Sacramento secures $101M for permanent supportive housing under Homekey and Homekey Plus

In a pivotal meeting on May 13, 2025, the Sacramento City Council discussed significant advancements in housing initiatives aimed at combating homelessness. Central to the conversation was the Homekey and Homekey Plus programs, which are designed to expand housing options for individuals experiencing homelessness.

The Sacramento Housing and Redevelopment Agency (SHRA) has successfully secured funding for four motel conversions, including La Mancha, Nova, Central SAC Studios, and Roadway Inn. Additionally, the city has obtained funding for two projects: the St. John's program for real change and Weave.

A key highlight was the announcement of $101 million allocated to the Sacramento geographical region, which encompasses several counties, including El Dorado and Placer. This funding is divided into two categories: over $51 million for the general population and approximately $49 million specifically for veterans. Applications for this funding are on a first-come, first-served basis, with a looming deadline of May 30.

The council emphasized the urgency of applying for the full allocation to prevent funds from being redirected to other regions. Plans for a new project at 2809-2821 Rio Linda Boulevard were unveiled, which will feature 100 ADA-compliant units aimed at seniors and senior veterans. The project includes essential amenities such as a community garden, park space, and shared laundry facilities, all designed to foster a supportive living environment.

The proposed project seeks up to $20 million from Homekey for capital costs, with a goal of keeping expenses under $200,000 per unit—significantly lower than previous projects that often exceeded $350,000 per unit. The city is also committing $1.5 million for services, which will be matched by Homekey funding, ensuring a robust support system for residents.

This initiative marks a critical step in Sacramento's ongoing efforts to provide permanent supportive housing, with a commitment to maintaining affordability for the next 55 years. As the city moves forward, the focus remains on addressing homelessness through innovative housing solutions and community support.