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City of Elk Grove settles controversial court battle over affordable housing complex

New location of Elk Grove affordable housing project released
New location of Elk Grove affordable housing project released 01:08

ELK GROVE — The City of Elk Grove announced a settlement in a controversial court battle over an affordable housing complex.

Developers had initially proposed to build a 67-unit apartment complex located along Elk Grove Boulevard in the historic old town district that would accommodate low-income individuals. However, there was significant opposition from neighbors, and the city voted to reject the project.

That prompted a lawsuit from the developer and a suit from the California attorney general saying the city is not complying with the state's affordable housing requirements.

Now, a new site has been selected along Elk Grove Florin Road, which is currently vacant land owned by the city.

In a complex legal settlement, the city has agreed to a land swap and will pay the developer more than $7 million to settle the lawsuit.

"This is a win-win situation for not only the developer but of course the City of Elk Grove and our residents," Mayor Bobbie Singh-Allen said. "We believe this new site will deliver a better product."

The City of Elk Grove will now own the property in the old town district. There's no word yet whether or not the state attorney general will drop his lawsuit, but city leaders say they're hopeful it will also be settled.

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