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Shantel McClendon says she’s tried to play by the rules to keep a roof over the heads of her five kids.

But after a tumultuous two years in which she struggled to keep up with rent payments, secured and lost jobs, and endured a difficult, high-risk pregnancy, McClendon and her children — ages 16 months to 19 years — are facing eviction from their apartment at Valencia Gardens, a public housing complex in the Mission District.

A series of alleged violations of her lease has prompted the property manager to try to kick out McClendon and her children. The John Stewart Co. alleged that McClendon has repeatedly violated her lease and the “house rules” that govern resident conduct at Valencia Gardens. The two sides have tried to reconcile — and a settlement is still possible — but the company said it cannot continue to allow McClendon to break the rules. Signing a lease for subsidized housing means obeying the terms set out by federal and state governments, the company argues.

McClendon’s case is a distressing illustration of how precarious it can be for the city’s low-income families to hold on to their homes and how high the stakes are for people caught in the middle of a housing crisis. For McClendon, the stakes feel uneven: The property manager has little at risk. It could easily fill her three-bedroom apartment with another low-income family, “but I lose everything,” she said through tears after hours of testimony at a trial that began Thursday in San Francisco Superior Court.

Living on the brink of eviction has left her “stressed, with a lot of sleepless nights. I’m worried, I’m scared. I’ve been putting all my effort and then some to comply (with my lease). I don’t feel safe.”

It’s also the second controversial attempted eviction of a Valencia Gardens resident in recent months. Late last year, the John Stewart Co. began eviction proceedings for 18-year-old Terrance Hall from the complex after his grandmother died. The company alleged that criminal activity was taking place in the apartment, though Hall was not accused of participating in it. Hall is still in the apartment, but the eviction proceedings have not been resolved.

At the trial, being heard only by a judge, an attorney for the property management company argued that McClendon was misleading the landlord about her income and how many people lived at her apartment. Information about who’s living in a unit and their income are critical details that help determine the monthly rent for people and families in public housing, laid out by federal and state law.

“If someone has income and is living in the unit and the rent is not properly adjusted, they’re defrauding the U.S. government and the American taxpayer,” said Jack Gardner, president and CEO of the John Stewart Co.

The bulk of the company’s case against McClendon centers on the father of three of her children, Rasheed Loveless. Loveless was a frequent visitor at Valencia Gardens and regularly stayed the night. Mercedes Gavin, an attorney for the John Stewart Co., argued Loveless stayed so often that he would have to sign on to McClendon’s lease or stay away. By law, public housing residents can have visitors stay overnight just 14 times a year, and adding Loveless to the lease would probably have raised McClendon’s rent.

But McClendon maintains Loveless helped to care for her children, a role that became particularly important after a difficult pregnancy. Her baby was in the hospital for a month after she gave birth.

“He was there, watching my kids,” McClendon testified, referring to Loveless. “They needed diapers, they got diapers. They needed milk, he got milk. What was I supposed to do with my kids, let them stay by themselves?”

At the suggestion of the John Stewart Co., McClendon attempted to register Loveless as a live-in aide, which would grant him access to the apartment without having to sign on as a tenant. The application was denied because of Loveless’ criminal history.

He’s currently in state prison, serving a two-year sentence for felony cocaine possession with intent to sell. He pleaded no contest to those charges, according to court records.

Gavin also argued that McClendon was housing two more people in the apartment — in addition to Loveless and five children — because a few pieces of mail she received had other people’s names on them. McClendon denied those claims.

Other alleged infractions that could lead to McClendon and her family’s eviction include claims that Loveless was gambling on the property — in violation of Valencia Gardens’ rules — and that McClendon repeatedly parked her car in red zones. Gavin also accused McClendon of committing insurance fraud, alleging she filed a claim for damage to her car a month after the damage occurred. Engaging in criminal activity would also violate the terms of McClendon’s lease. McClendon’s insurance company paid her claim, and she denied any wrongdoing.

Her attorney, Ryan Murphy with the Eviction Defense Collaborative, argued that McClendon’s alleged infractions don’t justify booting a woman and her five children from their home.

“We have no desire to put anyone on the street, especially a family with young children,” Gardner said in a telephone interview. “That’s why we’ve gone to the lengths we have to provide these opportunities for the household to come into compliance.”

Allowing McClendon to allegedly flout Valencia Gardens’ rules would mean turning a blind eye to violations of federal and state laws, he said. The Department of Housing and Urban Development could punish the property management company by halting subsidies for McClendon’s unit and the IRS could claw back some of the low-income housing tax credits, both of which help to make the unit affordable for low-income people. It could also imperil the company’s ability to work with federal housing officials on future projects.

McClendon’s case will resume Monday in front of Judge Richard Ulmer. If the two sides don’t reach a settlement, Ulmer can either rule from the bench or initiate a jury trial.

“I would still — to this day — would love to see that household come into compliance,” Gardner said, which would probably require stipulating that Loveless sign onto the lease, or remain as a guest — not a de facto resident, as the company contends.

“We’re always ready to talk. We’re working so hard to take people off the street. We’re trying to house people. The irony is not lost on me.”

Dominic Fracassa is a San Francisco Chronicle staff writer. Email: dfracassa@sfchronicle.com Twitter: @dominicfracassa