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Sacramento County defends $25M plan to address homelessness on American River Parkway

The county will use part of the $25 million it received from the state two and a half years ago to buy dozens of units at an extended-stay hotel.

SACRAMENTO COUNTY, Calif. — Sacramento County is defending its approach to address homelessness on the American River Parkway. 

It will use part of the $25 million it received from the state two and a half years ago to buy dozens of units at an extended-stay hotel. The county will purchase 32 units out of the 176-unit Residence Inn on Howe Ave and convert them into permanent supportive housing. 

"I understand that 32 units doesn't seem like very many, but I don't think that very many people are in the business of affordable housing and understanding how expensive it actually is," said county spokesperson Janna Haynes. 

Haynes said the plan also provides for 10 years worth of rental subsidies for these units and expanding 50 new beds of scattered-site shelter, or housing people in various privately-owned units. 

It has taken more than two years to settle on this course too long, according to Assembly member Kevin McCarty, who helped secure the funding in April 2022. 

"Taxpayers and the voters of Sacramento are counting on us to act with urgency and a swift response," McCarty said, who is also running for Sacramento mayor. 

Haynes said the county has not been sitting idle with the money. 

"This stuff doesn't work out overnight. There's a lot of negotiation that takes place," she said. 

The county had pursued others plans before Sutter Capitol Group, the developer of the project, came forward with the hotel proposal. 

The remaining 142 units of housing will be available to people with moderate income. The idea is that 32 permanent supportive housing units can be a gateway into a market-rate apartment. 

"It's a full continuum of supportive services that we are getting them from the streets into market-rate units," Haynes said. 

And the bottom line, said McCarty, is that the county approved the plan and "we're going to help a lot of people get off the parkway."

The county said the new shelter beds will be available next spring, and the units at the Residence Inn will be available by early 2026. 

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