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California reaches settlement with Elk Grove over affordable housing project

California settles lawsuit with Elk Grove over affordable housing project
California settles lawsuit with Elk Grove over affordable housing project 02:33

ELK GROVE – There's a new legal twist to the fight over housing the homeless in Elk Grove. California announced it reached a settlement with the city that will help get more people off the streets.

In a 45-minute news conference, that included Gov. Gavin Newsom and Attorney General Rob Bonta, it's clear the state is using this case as a precedent to warn other cities that are reluctant to approve affordable housing.

"We shouldn't be here today, it shouldn't have taken this long," Bonta said.

Bonta announced a lawsuit between his office and the city of Elk Grove is now over.

"They had many opportunities to come in compliance with the law and refused to," Bonta said.

The state used Elk Grove as an example of what will happen if cities don't approve more affordable housing.

"We will sue you, we will take you to court, and you will comply one way or another," Bonta said.

The controversy started more than two years ago when developers proposed building an apartment complex for people who are homeless in old town Elk Grove.

That plan was met with strong opposition from neighbors and rejected by the city council.

The state then filed suit, saying the city was not compiling with California's affordable housing law.

"There is no issue that impacts the state in more ways on more days than the issue of housing," Newsom said.

Elk Grove has now authorized a similar project at a new location along Elk Grove Florin Road. 

This legal settlement requires the city to identify another affordable housing site within 10 months.

Elk Grove must also pay the state's $150,000 legal fees and file monthly housing updates with the state.

Housing advocate Jonathan Cook applauds the settlement, saying there is a big need for these types of projects.

"California is about a million units short of housing to meet the needs that we have currently," Cook said. 

"The city is hopeful that in the future the state will work more collaboratively with cities to partner in the development of affordable housing rather than use precious resources in the pursuit of unnecessary litigation," the city of Elk Grove said in a statement.

Elk Grove has also reached a multi-million dollar settlement with the developer.

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