Elk Grove reaches tentative agreement on housing project that prompted AG lawsuit. What’s next?

The City of Elk Grove announced a tentative late decision Tuesday regarding the Oak Rose apartments, a 67-unit permanent affordable housing project that has been the subject of a lawsuit from the state’s attorney general, who said last year that the city broke state law by rejecting the project.

In a memorandum emailed to The Sacramento Bee, officials confirmed that Elk Grove reached a settlement with the project developer, Oak Rose LP, which involves relocating the project to a different site.

“The City has reached a settlement in principle with the applicant for the Oak Rose project, which would involve relocation of the project to an alternative site in the City outside of the Old Town Special Planning Area,” said Elk Grove planning manager Antonio Ablog. “The settlement is not final. The details and formal settlement documents still need to be prepared and finalized.”

Elk Grove officials had requested that City Council reconsider the approval for the Oak Rose apartments, which would be the city’s first permanent housing project for low-income families transitioning from homelessness, during their council meeting scheduled for Wednesday evening.

Ablog, according to the memorandum, said the council expects to take “no substantive action” on the project during Wednesday’s meeting, instead continuing to discuss further details on the matter at the next council meeting on Jan. 24. He said this will provide time for “the finalization of the settlement and settlement documents.”

Elk Grove Mayor Bobbie Singh-Allen wrote on her Facebook page: “After months of negotiations, the city has reached a tentative agreement. This is a positive and encouraging development. I am pleased with the constructive discussions with the applicant which includes a relocation of the project. We are still working through the final details for a formal settlement.”

Elk Grove was sued twice over the Oak Rose debacle. The first lawsuit, by project developer Oak Rose LP, challenged the council’s decision to reject the proposed development in July 2022.

The other suit was brought forth by California Attorney General Rob Bonta last May, alleging that Elk Grove broke state housing law in denying the project last year and repeatedly defied Senate Bill 35, a law that compels cities to expedite affordable housing projects.

In previous meetings on the Oak Rose development in September and October, Elk Grove City Council postponed its decision to announce the next steps the city would take regarding the project.

The Elk Grove City Council is scheduled to meet at 6 p.m. Wednesday 6 p.m, and again on Jan. 24. Elk Grove City Council meetings are open to the public and can be livestreamed from the city’s website at elkgrovecity.org/councilmeeting.