Sacramento gets $17M grant to turn motel property into affordable housing for homeless

A plan to convert a shuttered Sacramento motel into affordable housing for people exiting homelessness will receive millions of dollars in new grant funding through the state’s Homekey program.

Sacramento County Housing Authority and project developer Danco Communities will get the $17 million award to buy and rehabilitate a former Super 8 motel at 4317 Madison Ave. The 118 rooms at the planned Madison Square Studios will become permanent supportive homes for people exiting homelessness, along with a unit for an on-site manager.

The Sacramento award is part of a $130.6 million package of Homekey grant funding announced by the Governor’s office for nine projects across California, including projects in the Bay Area, the San Joaquin Valley and Inland Empire. The projects are expected to create more than 550 homes for those leaving homelessness or in danger of becoming homeless.

Homekey provides state funding to cities, counties and other local entities to buy, rehabilitate and convert lodging, homes, apartments and commercial properties into new housing.

“We are proud to stand with local partners who are serving their communities by providing much-needed housing to alleviate homelessness,” Gov. Gavin Newsom said in a statement announcing the grants. “We’ll continue to support local governments who are doing the work to ensure everyone has a place to call home.”

Newsom’s administration has invested $24 billion into combating homelessness. In late July, Newsom signed an executive order directing local governments to sweep homeless encampments on public property, potentially impacting tens of thousands of people living unhoused in California. The U.S. Supreme Court recently gave state and local governments the power to arrest and fine people camping on public property.

Local homeless rights advocate Faye Wilson Kennedy was encouraged by the Homekey news. But she hoped that transportation and other support services would be part of the new development and questioned Newsom’s executive encampment order.

Kennedy and other advocates are preparing for a third solidarity summit on homelessness in September.

“I’m glad to see more funding. But this after (Gov. Newsom) told people to clear out their encampments. Where are they supposed to go? ” Kennedy said. “Hopefully, this provides some funding to help them have some kind of transportation — they get the housing, a roof over their head, but nothing else. This shouldn’t be piecemeal.”

The grants are awarded by the state’s Department of Housing and Community Development. The program was born in 2020 during the COVID-19 pandemic to slow the virus’ spread among homeless communities and has grown to award $3.6 billion to fund more than 250 housing projects, say state housing officials.

This story was originally published August 15, 2024 at 8:51 AM.

Darrell Smith

The Sacramento Bee

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Darrell Smith is a local reporter for The Sacramento Bee. He joined The Bee in 2006 and previously worked at newspapers in Palm Springs, Colorado Springs and Marysville. Smith was born and raised at Beale Air Force Base and lives in Elk Grove.