City's 'Pro-Housing" designation pays off with funding for new affordable project

Rendering of the planned San Juan apartments

Sacramento (May 7, 2024) State funds awarded to the City in recognition of its pro-housing policies will be used to help build 113 affordable apartments on the site of the former San Juan Motel on Stockton Boulevard in south Sacramento.

The City Council voted Tuesday to direct $2.5 million from the state’s Prohousing Incentive Pilot grant to provide the last piece of financing needed for the planned San Juan Apartments. Non-profit developer Mutual Housing is also slated to receive a $22.67 million loan from the city and county.

Mutual Housing plans to break ground on June 17 and expects to begin leasing in early 2026. Apartments will include one-, two-, and three-bedroom units targeting low-income renters earning between 30 percent and 60 percent of the area median income. The complex will include a playground, swimming pool, landscaped courtyards, and a community room with a kitchen.

The project includes a second phase of 70 units that is slated to begin construction in 2026 provided Mutual can put together the funding.

Councilmember Eric Guerra has championed this affordable housing concept since 2015, providing the leadership needed to keep the project moving forward and facilitating the essential city-county partnership needed to develop the four parcels that sat on both sides of the city limits.

“This project has been years in the making to provide greater density along Stockton Boulevard,” said Councilmember Guerra. “This is also a direct result of the City Council’s proactive approach towards obtaining a ‘pro-housing’ designation from the state.”

Guerra, who represents the district that includes the Stockton Boulevard property, said it became blighted for years after the closure of the San Juan Motel and an adjacent mobile home park. Now it’s one of eight properties planned for housing along Stockton Boulevard south of the UC Davis Health campus, including 200 units under construction by Mercy Housing on a formerly vacant lot that backs up to the West Campus High School and Mark Twain Elementary School campuses.

“The San Juan Apartments and other housing coming to Stockton Boulevard will help revitalize this important commercial corridor in our city while also providing desperately needed affordable housing,” said Mayor Darrell Steinberg.

In February 2022, Sacramento became the first jurisdiction in California to earn the coveted state Prohousing designation, which gives it added points when competing for affordable housing, transportation, and infrastructure dollars. The designation recognized the efforts the city has made to encourage housing development of all types by eliminating barriers and streamlining approvals.

Sacramento’s distinction as the first city recognized by the state for its Pro-Housing policies