California Construction News staff writer
A settlement has been reached with the City of Elk Grove, resolving California’s lawsuit for unlawful denial of a proposed housing project for lower income households.
The state’s legal action was filed after Elk Grove rejected a 67-unit supportive housing project saying “it did not meet the city’s zoning standards” despite the city’s recent approval of a similar market-rate housing project. The proposed project was planned for the city’s historic district.
The City of Elk Grove and the developers of the Oak Rose Apartments Project have finalized the terms of a legal settlement agreement that will relocate the permanent supportive housing project out of Elk Grove’s historic district to other city-owned property. The settlement marks a positive step toward addressing critical housing needs.
Under the terms of the agreement, the city will purchase the historic district property located at 9252 Elk Grove Blvd. at the appraised value. Simultaneously, the city will transfer ownership of the city-owned property located at 8484 Elk Grove-Florin Road to the Oak Rose developer (or its affiliated entity) at no cost for the development of permanent supportive housing. This property was purchased specifically for affordable housing.
In a statement, Elk Grove’s Mayor, Bobbie Singh-Allen, emphasized the importance of working together with Excelerate Housing Group – the project developers.
The lawsuit, filed May 1, 2023, accused Elk Grove of violating state laws, including Senate Bill 35 (SB 35) and the Housing Accountability Act (HAA), as well as fair housing laws designed to prevent discriminatory land use practices. The city’s denial led to unnecessary delays for community members in need of supportive housing and sparked a legal battle lasting over a year.
Attorney General Bonta emphasized the importance of upholding housing laws, stating, “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. 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.”
The settlement marks a critical step in California’s ongoing efforts to address its housing crisis and ensure compliance with state housing laws.
Prior to the filing of the lawsuit, HCD issued a Notice of Violation on October 12, 2022, warning the city that its denial of the Oak Rose Apartments violated state law, and Attorney General Bonta sent a letter on March 16, 2023, urging the city to reconsider its unlawful denial of the Oak Rose Apartments or face the legal consequences.
A copy of the settlement agreement can be found here.
