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Affordable housing developers sue City of Elk Grove over rejected project

Though Elk Grove residents near the proposed apartment complex were relieved to hear it was all off, the would-be developers were less than enthusiastic.

ELK GROVE, Calif. — Two developers behind canceled affordable housing projects in Elk Grove are suing the city and alleging city officials failed to follow California law when rejecting their development proposal.

Radcliffe Preschool & Daycare owner Perry Leonard said he's had concerns about the Oak Rose Apartments since the development was announced.

He's been running the preschool and daycare in Elk Grove for 27 years.

"I think they're trying to pass off an alcohol, drug and mental health center as affordable housing," Leonard said. "This is a place where people jog, they ride their bikes, kids walk to school."

He and other business owners in the area were relieved when city officials rejected the project in July over what they say was a failure to meet a state law meant to streamline housing approvals.

CEO of the development company Excelerate Housing Group, Dana Trujillo says she hopes the court can help them move forward with the apartment complex build.

"Our application for entitlements used SB35 to go through a ministerial approval showing that our project met all of the city's objective development when you take into account the density bonus that we were eligible for," she said.

The lawsuit from Excelerate Housing Group and Hope Cooperative argues Elk Grove failed to follow state laws intended to allow the kind of affordable housing the developers seek.

"This will be an asset to the community and will be well ran," Trujillo said. "I'm hoping we can find a way to resolve this with the city of Elk Grove."

In a statement released Thursday, Elk Grove officials said they received a copy of the lawsuit late Tuesday and a letter from the California Department of Housing and Community Development. Officials said the city's attorney are reviewing the allegations.

“Due to the litigation, we are unable to respond to specific questions; however, the community and those in the region should know that the City of Elk Grove is committed to providing housing options for everyone,” said Elk Grove City Manager Jason Behrmann.

WATCH MORE: Elk Grove residents say 'not so fast' to 67-unit affordable housing site

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