California Attorney General Rob Bonta, Governor Gavin Newsom, California Department of Housing and Community Development (HCD) Director Gustavo Velasquez, and California Business, Consumer Services, and Housing Agency (BCSH) Secretary Tomiquia Moss announced a settlement with the City of Elk Grove. This settlement resolves the lawsuit filed by the state on May 1, 2023, against Elk Grove for its unlawful denial of a proposed 66-unit supportive housing project for lower-income households at risk of homelessness.
The project was initially proposed as studio apartments in Elk Grove’s historic district by developer Excelerate Housing Group. It was later relocated to city-owned property under a separate settlement reached by Elk Grove and Excelerate Housing Group on February 22, 2024. The supportive housing project will now provide 80 one-bedroom apartments for lower-income households at risk of homelessness.
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. The city must also identify an additional site for low-income housing development and pay the State of California $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...the city’s refusal to do the right thing over and over again cannot be swept under the rug.”
Governor Gavin Newsom commented on the matter stating, “We can’t solve California’s homelessness crisis without creating new housing and supportive services...We expect Elk Grove to follow the law — continued refusal will not be tolerated.”
HCD Director Gustavo Velasquez emphasized that this is a victory in expanding supportive housing availability consistent with fair housing rights for people with disabilities and those at risk of homelessness. He added that HCD would work with Elk Grove to ensure lasting commitment to housing residents in need.
BCSH Secretary Tomiquia Moss stated, “This agreement reaffirms the importance of working together — at all levels of government and community — to provide affordable and dignified housing options that Californians deserve.”
The terms of today’s settlement include:
**Reporting Requirements:** For five years, Elk Grove must provide HCD with copies of any preliminary or full project applications for affordable or supportive housing within 30 days. Monthly reports on proposed projects must also be submitted.
**Additional Housing Site:** By July 1, 2025, Elk Grove must identify a new site for affordable housing in a highest resource area within the city not currently zoned for such development.
**Settlement Payment:** Within 30 days, Elk Grove must pay $150,000 to reimburse legal costs incurred by the California Department of Justice due to the lawsuit.
The Coral Blossom Apartments is an 80-unit supportive housing project for lower-income households at risk of homelessness. The state's lawsuit alleged violations including Senate Bill 35 (SB 35), the Housing Accountability Act (HAA), Nondiscrimination in Land Use Law, and Affirmatively Furthering Fair Housing statute (AFFH).
A copy of the settlement agreement can be found here.