California has reached a settlement with the city of Elk Grove over an affordable housing project.
California Gov. Gavin Newsom , left, speaks next to Attorney General Rob Bonta during a press conference regarding a settlement with the city of Elk Grove, Wednesday, Sept. 4, 2024, in Sacramento, Calif. – A Sacramento suburb will have to build more affordable housing for residents at risk of homelessness under a settlement announced Wednesday with California Gov.
California’s lawsuit alleged the city broke state laws by denying a project to build 66 units in an area known as Old Town for residents who experienced homelessness. The denial violated laws aimed at streamlining housing projects and banning local governments from making discriminatory decisions, the state argued.
“Elk Grove is proud of the role it has played as a leader in the development of affordable housing in the region,” the city said in a statement. “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.”
Elk Grove settled another lawsuit earlier this year over the project and approved an 81-unit affordable housing complex by the same developer in a different location.
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