SACRAMENTO, Calif. — A tentative agreement has been reached between the city of Palm Springs and Black and Latino families who were displaced from a neighborhood in the 1960s. This settlement is valued at $27 million and aims to enhance access to housing for affected families.

This announcement was made on Wednesday, with the city council scheduled to cast their vote on the settlement the following day. The historical background of this displacement has largely been overlooked until recent times, according to lawyer Areva Martin, who represents over 300 former residents and their descendants. Martin noted the significance of reaching this agreement in light of numerous challenges faced during the negotiation process.

While the settlement amount is considerably less than the $2.3 billion initially sought by the families, it does include key components such as $5.9 million earmarked for former residents and their descendants, along with $10 million allocated for a first-time homebuyer assistance initiative and another $10 million designated for establishing a community land trust. Additionally, plans are in place to create a monument that will honor the history of the neighborhood known as Section 14.

The exact compensation each family or individual will receive is still to be determined. Funds directed towards housing assistance will focus on assisting low-income residents in Palm Springs, particularly prioritizing former residents of Section 14 and their descendants.

Mayor Jeffrey Bernstein expressed appreciation for the settlement, stating that the city council feels gratified that the former residents have accepted what they view as a fair resolution to a long-standing issue.

In 2021, the city council formally apologized to the former residents for their displacement from a neighborhood that was once home to many Black and Mexican American families. The current agreement is part of broader discussions surrounding reparations in the state, though progress has been uneven. In September, Governor Gavin Newsom signed a law to apologize for the state’s history of racism and discrimination toward Black residents. However, a proposed bill to create a reparations agency was blocked, and another proposal that aimed to help Black families reclaim wrongfully seized properties was vetoed by Newsom.

Section 14 was a square-mile area located on a Native American reservation, cherished by many Black and Mexican American families. Residents have recounted tragic events during their displacement, including the destruction of homes. A tort claim was filed against the city in 2022, drawing parallels to the historical devastation of Black Wall Street in Tulsa, Oklahoma, though thankfully, no fatalities were reported in connection with the removal of families from Section 14.

Pearl Devers, a former resident of Section 14 who now lives in Palmdale, remarked that the agreement represents a long-overdue recognition of the profound impact the displacement had on families’ lives. She stated, “While no amount of money can fully restore what we lost, this agreement helps pave the way for us all to finally move forward.”