want to achieve something bigger and build something that creates more impact for society.”

Each pod is the size of a twin bed, 4 feet tall with two fans, a mirror and a curtain for privacy.

But after this housing concept went viral in 2023, many here were at risk of losing their housing because the city claimed the people running it didn’t have the proper permits.

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“There was never anything illegal about the modules. It’s just that we didn’t change the use because this building used to be a bank. So we went through this process for about “A year in the meantime, the planning department at one point said we couldn’t list them because people were complaining thinking we were renting illegal accommodation,” said James Stallworth of Brownstone Share. Housing.

For the first time we hear exclusively from James Stallworth with Shared Housing in Brownstonethe company that manages the pods. We took a look inside their building, a place he says almost didn’t survive due to the length of the permitting process in San Francisco.

“We really didn’t have to change anything in the building. If we had to do all sorts of renovations to make it safe, I would have agreed to that. I’m a human and I know we need to provide a safe place to live, but there was no safety issue we really didn’t have to do any construction to improve the building,” Stallworth said.

After more than a year, he is happy that they finally have the correct approval for the pods.

We contacted the San Francisco Building Inspection Department and they confirmed that on September 5, the Planning Department issued “a letter of approval for the sleeping pods.”

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They also asked him to obtain documents for their shower stall and fix the lock on the main entrance.

Contractors who live in the building hope the city will make the permitting process easier.

“It’s affordable and convenient and I think it’s something that strengthens people who do venture capital. If this existed three or four years ago, we probably wouldn’t have lost so many early-stage startups to benefit Austin or Denver or places like that,” Ben said.

Stallworth said they plan to have a larger location in San Francisco despite the year-long permitting process they experienced.

“We’re in the process of opening a place five times bigger. It will open early next year,” Stallworth said.

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The San Francisco Building Inspection Department explained infractions:

“(1) Apply for and obtain a change of use permit with planning approval to legalize the installation of the sleeping modules OR remove and revert to the last known legal condition. 2) Replace the entrance lock before by a type that does not require a key to exit in an emergency within 5 days 3) Apply for and obtain a building permit for the installation of the shower enclosure A separate permit application must indicate that. you must obtain all required inspections to reduce this NOV.

On September 5, 2024, the planning department issued a letter of approval for the sleeping cabins. The Planning Department’s Property Information Map contains information on their determination and the Planning Department would be your best source for detailing the process and timeline behind this determination.

On October 13, 2023, a DBI inspector confirmed that the homeowner had replaced the lock on the front door so that a key was no longer required to exit.

So articles n°1 & 2 have been dealt with, but point no. 3 is pending.

As such, Notice of Violation 202313896 remains unresolved and the associated abatement order issued on April 12, 2024 remains in effect.