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 the fact that the city had recently approved 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 the state’s goal of 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) and the Housing Accountability Act (HAA), and fair housing laws intended to prohibit discriminatory land use practices, including the Nondiscrimination in Land Use Law and the Affirmatively Furthering Fair Housing statute (AFFH).

Although the city ultimately reached a separate settlement agreement with the development to move the project to another part of Elk Grove, the city’s basis for denying the project remains unlawful, created unnecessary delays for its community members seeking supportive housing, and resulted in the more than year-long legal battle that could have been avoided, had Elk Grove done the right thing and approved the project in accordance with state law.

As part of today’s settlement with the state, Elk Grove agrees to be subject to reporting requirements to monitor its future compliance with state housing law, identify an additional site for low-income housing development, and pay the State $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 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. These are not ordinary times. Millions of Californians are struggling to keep a roof over their heads or lack housing altogether. Every local government therefore has both a legal and moral responsibility to help us meet the moment. If other cities believe they are exempt from that task, Governor Newsom, HCD Director Velasquez, and I will continue reminding those cities that they are in the wrong.”