California settles lawsuit with Elk Grove over affordable housing

California's settlement with Elk Grove mandates the city to enhance its affordable housing efforts, following a lawsuit initiated by Governor Gavin Newsom's administration. The state accused Elk Grove of unlawfully denying a project intended to provide 66 housing units for individuals facing homelessness. This settlement requires the city to identify a new site for affordable housing by July 1, 2025, ensuring it is located in areas with access to essential resources. The agreement also establishes increased oversight from the state over Elk Grove's housing approvals for the next five years, including regular updates on project statuses. Attorney General Rob Bonta emphasized the necessity for compliance with housing laws, criticizing Elk Grove's previous actions as discriminatory and contrary to state regulations. Elk Grove's Planning Commission had previously rejected the housing project, citing zoning standards. However, the city has shown a commitment to affordable housing, having settled another lawsuit earlier in the year and approved an 81-unit project in a different location. Local officials expressed satisfaction with the settlement, highlighting their ongoing efforts in affordable housing development. The state of California faces a significant housing crisis, needing to construct 2.5 million homes by 2030 to meet demand. Governor Newsom pointed out that the legal disputes reflect deeper issues within the state's housing policies, underscoring the urgent need for collaborative efforts between state and local governments to address housing shortages effectively.