A settlement has been reached between a Sacramento suburb, Elk Grove, and California Governor Gavin Newsom’s administration, following a lawsuit that alleged Elk Grove unlawfully denied an affordable housing project. The agreement mandates Elk Grove to designate a new location for affordable housing that provides easy access to economic, educational, and health resources by July 1, 2025. Over the next five years, the state will have increased oversight on the city’s approval of affordable housing, requiring regular updates on proposed projects.
Attorney General Rob Bonta emphasized the importance of adhering to housing laws, stating that cities must comply with regulations and that any attempts to circumvent them, as Elk Grove did, will be met with accountability by the Department of Justice. The lawsuit against Elk Grove claimed the city violated state laws by rejecting a 66-unit housing project in an area known as Old Town meant for individuals who had experienced homelessness. This denial was argued to be in violation of laws that aim to facilitate housing projects and prevent discriminatory decisions by local governments.
The legal dispute underscores the ongoing conflict between the state and local governments regarding the approval and pace of housing projects. Governor Newsom had temporarily withheld funding from municipalities in 2022 for failing to sufficiently address homelessness. Notably, Newsom’s administration has also sued Huntington Beach in Southern California for allegedly disregarding state housing laws. As part of the settlement, Elk Grove is required to reimburse the state $150,000 for legal fees.
Elk Grove officials expressed satisfaction with the settlement, highlighting the city’s commitment to affordable housing development. The city hopes for more collaborative efforts from the state in future housing initiatives rather than resorting to litigation. Elk Grove previously denied the housing project in 2022, citing violations of city standards for that specific area. However, the city settled a separate lawsuit earlier this year concerning the Oak Rose Apartments project and approved an 81-unit affordable housing development in a different location.
California is facing a housing crisis, with the Department of Housing and Community Development estimating a need for 2.5 million homes by 2030 to meet demand. Governor Newsom emphasized that addressing the housing crisis is crucial for the state, describing it as “the original sin” in California.
