SAN ANTONIO

The oldest chapter of Habitat for Humanity has settled a lawsuit against the international organization that it had filed out of concern that the umbrella group would force it to give up a larger percentage of its donations.

In a settlement filed late Thursday, the San Antonio chapter agreed to stay part of the international group for the next three years and will be exempt during that time from any new demands placed on affiliates, including larger fees or tithes.

Habitat for Humanity of San Antonio sued Habitat for Humanity International in January, fearful that a new affiliate agreement being imposed on more than 1,600 U.S. chapters could give the international group the power to force local chapters to give up larger portions of their donations.

Each Habitat chapter operates as an independent nonprofit group, raising money, organizing volunteers and selecting families for low-income housing. The homes, sold to families with no-interest loans, are built mostly by volunteers.

The chapters share the name, grant and training programs, and are asked to give 10 percent of their unrestricted revenues to Habitat affiliates overseas. Restricted donations, which are often given for specific projects, have been exempted from the tithe guideline historically.

The San Antonio affiliate historically has given about 1 percent to the overseas groups, and will be allowed to continue to operate that way under the settlement, even if the international group moves to make the tithe a requirement.

"We feel like we came to a good resolution for both us," said Stephanie Wiese, vice president of development for the San Antonio affiliate. "We'll continue to do exactly what we're doing."

Duane Bates, a spokesman for the international organization, said it has no plans to change the existing affiliate agreement and more than 1,500 affiliates have signed it.

The San Antonio affiliate can leave the international group, based in Americus, Ga., after three years. If it decides to part ways it would eventually have to give up the Habitat name, according to the settlement agreement.

No other lawsuits related to the agreement are pending, though other affiliates also have expressed some concern about the agreements.

Copyright 2008 Associated Press