The City of Sacramento is offering a lifeline to a self-governing homeless camp to keep it from shutting down.

Anthony Prince, attorney for the Sacramento Homeless Union, said under his interpretation of the lease between the city and Merin’s nonprofit, the city cannot close the camp until they give everyone permanent housing. If that does not happen, Prince, who was sued the city in the past, threatened legal action.

Sacramento city manager’s office notified Safe Ground last month that property and occupants must be removed by May 16 as it prepares to close the site.