Lawsuits against McCormack Baron Salazar have come from tenants, state attorneys general, and the U.S. Department of Justice, focused mostly on habitability failures at properties the St. Louis-based developer built or managed through federal public housing redevelopment programs. The cases span San Francisco, St. Louis, New Orleans, and Atlanta, and involve allegations ranging from mold and pest infestations to disability-access violations at eight federally subsidized properties. Most have ended in settlements, consent orders, or dismissal; one prompted the firm’s departure from a San Francisco complex it had owned for more than two decades.
Plaza East Tenant Lawsuits in San Francisco
The most extensively litigated property is Plaza East, a 193-unit public housing complex in San Francisco’s Western Addition that McCormack Baron Salazar redeveloped in 2000 and 2001. Five separate lawsuits were filed over conditions at the property beginning in 2011, with tenants alleging uninhabitable living conditions, delayed repairs, and in some cases harassment by staff.1San Francisco Public Press. City, State Records Reveal History of Disrepair, Neglected Problems at Plaza East Public Housing
Conditions documented in city and state records included sewage overflow reported as early as 2006, bedbugs, roach and mice infestations found across multiple units during a January 2016 inspection, black mold, burst pipes, sinking floorboards, and nonfunctional appliances. One tenant’s electricity bill spiked from $35 to $1,000 after faulty sprinklers flooded a unit. By 2021 the property had accumulated 90 notices of violation, including 21 for plumbing and electrical problems, 10 for fire code violations, and six for sanitation issues.1San Francisco Public Press. City, State Records Reveal History of Disrepair, Neglected Problems at Plaza East Public Housing2San Francisco Public Press. Slow, Incomplete Repairs at SF Housing Project Frustrate Residents
The 2021 Tenant Suit
In May 2021, eighteen tenants sued McCormack Baron Salazar, its management affiliate McCormack Baron Management, and the property entity Plaza East Associates in San Francisco County Superior Court. The plaintiffs cited leaking pipes, rotting floors, electrical fires, and pest infestations as “severe health and safety hazards.”3The Real Deal. SF’s Plaza East Housing Project Targeted for Redevelopment Named plaintiffs included Dennis Williams, Danita Flores, and sixteen others.4UniCourt. Ahmad Alaydi et al vs. Plaza East Associates, L.P. et al
The case settled in early 2023 and was dismissed with prejudice that April. One consequence of the settlement was that McCormack Baron Salazar handed day-to-day property management to the John Stewart Company while retaining ownership.4UniCourt. Ahmad Alaydi et al vs. Plaza East Associates, L.P. et al5Mission Local. SF Plaza East Public Housing Property Manager
Emergency Repair Loan and the Firm’s Exit
San Francisco granted McCormack Baron Salazar a $2.7 million emergency repair loan in April 2021 covering sewage, electrical panels, fire alarms, appliances, and streetlights. Progress was slow: five months in, only $476,000 had been spent, and by September 2021 just 32 of a projected 56 units had been fully repaired. HUD denied an application to demolish and rebuild that year, ruling the property did not meet cost-threshold requirements for reconstruction over repair.2San Francisco Public Press. Slow, Incomplete Repairs at SF Housing Project Frustrate Residents
By 2025, McCormack Baron Salazar moved to exit Plaza East entirely. A key investor stepped aside in October 2024 and the previously tapped development partner Strada Investment walked away. Firm president Vincent Bennett wrote to the Housing Authority that redevelopment “has not occurred” and that withdrawal was “in the best interests of the Project and its residents.” HUD approved the departure and the San Francisco Housing Authority assumed full ownership, making Plaza East the only subsidized housing development in the city solely owned by the Housing Authority rather than a private firm.6Mission Local. Future of S.F. Public Housing Where Breed Grew Up in Doubt After Developer Pulls Out
A second group of 28 tenants later sued the John Stewart Company, alleging harassment, negligence, and rent charged for uninhabitable conditions, including ongoing mold, sewage seepage, and lack of security. Those tenants are seeking unlimited damages. The John Stewart Company exited the property at the end of July 2025 and was replaced by Bell Properties the following month.5Mission Local. SF Plaza East Public Housing Property Manager6Mission Local. Future of S.F. Public Housing Where Breed Grew Up in Doubt After Developer Pulls Out
Missouri Attorney General Suit Over Clinton-Peabody
In August 2018, Missouri Attorney General Josh Hawley sued the St. Louis Housing Authority and McCormack Baron Management over conditions at the Clinton-Peabody public housing complex in St. Louis. The complaint alleged violations of the Missouri Merchandising Protection Act and accused the defendants of creating a “public nuisance” through “intolerable” conditions, including pest infestations, mold, and structural problems.7LPM. Beecher Terrace Developer Accused by Missouri AG of Creating Public Nuisance
Attorney General Eric Schmitt announced a settlement on July 22, 2019. The Housing Authority and McCormack Baron Salazar spent more than $300,000 on remediation, sealing crawl spaces and entry points, replacing 70 exterior doors and 430 door seals, cleaning ductwork in 134 units, and replacing roughly 60 stoves. The settlement, formalized through a consent judgment, also required the Housing Authority to implement software for tracking tenant complaints, hire an integrated pest management staffer, and it included a $19,000 donation from McCormack Baron Salazar to the Deaconess Foundation to fund tenant support at Clinton-Peabody.8St. Louis American. Public Housing Tenants Settle in Suit Against Housing Authority, Property Manager
DOJ Disability Discrimination Case in New Orleans
On September 30, 2022, the U.S. Department of Justice sued the Housing Authority of New Orleans and its private development partners, including McCormack Baron Salazar, alleging violations of the Fair Housing Act and the Americans with Disabilities Act at eight redevelopment properties: Bienville Basin, Columbia Parc, Faubourg Lafitte, Fischer Senior Village, Guste III, Harmony Oaks, Marrero Commons, and River Garden.9U.S. Department of Justice. United States of America v. Housing Authority of New Orleans
The DOJ characterized the accessibility barriers as “egregious,” describing steps at building entries, doors too narrow for wheelchairs, common areas unusable by people with disabilities, mailboxes mounted out of reach, and inadequate interior space for wheelchair users. U.S. District Judge Lance Africk approved a consent order on October 6, 2022, requiring the defendants to retrofit all eight properties at their own expense, pay $200,000 into a settlement fund for affected residents, and pay a $50,000 civil penalty. The order gave three years to retrofit common spaces and 42 months to update residential units. In March 2024, the court granted a motion to disburse settlement funds to individual claimants.10U.S. Department of Justice. Justice Department Resolves Disability Discrimination Lawsuit Against Housing Authority of New Orleans11NOLA.com. HANO Agrees to Extensive Retrofit of Apartments for People With Disabilities; Cost Unknown12CourtListener. United States v. Housing Authority of New Orleans
Brown Wrongful Death Case in Georgia
In March 2016, Sharmaine Brown, as the surviving parent of Jared LaQuan Brown, filed a wrongful death lawsuit against McCormack Baron Salazar, Inc. and McCormack Baron Management, Inc. The case was removed to the U.S. District Court for the Northern District of Georgia and assigned to Judge Orinda D. Evans. McCormack Baron Salazar, Inc. was dismissed by consent in December 2016, and the plaintiff filed a stipulation of dismissal without prejudice in April 2017, ending the case against the remaining defendant. The docket does not specify the property involved or the circumstances of the death.13CourtListener. Brown v. McCormack Baron Salazar, Inc.14PACER Monitor. Brown v. McCormack Baron Salazar, Inc. et al
Heritage Park Receivership in Minneapolis
McCormack Baron Salazar was selected in 1999 as master developer for Heritage Park, a 900-home mixed-income community built on 145 acres of former public housing land in North Minneapolis, and the firm owned 440 rental units across 76 structures on land owned by the Minneapolis Public Housing Authority. As of June 2026, the firm no longer controls the Heritage Park rental housing. The property is under court-appointed receivership, with Certus Financial LLC serving as receiver following a Hennepin County District Court motion filed for the benefit of creditors. The Minneapolis City Council authorized a $500,000 grant in 2025 for life-safety rehabilitation, waiving a standard 30-year affordability extension to speed the work. Low-Income Housing Tax Credit affordability restrictions on the phases previously managed by McCormack Baron Salazar are set to expire between 2033 and 2035.15Insight News. Heritage Park in Court Receivership as MPHA Studies Selling Off Remaining Parcels
Beecher Terrace Complaints in Louisville
No lawsuit has been filed over Beecher Terrace, the $178 million Louisville redevelopment where McCormack Baron Salazar served as housing lead developer, but public complaints have emerged. In April 2026, Louisville Councilman Ken Herndon said residents had been living “without reliable heat in the winter and adequate cooling in the summer” for more than a year and called the situation “unacceptable in a relatively new development,” pressing the Louisville Metro Housing Authority and McCormack Baron for permanent HVAC fixes rather than space heaters and hotel stays.16Louisville Metro Government. Councilman Herndon Calls for Action on Ongoing HVAC Failures at Beecher Terrace Apartments
What the Cases Have in Common
Several patterns repeat across the litigation. Tenants at McCormack Baron Salazar properties in San Francisco, St. Louis, and Minneapolis have reported mold, pest infestations, sewage problems, and long-delayed repairs. Housing authorities have been co-defendants in the largest cases: the Missouri attorney general sued the St. Louis Housing Authority alongside McCormack Baron Management, and the DOJ named the Housing Authority of New Orleans with its private developers. The San Francisco Housing Authority was itself classified as “troubled” by HUD from 2012 to 2015 before the city took it over in 2018.1San Francisco Public Press. City, State Records Reveal History of Disrepair, Neglected Problems at Plaza East Public Housing
Adhi Nagraj, senior vice president at McCormack Baron Salazar, told the San Francisco Public Press in 2022 that the company would address allegations through the legal process, which he said would lead to a “full and accurate assessment of the history and facts involved.”1San Francisco Public Press. City, State Records Reveal History of Disrepair, Neglected Problems at Plaza East Public Housing