Money from Mayor Steinberg's 'millionaires tax' will subsidize housing for homeless in south Sacramento
Members of the Sacramento City Council Tuesday unanimously approved a $22.4-million budget to convert a 124-room motel in south Sacramento into permanent supportive housing for people experiencing homelessness.
Mercy Housing California will remodel the WoodSpring Suites on La Mancha Way just off Highway 99 into 100 studio units. The remaining rooms will be turned into a lobby, case management offices, meeting rooms, administrative offices and common area restrooms. The motel is ideal for housing because each room already has a kitchenette and the facility is relatively new.
More than half of the budget, $14.5 million, is coming from the state as part of the Project Homekey program. Two additional projects in Sacramento have also received Homekey funding awards, a nine-unit manufactured housing complex proposed by WEAVE for women and children escaping abusive environments, and the conversion of the Hawthorn Suites motel just north of downtown in the River District. The Hawthorn Suites project will be coming back to the Council in late October for a vote on its completed financing plan.
The budget for the La Mancha project includes funding for acquisition, rehabilitation and 10 years of operating subsidies. In addition to Project Homekey, sources include the CARES Act federal stimulus bill, federal Community Development Block Grant dollars and $2.355 million from Sacramento County through the Mental Health Services Act, which was authored by Sacramento Mayor Darrell Steinberg when he served in the Legislature and was passed by voters in 2004.
“We all know that addressing mental health is a big piece of addressing homelessness, so I’m really pleased to see this money coming over from the county to help fund permanent housing and support services,” Mayor Steinberg said. “Continuing to be creative like this and partnering with the county is what we need to do to meet the needs of those experiencing homelessness. in Sacramento.”
The Mental Health Services Act, or MHSA, imposes a 1 percent tax on personal income of more than $1 million a year to fund mental health services, early intervention and treatment.
Thirty of the 100 units are expected to be reserved for residents receiving mental health services funded by the MHSA through the Sacramento County Department of Health Services. Mercy Housing will also be providing and coordinating supportive services.
