California and Elk Grove Settle Affordable Housing Lawsuit

The city agrees to build more low-income housing and comply with state oversight after denying a homeless housing project.

Elk Grove must identify a new site for affordable housing with access to key resources by July 2025.
The city will pay $150,000 in legal fees and face increased state monitoring for five years.
The original project was denied in 2022, violating state housing laws aimed at reducing homelessness.
Governor Newsom criticized the city's actions as a hindrance to solving California's housing crisis.
A new 81-unit affordable housing project has been approved at a different location in Elk Grove.