In 1972, city council put a freeze on high-rise developments. Don Vale speculators turned to renovating and reselling their houses as luxury townhouses. So began the "white-washing" of Cabbagetown. Middle class professionals moved into the neighbourhood. Tenants were being evicted.
What are now DACHI houses were at that time part of a group of properties assembled by speculators in the late 1950's, known as the Cowley houses. Being the only cheap housing in the area, evictees from the neighbourhood crowded into these houses, often living in appalling conditions.
On June 28, 1973 the first meeting was held to plan non-profit low-income rental housing in the Don area. By November, DACHI incorporated as a not-for-profit co-operative, and obtained an option to buy the Cowley houses. The plan included the renovation of thirty-six existing houses and the building of eight new houses for low and middle-income families who would be their own landlords, but who would have no equity in the property.
After overcoming substantial opposition by a local property-owners' association, Don Area Co-op was approved for a loan from CMHC, with just six days left before the March 5, 1974 closing date for the purchase.
The delays had been costly. It was decided to sell a vacant lot on Spruce Street and two large houses on Carlton Street, demolish one house on Dermott Place, and convert most of the thirty-three remaining houses to separate flats. Eight new townhouses were to be constructed on the west side of Dermott Place, between Carlton and Spruce.
