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Residence Inn to become new affordable housing, shelter beds in Sacramento County

Officials hope to move people into the Residence Inn in early 2026.

SACRAMENTO COUNTY, Calif. — New affordable housing and shelter beds are coming to Sacramento County after the Board of Supervisors approved turning the former Residence Inn on Howe Avenue into housing.

The Board of Supervisors agreed to spend more than $19 million of the $25 million they were given by the state two years ago.

“It’s our scattered-site shelter program. It’s something we have been doing for years. It utilizes existing single-family homes that we lease in the community, so they could be scattered through the community and really allows us to serve people where they are at,” said Emily Halcon, with the Department Homeless Services Housing for Sacramento County.

The county said they are trying to serve the unhoused currently living along the American River Parkway.

They will turn the Residence Inn into 176 housing units. 32 of those units they hope can be for those moving successfully out of shelters. It would also create 50 new shelter beds.

Halcon said it would help people who make at or below 30% of the area median income, and the remainder of the units would be restricted to people making at or below 80% area median income. 

"Those can be people working at Arden Fair mall, medical workers, true working class,” Halcon said.

The $19.4 million will operate the shelter for three full years and ensure the affordability of the housing with services for 10 years. Overall, it will cost $40 million to purchase the Residence Inn. Sacramento County will contribute $8 million for the purchase of the inn and $5.9 million to subsidize the rent.

Some argue $19 million could have created more shelter beds, rather than the one large-scale project.

Sacramento Mayor Pro Tem Karina Talamantes asked for a motion from the county for more support for those living on the parkway. She said the city and county have a Homeless Partnership Agreement but this plan only crossed her desk last week.

 “I did not receive that today but they did say that $5.6 million that is unallocated for would be conversation between the city and the county, so my next step is I hope to be included in the conversation,” Talamantes said.

Talamantes wants the remaining parkway funds to be used on outreach. The county hopes the city can see the value of this project.

 “It’s in the unincorporated county. It’s using county dollars, so while we certainly welcome and value input from community members, the purview is the county,” Halcon said.

The $19 million will be coming out of the county’s American River Parkway Fund, which was given to the county by the state two years ago for a total of $25 million.

In regard to timeline, the shelter beds will be ready in the spring of 2025. They hope to move people into the Residence Inn in early 2026.

Sutter Capitol is the developer partnering with the county on this project. They have had success with a similar project, Southgate Town & Terrace, in Sacramento.

Burke Fathy with Sutter Capitol said this project is more affordable than some others the county has had in the past, such as Project Homekey.

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