California announces settlement resolving Elk Grove’s housing project denial

(The Center Square) - California announced a settlement of its lawsuit with Elk Grove after the city unlawfully denied a proposed supportive housing project for lower-income households facing the risk of homelessness.

“We can’t solve California’s homelessness crisis without creating new housing and supportive services," Governor Gavin Newsom said in a statement. "Elk Grove is not immune to this challenge, and the city’s decision to block these efforts — wasting valuable time and resources — is especially shameful. We expect Elk Grove to follow the law — continued refusal will not be tolerated.”The state filed the lawsuit when Elk Grove denied a 67-unit supportive housing project for failing to meet the city's zoning standards, even though the city previously approved a similar project for market-rate housing."The project would have been located in Elk Grove’s historic district, a high-resource area critical to the state’s goal of providing communities of opportunity for people of all incomes," a release said. "The project would have provided off-site and on-site services to assist residents in maintaining housing and maximizing their ability to live and work in the community."California sued Elk Grove in May 2023 for violating state laws, including Senate Bill 35 and the Housing Accountability Act, along with fair housing laws like the Nondiscrimination in Land Use Law and the Affirmatively Furthering Fair Housing statute.Elk Grove eventually reached a separate settlement agreement with the development to move the project to a different area of the city. However, the city's reason for denying the project was still illegal, created needless delays for people seeking housing, and caused a preventable year-long legal battle, the release said.Elk Grove agreed to be subjected to reporting requirements that monitor its future compliance with California housing law as a part of this settlement. It must also identify more locations for low-income housing development and pay the state $150,000 in legal costs.“This settlement reflects what I’ve said all along: California’s housing laws are not optional. Local governments that violate our laws to deny affordable housing opportunities to Californians will be held accountable,” Attorney General Rob Bonta said. “While I am pleased that this is now behind us and that Elk Grove ultimately approved even more homes for those most in need, the city’s refusal to do the right thing over and over again cannot be swept under the rug. These are not ordinary times. Millions of Californians are struggling to keep a roof over their heads or lack housing altogether. Every local government therefore has both a legal and moral responsibility to help us meet the moment. If other cities believe they are exempt from that task, Governor Newsom, HCD Director Velasquez, and I will continue reminding those cities that they are in the wrong.”Gustavo Velasquez, Director of HCD, said the settlement will help the state provide its people with more sufficient housing.“This is a victory in the state’s efforts to expand the availability of much-needed supportive housing, consistent with California’s strong legacy upholding fair housing rights for people with disabilities and for those experiencing or at risk of homelessness,” Velasquez said. “We are resolute to see that every community in our state affirmatively furthers fair housing and expands integrative communities of opportunities. Our team will work with the City of Elk Grove to ensure this settlement is the first step in a lasting commitment to housing residents in need.”Before the lawsuit was filed, HCD issued a Notice of Violation in October 2022. It warned the city that denying the Oak Rose Apartments would violate state law.Attorney General Bonta sent the city letter on March 16, 2023, urging it to reverse its unlawful denial of the Oak Rose Apartments to avoid legal consequences.One can view the settlement agreement here .