California Sues Another City Over Denial of Low-Income Housing Project

California Gov. Gavin Newsom speaks at a news conference in Sacramento, Calif., on March 16, 2023. (Rich Pedroncelli/AP Photo)

California officials are suing the city of Elk Grove for denying a proposed housing project in Old Town Elk Grove, California Attorney General Rob Bonta announced on May 1.

Bonta and Gov. Gavin Newsom’s office are accusing city officials of denying the project and discriminating against low-income families.

The state is seeking legal action to require city officials to approve the project.

Bonta said that to improve California’s housing and homeless crisis, cities and counties throughout the state must “do their part” to assist low-income Californians with affordable housing options.

California Attorney General Rob Bonta speaks at the district attorney building in Santa Ana, Calif., on Sept. 8, 2022. (John Fredricks/The Epoch Times)

“Our state is in a housing crisis and local governments must do their part to allow for affordable housing options for all members of our communities, regardless of their income level,” Bonta said in a statement. “Everyone deserves to have a place to call home. California has critically important laws designed to combat housing discrimination and increase affordable housing opportunities. Today’s lawsuit against Elk Grove sends a strong message to local governments: if you violate fair housing laws, we will hold you to account.”

The Housing Accountability Act (SB 35) became law in 2017 and provides for streamlined ministerial review and approval of qualifying housing development projects.

“If a city does not build enough new housing to meet state-approved goals, then developers can build projects without going through the local government’s normal approval process. Developers would still need to follow some rules, including a city’s housing standards,” the bill states.

Elk Grove Mayor Responds

The Elk Grove housing project was submitted under SB 35 in 2022.

Elk Grove Mayor Bobbie Singh-Allen responded to the lawsuit in a statement.

“It is important to remember that the city did not disapprove of the Oak Rose project itself,” she said. “Rather, the city found that the project was not eligible for ministerial, streamlined approval under Senate Bill 35, because the project did not comply with all of the city’s objective development standards.”

Specifically, the project did not comply with the city’s restriction of residential units on the ground floor in the city’s Old Town Special Planning Area, the mayor said.

The mayor also pointed out that the city had already identified over 30 sites that would be eligible for affordable housing, but the Oak Rose project was submitted for a location that wasn’t on that list.

Newsom has remained supportive of housing projects throughout the state but has also criticized cities for allegedly not complying with the housing project requirements.

“Communities that fail to build their fair share of housing, including those refusing to develop desperately needed affordable housing, will be held to account,” Newsom said in a statement. “Under my Administration, the state has provided unprecedented support, including billions in funding and resources to help guide communities as they work to meet their housing needs. However, when local governments repeatedly fail to uphold their obligations and blatantly look for ways to skirt state law, we will use every tool available, including legal actions to ensure that Californians have access to needed housing.”

The state previously sued the city of Huntington Beach in March and accused its leaders of ignoring state housing laws requiring them to build 13,000 new homes over the next eight years, according to the lawsuit.

State’s Battle Against Local Government

Gustavo Velasquez, director of the California Department of Housing and Community Development (HCD), says the state must hold cities accountable for rejecting the housing project requirements but is willing to assist cities with support to get more individuals into housing as soon as possible.

“Building more affordable housing is the most effective tool to reduce and prevent homelessness—but the City of Elk Grove is blatantly evading fair housing laws and working against solving our housing and homelessness crisis,” Velasquez said in a statement. “HCD is laser-focused on helping all jurisdictions meet their housing goals, but when cities like Elk Grove refuse to do so, we will hold them accountable.”

Dana Trujillo, CEO and president of Excelerate Housing Group, a partner in the proposed Oak Rose Apartments project, said that unsuccessful efforts to approve the project are what led to taking legal action.

“After months of hearings, we exhausted every avenue with the city to get the project approved,” she wrote in a statement to the Elk Grove Citizen. “We had no choice but to ask for the court’s assistance to get this project the green light that it legally deserves.”

“With regard to the attorney general’s actions, we welcome any action or support the state can provide that will allow us to build permanent housing and support for unhoused residents who need it, in Elk Grove and throughout California,” Trujillo added.

The mayor is still hopeful that the housing project can get approved and begin building the Oak Rose apartments for low-income individuals as state and city officials come to a resolution.

“Elk Grove is doing its part to support affordable housing in the region and remains open to working with the state, the developers of the Oak Rose project, and other developers to increase the housing supply and offer a full range of housing options for everyone,” Singh-Allen said.