Riverside Faces Potential Lawsuit Over Affordable Housing Vote

Nonprofit law firms say city's rejection of state grant funding violates housing laws

Published on Mar. 4, 2026

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Representatives from three nonprofit law firms, including the ACLU, Inland Counties Legal Services, and the Public Interest Law Project, held a press conference urging the Riverside City Council to reconsider its decision to reject $20 million in state grant funding for an affordable housing project. The firms argue the council's vote violated the city's Housing Element plan and fair housing laws, and could leave Riverside vulnerable to legal action and financial consequences.

Why it matters

The affordable housing project would have converted a motel into 114 studio apartments for low-income residents and those transitioning out of homelessness. The council's rejection of the state funding goes against the city's own Housing Element plan, which includes a commitment to the Housing First model and integrating supportive housing. The law firms say the council's decision could expose Riverside to lawsuits and the loss of its pro-housing designation from the state.

The details

Four Riverside City Council members - Philip Falcone, Steven Robillard, Chuck Conder and Sean Mill - voted against accepting the $20 million state grant, citing concerns that residents were left out of the planning process and that the project would undermine revitalization efforts in the neighborhood. The law firms argue the council's decision violated the city's Housing Element plan and fair housing laws, and are calling for the council to reconsider.

  • On January 13, the Riverside City Council voted to reject the $20 million state grant.
  • On February 10, the law firms sent a letter to the council outlining their concerns about the vote.
  • On February 27, the city announced the procedural deadline to reconsider the vote had passed with no litigation filed.

The players

Veronica Garcia

The housing practice group director at Inland Counties Legal Services.

Ugochi Anaebere-Nicholson

A staff attorney at the Public Interest Law Project.

Riverside City Council

The city council that voted 4-3 to reject the $20 million state grant for the affordable housing project.

California Department of Housing and Community Development (HCD)

The state agency that issued the $20 million grant and has the power to revoke Riverside's pro-housing designation.

Clarissa Cervantes

A Riverside City Council member who spoke at the press conference in support of reconsidering the vote.

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What they’re saying

“This issue is not about politics, it's about legal compliance and civil rights. [The city] has an obligation to align its decisions with its adopted Housing Element, fair housing laws and state housing requirements. We are calling for that realignment.”

— Veronica Garcia, Housing practice group director, Inland Counties Legal Services (Riverside Record)

“The city's obligation under its Housing Element, that's a mandatory duty. Those obligations are long standing, they are existing in the state laws and the city of Riverside is duty-bound to follow them.”

— Ugochi Anaebere-Nicholson, Staff attorney, Public Interest Law Project (Riverside Record)

What’s next

The Riverside City Council plans to review the letter sent by the law firms during a closed session meeting in April. The California Department of Housing and Community Development has indicated it is open to re-awarding the $20 million grant if the council reconsiders its decision.

The takeaway

This case highlights the tension between a city's development priorities and its legal obligations under state housing laws. Riverside's rejection of affordable housing funding could expose the city to lawsuits and financial penalties, underscoring the importance of aligning local policies with broader fair housing and housing element requirements.