'The city of Elk Grove should have followed the law' A.G. Bonta says as Oak Rose housing lawsuit is settled

At a joint news conference (see video below) this morning, California Attorney General Rob Bonta announced a settlement between the state and the city of Elk Grove over a fair housing lawsuit. That lawsuit involved Elk Grove Mayor Bobbie Singh-Allen and her city council's 2022 denial of the Oak Rose supportive housing.

The lawsuit was filed last year, and the state sought to reverse the July 2022 denial of the 66-unit Oak Rose project in Old Town Elk Grove. The city unsuccessfully argued that the project was inconsistent with the Old Town Special Planning area.

That project would have had 66 units and offered supportive services to people with disabilities and those trying to escape homelessness. The 

"The city of Elk Grove should have followed the law," Bonta said in the announcement.

Part of the settlement included a $10 million taxpayer-funded payout to Oak Rose developer, Long Beach, Calif.-based Excelerate Housing Group, to move the project and expand it to 81 units. The new Coral Blossom project is located on Elk Grove-Florin Road just south of Calvine Road on property the city deeded to EHG. 

"They settled with the developer and thought they settled with us," Bonta said. "We are not the developer."

In addition to moving the original project, the city has agreed to another supportive, permanent, affordable 81-unit project. Bonta stressed that the project has to be in a "higher resource area" of the city.

As a penalty for their illegal behavior, Bonta said Elk Grove has agreed to be under a five year consent like-decree by the California Housing and Community Development.  Also, for the next five years, every housing project will be reviewed, and the city is compelled to report to HCD monthly. 

Also appearing at the announcement, Gov. Gavin stressed the need for every community to address the housing shortage. He noted that Singh-Allen's denial was a project for disabled people.  

"They eventually landed in the right spot," Newsom said

During the announcement, Bonta displayed a book-sized agreement with Elk Grove. That document has not yet been posted on the attorney general's website.

Although Bonta did not immediately identify the location of the "highest resource area" for the additional 66 units, the city recently entered property negotiations for two parcels. 

"We are requiring it to be in a higher resourced area than the original project," he stated. "So it will be surrounded by even more support, job opportunities, educational opportunities, transportation."

Bonta said the project has designation areas, and the city "will have to select one."

One of the parcels is on East Stockton Boulevard just north of Elk Grove Boulevard, the site of the Calvary Church. The other is on Elk Grove-Florin Road north of Elk Grove Boulevard, adjacent to the Elk Grove Unified School District headquarters.

Bonta disputed a reporter's statement that the Old Town activist Singh-Allen aligned with won because the project was moved and not built in the special planning area. The attorney general stressed that the city will now double the number of supportive housing projects while not addressing the movement out of Old Town.

"They didn't want the 66 units built; they are going to get 146, "Bonta said. "You tell me if that worked out for them."

Although Bonta said the city will have to more than double the units from the original 66 proposed at the Oak Rose project, Mayor Singh-Allen will take a victory lap. Singh-Allen, the city, and a small group of vocal Old Town activists prevailed by leveraging a $10 million plus and counting payout to EHG to keep people disabled people out of their cherished Old Town Special Planning Area.    

Wherever that supportive affordable housing unit ends up, even though the city will be compelled to approve, the Mayor and her city council will undoubtedly hear loud objections.