Sacramento’s housing crisis is exacerbated by a severe lack of affordable options.
A report released this week by Sacramento appraiser and real estate expert Ryan Lundquist showed that only 39% of Sacramento County households can afford the home at the median price. That’s about the lowest figure in more than a decade, with the median price of a home sold in the county hitting $522,031 in January, according to Lundquist analysis.
Sacramento lags far behind in providing enough housing for low- and middle-income people; by some metrics, the gap is thousands of affordable units. Still, there are small victories on the horizon.
Major affordable housing developments near Sacramento’s urban core have received financial boosts in recent weeks. Together, the projects will add hundreds of housing units for low-income people.
“The challenge of building the 16,700 affordable homes Sacramento needs over the next 10 years to house low-income residents may seem overwhelming,” said La Shelle Dozier, executive director of the Sacramento Housing and Redevelopment Agency, “but we cannot afford the alternative.
In a market that is seeing historic house price increases, adding affordable housing means housing for service workers and young families who are essential to the economy.
“In order to support retail stores and groceries, restaurants and hair salons, you need to have a diversity of housing,” said Katy Jacobson, director of economic development and housing for the City of West Sacramento, where Dozens of affordable housing units are planned or under construction just a short bike ride from the State Capitol.
Here’s a look at a handful of affordable housing projects progressing near the area’s urban core.
The West Gateway Phase 2 project recently received $22.7 million from the California Housing Accelerator, a $1.75 billion program that provides so-called “bridge funding” to projects that are nearly ready to start. construction but have funding gaps.
West Gateway is located on Delta Lane, a side street just west of Sutter Health Park. Phase 2 will have 60 affordable units; a first phase of 76 affordable housing units was completed about five years ago.
Jacobson said city staff will be seeking a final $3.5 million from city council in the coming weeks and the project is expected to be under construction this year.
Broadway in Sacramento
The On Broadway apartment complex is among the largest new projects proposed for the Broadway corridor in Sacramento. The development, with 140 affordable units, received $29 million last month from the California Strategic Growth Council’s Affordable Housing and Sustainable Communities Program.
EAH Housing, which is developing the project, still has some way to go to fully fund the $78 million project and plans to apply for federal low-income tax credits this year. But the state grant “fills a big void for us,” said Welton Jordan, director of property development at Marin-based EAH.
If EAH receives the funding it seeks, construction will begin early next year, Jordan said. On Broadway will replace a long-vacant office building at the corner of 19th Street and Broadway.
Of the 140 residential units, Jordan said 25% would be reserved for former homeless residents. The building will face Broadway from a light rail station.
“We saw this as a great opportunity to provide affordable housing,” Jordan said. “Its location with surrounding amenities and being adjacent to the light rail, we felt it would be a good space for families.”
Village of Mirasol
It is probably the largest affordable housing complex in the region.
Formerly known as the Twin Rivers development, the $300 million Mirasol Village replaces an outdated public housing complex over several blocks along North 12th Street and Richards Boulevard in the Dos Rios triangle north of downtown. city of Sacramento. When completed, it will have 487 mixed housing units, a swimming pool, playgrounds, a municipal park and a community garden.
The project received a $20 million award from the California Housing Accelerator program in October. And earlier this month, SHRA submitted permit applications to the City of Sacramento to build what’s called Block D of the new neighborhood – 116 residential units and an early childhood education center for children. students aged 1 to 4 years old. SHRA officials said construction is expected to begin the phase by the end of the year.
Two other phases of the neighborhood totaling 227 units are under construction and will be completed by September.
This story was originally published February 18, 2022 5:00 a.m.