La Casa de la Raza Red-Tagged; Community Rallies to Restore Resources

Historic Santa Barbara Community Center Closed by City Prior to Potential Sale of Property

La Casa de la Raza | Credit: Paul Wellman (file)

Santa Barbara’s historic Eastside community center La Casa de la Raza was red-tagged May 9, just one day before the group that had been operating in the building at 601 East Montecito Street was set to host a Mother’s Day Brunch fundraiser. A big red placard was taped on the front wall, signed by city Inspections Supervisor Michael Rubin, who, following an inspection triggered by a potential sale of the property, found the building to be “unsafe to occupy” due to insufficient egress and unsafe gas and electrical.

The sudden closure of the historic landmark is just the latest chapter in the long and complicated history of La Casa de la Raza, which for years has been mired in legal proceedings, and multiple bankruptcies, plus an often confusing ownership arrangement with the court-appointed trustee of the property, and two nonprofit organizations — La Casa de la Raza and La Casa de la Raza Founders Holding Company — all of which hold a stake in the future of “La Casa.”

La Casa de la Raza has been a hub of Latino culture in Santa Barbara ever since the Chicano Positive Movement bought the Montecito Street property in 1970. But in recent years the aging building lost its luster, and the property became wrapped up in two separate bankruptcy cases, including an involuntary Chapter 7 bankruptcy that led to a temporary shutdown of the building in October 2021.

In the midst of this bankruptcy case, the original nonprofit organization, “La Casa de la Raza,” was legally unable to operate, and a separate nonprofit organization, “La Casa Founders Holding Company,” was created to offer community resources at the building. It was this second nonprofit, La Casa Founders Holding Company, that had revived operations recently with popular concerts, fundraising community events, and on-the-ground immigration resources for hundreds of families.

These immigration resources had become especially vital to Santa Barbara’s Latino community, with organizers holding “Know Your Rights” workshops and connecting families affected by immigration enforcement with legal resources.

But the lurking legal troubles — which involved the trustee of the property, attorney Jeremy Faith; La Casa Founders Holding Company; and the family of the late Tomás Castelo, whose loan to La Casa was at the center of the 2020 foreclosure — erupted last month when the bankruptcy trustee filed an application to employ the Radius Group to sell the property. The building, according to court documents obtained by the Independent, is set to be listed for sale at a base price of $4.3 million, which will be used to pay off the many debtors tied to the case, including former attorneys and employees of La Casa.

Because Radius Group was tasked to sell the property as an uninvolved party, the city was asked to inspect the building. According to a statement from city spokesperson Bryan Latchford, this site inspection was performed on May 7 “to determine if any building and fire code violations existed to inform potential buyers of the property at a bankruptcy auction.”

In the city’s official statement, Latchford said the inspection revealed “code violations that pose significant and immediate safety concerns for occupants of the building,” including insufficient and blocked egress; lack of proper exit signage and hardware; and unsafe, exposed, and unpermitted electrical wiring and gas piping. The combination of these violations, he said, poses a “significant risk to life in the event of a fire.”

A photo of the red tag notice shared by La Casa de la Raza | Credit: La Casa de la Raza on Instagram

Latchford also stated that the historic La Casa de la Raza nonprofit had not operated inside for years. “While the City is aware of several organizations and community groups currently using the facility, the full extent of entities operating within the various areas of the building remains unclear,” the statement said.

Jacqueline Inda, representative of La Casa Founders Holding Company and de-facto director of recent operations inside the building, said the decision to red-tag the building where the community regularly gathered was “deeply disheartening.”

“We are devastated, but we are not defeated,” Inda wrote in a statement posted on social media page. “La Casa de la Raza is not just a building; it is a vital resource for a protected class, a sanctuary that has nurtured, empowered, and protected thousands. And now, it is being ripped from our hands.”

The organization relocated its Mother’s Day Brunch to a downtown restaurant, and Inda said the volunteer team received an outpouring of support from community members who shared their memories of La Casa De la Raza.

At Tuesday’s council meeting, Inda and a group of supporters asked that the city provide clear guidelines on necessary changes and repairs and ensure the survival of what Inda called an “irreplaceable pillar” of the community. She asked that the city find a way to try and save the property.

“For decades, this building has had its problems, but it has also stood for so much more than just a building. It’s a place of refuge, it’s a place of finding strength, it’s a place of childhood memories, and it’s a place of creativity for the most voiceless in our community,” she said. “Given the opportunity, we can make it safe again.”

The city’s official response, issued prior to Tuesday’s council meeting, said that the city was taking “immediate action to minimize disruption to the community” and “offering support to community groups and tenants who may be affected by this closure.”

“The city understands that this facility is used as a resource center for undocumented families and acknowledges the heightened concern among our immigrant and Latino communities related to official enforcement actions,” Latchford wrote in the statement. The city also offered to help cover any facility fees caused by the relocation of the Mother’s Day Brunch.

Attorneys involved in the bankruptcy case were unable to respond to requests for comments in time for publication, though associates with the trustee’s office confirmed that all interested parties were working on a settlement to the years-long Chapter 7 bankruptcy case.

Sources close to the original La Casa de la Raza group — which has been working with the Law Firm for Non-Profits — also confirmed that the nonprofit was ruled to be in good standing by Judge Colleen Stern in February 2025. As a result, the group can now legally receive funds, and it will be working to restore services as soon as the bankruptcy and related litigation is resolved. It is uncertain how long the building will remain inaccessible to the public, or where community resources will be offered in the interim.

City councilmembers were limited in their ability to respond to general public comments Tuesday, but Councilmember Oscar Gutierrez, Councilmember Kristen Sneddon, and Eastside district representative Wendy Santamaria all shared brief comments in support of restoring community resources at La Casa de la Raza, in whatever capacity possible.

Councilmember Santamaria said, “Although this is a complicated situation, the important thing is to keep a resource alive for the community — whether it’s at that location, whether it’s at another. The resource is important, and you have my commitment on helping keep a resource alive.”