Attorney General Rob Bonta warns Elk Grove to comply with fair housing laws or legal action will be sought over the rejection of Oak Rose project

Attorney General Rob Bonta warns Elk Grove to comply with fair housing laws or legal action will be sought over the rejection of Oak Rose project
California Attorney General Rob Bonta assert the city of Elk Grove acted with “discriminatory intent” in its denial of a supportive housing project.

Bonta says the city displayed “discriminatory intent”

In a rebuke of the city of Elk Grove today, the California Attorney General’s office asserted that last summer’s rejection of the Oak Rose apartment complex violated state laws, including California Senate Bill 35 (SB 35), the Housing Accountability Act (HAA), and fair housing laws intended to prohibit discriminatory land use practices.

The Elk Grove City Council unanimously rejected that project at their July 27, 2022, meeting. The project developers sought to develop a 67-unit Oak rose apartment complex that would offer supportive social services for individuals transitioning out of homelessness.

The city council justified its decision by saying the project’s location on Elk Grove Boulevard was exempt from state law and SB35 because it conflicted with the city’s Elk Grove Old Town Special Planning Area that banned residential units on the first floor of the project.

Additionally, Mayor Bobbie Singh-Allen and her city council bowed to political pressure from residents in the Old Town area. Many residents spoke at the city council meeting and the planning commission meeting that preceded it and expressed fear about the individuals who might reside at the complex.

In a press release today, Attorney General Rob Bonta said the decision was illegal and the city should reconsider its denial. Additionally, Bonta threatened legal action against the city.

“Confronting and addressing our state’s housing crisis requires all of us – including local governments – working together to increase affordable housing opportunities for those who need it most,” Attorney General Rob Bonta said in the press release. “Too many Californians across this state worry about keeping a roof over their heads, or lack housing altogether. State housing laws are in place to provide all Californians, regardless of income level, the opportunity to access affordable housing and have a place to call home. We’re committed to enforcing the law, and we will not stand idly by in the face of housing discrimination. I urge Elk Grove to reconsider its unlawful denial of the Oak Rose Apartment project or face the legal consequences.”

After last summer’s denial, the California Department of Housing and Community Development (HCD) issued a Notice of Violation, warning the city that the rejection of the low-income housing project violated state housing laws, including SB 35. Elk Grove responded in November, arguing the SPA exempts the city from SB 35 requirement.

The press release also noted the city’s seemingly conflicting standards for two Old Town SPA projects. It highlighted that while the city said the first-floor living units in the Oak Rose project did not conform to the SPA, the municipality approved the Elk Grove Railroad Courtyards Project, which allowed first-floor residential units.

The press release said, “The city found that Railroad Courtyards was consistent with planning standards and completely avoided any discussion of the same use restrictions that it cited in the Oak Rose Project as a reason to deny the project, evidencing discriminatory intent. Second, with the Oak Rose project, the city adopted a strict interpretation of the use restriction, claiming it is an outright prohibition of ground floor residential units, which disproportionately affects low-income persons.”

In response to the attorney general’s letter, the city issued a statement highlighting affordable projects Elk Grove has endeavored and its commitment to fair housing. Mayor Bobbie Singh Allen also pushed back on the attorney general’s assessment.

“We reject the notion that Elk Grove is engaged in unlawful discrimination,” Singh-Allen said in the statement.

The city’s statement also asserted the applicant for the Oak Rose project, Long Beach-based Excelerate Housing Group, has not responded to overtures to find an alternate site in Elk Grove.

Interestingly, three of the city council members at the time of the denial were on the November ballot. Those council members included Stephanie Nguyen, who successfully ran for California State Assembly, Pat Hume, who won his seat on the Sacramento County Board of Supervisors, and Singh-Allen was reelected mayor.

Nguyen and Hume were in tight races, and their rejection of the project may have helped their campaigns with Elk Grove City Council District 2 voters.

Given California’s ongoing housing crisis, the state government has increasingly scrutinized local land-use decisions related to SB 35 and affordable housing in general. The attorney general’s office recently sued the southern California City of Huntington Beach for violating affordable housing rules.

The letter received by Singh-Allen concluded by saying, “We urge the city to reconsider the project in light of the HCD’s legal analysis set forth in this letter. If the City does not make efforts to remediate its actions within 30 days, this Office is ready to enforce California’s laws in court.”

The letter can be viewed here.