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February 09, 2016

Bay Area Church Settles Suit With Housing Charity It Founded

A San Francisco church and the nonprofit it launched nearly 50 years ago to operate an affordable-housing complex have settled a rancorous court fight over alleged plans to sell the complex to market-rate developers, the San Francisco Chronicle reports.

Third Baptist Church filed suit against Third Baptist Gardens last summer, accusing the charity it founded in 1969 of illegally seeking to sell Frederick Douglas Haynes Gardens for a $40 million profit and displace thousands of tenants who receive federal housing subsidies.

The settlement, finalized last week, will usher in a new 11-member board to run the housing organization as a condition for the church dropping the suit. Louise Renne, a former San Francisco city lawyer who represented the church, said the deal ensures the housing project will remain affordable.