
When developers in the California city of Elk Grove pitched two new housing projects last year, the proposals appeared to have much in common: Both would build new housing in a quaint section of the city affectionately known as “Old Town" for its attractive stretch of historic buildings.
One project was for people who could afford to purchase homes at the market rate in a state with some of the most expensive home prices in the nation. The other project was for people who were homeless. City officials approved the market rate project. But the homeless project has stalled as officials in the growing suburb of Sacramento argued it was not eligible to be fast-tracked under a 2017 state housing law.