It was founded in 1975 by Latin American and Californian allies in Berkeley, California in response to the 1973 coup d'état in Chile, or golpe de estado.

[3] Since its official founding in 1975, La Peña has become the home, hub and catalyst for dozens of Bay Area communities, offering classes and events rooted in distinct cultural traditions from the Americas and the Caribbean.

Classes include: Puerto Rican Bomba y Plena, Afro-Peruvian cajon and dance, Capoeira Angola from Brazil, Son Jarocho jarana & zapateo from Mexico, Cuban Charanga and Salsa student ensembles, and more.

[5] In the mid 2010s the cafe left La Peña and relocated to Solano Avenue in nearby Albany folding in 2018 due to "personal reasons".

La Peña is a registered 501(c)3 charity with tax exempt status that focuses on promoting the arts, and the building's façade is covered in a Nueva Canción inspired mural.

The space is also used as a fund-raising venue for local causes such as supporting the KPFA radio station and relief efforts in Puerto Rico following Hurricane Maria.