Is Elk Grove Really In Violation Of State Housing Laws? Lawsuit Will Tell

By Ria Roebuck Joseph | The Center Square contributor, The Center Square California

May 5, 2023

(The Center Square) - On Tuesday May 2, the City of Elk Grove was sued by California Attorney General Rob Bonta, Governor Gavin Newsom, and the California Department of Housing and Community Development alleging that the city’s denial of the Oak Rose Apartment development violate the Housing Accountability Act.

“Our state is in a housing crisis and local governments must do their part to allow for affordable housing options for all members of our communities, regardless of their income level,” said Attorney General Rob Bonta.

The City Council of Elk Grove adopted a plan called Old Town Elk Grove Special Planning Area and set it out in a 75-page vision for the revitalization of the old town district, nothing was left to chance, from landscaping to parking spaces, building heights to paint colors, distance from the street to signage and lighting - you name it, it could be found in the planning guide.

The plan opened with the following statement:

“The visions reflect the community’s aspirations for the future and establish a set of guiding principles against which any future action can be evaluated.”

In 2022, the Oak Rose Apartment project was submitted for development on an empty lot within the area. The project applicant, Peter Enzminger, submitted the proposal under the recently enacted Housing Accountability Act.

Enzminger, according to the City of Elk Grove, “requested relief from the City’s zoning code to allow both office and residential use on the ground floor, with the office use being street facing.” He also requested a "density bonus" pursuant to state law increasing the density from 37 units to 67 units. In a lot just over an acre in size. This would double the density in a space which the city allotted to 30 units per acre.

A statement from Bonta’s office said:

"These fair housing laws prohibit local governments from making land use decisions that are based on discriminatory intent or that have a discriminatory effect.

The lawsuit contends that there is evidence of both in Elk Grove’s decision to deny the Oak Rose Apartments:

• First, the city allowed a market-rate housing development located within the OTSPA, the Elk Grove Railroad Courtyards Project, to move forward despite the presence of ground floor residential units. 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 its denial of the Oak Rose Apartments, evidencing discriminatory intent.

• Second, with the Oak Rose Apartments, the city adopted a strict interpretation of the use restriction, claiming it is an outright prohibition of ground floor residential units, which disproportionately affects the low-income persons who are deprived of that housing.

Oak Grove’s Mayor Singh-Allen responded saying “It is important to remember that the city did not disapprove the Oak Rose Project itself. Rather, the city found that the Project was not eligible for ministerial streamlined approval under (the Housing Accountability Act) because the project did not comply with all of the city’s objective development standards. Specifically, the project did not comply with the city’s restriction of residential units on the ground floor in the city’s Old Town Special Planning Area. The other project referenced by the Attorney General underwent a different, and more traditional review process, under which the city retains greater approval discretion."

A review of Oak Grove’s Planning Staff Report showed that the project met all areas of requirement except its land use which required “pedestrian-oriented commercial uses on the ground floor; residential use only allowed on 2nd or 3rd floor,” and noted Oak Rose Apartments proposed some residential units on the ground floor as well as “resident-serving office spaces in the front of the building and on ground level.”

The planning report reveals that the housing in question is not just a matter of affordable housing for lower-income households at risk of homelessness as expressed by the governor and attorney general. The project applicant Peter Enzminger named HOPE Cooperative as the third-party service provider who will manage the site and services.

Hope Cooperative describes their service as being “dedicated to the independence and empowerment of individuals with psychiatric disabilities and co-occurring substance use disorders including those experiencing homelessness. Our services include intensive case management, supportive housing, life skills education, psychiatric services, therapy, co-occurring substance use treatment, residential support services, opportunities for social connectedness and meaningful activities and crisis intervention…”

“Under my administration, the state has provided unprecedented support, including billions in funding and resources to help guide communities as they work to meet their housing needs. However, when local governments repeatedly fail to uphold their obligations and blatantly look for ways to skirt state law, we will use every tool available, including legal actions to ensure that Californians have access to needed housing,” Newsom said.

"The City of Elk Grove is not a bad actor,” said Elk Grove Mayor Singh-Allen. “Elk Grove has a strong track record for supporting affordable housing projects and continues to engage in good faith discussions with the Oak Rose Apartments applicant in hopes of reaching a mutually agreeable solution.”

More than 1,100 new affordable housing units, including permanent supportive housing units, are currently in some form of development in Elk Grove. In February, the city joined developers for the groundbreaking of Poppy Grove Apartments, a 387-unit affordable housing project. Since January 2021, the City of Elk Grove has committed more than $13.4 million in loans for affordable housing projects. The city issued a request for proposals for the development of 7.5 acres, over two sites, for additional affordable housing units and will commit $9 million in local funding towards the projects.

The focus of the work of The Center Square California is state and local-level government and economic reporting that approaches stories with a taxpayer sensibility.