Under Huddy ownership, the station returned to local news for the first time in several years with the 1993 introduction of Ventura County News Network (VCNN), a separate venture that shared studio space with and aired programming on KADY. The station also became a charter affiliate of UPN when it launched on January 16, 1995, and built more than of microwave links to deliver its signal to all cable systems in the Santa Barbara market. However, Huddy's management became a financial disaster for the television station. Despite promising to offer "the best local news in America", VCNN, unable to rate well due to the way ratings were measured between two media markets in Ventura County and its high costs compared to channel 63's other programs, folded on July 1, 1996. By that time, the station was mired in a string of financial problems. It was behind on rent to Sterling, who had built the station more than a decade prior and still owned the Oxnard facilities, and narrowly avoided eviction in February, only for a court to ratify his right to foreclose on the station a month later for $4 million. Sterling had previously lost a lawsuit earlier for failing to pay monthly rent and a longshot bid at the FCC to have the license transferred back to him. On top of all of this and attempts to sell KADY, Huddy suffered a major heart attack in January 1996.
