Sacramento Lands State Funding for Senior Affordable Housing
A significant boost is coming to Sacramento’s efforts to combat homelessness, as a new senior housing development, Donner Field, has secured approximately $2.1 million in state funding. This allocation is part of a broader statewide program designed to increase California’s affordable housing inventory and strengthen affordability for families.
Key Funding Secured for Donner Field Project
Governor Gavin Newsom’s office recently announced a statewide initiative providing $414 million to support the construction of 2,099 new affordable units. Within this program, the 67-unit Donner Field apartment complex for seniors in Sacramento will receive $2.1 million. Located near Stockton Boulevard and Ninth Avenue, this project, developed by Eden Housing, is set to begin construction in November.
The new state funding is crucial, as Charles Liuzzo of Eden Housing confirmed it will prevent the developer from incurring a loss on the project. Donner Field is primarily financed through federal Low-Income Housing Tax Credits, with additional support including $12.5 million from the Sacramento Housing and Redevelopment Agency and $1.25 million from the city.
The Cost of Affordable Housing in Sacramento
Constructing Donner Field is projected to cost about $550,000 per unit. Liuzzo noted that factors like prevailing wage requirements and federal local hiring mandates contribute to this cost. This figure is considered relatively typical for affordable housing projects in the Sacramento area, a point Mayor Kevin McCarty has critically highlighted in recent months.
As an alternative, the city has been exploring and opening tiny home “micro communities” for homeless seniors. These micro communities are significantly less expensive to build, costing around $85,000 per unit, though they do not offer private restrooms.
Comparing Housing Solutions
| Feature | Donner Field Senior Apartments | Tiny Home Micro Communities |
|---|---|---|
| Target Group | Seniors | Homeless seniors |
| Number of Units | 67 new units | Varies (micro communities) |
| Cost Per Unit | ~ $550,000 | ~ $85,000 |
| Private Restrooms | Yes | No |
Other Projects Miss Out as Sacramento Struggles to Meet Goals
While Donner Field celebrates its funding, several other affordable housing projects in Sacramento County and West Sacramento were not selected for state funding this week. These include:
- 37 units at 641 5th St. in West Sacramento (New Hope Community Development Corp.)
- 70 units at Stockton Boulevard near Fruitridge Road (San Juan Apartments, Mutual Housing)
- 119 units at a redeveloped motel on Madison Avenue (Madison Square Studios, Danco Communities)
- 192 units at 1990 Lake Washington Boulevard in West Sacramento (Danco Communities)
- 108 units at 3201 Marysville Blvd. in Sacramento (Heritage Villa LLC)
- 122 units in Elk Grove (Sheldon Farms, Adobe Communities)
- 75 units for families on Maritime Drive and Harbor Point Drive in Elk Grove (Eden Housing)
Eden Housing’s Maritime Drive project is still moving forward, but its construction, planned for 2027 or 2028, hinges on identifying an alternative financial pathway. The impact of the funding rejection on the other listed projects remains unclear.
This situation underscores a larger challenge for Sacramento, as the city is currently lagging behind its housing goals. Last year, only 407 housing permits were issued for new units targeting extremely low or very low-income tenants, significantly less than the annual goal of 1,308 units.
Frequently Asked Questions
- What is the Donner Field project?
It’s a 67-unit affordable apartment complex in Sacramento specifically designed for seniors, being built by Eden Housing. - How much state funding did it receive?
The project received approximately $2.1 million from a state multifamily financing program aimed at reducing homelessness. - Why is affordable housing so expensive to build?
Costs are influenced by factors like prevailing wage requirements and federal local hiring mandates, as cited for Donner Field’s $550,000 per unit cost. - Are other affordable housing projects in Sacramento moving forward?
Several other projects in Sacramento County and West Sacramento did not receive state funding in this round, making their financial pathway uncertain, though some, like Eden Housing’s Maritime Drive, are still seeking alternative funding. - Is Sacramento meeting its overall housing goals?
No, Sacramento issued permits for only 407 extremely low or very low-income units last year, falling short of its goal of 1,308 units.
While the state funding for Donner Field is a positive step, Sacramento faces ongoing challenges in expanding its affordable housing inventory and meeting ambitious development goals, requiring diverse solutions and continued effort.
Sacramento Lands State Funding for Senior Affordable Housing
