The San Francisco Academy of Art has agreed to settle the lawsuit filed against them by San Francisco's City Attorney after nearly a decade-long dispute. The academy will pay $20 million to the city (over the next five years) for various housing, code, and zoning ordinance violations they committed in San Francisco over the past decade, while the housing crisis was at an all time peak. Additionally, as part of the settlement, the academy will spend nearly $40 million on bringing two of their own buildings into compliance and offering 160 units of affordable housing to seniors.
While the city might be trying to spin this settlement as a positive result, the Academy's attorney made it clear that they would have accepted this same settlement deal without litigation being filed. The academy has 40 buildings across the city and could easily turn quite a nice profit just by serving as a landlord in one of the most expensive cities in the country. The lawsuit alleged that 33 of the 40 buildings owned by the academy in the city were out of compliance. Furthermore, the academy allegedly illegally converted several building they purchased from residential use to commercial use.