Sacramento Housing Authority/City Council Meeting – June 11, 2024

The Sacramento City Council, sitting as the Housing Authority, convened at 2:04 PM on Tuesday, June 11, 2024, at City Hall, 915 I Street. The meeting included a consent calendar item, six discussion items, and public comments. All votes were unanimous (9-0). The meeting adjourned at 3:42 PM.

Consent Calendar

• Item 1: Approved the Sacramento Housing and Redevelopment Agency’s (SHRA) Conflict of Interest Code amendments, repealing prior resolutions. Adopted by Housing Authority Resolution 2024-0007 and City Council Resolution 2024-0183.

Public Comments & Testimony

• MacWorthy (speaking on multiple items) questioned the lack of public involvement in policy changes, called for an outside audit of housing funds, criticized the reliance on grants and loans, and raised concerns about equity in housing projects. He also asked about the lack of public input on the Conflict of Interest Code amendments.
• Alexander Hampton (speaking on Item 4) urged that labor standards, including prevailing wage, be applied to the Central Sacramento Studios Phase II project. Staff confirmed the project uses prevailing wage.
• A public commenter (during Matters Not on the Agenda) questioned how three Black families got into a project near his home and criticized the use of block grants and race equity.

Discussion Items

• Item 2 – Annual Reports of Housing Funds (File ID 2024-00485): SHRA presented 2023 data: the Housing Trust Fund (since 1989) has collected over $39 million, creating over 700 units (442 under construction); the Mixed-Income Housing Ordinance (since 2015) generated $9.8 million with over 300 units built and 500 under construction; Permanent Local Housing Allocation (PLHA) collected $3.6 million in 2023; State Local Housing Trust Fund received $5 million; HOME funds provided $2.7 million. Total from five sources in 2023: $14.2 million. Additionally, the City-County Affordable Housing Plan exceeded its 2023 goal, creating 372 permanent supportive housing units and 262 affordable housing units. Mayor Steinberg noted the need for more robust funding, possibly through a future countywide ballot measure, and highlighted a 84% increase in temporary housing and 29% increase in permanent supportive housing since 2020. Received and filed.
• Item 3 – 2025 One-Year Action Plan (File ID 2024-00804): SHRA presented the draft list of CDBG-funded projects: Ninos Park Playground, Dos Rios Housing Site Remediation, Colonial Park Restroom Rehab, 24th Street Bypass Park Exercise Equipment, plus additional projects including ADA walkway at Argonaut Park (D5), shade structure at Robla Park (D2), and review of restrooms at Earl Warren Park (D6). Councilmembers Guerra, Thao, Talamantes, and Kaplan emphasized the need for permanent restrooms in parks, especially in low-income areas, and urged staff to revisit the Robla Park restroom project. Staff agreed to work with city parks on Robla. The final plan will be adopted in October 2024.
• Item 4 – Loan Commitment of $7.8 Million for Central Sacramento Studios Phase II (File ID 2024-00806): SHRA requested approval of a $7.8 million loan to Danco Communities for a 52-unit permanent supportive housing project (35 studios, 17 one-bedrooms) at 815 11th Street. The project is prevailing wage and will include 51 project-based vouchers. Phase I (92 units) opened in November 2023. Unanimous approval (9-0).
• Item 5 – Agreement with City of Refuge for $800,000 (File ID 2024-00984): SHRA sought authorization to enter into an agreement with City of Refuge to develop an affordable housing project/community engagement facility at 3216 Martin Luther King Blvd. The state allocated $8 million, with at least 10% ($800,000) to be used for SHRA oversight and planning. Councilmember Kaplan raised concerns that City of Refuge was not aware of the 10% requirement and considered returning the state funds. Mayor Steinberg and others noted the nonprofit was not present to speak, and the agreement is a standard step to leverage the $8 million into more funding (e.g., tax credits). After discussion, the motion passed unanimously (9-0).
• Item 6 – Housing Choice Voucher (HCV) Program Update (File ID 2024-01086): SHRA reported that HUD allocated $185 million for 2024, with an additional $200 million nationally for shortfall agencies. SHRA has applied for extra funds. Due to escalating rents, SHRA took actions: stopped issuing new vouchers, stopped increasing project-based voucher contracts, and stopped tenant-based moves for project-based residents. Exceptions for VASH, foster youth, and Shelter Plus Care. Of 175 unsheltered families identified at risk, 32 have leased up, 80 have submitted RIFTA requests (requests for tenancy approval). Mayor Steinberg highlighted a new collaboration between city, county, SHRA, and providers to prevent expiration of vouchers for about 300 unsheltered individuals (150 with existing vouchers, 150 on waiting lists). Councilmember Valenzuela urged better public communication on the website and social media. Councilmember Kaplan requested more detailed data on staffing and barriers. Received and filed.
• Item 7 – Allocation of $2.65 Million for Capitol Park Hotel (File ID 2024-00805): SHRA requested $2.65 million in CDBG and HOPWA funds for additional financing due to cost overruns from delayed electrical switchgear. The project at 1125 9th Street (Mercy Housing) has 80 of 134 units occupied; the remaining 54 units are expected to open by October 2024. The additional funds cover interest costs. Mercy Housing will cover remaining overruns. Unanimous approval (9-0).

Key Outcomes

• Consent Calendar: Adopted unanimously (9-0), including Conflict of Interest Code amendments.
• Item 2: Received and filed; mayor encouraged future ballot measure for housing infrastructure.
• Item 3: Direction provided; staff to revisit Robla Park restroom and refine project list; final approval in October 2024.
• Item 4: Approved $7.8 million loan commitment for Central Sacramento Studios Phase II (9-0).
• Item 5: Approved $800,000 agreement with City of Refuge (9-0); staff to engage in follow-up discussions with the nonprofit.
• Item 6: Received and filed; ongoing collaboration to prevent voucher expiration for unsheltered individuals; SHRA to improve public communication.
• Item 7: Approved $2.65 million for Capitol Park Hotel (9-0).
• Councilmember Guerra requested a briefing on HUD audit concerns regarding SHRA; staff to provide briefing to all councilmembers.