New location of Elk Grove affordable housing project released after city, developers settle lawsuit
ELK GROVE - The city of Elk Grove and the Oak Rose Apartments Project developers reached a settlement agreement that will relocate the affordable housing project out of Elk Grove's historic district to city-owned property on Elk Grove-Florin Road.
The Oak Rose Apartments would have been a three-story building with 67 units for low-income people at risk of homelessness on a vacant piece of land along Elk Grove Boulevard in the historic Old Town District.
Many people who live and work in the area opposed the plan and the project was facing a pair of lawsuits.
In 2022, city council members voted to deny the project, saying it did not meet Elk Grove's zoning rules. The developers and California Attorney General Rob Bonta filed separate lawsuits, arguing the denial violated California's law requiring cities to approve affordable housing.
On Friday, the city announced it will purchase the land in the historic district and will also transfer the ownership of the city-owned property at 8484 Elk Grove-Florin Road, near Silverberry Avenue, to the Oak Rose developer.
The city said this property was purchased by the city for affordable housing and is part of the City's Regional Housing Needs Allocation list.
"This settlement underscores our dedication to fostering a partnership with Excelerate, addressing the concerns of our community, and positioning this project for success," Elk Grove Mayor Bobbie Singh-Allen said in a statement.
Singh-Allen said the new site will allow for an improved design with larger units.
Excelerate Housing Group, the project developers, will submit development applications for the new site, the city said. The city will then have until June 30 to accept or deny the project at the Elk Grove-Florin Road site.
The city will also provide a $5 million grant to the project by using funds that are designated to support affordable housing. The grant money will be distributed in phases.
If the city denies the new location, the city will have to pay the developer $2.2 million but both sites will remain with the city.