Wednesday, July 30, 2014
YOLO COUNTY NEWS
99 CENTS

City, Neighborhood Partners and Twin Pines reach settlement, forge resolution to DACHA case

By
From page A1 | January 10, 2013 |

After six years of legal back-and-forth, the city of Davis, Twin Pines Cooperative Foundation and Neighborhood Partners LLC have finally reached a binding settlement that globally resolves the dispute over the Davis Area Cooperative Housing Association Wednesday.

Twin Pines, the nonprofit cooperative financier that fronted cash to help start DACHA, and Neighborhood Partners — DACHA’s original developer — each lodged a constellation of lawsuits against the city and DACHA in 2011.

Among other allegations, the two organizations were suing the city and DACHA for misappropriation of public funds, breach of contract, fraudulent transfer, conspiracy and breach of governing documents.

The terms of the settlement, delineated in a press release sent out by the Davis City Manager’s office Wednesday, include that the city will give $315,000 to Twin Pines and Neighborhood Partners, to be split as the two groups see fit.

The payment is to cover the remaining balance on the judgment owed to Neighborhood Partners from its successful lawsuit against DACHA for the illegal termination of its contract with the association in 2009.

Additionally, the settlement stipulates that all other pending lawsuits and claims against the city of Davis, its successor agency and redevelopment Agency, DACHA and its members will be resolved.

“To facilitate the settlement and future policy discussions of affordable housing in Davis, the parties agree to resolve this matter amicably and not to disparage each other about DACHA or to continue to rehash the issues that led to these lawsuits,” the press release said.

“However, the parties will remain able to participate in policy discussions related to affordable housing and cooperative housing and to discuss DACHA on a ‘looking forward’ and ‘lessons learned’ policy basis.”

The settlement goes on to state that the city of Davis will return the $15,000 that Neighborhood Partners paid to the city as part of a recent court ruling.

All parties also will bear their own attorneys’ fees and costs.

In the end, it appears that both the city and the two organizations are breathing a sigh of relief that both cases were resolved before they reached trial in June.

“I’m relieved the parties have settled the matter,” Mayor Pro Tem Dan Wolk said in a statement to The Enterprise on Wednesday. “Now, instead of litigation, we can concentrate our collective energy and resources on what DACHA was fundamentally all about: providing affordable housing to individuals and families in our community.”

Mayor Joe Krovoza added: “I am very pleased and impressed that our current council stepped up to resolve a major issue that blossomed long before our respective elections.”

Louis Gonzalez, attorney for Neighborhood Partners and Twin Pines, said Wednesday that while his clients could have been awarded more, they’re happy to finally reach a resolution on the case as well.

“I think we’re glad to have been able to reach a settlement with the city, which (my clients) have been trying to do for a well over a year,” Gonzalez said.

As for future housing developments, Luke Watkins, co-owner of Neighborhood Partners, said that if the opportunity presented itself he could see working with the city on a new project.

“I (would) look forward to the opportunity to work with the city again, if possible,” Watkins said.

DACHA was created in 2002, as a limited-equity affordable cooperative housing association. Prospective members would pay $20,000 up-front — and then subsequent carrying charges — to join the association and live in one of the 20 homes scattered throughout the city.

The members would receive their money back in full if they chose to leave the cooperative.

In 2005, however, the DACHA board decided to terminate its contract with Neighborhood Partners, which was later deemed illegal in court.

The city, which had refinanced DACHA ’s assets in 2006, making them the lending agency for the association as a result, was forced to foreclose on the 20 homes in 2009 when Neighborhood Partners successfully sued the association for about $332,000.

The city has since bought the homes outright and re-purposed them as affordable rental units, now called the GAMAT Homes. Fourteen of the 20 houses are occupied and each tenant is up to date in rent, according to the city.

The average rent is $1,084 for two-bedroom units and $1,162 for three-bedroom units.

— Reach Tom Sakash at tsakash@davisenterprise.net or 530-747-8057. Follow him on Twitter @TomSakash

Comments

comments

Tom Sakash

Tom Sakash covers the city beat for The Davis Enterprise. Reach him at tsakash@davisenterprise.net, (530) 747-8057 or @TomSakash.
  • Recent Posts

  • Enter your email address to subscribe to this newspaper and receive notifications of new articles by email.

  • .

    News

     
    Family enterprise builds a home for music

    By Elizabeth Case | From Page: A1 | Gallery

     
    Bob Dunning: Poll dancing, direct from Las Vegas

    By Bob Dunning | From Page: A2

    Health premiums rose significantly in 2014

    By The Associated Press | From Page: A2

     
    Mosquito districts sprays tonight

    By Enterprise staff | From Page: A2

    Davis native named a Schweitzer Fellow

    By Special to The Enterprise | From Page: A4

     
    Biggest book sale to date opens Friday at Davis library

    By Enterprise staff | From Page: A4

    Share your love of nature with young wetlands visitors

    By Special to The Enterprise | From Page: A4 | Gallery

     
    Tasting event benefits Yolo Land Trust

    By Lily Holmes | From Page: A4

    Movies in the Park return this fall

    By Enterprise staff | From Page: A4

     
    Tee off for Davis’ continued prosperity

    By Lily Holmes | From Page: A4

    Center for Families hosts Summer Carnival

    By Enterprise staff | From Page: A4

     
    Vintage car show planned this fall

    By Enterprise staff | From Page: A4

    Kiwanis golf tournament supports local agencies

    By Enterprise staff | From Page: A5

     
    Drop off school supplies at Edward Jones offices

    By Enterprise staff | From Page: A5

    Wine-tastings will benefit YCCC

    By Enterprise staff | From Page: A5

     
    DHS Class of ’94 set 20th reunion

    By Enterprise staff | From Page: A5

    Tips, techniques will give you a green thumb

    By Enterprise staff | From Page: A5

     
    Grief support focuses on journaling

    By Special to The Enterprise | From Page: A5

    How the Bockler wasp got its name

    By Kathy Keatley Garvey | From Page: A5 | Gallery

     
    Yolo County CASA seeks volunteer child advocates

    By Enterprise staff | From Page: A7

    UC Davis alumnus hopes to bring amateur radio to Nepal

    By Rachel Uda | From Page: A7 | Gallery

     
    Recycle old paint cans for free

    By Enterprise staff | From Page: A8

    .

    Forum

    Not sure which direction to go

    By Creators Syndicate | From Page: B5

     
    Tom Meyer cartoon

    By Debbie Davis | From Page: A6

    Gravel mining affects us all

    By Letters to the Editor | From Page: A6

     
    Violence as entertainment

    By Letters to the Editor | From Page: A6

    Shocked at vampires story

    By Letters to the Editor | From Page: A6

     
    Paul Krugman: Corporate artful dodgers

    By Paul Krugman | From Page: A6

    Nicholas Kristof: The world’s coolest places

    By Nicholas Kristof | From Page: A6

     
    .

    Sports

    Fiona Buck pushes the limits in para-athletics

    By Felicia Alvarez | From Page: B1 | Gallery

     
    A’s rally to win

    By The Associated Press | From Page: B1

    Morse homers but Giants lose 6th straight

    By The Associated Press | From Page: B1

     
    Nightmare on Ballpark Drive for River Cats

    By Will Bellamy | From Page: B1 | Gallery

    Schaub settles in as Raiders starting QB

    By The Associated Press | From Page: B2

     
    .

    Features

    .

    Arts

    UCD professor Andy Jones named Davis’ new poet laureate

    By Rachel Uda | From Page: A9 | Gallery

     
    Molten art on display at Davis Arts Center

    By Enterprise staff | From Page: A9

     
    Brady earns top honors at State Fair

    By Enterprise staff | From Page: A9

    Smither releases new CD Saturday at The Palms

    By Kate Laddish | From Page: A9 | Gallery

     
    RootStock kicks off ‘Día de Albariño’

    By Enterprise staff | From Page: A9

    Folk musicians will jam in the Arboretum

    By Enterprise staff | From Page: A9

     
    YoloArts to host a state of change exhibit

    By Enterprise staff | From Page: A9

    .

    Business

    .

    Obituaries

    Calvin D. Rourke

    By Special to The Enterprise | From Page: A4

     
    .

    Comics

    Comics: Wednesday, July 30, 2014

    By Creator | From Page: B6