Apartment building with 130 affordable units planned for busy Sacramento corridor

When company officials with CRP Affordable Housing began planning a new development in Sacramento, they wanted to find a location near high levels of resources. Many affordable housing projects are built in low-resource areas, away from job centers and transportation.

That led the company to a triangle-shaped lot near the California State University, Sacramento campus. CRP is proposing to build a 130-unit affordable apartment building in the neighborhood, at the corner of Folsom Boulevard and Elvas Avenue.

Something else drew the company to that spot.

“Sacramento is a great place to do business as an affordable housing developer,” said CRP managing director of development Seth Sterneck, citing the city’s quick approval process and funding sources.

Most California cities have a reputation for being difficult to work with when it comes to housing. But earlier this year, Sacramento became the first city in the state to be given a “pro-housing designation” by the California Department of Housing and Community Development. The city has adopted several housing-friendly policies, including waiving fees for affordable housing, allowing housing in commercial areas and cutting back on the number of parking spaces required at new projects.

The need to do more is severe. Sacramento has made significant progress on affordable housing — the City Council voted last month to help fund 820 new affordable housing units — but thousands more units need to be constructed this decade to keep up with demand.

Sterneck said the units at the proposed building on Folsom Boulevard will all be income restricted, likely for those earning between 30% and 60% of the area median income; the median household income in Sacramento County is around $70,000.

The six-story building would replace a shuttered car wash and a taqueria on the site. CRP expects to finalize its purchase of the property next month and hopes to secure public financing for the project next year before starting construction in 2024.

The property is in a neighborhood seeing a significant amount of development. It is close to one of the region’s busiest transit centers at 65th Street and within a short walk of the Sacramento State campus.

“The site has a lot going for it so we think that increases the likelihood of being successful of obtaining the necessary financing to start construction,” Sterneck said.