Thursday, April 24, 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 | Leave Comment

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

Tom Sakash

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

Discussion | No comments

The Davis Enterprise does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Recent Posts

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

  • .

    News

     
    4-H members get ready for Spring Show

    By Anne Ternus-Bellamy | From Page: A1 | Gallery

     
    Will city move forward on public power review?

    By Dave Ryan | From Page: A1

     
    Obama to Russia: More sanctions are ‘teed up’

    By The Associated Press | From Page: A2

     
    2 pursuits, 2 arrests keep Woodland officers busy

    By Lauren Keene | From Page: A2

     
     
    Youth sports in focus on radio program

    By Enterprise staff | From Page: A4

     
    Rummage sale will benefit preschool

    By Enterprise staff | From Page: A4

    Concert benefits South Korea exchange

    By Enterprise staff | From Page: A4

     
    Conference puts focus on Arab studies

    By Enterprise staff | From Page: A4

    Davis honors ‘green’ citizens

    By Enterprise staff | From Page: A5

     
    Water rate assistance bill advances

    By Enterprise staff | From Page: A5

    Program explores STEM careers for girls

    By Enterprise staff | From Page: A5

     
    Embroiderers plan a hands-on project

    By Enterprise staff | From Page: A5

    Central Park Gardens to host Volunteer Orientation Day

    By Enterprise staff | From Page: A5 | Gallery

     
    Volkssporting Club plans North Davis walks

    By Enterprise staff | From Page: A5

    Hotel/conference center info meeting set

    By Enterprise staff | From Page: A5

     
    MOMS Club plans open house

    By Enterprise staff | From Page: A7

     
    Cycle de Mayo benefits Center for Families

    By Anne Ternus-Bellamy | From Page: A8

    Author to read ‘The Cat Who Chose to Dream’

    By Anne Ternus-Bellamy | From Page: A12

     
    .

    Forum

    Things are turning sour

    By Special to The Enterprise | From Page: B5

     
    The high cost of employment

    By Letters to the Editor | From Page: A6

    High-five to Union Bank

    By Letters to the Editor | From Page: A6

     
    Broken sprinklers waste water

    By Letters to the Editor | From Page: A6

    Three more administrators?

    By Letters to the Editor | From Page: A6

     
    Neustadt has experience for the job

    By Letters to the Editor | From Page: A6

    Here’s a plan to save big on employee costs

    By Special to The Enterprise | From Page: A6, 2 Comments

     
    Davis is fair, thoughtful

    By Letters to the Editor | From Page: A6

    Ortiz is the right choice for Yolo

    By Letters to the Editor | From Page: A6

     
    Tom Meyer cartoon

    By Debbie Davis | From Page: A6

    .

    Sports

    DHS tracksters sweep another DVC meet

    By Enterprise staff | From Page: B1 | Gallery

     
    Another DVC blowout for DHS girls soccer

    By Evan Ream | From Page: B1 | Gallery

    Young reinvents his game to help Aggies improve on the diamond

    By Bruce Gallaudet | From Page: B1 | Gallery

     
    DHS boys shuffle the deck to beat Cards

    By Thomas Oide | From Page: B1 | Gallery

    DHS/Franklin II is a close loss for Devil softballers

    By Enterprise staff | From Page: B1

     
    Baseball roundup: Giants slam Rockies in the 11th

    By The Associated Press | From Page: B2

     
    UCD roundup: Aggies lose a softball game at Pacific

    By Enterprise staff | From Page: B3

     
    Jahn jumps to Sacramento Republic FC

    By Evan Ream | From Page: B8

    .

    Features

    .

    Arts

    Congressional art competition open to high school students

    By Enterprise staff | From Page: A11

     
    Emerson, Da Vinci to present ‘Once Upon a Mattress’

    By Enterprise staff | From Page: A11

     
    Winters Plein Air Festival begins Friday

    By Enterprise staff | From Page: A11

     
    Bach Soloists wrap up season on April 28

    By Jeff Hudson | From Page: A11

     
    .

    Business

    .

    Obituaries

    .

    Comics

    Comics: Thursday, April 24, 2014

    By Creator | From Page: B6