Placer County affordable housing lawsuit settlement allows development to proceed
.JPG "A rendering shows the Hope Way Apartments, a 240-unit affordable housing project proposed at the intersection of Penryn Road and Boyington Road in Placer County.")
Placer Citizens for Neighborhood Rights Inc. and USA Properties Fund Inc. have reached a settlement ending a legal dispute over Hope Way Apartments, a proposed affordable housing development in Penryn.
The project, a 12-building apartment complex planned at 3130 Penryn Road near Interstate 80, has faced strong opposition in the rural community of about 1,100 residents. Opponents argued the development would nearly double Penryn’s population while increasing traffic, straining local schools and creating concerns about evacuation safety along Penryn Road, the area’s primary evacuation route.
Under the settlement agreement, USA Properties may move forward with construction of 132 apartments but cannot pursue additional units for at least four years, according to a news release from Placer Citizens for Neighborhood Rights.
During that period, USA Properties and Placer Citizens for Neighborhood Rights will participate in good-faith discussions about possible alternatives for the remaining 11.5-acre property, as well as potential roundabout modifications and other public safety improvements.
If the parties cannot reach an agreement on future uses of the property, the settlement establishes conditions for any additional construction. Under those terms, USA Properties must either limit future development to 23 more apartments for a total of 155 units, abandon further development plans, or complete a traffic study after the initial 132 apartments are built and fully leased before pursuing additional construction.
The traffic study will measure vehicle trips to and from the apartment complex and determine whether traffic impacts align with projections submitted to Placer County during the approval process. If traffic exceeds projections by more than 15%, USA Properties must implement mitigation measures outlined in the project application.
As part of the agreement, Placer Citizens for Neighborhood Rights will support a future funding request by USA Properties to Placer County for the project’s first phase. The group also agreed to dismiss its lawsuit filed in Placer County Superior Court.
The dispute followed a lengthy approval process for the development.
In October 2025, the Placer County Planning Commission rejected the proposed 240-unit project. The California Department of Housing and Community Development later warned the county it could violate state housing laws if it denied the project without sufficient legal justification.
The Placer County Board of Supervisors ultimately approved the project in a 3-2 vote. During the meeting, Supervisor Bonnie Gore said the county’s “arms were being twisted by the state” because of potential legal consequences tied to housing law requirements.
Although supervisors approved the project, they rejected a proposed $10.8 million loan to USA Properties Fund after Supervisor Suzanne Jones suggested reducing the number of units as an “olive branch” to the community.
Following the vote, Placer Citizens for Neighborhood Rights sued Placer County, alleging officials violated the California Environmental Quality Act by failing to adequately study wildfire evacuation safety and other impacts before approving the development.
Brian Myers, chairman of Placer Citizens for Neighborhood Rights, said the settlement created additional safeguards for the project.
“PCNR’s Board of Directors wishes to express appreciation to the USA Properties Fund negotiating team, who worked hard to reach this settlement,” said Myers in a statement. “Neither side walked away with all they sought, but PCNR believes we have established checks and balances on this development that would not have occurred without the vigorous community support of this lawsuit.”
Milo Terzich, vice president of development and entitlements for USA Properties Fund, said the agreement allows the project to move forward while addressing community concerns.
