Real Estate Investment Company at Center of ‘Moms 4 Housing’ Saga Hit with $3.5 Million Judgment – NBC Bay Area
The California attorney general has issued a $ 3.5 million judgment against Southern California real estate investment company Wedgewood Inc., which owned the Oakland house that was occupied in 2019 by the uninhabited mothers of Moms 4 Housing.
The financial penalty arises from the way the big home swap company is evicting tenants in homes it buys at foreclosures and is not tied to the Moms 4 Housing promotion.
A 2019 NBC Bay Area investigation into Wedgewood’s business practices found that the company operates through an extensive network of more than 100 separate LLCs and has historically been accused of violating Bay Area tenant protection regulations. Wedgewood has operated in at least 28 states, and records from counties across California show the company has been involved in thousands of real estate transactions over the past few years.
“Too many Californians live on the brink of eviction and fear that they and their families might one day be thrown out of their homes,” said Attorney General Rob Bonta. “Although we have strong protections for the tenants of this state, there are still companies that would circumvent the law to make a profit.”
The Attorney General accused Wedgewood of attempting to expedite the eviction process by violating the eviction law on “just grounds” for tenants, failing to provide utility services to existing tenants, and “depriving legitimate tenants of their right to remain on the property under one which have already existed at least or for at least 90 days after the foreclosure. “
In a statement to NBC Bay Area, Wedgewood said it had denied all allegations and fully cooperated in the investigation:
“Following an investigation by the California Attorney General that focused on the conduct from 2011-2015, Wedgewood and the CA attorney general reached a friendly agreement that did not include an admission or determination of liability. Wedgewood fully cooperated with the investigation. Wedgewood denies all allegations made. Ultimately, Wedgewood made the business decision to reach an agreement and continue our ongoing commitment to the revitalization and return of residential real estate to the California housing supply, creating thousands of home ownership opportunities across the state. “
Wedgewood gained fame in 2019 when a gathering of homeless mothers calling themselves Moms 4 Housing illegally occupied a company owned house in West Oakland. Supported by hundreds of activists and community members, the mothers stayed indoors for months until they were forcibly evicted by the Alameda County Sheriff’s Office in 2020. The company later agreed to sell the home to the Oakland Community Land Trust.
NBC Bay Area’s documentary series “The Moms of Magnolia Street,” launched earlier this year, dealt extensively with the stories of mothers.
A new four-part digital-first investigative series from the NBC Bay Area Investigative Unit. Available on NBCBayArea.com and in the NBC Bay Area app on Roku and Apple TV.
If passed in court, Wedgewood owes $ 2.75 million in compensation to tenants who may have been evicted, an additional $ 250,000 in civil penalties, and $ 500,000 in programs that benefit tenants or homelessness in California fight.
The ruling will also require the company to conduct a good faith assessment of the current rental status of tenants, respect local regulations for “just reasons”, train employees in tenant rights, and report regularly to the Attorney General’s office on company compliance.
“As a result of my department’s work, Wedgewood will turn its business model upside down and ensure that tenants of its homes have full legal protection,” said Bonta.
Last month, Bonta announced the creation of a nationwide Housing Strike Force to tackle the California housing crisis.