California Gov. Gavin Newsom’s administration has settled a lawsuit with the Sacramento suburb Elk Grove over the denial of an affordable housing project, which allegedly violated state laws.
The settlement requires the city to build more affordable housing for residents at risk of homelessness by identifying a new site for affordable housing in an area with good access to economic, educational and health resources by July 1, 2025.
The big picture: The state will have more oversight over Elk Grove’s approval of affordable housing over the next five years, including regular updates on the status of proposed projects, to ensure compliance with state housing laws.
- The legal battle between Elk Grove and the state of California escalated the growing conflict between the state and local government over how many housing projects cities should approve and how fast they should build them.
- The California Department of Housing and Community Development estimates the state needs to build 2.5 million homes by 2030 to keep up with demand.
Driving the news: The lawsuit alleged that Elk Grove violated state laws targeting housing projects and banning local governments from making discriminatory decisions by denying a project to build 66 units in an area known as Old Town for residents who had experienced homelessness.
- Under the settlement, Elk Grove has agreed to pay the state $150,000 in legal fees.
- Elk Grove has settled another lawsuit earlier this year over the project in Old Town, called the Oak Rose Apartments, and approved an 81-unit affordable housing project in a different location.
- The settlement with Elk Grove comes amid the state’s growing housing crisis and Newsom’s push to address homelessness by temporarily withholding funding from local governments he said had failed to reduce it effectively. The state has also sued the Southern California city of Huntington Beach over ignoring state housing laws.
What they’re saying: “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,” said Attorney General Rob Bonta. “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.”
- Bonta continued, saying every local government has a legal and moral responsibility to provide housing.
- “We can’t solve California’s homelessness crisis without creating new housing and supportive services,” Newsom said. “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.”
- Elk Grove officials were happy with the settlement.
- “Elk Grove is proud of the role it has played as a leader in the development of affordable housing in the region,” the city said in a statement. “The City is hopeful that in the future the State will work more collaboratively with cities to partner in the development of affordable housing rather than use precious resources in the pursuit of unnecessary litigation.”
