Friday, August 22, 2014

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

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 or 530-747-8057. Follow him on Twitter @TomSakash



Tom Sakash

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

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

  • .


    No easy task: History buffs still trying to save building

    By Dave Ryan | From Page: A1 | Gallery

    DHS musicians back from summer in Italy

    By Jeff Hudson | From Page: A1 | Gallery

    City to overhaul its sprinkler heads, other water-wasters

    By Dave Ryan | From Page: A1 | Gallery

    Davis indecent-exposure suspect pleads no contest

    By Lauren Keene | From Page: A2

    Not-guilty plea entered in Woodland homicide case

    By Lauren Keene | From Page: A2

    Russian aid convoy reaches war-torn Luhansk

    By The Associated Press | From Page: A2

    Yolo County golf tournament enters fourth year

    By Special to The Enterprise | From Page: A3

    Putah Creek Council appoints new executive director

    By Elizabeth Case | From Page: A3

    Communitywide ice bucket challenge on Sunday

    By Anne Ternus-Bellamy | From Page: A3

    Parents’ Night Out features Vacation Bible School

    By Enterprise staff | From Page: A3

    Afternoon tours of city wetlands resume Sept. 6

    By Special to The Enterprise | From Page: A3 | Gallery

    Prunes take center stage at last agri-tour of the summer

    By Special to The Enterprise | From Page: A4

    In need of food? Apply for CalFresh

    By Enterprise staff | From Page: A4

    Can you give them a home?

    By Enterprise staff | From Page: A4 | Gallery

    Saylor will meet constituents at Peet’s

    By Enterprise staff | From Page: A4

    Event will unveil mural celebrating food justice

    By Enterprise staff | From Page: A4

    Wolk bill would require reporting of water system leaks

    By Special to The Enterprise | From Page: A5

    Writing couple stops at Davis bookstore

    By Special to The Enterprise | From Page: A5 | Gallery

    Explorit: Final Blast show returns for second year

    By Lisa Justice | From Page: A5

    Record drought saps California honey production

    By The Associated Press | From Page: A6

    World travelers

    By Special to The Enterprise | From Page: A8

    Seniors set to stroll through Arboretum

    By Enterprise staff | From Page: A9



    Weightlifters causing a racket

    By Creators Syndicate | From Page: B5

    No support for militarization

    By Letters to the Editor | From Page: A10

    A better use for this vehicle

    By Letters to the Editor | From Page: A10

    Police are our friends, right?

    By Letters to the Editor | From Page: A10

    Wage plan has a big flaw

    By Letters to the Editor | From Page: A10

    Bridging the digital divide with computational thinking

    By Special to The Enterprise | From Page: A10

    Tom Meyer cartoon

    By Debbie Davis | From Page: A10



    Giants win nightcap in Chicago

    By The Associated Press | From Page: B1 | Gallery

    Watts likes what he’s seen in keen Aggie DB competition

    By Bruce Gallaudet | From Page: B1 | Gallery

    Watney and McIlroy struggle at start of The Barclays

    By Wire and staff reports | From Page: B1

    Light-hitting Cats fall

    By Enterprise staff | From Page: B1

    Sports briefs: Big West soccer coaches have high hopes for UCD men

    By Enterprise staff | From Page: B8 | Gallery





    Rock Band campers perform at E Street Plaza

    By Enterprise staff | From Page: A11

    Natsoulas to host mural conference

    By Special to The Enterprise | From Page: A11

    Yolo Mambo to play free show

    By Enterprise staff | From Page: A11

    ‘If I Stay’: Existential angst

    By Derrick Bang | From Page: A11

    Davis Chinese Film Festival to kick off with 1994 favorite

    By Enterprise staff | From Page: A11



    Car Care: Teenagers not driving safe cars, study shows

    By Special to The Enterprise | From Page: A6

    Car Care: Feeling the summer heat? Your car battery is too

    By Special to The Enterprise | From Page: A7

    Three-wheeled Elio gets closer to going on sale

    By The Associated Press | From Page: A12 | Gallery





    Comics: Friday, August 22, 2014

    By Creator | From Page: B6