The historic La Casa de la Raza building is currently in escrow as an undisclosed buyer intends to purchase the Santa Barbara property.

The building at 601 E. Montecito St. is being sold as part of a settlement in the organization’s bankruptcy case, and the purchase could be completed by the end of the year.

La Casa de la Raza has supported the Chicano community in Santa Barbara since 1971. The group was forced to halt its operations in 2021 due to bankruptcy but announced in August 2025 that it had settled its case.

Once the sale is complete, the organization can resume its previous operations.

Lisa Valencia Sherratt, board president for the organization, said the group was informed of the recent developments in the sale last Thursday.

The identity of the buyer is sealed but will become public upon the official filing of the purchase agreement, price and other records.

The group indicated in 2025 that it hoped to reoccupy the building and resume operations.

A representative of the bankruptcy trustee, Jeremy Faith, confirmed that a buyer is under contract for the property. The estimated timeline for completion of the sale is November or early December.

The Montecito Street building has served as a cultural center for community groups over the years. The building is known for hosting concerts, classes, quinceañeras and more.

The original La Casa group lost the building due to its bankruptcy case, but another group took over the building while the bankruptcy case was ongoing. That second group is not associated with the original La Casa nonprofit group.

In recent years, the second group used the Montecito Street building to organize responses to Immigration and Customs Enforcement raids and support the local immigrant community.

The building was red-tagged by the city in May 2025, and the group was temporarily forced to vacate the premises due to building violations found during a tour of the site.

City staff found issues with the structure’s gas lines, electrical system and entryways.

The red tag was later removed with approval from the city Building & Safety Division and the Santa Barbara City Fire Department.

During a special meeting of the Santa Barbara City Council, the current occupants of the building asked city representatives to consider stepping in to save the property.

Noozhawk reached out to city representatives to see if they are considering participating in the sale but did not receive a response as of Wednesday.

Jennifer Sanchez told the council that they had the opportunity to show that Santa Barbara values community, culture and belonging.

She warned that if the building is purchased by a private entity, it would disappear from the community forever.

“You have the ability to intervene,” Sanchez said. “You have the ability to say that some places are worth protecting, not because of their monetary value, but because of the value to the people who built the city and who continue to call it home.”