Sacramento affordable apartment project wins $2.1M in state funding. See where
A Sacramento housing development for seniors will receive about $2.1 million in state funds from a program aimed to reduce homelessness, Gov. Gavin Newsom’s office announced this week.
“Through new programs and funding, California is outperforming the nation in turning around the decades-in-the-making homelessness crisis,” stated a Monday news release from the governor’s office. “A key part of the Governor’s strategy is increasing California’s housing inventory, helping strengthen affordability and helping every family achieve the California Dream.”
Statewide, the program will provide $414 million in funding to help the construction of 2,099 new affordable units, the release said.
Eden Housing is building the 67-unit apartment complex at a long-vacant lot near the corner of Stockton Boulevard and Ninth Avenue starting in November.
The complex, called Donner Field, is primarily funded from equity generated through the federal government’s Low-Income Housing Tax Credit program, with $12.5 million from the Sacramento Housing and Redevelopment Agency, and $1.25 million from the city, which the council approved earlier this month, said Charles Liuzzo of Eden Housing.
The newly announced funding, from a state multifamily financing program, will make it so Eden does not have to put in any of its own money on the project, and therefore won’t lose money on it, Liuzzo said.
In total, Donner Field will cost about $550,000 per unit to construct, Liuzzo said. It will pay prevailing wage and comply with the federal government’s local hiring requirements, which contribute to the cost, he said.
It’s a relatively typical cost per unit for Sacramento area affordable housing projects — something Mayor Kevin McCarty has been criticizing in recent months. As an alternative, the city is opening tiny home “micro communities” for homeless seniors, which only cost $85,000 each to build but do not have private restrooms.
What about other affordable housing projects?
Developers submitted several other affordable housing projects for the state funding program in Sacramento County and West Sacramento, which state officials did not select for funding this week, according to a state spreadsheet.
- 37 units of new construction at 641 5th St. in West Sacramento, submitted by New Hope Community Development Corp.
- 70 units of new construction at Stockton Boulevard near Fruitridge Road, called San Juan Apartments, submitted by Mutual Housing in conjunction with the Sacramento Housing and Redevelopment Agency.
- 119 units at a redeveloped motel along Madison Avenue just west of Interstate 80 called Madison Square Studios, submitted by Danco Communities.
- 192 units of a new construction at 1990 Lake Washington Boulevard in West Sacramento, submitted by Danco Communities.
- 108 units of new construction at 3201 Marysville Blvd. in Sacramento, submitted by Heritage Villa LLC.
- 122 units of new construction in Elk Grove called Sheldon Farms, at Bruceville and Sheldon roads, submitted by Adobe Communities.
- 75 units of new construction for families on Maritime Drive and Harbor Point Drive in Elk Grove, submitted by Eden Housing.
The Maritime Drive housing is still moving forward, but Eden Housing has not yet identified a financial pathway, Liuzzo said. Construction is planned to start in 2027 or 2028 if it can get the necessary funding.
Developers of the other rejected projects did not immediately respond to emails and calls asking what the impact of the rejection would be on the projects.
The city of Sacramento is lagging behind its housing goals. Last year, the city issued 407 housing permits for new units for extremely low or very low-income tenants, a city report stated. That was less than one-third of its goal of 1,308 units for the year.
