California has reached a settlement with the city of Elk Grove over an affordable housing project. Democratic Gov. Gavin Newsom's administration sued the city last year. They accused it of violating state laws by denying a project to build housing for people who have experienced homelessness. The settlement means Elk Grove, a Sacramento suburb, must identify a new site for affordable housing in an area with good access to educational and health resources. It also must accept more oversight from the state over affordable housing projects. The lawsuit escalated a conflict between the state and local governments over how many housing projects cities should approve and how fast they should build them.
