Sacramento to convert downtown hotel to homeless housing using state Homekey award

Sacramento (Jan. 18, 2022) –The City of Sacramento has been awarded a $23.9 million state Homekey grant to convert a downtown hotel into permanent supportive housing for people experiencing homelessness.

The City and the Sacramento Housing and Redevelopment Agency will work with Danco Communities, the project developer, to turn the Best Western Sutter House at 1100 H Street into 92 units with bedsrooms, bathrooms and kitchenettes.

 “This is a major step in addressing homelessness in the central city” said Councilmember Katie Valenzuela, “This is an area that has been heavily impacted, and permanent supportive housing is exactly what we need to start getting folks the help they need. I’m very grateful to SHRA for helping us facilitate this exciting project, and look forward to these units becoming available later this year.”

It’s the third hotel — and the first in the Central City — being converted by the city to permanent supportive housing using Homekey funds. The others are in south Sacramento and North Natomas.

“Adding more permanent supportive housing is a crucial part of our city’s comprehensive plan to address homelessness, and the Central Sacramento Studios will contribute directly to getting people off the streets of downtown and connected with the services they need,” said Mayor Darrell Steinberg. “More projects like this will provide relief to unhoused people and to people who live and work downtown.”

Fifteen of the units will be funded by the Mental Health Services Act, the millionaire’s tax authored by Mayor Steinberg when he served in the California State Assembly. Sacramento County will provide mental health treatment to those residents directly.

Residents in the remainder of the units will receive supportive services from LifeSTEPS, which serves more than 80,000 residents in 250 projects statewide.

“The supportive housing model and the rooms designated for people with mental health challenges provide another step on the path from homelessness to stability,” said Bridgette Dean, director of the Department of Community Response. “This project means more people have safety and dignity while they continue to progress and access services, and at the same time, the City has safer, cleaner streets.”  

“SHRA is excited to be receiving this critical Project Homekey award from the State,” said Executive Director La Shelle Dozier. “This funding for the Central Sacramento Studios project moves us another step forward in fulfilling our commitment to pursue every possible opportunity to provide stable housing and hope for residents living on our streets.”

 Completion of Central Sacramento Studios is projected for fall 2022.