Audit of Sacramento homeless shelter costs shows ‘no strong link’ to good outcomes
An audit released Thursday morning determined that there is “no strong link” between the city of Sacramento’s shelter services and positive outcomes for homeless clients.
Between July 2023 and June 2025 the city spent a total of $63.2 million on the 14 homeless shelters it operates, hosting 8,885 stays in that period. The report by the city auditor’s office found that there are gaps in how the city assesses costs, collects data and determines successful outcomes for unsheltered residents.
Some of this may come from inconsistent or incomplete data collection — while the current method captures whether a service was delivered, it does not quantify the effect of the services on an individual’s progress toward wellness.
One significant finding from the audit shows that costs per stay at the city’s shelters, which vary in terms of model, range widely, but that higher costs in a program aren’t clearly tied to better outcomes.
For example, the overall cost per exit (the way the city measures one continued stay at a given shelter) at the Common Ground shelter was just $3,029, but more than $20,000 at Saint John’s Program for Real Change. Around 16% of Saint John’s stays ended with the client finding permanent housing versus 8% at Common Ground — double the success, but at six times the cost.
While the Saint John’s shelter offers longer stays, the city has not defined a framework for when these higher-cost models are justified.
The auditor also found that there is more physical shelter space in congregate shelters, where clients sleep in shared spaces without separate rooms, than is being utilized. By contracting with providers to serve a higher number of clients, the city could get more people off the street while keeping costs proportionally low.
The city auditor recommended that the city work to improve data collection and develop better success metrics to evaluate whether city money is being spent effectively.
The audit will be reviewed by the Budget and Audit Committee at its 11 a.m. meeting Tuesday.
The last audit the city conducted on homeless services assessed the city’s motel program. Recent changes implemented based on the audit’s recommendations went into effect last week, leaving at least six families with autistic children without a room. Mayor Kevin McCarty and City Manager Maraskeshia Smith acknowledged the “disappointing” implementation last week and promised to work directly with the families affected.
