Holland & Knight Secures Favorable Settlement for USA Properties Fund in Affordable Housing Litigation
SAN FRANCISCO (June 9, 2026) – Holland & Knight successfully defended USA Properties Fund Inc., the developer of the Hope Way Apartments, an approved affordable housing community in Placer County, California, against litigation brought by Placer Citizens for Neighborhood Rights Inc. (PCNR) to stop the project.
The settlement agreement that ends the litigation was announced on May 15, and it follows Holland & Knight's successful representation of USA Properties Fund to secure entitlements for the project from Placer County.
The settlement allows USA Properties Fund to proceed with the immediate construction of 132 critically needed affordable apartment units, consistent with Placer County's housing element commitments. Under the terms of the agreement, additional development on the property will be deferred for four years while both parties engage in good-faith discussions about possible alternatives for the site.
The agreement establishes a structured process for additional construction beyond the initial phase. USA Properties Fund may elect to construct an additional 23 homes. Alternatively, USA Properties Fund may elect to complete a traffic count after the first 132 homes are leased to verify that traffic is within the scope of prior studies, at which time USA Properties Fund may develop the remainder of the approved project, adding 108 additional homes.
In exchange, PCNR agreed to dismiss its lawsuit and support USA Properties Fund's funding request to Placer County for the first 132 homes.
Holland & Knight Partners Daniel Golub and Will Sterling led the Firm's representation of USA Properties, which included securing project entitlements, appealing the determinations of the Placer County Planning Department, defending the ensuing litigation in collaboration with the county and negotiating the settlement agreement.
The Firm deployed a successful strategy utilizing key provisions of California Housing Element Law, Housing Accountability Act and State Density Bonus Law to secure entitlements for the project. In defending the litigation, Holland & Knight executed a litigation strategy relying on recently enacted litigation streamlining laws to bring the matter to a swift and favorable resolution.
Headquartered in Roseville, California, USA Properties Fund provides a full range of services for community development, including financing, development, construction services, rehabilitation services and property management. The company completed the most affordable apartment units by a California-based developer in 2025, according to Affordable Housing Finance.