Affordable apartment building planned next to Sacramento transit ‘hub,’ restaurants

A San Diego-based nonprofit developer has proposed constructing a 75-unit affordable housing apartment building next to a major transit station and within a short walk of the California State University, Sacramento campus.

Community HousingWorks is proposing to build the complex at 6779 Q St., next to the University/65th Street light rail and bus station. The site is also close to a handful of large apartment buildings that have been built in recent years, along with restaurants and a new hotel.

“This neighborhood has really been blossoming with retail and residential,” said Mary Jane Jagodzinski, a senior vice president with Community HousingWorks. “It’s a great hub with proximity to transit, which we feel is very important.”

The complex would bring much-needed affordable apartments to a neighborhood and city struggling to meet the demand for housing.

Sacramento needs to construct nearly 16,000 units of housing for very low- and low-income earners between now and 2029, according to a recent report presented to the City Council. The city has made considerable progress, issuing permits for nearly 900 units planned to serve that demographic last year alone, but is still behind in meeting its goal for the decade.

While rent increases in the Sacramento region have begun to slow, the typical renter in Sacramento pays more for an apartment or home than those in Philadelphia, Denver, Nashville and Dallas.

Tenants of the new building will likely earn between $30,000 and $60,000, “depending on the family size,” Jagodzinski said. Rents would be offered at a wide range depending on income; one-bedroom units would start at around $500 per month and three-bedroom apartments would rent for up to $1,480.

Jagodzinski said the backgrounds of the tenants will likely vary. It could include seniors, families, persons with disabilities and those working in child care, hospitality or in restaurants.

“So many of our residents are essential workers, people who work in service and hospitality and are working within our communities today but are being priced out of where they can live close to their work,” Jagodzinski said. “And it creates a stronger fabric of a neighborhood if people can live and work in approximately the same community.”

Community HousingWorks is assembling financing for the development and will likely rely on federal low-income tax credits. Construction will likely not start until next year at the earliest, Jagodzinski said.

This story was originally published August 4, 2022 at 5:00 AM.