Elk Grove Leaders Face Renewed Scrutiny by Attorney General Bonta Over $10 Million Fair Housing Settlement

A year after Elk Grove agreed to pay a staggering $10 million to Long Beach-based Excelerate Housing for violating state fair housing laws, the costly mistake is back in the spotlight, this time in California Attorney General Rob Bonta’s own words.

In his September 1 weekly newsletter, Bonta highlighted the Elk Grove settlement as a case study of how his office is working to protect Californians struggling with the state’s soaring housing costs. Bonta criticized the city’s repeated refusal to approve a 66-unit supportive housing project for low-income residents at risk of homelessness, saying:

“While we are pleased that Elk Grove ultimately approved even more homes for those most in need, the City’s refusal to do the right thing over and over again cannot be swept under the rug. Every city and county in California has a legal obligation to help solve our homelessness crisis; when localities do not comply with their responsibility to build more housing for Californians, California DOJ steps in.”

The rebuke is a reminder of Mayor Bobbie Singh-Allen and the Elk Grove City Council's failed handling of the Oak Rose project led directly to the lawsuit and multimillion-dollar settlement. Residents note that city leaders not only wasted public money but also undermined the community’s ability to address the housing crisis for those seeking recovery at a time when residents are already being squeezed by high prices.

Bonta’s newsletter framed the case in stark terms: “From groceries to gas, costs seem to be rising and rising … and rising. California DOJ has your back and is committed to protecting California families grappling with the high cost of living.” By pointing to Elk Grove’s missteps, the Attorney General underscored how local political decisions can translate into higher taxpayer costs and fewer housing opportunities.

The settlement, the largest of its kind for Elk Grove and quite possibly in the state, came after Singh-Allen and the council blocked Excelerate Housing’s proposal, despite clear obligations under state law to accommodate affordable housing. The city’s reversal came only after the lawsuit and pressure from the Attorney General’s office, but not before incurring a $10 million penalty that will be borne by Elk Grove taxpayers.

The responsibility does not end with the mayor and council. City Attorney Jonathan Hobbs signed off on the strategy, giving legal interpretations so flawed they collapsed at the first test in court. His “advice” directly contributed to the violation of state housing mandates and cost taxpayers dearly. A competent city attorney should have steered elected officials away from this self-inflicted disaster.

For many residents, the episode has become a symbol of poor and costly leadership at City Hall. Rather than proactively addressing the housing crisis, Elk Grove’s top officials — led by Singh-Allen — fought the very kind of project that state leaders say is essential to solving homelessness.

Now, with Bonta placing the city’s failure back in the public eye via his weekly newsletter, questions remain if Elk Grove’s leadership has learned from the debacle, or whether taxpayers will be left to foot the bill again for decisions that flout state law and prolong the region’s housing challenges.