State of California announces settlement agreement with Elk Grove over homeless housing project

There are two press releases below. One was from the city of Elk Grove, and the other was from the state of California regarding the lawsuit over the Oak Rose apartment complex in Old Town Elk Grove.

Earlier this morning Attorney General Bonta and Governor Newsom announced a settlement with Elk Grove regarding the city rejecting the Oak Rose Apartment Complex in the Old Town area of Elk Grove.

That press release is the link below

https://oag.ca.gov/news/press-releases/attorney-general-bonta-newsom-administration-announce-settlement-city-elk-grove

The city of Elk Grove issued its own press release

https://www.elkgrovecity.org/news/city-elk-grove-issues-statement-regarding-legal-settlement-state-over-oak-rose-development

Earlier this year the city settled with Excelerate Housing, the developer of the Oak Rose apartment project. That settlement is expected to cost the city close to $9 million. The new location will have around 80 larger units than the original 66 that were planned for Old Town.

The state’s press release detailed the following terms of the settlement:

  • Reporting Requirements: 
    • For a period of five years, Elk Grove must provide HCD with a copy of any preliminary application or full project application for a housing development that includes affordable or supportive housing within 30 days of receipt of the application. Elk Grove must also submit monthly reports to HCD with the status of proposed housing projects that include affordable or supportive housing. Further, Elk Grove agrees to meet with HCD to discuss the monthly reports. 
    • For a period of five years, any time that Elk Grove disapproves an application for housing development that would include affordable or supportive housing, Elk Grove must make factual findings, with analysis, that the disapproval is consistent with the city’s obligation to affirmatively further fair housing, or put differently, combat historic patterns of segregation and foster more inclusive communities.
  • Additional Housing Site: No later than July 1, 2025, Elk Grove must identify a new site for affordable housing in a highest resource area within the city that has equivalent development capacity to the original location. This new site must not currently be identified in Elk Grove’s housing element for low-income housing development, nor can it be currently zoned to accommodate housing for lower-income households. Highest resource areas provide greater opportunities for children to thrive because they are neighborhoods with the most positive economic, educational, and health outcomes in the region. The state’s Opportunity Map shows the highest resource areas and can be found here. 
  • Settlement Payment: Within 30 days, Elk Grove must provide payment of $150,000 to the California Department of Justice. The payment serves as a reimbursement for the attorneys’ fees, expert fees, and costs incurred by the California Department of Justice as a result of the 2023 lawsuit. 

The original Oak Rose project was scheduled for around 66 units. Under the two settlement agreements, the city will have two projects with just over 140 units.

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