Affordable Housing for Seniors in Sacramento Faces High Construction Costs
A long-vacant lot in Sacramento’s Oak Park neighborhood is set to be transformed into a new affordable housing complex for seniors. However, the project comes with a significant price tag, reflecting the challenges of developing affordable housing in the region.
Eden Housing is leading the development of Donner Field Apartments, a 67-unit apartment complex located near the intersection of Stockton Boulevard and Ninth Avenue. Construction is scheduled to begin in November, with the project expected to open in March 2027. The development is primarily funded through the federal Low-Income Housing Tax Credit program, which provides equity for affordable housing projects. Additional funding includes $12.5 million from the Sacramento Housing and Redevelopment Agency (SHRA) and $1.25 million from the city, approved by the council earlier this month.
According to Charles Liuzzo of Eden Housing, the cost to construct each unit is approximately $576,000. This figure includes prevailing wage requirements and compliance with local hiring mandates, both of which add to the overall expense. These costs are typical for government-subsidized affordable housing in Sacramento, a challenge that has been highlighted by Mayor Kevin McCarty. Earlier this year, he estimated that under the current system, it would take over 300 years to build enough housing for all of the city’s homeless residents.
In the Bay Area, the situation is even more dire, with some affordable housing developments costing over $1 million per unit, as reported by the Los Angeles Times in 2022. The Donner Field Apartments project took over four years to secure sufficient financing, underscoring the complexity of such initiatives.
Addressing Homelessness and Housing Needs
Sacramento continues to face a severe shortage of affordable housing. Last year, the city issued only 407 permits for housing targeting extremely low- or low-income tenants, far below the goal of 1,308 units. At any given time, around 3,000 people are on a waitlist for a spot in a Sacramento shelter, where they have the best chance of securing stable housing, according to Emily Halcon, director of homeless services and housing for the county.
The Donner Field Apartments will cater specifically to seniors aged 55 and older. Of the 67 units, 48 will be reserved for households earning 50% of the area median income or less, which is considered very low income. For a single person in Sacramento, this translates to an annual income of $45,050 or less, based on U.S. Department of Housing and Urban Development guidelines. An additional 18 units will be available for those earning 30% of the area median income or less. Seventeen units will be designated for homeless individuals with behavioral health needs, who will also receive supportive services.
Homeless seniors often rely solely on Social Security payments, which average around $850 per month—far below what is needed for market-rate housing in the area.
Ownership and Development History
The vacant 1.23-acre lot at the site has been owned by SHRA and its affiliates, government entities, since at least 1986, according to the county assessor’s office. Multiple developers had previously attempted to build on the land but were unsuccessful. In 2020, SHRA issued a request for proposals, and Eden Housing was selected as the developer. The project secured all necessary financing this year.
Liuzzo explained that seniors were chosen as the target demographic to provide them with a place to age in the Oak Park neighborhood, especially as the area undergoes changes due to the Aggie Square development.
Future Developments Nearby
The $1.1 billion UC Davis Aggie Square project, located near the corner of Second Avenue and Stockton Boulevard, will include research facilities, classrooms, and office space. Meanwhile, across Stockton Boulevard, Vrilakas Architects has submitted plans for a three-story building featuring 65 affordable units, 55 parking spaces, and ground-floor retail or commercial space.
The Donner Field Apartments will include a U-shaped residential building with two to three stories, along with a single-story community building. The complex will offer shared amenities such as a computer room, kitchen, multipurpose room, barbecue area, bocce court, laundry facilities, and a community garden. This development represents a critical step in addressing the growing need for affordable housing in Sacramento, particularly for seniors and those experiencing homelessness.
