Kawamoto, who gave tenants 30-day eviction notices in February, settled subsequent lawsuits filed against him by the tenants and the Sonoma County District Attorney's Office.

Most of the residents of the 149 units in southwest Santa Rosa have already moved out. Those that remain, about 15 to 20, have until July to leave under an earlier agreement.

Mark Pollock, the tenants' attorney, said the settlement provides for up to two months free rent and the return of the security deposit providing the tenants agree to take no further legal action against Kawamoto.

Kawamoto also will reimburse Sonoma County and Santa Rosa $80,000 in legal fees, has replaced recalled heating furnaces and will make repairs to the homes under the settlement terms, Pollock says.

Residents complained about a mold problem in the homes. Pollock says an industrial hygienist found mold in one of the homes that was acute but not chronic in its toxicity and health effects. He also says he believes the mold complaints prompted Kawamoto to settle the lawsuits, but Kawamoto's attorney Richard Nelson disagreed.

Kawamoto also gave 30-day eviction notices to residents of 420 units in Sacramento. The settlement reached Monday applies only to the Santa Rosa homes. Kawamoto said he wants to sell the units to raise money for another investment.

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