Another state property is set to become affordable housing in Sacramento. See where
A vacant warehouse on a popular stretch of R Street in midtown Sacramento is set to become a large affordable apartment complex.
The Sacramento City Council voted Tuesday to disburse $3.3 million in federal and state funds toward the project called the Monarch, according to a city staff report. It will be five stories and include 221 units for low-income households and 20 units for people who are homeless or at risk of becoming homeless. The low-income units will be reserved for those earning between 30% to 70% of the area median income. Currently that means people who earn annual salaries between $24,750 and $55,825 would be able to apply to live in those units, said Danielle Foster, executive director of Capitol Area Development Authority, the developer.
The project will also include about 3,400 square feet of commercial space for “art-related or neighborhood serving businesses” and about 16,000 of private and public outdoor space, and a parking garage, the staff report stated.
“With Sacramento seeing some of the highest increases in rent in recent years, home prices continuing to rise, and the supply continuing to not meet demand, housing continues to be a priority of the city,” the staff report stated.
Sacramento was the 20th most expensive rental market in the United States in December, according to Apartment List data published in last month. The typical apartment in the four-county Sacramento region rented for $1,748. That’s higher than Chicago and Portland, Oregon.
The project will include a mix of studio, one and two-bedroom units, with monthly rent between $521 and $1,629.
The $3 million for the project will come from the American Rescue Plan Act, which the federal government sent cities across the country during the COVID-19 pandemic. The $300,000 in state money comes from the Housing, Assistance and Prevention Program, which aims to build more affordable housing to address the homeless crisis. That money will go toward the 20 units for people who are homeless or at risk of becoming homeless.
The state selected CADA and Mutual Housing to build the project in 2022. It followed Newsom’s executive order to build housing on excess state property. CADA in 2023 opened its first building of affordable apartments under the executive order, at 1322 O St. It includes 57 “microunits” at 267 square feet each.
Over the last decade, the number of studio apartments in the Sacramento region has nearly doubled, which sometimes leads families to cram into tight quarters, a recent Sacramento Bee analysis found.
CADA is also soon starting construction on 134 units of affordable housing in a new five-story building at the southwest corner of 16th and T streets.
This story was originally published February 5, 2025 at 3:00 PM.
