The La Casa de la Raza organization has settled its bankruptcy case, which will allow it to resume operations after the sale of the historic Montecito Street building.

La Casa has served the Chicano community in Santa Barbara since 1971. The group was temporarily forced to cease operations in 2021 under an order from the bankruptcy court.

Board president Lisa Valencia Sherratt said La Casa is in good standing and can resume operations after the Chapter 7 case is fully resolved. A court approved the settlement in July.

The Chapter 7 case includes the sale of the La Casa building, located at 601 E. Montecito St. in Santa Barbara. Once the sale is completed and the organization’s past debts are resolved, Valencia Sherratt said La Casa can restart its operations.

“At that time, the original La Casa org will get to begin providing family resource services and expand from that point, with a clean slate,” she said. “We are hopeful this will happen in the next several months, but we don’t know the exact timing because our services will follow the sale of the building, which we are hopeful to be part of to be able to operate back in our home space once again.”

La Casa plans to provide services to immigrant families and workers who have faced increased pressure from U.S. Immigration and Customs Enforcement.

The group will offer in-person, mobile and remote services as well as food distribution, eviction prevention, help with child support, connecting people to financial services, and providing case management for complex or long-term family needs.

La Casa also plans to bring back the community radio station, KZAA LP FM.

Valencia Sherratt said that as the organization’s capacity grows, its services will continue to expand.  

“This is La Casa’s heart, and we can’t wait to bring back these connections and spaces that make the difference of a lifetime for our local youth who deserve to have La Casa’s Youth Center up and running to support them with all they have to deal with, especially at this time,” Valencia Sherratt said.  

In addition to community support, Valencia Sherratt said the group is working with trusted members of the community in hopes of reoccupying the La Casa building.

The building was not occupied by La Casa at the time of the red tag notice and was being used by another group that was operating out of the property. La Casa has said that the group occupying the building is not associated with it.

The original organization also is legally registered as a 501(c).

The other group is currently operating out of the La Casa building, where it has organized and offered immigration services. The second group began occupying the building after La Casa was forced to freeze its operations and settle the lawsuit.

The status of the current occupants depends on the sale of the building and who owns it after the sale is complete.

The group plans to move out of the building or hopes to work out a deal to stay if the original La Casa group returns to the building, according to Jacqueline Inda, who represents the other group.

Inda said the group, which she calls the Restorative Justice Education Center, was operating out of the building in the absence of the original La Casa.

The La Casa building was red-tagged in May after city officials inspected the building and found issues with the structure’s gas lines, electrical system and entryways.

The red tag since has been removed from the building after a follow-up inspection in July by staff from the City of Santa Barbara’s Building & Safety Division and the Santa Barbara City Fire Department.

Kelly McAdoo, Santa Barbara’s city administrator, said the city is working to help bring the building up to code.

“The city recognizes that community partners rely on this building for important services, and our shared goal is to make sure all spaces are safe for everyone who uses them. We remain committed to open communication, transparency and support throughout this process,” McAdoo said.

Now that the red tag is removed, most of the building is safe to occupy, according to city staff. Two rooms are still under restricted use until renovations and other changes are made.

The two rooms include the Family Service Center and the building’s kitchen. The Family Service Center is fully restricted because of an insufficient number of proper emergency exits. Occupants are also temporarily prohibited from using cooking equipment in the kitchen until they gain approval from the Santa Barbara County Public Health Department.

La Casa’s goal of rebuilding is being helped by a donation of $130,000 from local philanthropists Mischa and Brigitte Seligman. The group won a case in Santa Barbara County Superior Court earlier this year, allowing it to accept the donation.

Valencia Sherratt said La Casa isn’t currently fundraising and is instead focused on rebuilding and maintaining transparency.

“Financially, we are starting over with an inheritance aimed to preserve a safe space in the community once again, and we’re committed to doing everything possible to collaborate with others and help bring people and their indestructible dreams to life, in the very big house we know and love as La Casa de la Raza,” Valencia Sherratt said.