Oak Rose Apartments was a proposed three-story building with 67 units of permanent supportive housing at 9252 Elk Grove Boulevard in Old Town Elk Grove: 66 units for lower-income households at risk of homelessness and one manager's unit. A subsidiary of Excelerate Housing Group submitted a preliminary application on Nov. 21, 2021 and a formal application for streamlined ministerial approval under SB 35 on March 4, 2022. City staff recommended that the Planning Commission deny SB 35 streamlining, the commission denied the application on June 2, 2022, and on July 27, 2022 the City Council denied the developer's appeal, relying on an Old Town Special Planning Area rule that reserves ground floors for commercial uses. On Oct. 12, 2022 HCD issued a notice of violation finding that the denial violated SB 35, the Housing Accountability Act and state fair housing laws. The Attorney General, Gov. Gavin Newsom and HCD sued the city in Sacramento County Superior Court on May 1, 2023, pointing to Railroad Courtyards, a market-rate project in the same planning area that the Planning Commission had approved with ground-floor residential uses on May 5, 2022; Excelerate filed its own suit. On Feb. 22, 2024 the city and Excelerate settled: the city agreed to buy the Old Town parcel, to give the developer city-owned land at 8484 Elk Grove-Florin Road and a $5 million grant, and to pay the developer $2.2 million if it did not approve the project there by June 30, 2024. The Planning Commission later allowed the relocated project, renamed Coral Blossom Apartments, to proceed; the Attorney General's office described it as 80 one-bedroom apartments, and the Elk Grove Citizen reported 66 units. In a settlement announced Sept. 4, 2024 the city agreed to pay the state $150,000 in fees and costs, to five years of reporting on affordable housing applications, and to identify and rezone a site for lower-income housing in a highest resource area by July 1, 2025. Nothing was built at 9252 Elk Grove Boulevard.
Planning Commission · City Council · Court
| Date | Event | What the record shows |
|---|---|---|
| November 21, 2021 | Oak Rose Apartments Application Filed Under SB 35 | Excelerate Housing Group files an application under SB 35 for a 67-unit supportive housing project at 9252 Elk Grove Boulevard in Old Town Elk Grove. SB 35 requires streamlined nondiscretionary approval for qualifying affordable housing that meets objective zoning and design standards. A subsidiary of Excelerate submitted a preliminary application on Nov. 21, 2021 and the formal SB 35 application on March 4, 2022. City staff recommended that the Planning Commission deny SB 35 streamlining. The project is the first in Elk Grove to provide permanent housing and support services for formerly homeless residents. ABC10 Sacramento: https://www.abc10.com/article/news/local/elk-grove/elk-grove-oak-rose-apartments/103-df5022f6-04c0-4f5e-b7be-f5a23a7b215a |
| May 5, 2022 | Market-Rate Project Approved With Ground-Floor Homes | The Planning Commission approves Railroad Courtyards, a market-rate project at 9676 Railroad Street in the same Old Town planning area. The state later cites it as an example of the city allowing ground-floor residential uses that it denied to Oak Rose. Court filing: https://oag.ca.gov/system/files/attachments/press-docs/People%20v.%20Elk%20Grove%20Petition%205.1.23%20-%20FINAL.pdf |
| June 2, 2022 | Planning Commission Denies Oak Rose | On staff's recommendation, the commission denies the application in Resolution No. 2022-19. The developer appeals to the City Council. HCD: https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/HAU/elk-grove-NOV-101222.pdf |
| July 27, 2022 | City Council Denies Oak Rose Appeal | The Elk Grove City Council votes to deny the Oak Rose Apartments application. Stated reasons: density is too high, and the project's ground-floor residential units do not comply with Old Town zoning requiring ground-floor commercial uses. The state will later document that Elk Grove had recently approved a market-rate project in the SAME historic district that ALSO included ground-floor residential — without citing the same standard. The selective application constitutes the core fair housing violation finding. The council acted on July 27, 2022, upholding the Planning Commission's June 2, 2022 denial. Elk Grove Citizen: https://www.egcitizen.com/2024/09/12/505064/city-settles-second-oak-rose-lawsuit |
| October 12, 2022 | HCD Issues Notice of Violation | The California Department of Housing and Community Development issues a Notice of Violation to Elk Grove, warning that its denial of the Oak Rose Apartments violated state housing law — specifically SB 35 and the Housing Accountability Act. HCD notes the city applied standards to the affordable project that were not applied to comparable market-rate development. CA OAG settlement announcement: https://oag.ca.gov/news/press-releases/attorney-general-bonta-newsom-administration-announce-settlement-city-elk-grove |
| March 16, 2023 | AG Bonta Sends Formal Warning Letter | California Attorney General Rob Bonta sends a letter to Elk Grove urging the city to reconsider its unlawful denial of the Oak Rose Apartments or face legal consequences. The city does not act. CA OAG: https://oag.ca.gov/news/press-releases/attorney-general-bonta-newsom-administration-announce-settlement-city-elk-grove |
| May 1, 2023 | State Sues Elk Grove | California Attorney General Rob Bonta, Governor Newsom, and HCD file suit against Elk Grove for violating: (1) SB 35; (2) the Housing Accountability Act; (3) the Nondiscrimination in Land Use Law; (4) the Affirmatively Furthering Fair Housing statute. The petition is filed in Sacramento County Superior Court. Excelerate Housing Group files its own suit. Elk Grove votes in May 2023 to fight the AG's legal action. CA HCD: https://www.hcd.ca.gov/about-hcd/newsroom/governor-newsom-and-attorney-general-bonta-announce-settlement-resolving-elk-groves-unlawful-denial-of-housing-project |
| September 27, 2023 | City Staff Recommends Approval — Council Postpones Instead | The Elk Grove City Council holds a reconsideration hearing for the Oak Rose project. City staff recommends approval, citing the risks of continued litigation. The developer does not attend the meeting. After hours of public comment, the council postpones the vote and directs staff to find an alternate site. State continues its lawsuit: "California is full speed ahead with lawsuit against Elk Grove after postponed housing vote." Sacramento Bee: https://www.aol.com/california-ag-lawsuit-coaxes-elk-120000322.html |
| October 11, 2023 | Second Postponement — Negotiations Continue | The Elk Grove City Council holds a second reconsideration hearing for the Oak Rose project. Excelerate Housing Group again does not attend, citing ongoing good-faith negotiations. The council postpones again. Negotiations between the city and developer continue in the background. ABC10 Sacramento: https://www.abc10.com/article/news/local/elk-grove/oak-rose-apartments-elk-grove/103-54bc77ea-65ab-4a26-84db-fed57664f3fa |
| February 22, 2024 | City and Developer Settle — Project Relocated to Elk Grove-Florin Road | Elk Grove and Excelerate Housing Group announce a settlement. The Oak Rose project is relocated from 9252 Elk Grove Boulevard (Old Town Historic District, high-resource area) to 8484 Elk Grove-Florin Road (commercial arterial, lower-resource area). The city: transfers the Elk Grove-Florin Road property to Excelerate; provides a $5 million grant to the project; purchases the Elk Grove Boulevard site. In the event the city later denies the new location, it must pay Excelerate $2.2 million. The state lawsuit remains pending. City of Elk Grove: https://elkgrove.gov/news/city-elk-grove-resolves-legal-dispute-oak-rose-apartments-project-developers |
| September 4, 2024 | State Settlement: City Pays $150,000, Agrees to Monitoring and a New Site | California Governor Newsom, AG Bonta, HCD, and BCSH announce a settlement with Elk Grove resolving the state lawsuit. Terms: (1) Elk Grove pays $150,000 in state attorneys' fees; (2) undergoes reporting requirements for future compliance monitoring; (3) must identify and rezone a site for lower-income housing in a highest resource area by July 1, 2025. Governor Newsom calls the city's decision "especially shameful." CA OAG: https://oag.ca.gov/news/press-releases/attorney-general-bonta-newsom-administration-announce-settlement-city-elk-grove |
| Date | Body | Action | Vote | Staff rec. | Source |
|---|---|---|---|---|---|
| June 2, 2022 | Planning Commission | denied | — | Deny | HCD notice of violation: https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/HAU/elk-grove-NOV-101222.pdf |
| July 27, 2022 | City Council | appeal rejected | — | Unknown | California Attorney General: https://oag.ca.gov/news/press-releases/attorney-general-bonta-newsom-administration-file-lawsuit-challenging-elk-grove |
| May 1, 2023 | Court | lawsuit filed | — | Unknown | California Attorney General: https://oag.ca.gov/news/press-releases/attorney-general-bonta-newsom-administration-file-lawsuit-challenging-elk-grove |
Rating 3 of 5. Multiple sources, including at least one primary record. Corrections: https://whokilledthebuilding.com/corrections.