Governor Newsom Sues California City for Denying Homeless Housing – It’s ‘Shameful’

By: Lauren Fokas | Published: Sep 13, 2024

California Governor Gavin Newsom has publicly called one California city “shameful” for its refusal to build much-needed housing for their homeless.

But the governor didn’t stop there. Newsom sued the city of Elk Grove for unlawfully rejecting a homeless housing development, and now, the city is being forced to pay for its decision.

The Homelessness Crisis in California

It’s no secret that the Golden State has been struggling to house and care for its ever-growing homeless population. As of December 2023, the state estimates that nearly 180,000 people were living without housing, which was 6% more than the year before.

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A photograph of dozens of tents within a homeless camp in Santa Cruz, California

Source: Reddit

In fact, more than one of every three people (34%) in the United States experiencing homelessness lives in California. And the state has been working tirelessly to find the best solutions for this ongoing crisis.

Newsom Says New Housing and Supportive Services Are Necessary

Governor Newsom, who has spearheaded the many initiatives to create housing for the unhoused, is adamant there are tangible solutions that will help. Still, individual cities need to get on board.

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California Governor Gavin Newsom gives a speech

Source: @ABC7 News/YouTube

Newsom explained, “We can’t solve California’s homelessness crisis without creating new housing and supportive services.”

The Situation in Elk Grove, California

Elk Grove is a suburban community outside of Sacramento, California. With only 178,000 housed residents, Elk Grove is not a packed metropolis but a small, residential city with ample space for construction.

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An aerial photograph of Elk Grove, California

Source: @Sam Golovey/YouTube

However, even though Elk Grove has the space and the funding to build the necessary low-income housing for its residents experiencing homelessness, the city has outright refused to build them the apartments they so desperately need.

The Oak Rose Apartment Proposal

There was a proposal for low-income housing, specifically for the unhoused population of Elk Grove, called the Oak Rose Apartments.

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A photo of the empty lot proposed for the Oak Rose Apartments in Elk Grove, California

Source: @CBS News/YouTube

In 2021, Excelerate Housing Group proposed a 67-unit low-income development on a vacant lot in a historical neighborhood of Elk Grove near the local homeless shelter. However, the city denied the application.

Excelerate Sued the City of Elk Grove

City officials claimed that they denied the proposal simply because the development was “inconsistent with the character of the historic area.”

A businessman holds out lawsuit paperwork

Source: Adobe Stock

In response, Excelerate sued the city of Elk Grove in 2022, stating that state law required it to approve necessary low-income housing. Then, in 2023, the state of California sued the city as well.

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Elk Grove Needs to Follow the Law

Both Excelerate and the California Department of Justice argued that Elk Grove broke the state’s Fair Employment and Housing Act (FEHA) by denying the Oak Rose Apartments.

Lawmakers meet in Elk Grove, California

Source: Reddit

Newsom said in a statement, “We expect Elk Grove to follow the law — continued refusal will not be tolerated.”

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Shameful Behavior

In addition to breaking the law, Newsom and other California lawmakers have spoken out against the city, saying its behavior was just shameful. Newsom said, “the city’s decision to block [low-income housing]— wasting valuable time and resources — is especially shameful.”

California Attorney General Rob Bonta speaks at a podium

Source: Reddit

And California Attorney General Rob Bonta explained, “These are not ordinary times…the city’s refusal to do the right thing over and over again cannot be swept under the rug.”

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The Court Ruled Against Elk Grove

The courts agreed with Excelerate and the state of California, and the city of Elk Grove lost both cases.

Several $100 bills in a pile

Source: Freepik

The city now has to pay $150,000 in attorney fees and costs and, even more importantly, approve the construction of a new low-income housing complex.

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An Even Bigger Low-Income Complex Has Been Approved

After losing both court cases, the city of Elk Grove approved Excelerate’s second proposal to build an 81-unit low-income complex, Coral Blossom Apartment.

A bulldozer alongside a homeless camp in California

Source: Reddit

AG Bonta commented on the decision: “I am pleased that this is now behind us and that Elk Grove ultimately approved even more homes for those most in need.” And Newsom said, “They eventually landed in the right spot and, ultimately, despite the denial, or rather the delay, we won’t ultimately be denied more units.”

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Elk Grove Responds to the Scandal

Throughout this scandal, Elk Grove has maintained that their denial of the Oak Rose Apartments did not negatively impact the city and that they always planned to approve a low-income housing project.

A photo of the entry sign for Elk Grove, California

Source: Elk Grove

Spokesperson Kristyn Laurence also criticized the state of California for its response, saying, “The city is hopeful that in the future, the state will work more collaboratively with cities to partner in the development of affordable housing rather than use precious resources in the pursuit of unnecessary litigation.”

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The State of California Won’t Allow This to Continue

After the cases were finally settled, Rob Bonta warned other California cities: “You have a duty and obligation to follow the law of the state of California.”

The California flag flying against a blue sky

Source: Shutterstock

He continued, “We will remind you what it is. We hope you will comply when we point that out. But if you don’t, we will sue you. We will take you to court, and you will comply one way or the other.”

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