The proposed price tag for abating the code violations left behind by Sunny Acres founder Dan DeVaul rose by an additional $157,997, bringing the total to a little more than $200,000.
The latest report from the court-appointed California Receivership Group—which is tasked with addressing unpermitted electrical, plumbing, septic improvements, and the accumulated debris on the Los Osos Valley Road property in San Luis Obispo—requested that the SLO Superior Court approve the increased cost estimate.
That Aug. 25 funding request also detailed meetings with well vendors Miller Drilling Company and Filipponi and Thompson Drilling to investigate solutions for one of the three wells on-site. Previous New Times reporting found that Sunny Acres sober living program participants wanted a new well with a water treatment center for reliable drinking water.
The hearing to determine the new funding will continue on Sept. 7.
In June, the court approved an initial amount of $50,000 to jumpstart the cleanup process.
Assistant County Counsel Jon Ansolabehere told New Times that the money comes from third-party lenders who fund it off the “receivership certificate” that acts as a deed of trust.
“In this matter, it looks like [California Receivership Group President Mark] Adams is getting funding from Cathay Bank,” Ansolabehere said. “Typically, these are higher interest loans, and it is not uncommon to have multiple lenders involved.”
The majority of the requested dollars would be committed to a risk assessment of current program participants conducted by the nonprofit Restorative Partners. According to the receiver’s report, Restorative Partners is the only party willing to explore the possibility of buying Sunny Acres.
“The only viable solution to remediate the numerous health and safety violations is to sell the property to a buyer that can not only fix up the property, but can also take on the housing and managing of a sober living facility,” the report read.
Other costs pertain to environmental assessment, cleanout, field operation expenses, loan fees, appraisal estimate, a 10 percent contingency fee, and the receiver’s outstanding and future fees.
But DeVaul and his attorney, Matt Janowicz, objected to the cost breakdown. They particularly focused on the expenses for Restorative Partners’ involvement with Sunny Acres.
“There is a question of whether all people living on the property are to be evaluated as opposed to people that are part of the program of Sunny Acres,” the Aug. 29 objection said. “It is believed that not all of the people living on the property are part of the program but simply squatters.”
Janowicz added that both he and DeVaul need more time to file a full and more detailed objection. Meanwhile, Ansolabehere rebutted the objections on Aug. 30, and requested the court to reject them.
“This is revisionist history, and the objection fails to appreciate the unique circumstances on the property, which requires a unique approach,” Ansolabehere wrote in response to Janowicz’s statement about Sunny Acres allowing too many people on the property.
He added that the receivership of Sunny Acres is different because it’s not a situation where an individual property owner or a tenant needs to be relocated to clean out a house. Rather, the makeup of the sober living facility involves a number of people recovering from substance abuse—some of whom are registered sex offenders—who would be homeless without proper care.
“They need to be assessed to determine what options the receiver has moving forward and how those options will impact the individual living there,” Ansolabehere’s response read. Δ
This article appears in Sep 7-17, 2023.
Why would any buyer of the property want to run a sober living facility? Unless it is a high-end “celebrity rehab” center, and abandons the mission of housing the homeless, it would be a money losing operation. A buyer will be contemplating a more lucrative use. Ironically, by demanding that the Sunny Acres meet the housing standards imposed, the county will be putting the homeless back into the far worse conditions on the street, and defeating their proclaimed effort to house them. The quest for the perfect is the enemy of the adequate.