Governor Gavin Newsome | Twitter Website
California has held Elk Grove accountable for the city’s denial of a supportive housing project in violation of state law. Today, Elk Grove has agreed to a settlement with the state requiring the city to undergo additional state monitoring, identify and rezone a new site for affordable housing development in a high-resource area, and pay the state’s attorneys’ fees.
SACRAMENTO – California Governor Gavin Newsom; Attorney General Rob Bonta; Business, Consumer Services, and Housing Agency Secretary Tomiquia Moss; and California Department of Housing and Community Development (HCD) Director Gustavo Velasquez today announced a settlement with the City of Elk Grove resolving California’s lawsuit against the city for its unlawful denial of a proposed supportive housing project for lower-income households at risk of homelessness.
“We can’t solve California’s homelessness crisis without creating new housing and supportive services. 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,” said Governor Gavin Newsom.
The state filed the lawsuit after the city of Elk Grove, facing NIMBY pressure, denied the 67-unit supportive housing project on the basis that it did not meet the city’s zoning standards, despite recently approving 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 providing communities of opportunity for people of all incomes. 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.
On May 1, 2023, California sued the city for violations of state laws including Senate Bill 35 (SB 35), the Housing Accountability Act (HAA), fair housing laws intended to prohibit discriminatory land use practices such as Nondiscrimination in Land Use Law, and Affirmatively Furthering Fair Housing statute (AFFH).
Although Elk Grove ultimately reached a separate settlement agreement with developers to move the project elsewhere within Elk Grove, its initial basis for denying it remains unlawful. This created unnecessary delays for community members seeking supportive housing and resulted in over a year-long legal battle that could have been avoided had Elk Grove approved it according to state law.
As part of today’s settlement with the state, Elk Grove agrees to reporting requirements monitoring future compliance with state housing law. The city must also identify an additional site for low-income housing development and pay $150,000 in attorneys’ fees and other 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 will be held accountable,” said Attorney General Rob Bonta. “While I am pleased this is now behind us...the city's refusal cannot be swept under the rug.”
“California needs broad-spectrum solutions addressing decades of inaction,” said Business Consumer Services & Housing Agency Secretary Tomiquia Moss. “This agreement reaffirms working together at all levels...to provide dignified options Californians deserve.”
“This is a victory expanding much-needed supportive housing consistent with fair rights,” said HCD Director Gustavo Velasquez. “We are resolute every community furthers fair integration opportunities.”
Prior to filing suit HCD issued an October 12th Notice warning Oak Rose Apartments' denial violated law; AG Bonta sent March 16th letter urging reconsideration or face consequences.
A copy can be found here.
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