Residents of the Hines-owned 33 Tehama apartment building in San Francisco sued the Texas-based investor and developer after experiencing flooding in their units relating to a leaking sprinkler system, alleging negligence.

Some 400 tenants were displaced from the building following a major water leak in June and have not returned, according to the San Francisco Business Times.

Along with the accusations of negligence, the lawsuit, which includes 51 tenants, also alleges that Hines breached lease contracts. Damages for the suit have not been specified, but the suit was brought by Cotchett, Pitre & McCarthy LLP.

“Your home is a sanctuary. But the tenants of 33 Tehama were robbed of that safety and comfort,” said Nazy Fahimi, a partner at CPM, in comments to the SFBT. “Hines not only acted negligently in maintaining the building, but also knew that there was a problem before the June 2022 leak occurred, and kept it hidden.

Hines denied the allegations in a statement.

"We have provided our residents with temporary housing and funds for personal expenses. We have also worked tirelessly to repair the building, engaging leading experts to identify and address the building’s mechanical problems," Hines said in its statement.

"We deny the allegations pled in this complaint, and we believe that during the course of pretrial discovery the court and the public will understand the true extent of our efforts to help those that had to leave their homes during these unfortunate and unforeseen events.”

The company was previously cited for a permit violation at the building in August.

Over 20,000 gallons of water flooded the building during the initial leak on June 3, according to Hines’ own estimations, as reported by the SFBT.