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7th & H SRO Project Groundbreaking Soon

by Michael Zwahlen, published on February 21, 2011 at 8:22 PM

Storyline: Downtown Sacramento Proposals & Construction

Community Tags construction development downtown proposal sacramento single room occupancy sro urban

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This $47 million projects planned for the northwest corner of 7th & H Street has now received all needed entitlements and necessary financing to move forward with construction anticipated for March 2011. The project will be funded with $25 million in 9 percent Low Income Housing Tax Credits, $8,200,000 loan funded by Home Investment Partnership Program, a $6,859,695 capitol grant and $3,750,000 operating grant funded by Downtown Low Moderate Tax Increment Funds, and a land grant for the acquisition, construction and permanent financing of the 7th & H Project.

Developer and owner Mercy Housing California is a non-profit corporation dedicated to providing quality affordable housing with supportive programs to low-income persons in California. Together, Mercy Housing California and Rural California Housing Corporation have been responsible for the construction of more than 2,900 affordable single-family self-help homeownership units and 124 multifamily rental properties with a total of more than 7000 units. Their portfolio includes 18 properties in Sacramento County alone.

This 7th & H Street project will include 122 studios (325sf) and 28 one bed room (500sf) units as well as sixteen parking spaces, retail and health clinic on the ground floor. This eight story 102 foot tall building’s designed to replace other single room occupancy (SRO) units in downtown that are going to be replaced with other developments in the future.

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Gerard Falla

February 21, 2011 | 9:51 PM

This project will benefit a lot of folks in the Sacramento needing transitional housing - it's also a great example of private/public partnerships, with Mercy housing working with SHRA and local sustainable architects Mogavero Notestine Associates - glad to hear that groundbreaking will come soon - it's a win for affordable housing in Sacramento.

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William Burg

February 22, 2011 | 12:51 PM

One thing to note is that this is not really supposed to be transitional housing--SRO housing is permanent, long-term housing. It's a good start, but we need hundreds more units to meet the demand. The more housing of this type we have, the fewer people on our streets and parkways.

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Dale Kooyman

edited on February 22, 2011 | 12:04 PM

Seems that location, next to the existing light rail and Amtrak terminal and coming intermodal terminal, would be better suited to market rate apartments for people working downtown and those commuting on the Capitol Route. These folks are always the last to be considered while the K Street and Plaza businesses struggle in the absence of such market rate housing that can house potential customers and then wonder why businesses fail. But that is, has long been and will apparently continue to be Sacramento's short sighted approach. As long as that mentality exists there will be no real lasting revitalization to the CBD.

Mercy does have a good reputation for good management so that is the only plus I can see.

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William Burg

February 22, 2011 | 12:49 PM

Dale: "Market-rate" housing means "expensive/luxury" housing--thus the term "market rate," charging what the market will bear. Admittedly, there is not enough market-rate and workforce/moderate-income housing in the CBD, but at least it exists, and there is a desperate shortage of housing in this price range. The alternative to supportive housing is the street or the Parkway, and even those places are getting crowded.

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Dale Kooyman

edited on February 22, 2011 | 10:06 PM

Bill, market rate does not have to mean expensive or luxury at all. We have a lot of market rate housing in midtown and those rents reflect what the market will bear--now as low as $625 to $650 for a one bedroom quite reasonable for a couple whether one or both work. I saw a for rent sign for a one bedroom in MSN for $510, There have always been too many SRO's in relation to market rate in the CBD and the "least it exists" is far too few which is why there are no customers for the downtown businesses. Far more market rate is needed in or adjacent to the CBD.

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William Burg

February 23, 2011 | 12:48 PM

$625-650 for a one-bedroom is low-income or very low-income housing; it is only slightly more expensive than what is considered SRO rents (extremely low income housing) which runs about $400-600 for studios and 1-bedrooms. Market-rate housing in new construction is based on rents feasible based on new-construction prices, which are considerably higher than rents feasible in older buildings.

Yes, we need more market rate housing in the central business district--but there is no money for it right now. New construction will help attract more investment, and creating housing across income levels will reduce homelessness. Residents of SRO units don't have a lot of disposable income, but because they generally don't have cars, they spend pretty much all their disposable income in the neighborhood, so it isn't as though they have no economic effect. In the long run, we will hopefully have many thousand new housing units in the central city--but closing or demolishing SRO units is a foolish effort that will just spike homelessness. It will make matters worse, not better.

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Renn

February 23, 2011 | 9:51 AM

I agree that market rate is what CBD needs - about 5,000 units to make the downtown vibrant. The 7th and H site however was never going to be market rate anyway. The proximity to the jail is a very tough site issue, and let's not forget the SMUD station next door. Market rate likes to be next to beauty and urban spaces like Ceasar Chavez park, Capital Park and the River. The 7th and H project is addressing the much needed permanent housing for low and very low income people, many of how whom will be formerly homeless.

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William Burg

February 23, 2011 | 12:50 PM

Actually, "low and very low income people" make too much money to afford this kind of housing: in Sacramento, "low income" for one person is around $40,000 a year, and "very low income" is about $30,000 a year--SRO units are aimed at the extremely low income folks who make less than $20,000 a year. Fortunately the projects on the 700 and 800 block of K Street are aimed at the low, very low and moderate income segments ("moderate" meaning more like $50-60,000 a year.)

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