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Sacramento council approves $7.8 million loan for Central Sacramento Studios Phase 2
Summary
The Sacramento City Council voted 8-0 to approve $7.8 million in local housing and HOPWA funds to finance construction of Central Sacramento Studios Phase 2, a 52‑unit permanent supportive housing project developed by Danco Communities.
The Sacramento City Council approved a $7.8 million loan package to finance Central Sacramento Studios Phase 2, a five‑story modular building with 52 units of permanent supportive housing, during its regular meeting. The motion passed 8‑0.
Sacramento Housing and Redevelopment Agency (SHRA) staffer Whitney Hinton told the council that the financing combines local housing trust fund dollars, SHRA financing, and HOPWA funds to support new construction adjacent to the existing Central Sacramento (the rehabilitated Sutter House Motel). “Staff is requesting approval of final loan documents of the local housing trust fund, housing trust fund and HOPWA funds totaling $7,800,000 for the new construction of Central Sacramento Studios phase 2 project,” Hinton said.
The second phase will follow demolition of a vacant restaurant and will include 35 studios and 17 one‑bedroom units plus one manager’s unit. Amenities listed in the staff presentation include a lounge, multipurpose room, fitness room, bicycle storage, shared laundry and kitchen facilities, dog parks on each floor and a roof terrace. Parking and some amenities are to be shared between phases; the project will operate with 51 project‑based vouchers.
During public comment Mac Worthy criticized the use of trust funds and raised broader concerns about housing finance and management. Council member Dickinson asked whether the first phase at the rehabilitated Sutter House Motel is also restricted to households at or below 30 percent of area median income; Hinton confirmed that it is. Council member Pluckettbaum moved to adopt staff’s recommendation; a second was recorded as “not specified” in the meeting minutes. The motion carried on voice vote, 8‑0.
The developer of the project is Danco Communities; Danco Property Management Group was named as the property manager and LifeSteps as the resident service provider in the staff presentation. LifeSteps will provide 15 hours of resident services plus approximately 1.5 full‑time equivalent case managers focused on formerly homeless residents, according to SHRA staff.
The council action authorizes execution of the final loan documents; SHRA staff indicated they were available to answer follow‑up questions and implement construction and financing steps once the documents are executed. No additional conditions or amendments to the loan terms were recorded in the public portion of the meeting.
The council moved on to the SHRA workshop after the vote.
