FIRST UNITARIAN UNIVERSALIST SOCIETY OF SAN FRANCISCO’S POSITION ON LITIGATION 

BETWEEN THE CHURCH AND MONTESSORI HOUSE OF CHILDREN

June 27, 2025

 

Montessori House of Children (MHOC), a for-profit corporation, has been a tenant of the First Unitarian Universalist Society of San Francisco, a non-profit corporation, for more than 40 years.  A new lease was negotiated and signed effective July 1, 2024.  Shortly after the new lease became effective, MHOC almost totally stopped paying rent, utilities and property taxes.  As of June 27, 2025, MHOC owed the church approximately $206,000 for rent, utilities and property taxes.  Under California law, commercial tenants are not permitted to withhold rent.  California law provides that if there is a dispute, the commercial tenant’s sole remedy is to sue the landlord for damages.  

 

PENDING EVICTION

On January 24, 2025, the church filed an unlawful detainer action against MHOC.  On April 28, 2025, a San Francisco court granted the church’s motion for summary judgment in the unlawful detainer action.  The court ruled that the lease is terminated and MHOC owes the church $190,000 in base rent.  The court subsequently awarded attorney’s fees to the church related to the unlawful detainer action.  Under California law, MHOC was able to request a certain number of extensions on the eviction date.  The church did not oppose the extensions MHOC requested.  MHOC has no extensions available beyond June 30, 2025.  This means that MHOC will need to vacate the premises no later than July 1, 2025.  If MHOC does not voluntarily vacate the premises, the San Francisco Sheriff will evict MHOC on July 2, 2025.  The church will be seeking a new tenant to occupy the space, quite possibly another preschool that can continue serving our community.  

 

While the church community regrets the impact that an eviction may have on the families whose children are enrolled at MHOC, this crisis is not of the church’s making.  MHOC has been a commercial tenant of the church for over 40 years.  The church depends on rental income from the space occupied by MHOC for more than 15% of the church’s member-approved annual budget.  MHOC has used the church’s space and utilities, and required the church to pay staff to accommodate MHOC’s hours.  MHOC has presumably collected public grants and tuition from its students’ families.  MHOC has done all of this without paying rent, utilities and property taxes for more than 9 months.  It is untenable for a for-profit corporation to force a non-profit church to subsidize MHOC’s profits.  This has had the effect of the church, therefore, needing to make deep cuts in our finances, programs and, potentially, staff.  The church looks forward to partnering in the future with a new tenant that shares the church’s values and provides rental income that supports the church meeting our own financial obligations.  

 

OTHER LITIGATION

On November 12, 2024, the church filed a separate lawsuit against MHOC for money damages.  The lawsuit for money damages will allow the church to collect amounts due under the lease beyond base rent (such as utilities, unpaid property taxes, legal expenses, late fees, and interest - amounts that are substantial and growing).  The money damages lawsuit is expected to go to trial in November 2025.  MHOC filed a cross complaint against the church, an action the church believes is without merit.  The church is tapping our reserves and making other cuts to plug the budget gap, but cannot do this indefinitely.  In order to honor our obligations to our members and community, the church had to aggressively pursue our rights in these legal actions.   

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A LITTLE ABOUT OUR CHURCH

The First Unitarian Universalist Society of San Francisco was formed in San Francisco in 1850.  In our almost 175 years, the Society has had an outsized impact on the City and State. During the Civil War, we were one of the largest and most influential congregations in the City. The Society counted among our members several mayors and civic leaders, which included Leland Stanford and his wife during their founding of Stanford University. Our ministers played a role in establishing the University of California. One of our first ministers, the Rev. Thomas Starr King, is credited with keeping California on the side of the Union, and inspiring Californians to donate over $1 million for humanitarian relief to the US Sanitary Commission, the inspiration for the Red Cross.  

 

The 1889 church building, the third in the church’s history, is a state historic landmark. Our 1969 (also landmarked) UU Center is shared with dozens of important non-profit groups, including the Winter Shelter program of the San Francisco Interfaith Council, of which the congregation was a founding host and member.  Although the congregation numbered over 1000 official members when the center was developed, our present membership of just over 260 endeavors to maintain our large physical plant, to sustain an active outreach to the wider community, and to be a gathering place for larger value-centered endeavors in the City of San Francisco. Twelve-step groups, community choirs, and a political action group for elderly and disabled people are currently among the groups using the church property for their activities.