A new apartment building planned for Sacramento’s urban core will include some units available to middle-income earners, an unusual but sorely-needed element for a housing project in the capital region.

Urban Capital is in the planning stages to build the Grace, a 36-unit building at 620 15th St. in downtown Sacramento.

Four ground floor studio units will be restricted to residents earning up to the area median income, or just under $64,000 a year, said Urban Capital managing partner John Vignocchi. Four larger one-bedroom units will be available to moderate-income earners, defined by those making up to 120% of the area median income or about $87,000 a year.

“That could be two individuals in the service industry making around $45,000,” Vignocchi said. He said target residents would be those in the “missing middle” seeking housing they can afford: “your state workers, city workers, service workers, your average Sacramentans.”

“We’re not targeting people coming from the Bay Area used to paying $4,000 a month for two bedrooms,” he said.

The eight units would be deed restricted for 40 years and are part of a community benefits package proposed by Urban Capital, which is seeking city approval to rezone part of the land where the project would be constructed. The firm has also proposed showcasing art from local artists in the building’s common areas and adding 10 spaces for “ride shares” such as bikes and scooters.

Sacramento has a severe shortage of housing for very low- and low-income earners. But the city and region are also not building enough housing for those earning moderate incomes. According to an analysis by the Sacramento Area Council of Governments, the city needs to build 8,545 units of housing for moderate-income households this decade.

“I think affordable housing is broken in California; the cost (of construction) is insane,” Vignocchi said. “I’m very proud that we came up with a private market solution.”

The remaining 28 units would be rented at market rates, but Vignocchi does not know what those rates will be yet. His firm is hoping to receive the city’s approval next spring, break ground on the project in July and complete construction 14 to 16 months after that, he said.

This story was originally published September 9, 2022 at 5:00 AM.