Elk Grove has settled a lawsuit with the state over an affordable housing community the city denied two years ago. It will move forward with a new development aimed at housing people who’ve previously experienced homelessness.
The city initially rejected the 67-unit Oak Rose project on the basis that it didn’t comply with a zoning law that requires new buildings to have a retail space on the ground floor.
California Attorney General Rob Bonta says that move violated a state law that streamlines affordable housing construction.
“Our housing laws are not suggestions. They are not recommendations. They are not optional for your consideration,” he said at a press conference in Sacramento on Wednesday. “They are the law.”
The state sued the city earlier this year, saying it had discriminated against residents with low incomes and disabilities.
Elk Grove officials have denied any wrongdoing.
“The City of Elk Grove is not a bad actor,” Elk Grove Mayor Bobbie Singh-Allen said in a May 2023 news release. “Elk Grove has a strong track record for supporting affordable housing projects.”
The Attorney General and Governor Gavin Newsom announced the settlement with Elk Grove, which requires the city to pay $150,000 in attorney and expert fees. It also puts reporting requirements on the city for future affordable housing proposals.
The city also agreed to build a separate 80-unit building for lower income families in a settlement it reached with the Oak Rose builder earlier this year.
In a written statement, the city of Elk Grove maintained it is proud of its record on affordable housing. It added: “The State’s litigation had no impact on the outcome of that case [the settlement with the Oak Rose builder] and the City is pleased that the State has agreed to settle the matter without significant impact to the City.”
The Newsom Administration has taken legal action against several cities that deny affordable housing construction over the last few years.
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