Contact: Steven Root, 916-453-8400 Ext. 227, [email protected]

Transforming Vacant State Warehouse into Cost-Effective Affordable Housing:

State of California, City of Sacramento, Mutual Housing, and Capitol Area Community Development Corporation CACDC start construction on new affordable housing along R Street corridor

SACRAMENTO — Mutual Housing California and the Capitol Area Community Development Corporation (CACDC), a subsidiary of the Capitol Area Development Authority (CADA), have broken ground on a 241-unit affordable housing project called Monarch, featuring a mix of studio, and one and two-bedroom units. They have joined forces with California’s Department of General Services and Housing and Community Development (HCD) to build the largest new construction affordable housing community in the City of Sacramento to date—with per-unit development costs 30% lower than the average affordable housing project in California.

In addition to two commercial spaces totaling 10,000 square feet, this workforce housing community will also include an event courtyard, public plaza and patio decks for the street level live/work units. Being built near light rail lines, this transit-oriented development will include 264 secure bike storage spaces, 30 visitor bike spaces, and 34 vehicle parking spaces. In an effort to build on Sacramento’s creative economy and spirit of the R Street corridor, the marketing of the community will also include intentional community outreach to the artist community once completed.

“Mutual Housing is excited to be teaming up with the CADA to further revitalize the R Street Corridor with much-needed affordable housing,” said Mutual Housing CEO Craig Adelman. “We are proud to be part of Sacramento’s critical infrastructure. What an exciting time for Mutual Housing California, the State and City but, most importantly the citizens of Sacramento who are feeling the burden of housing rental costs more than ever here in California.”

“This is yet another significant partnership between the state, Mutual Housing California, and CADA to create an affordable housing project here in Sacramento under the Governor’s Executive Order,” said DGS Director Ana M. Lasso. “It is so inspiring to see excess state-owned property repurposed to create living spaces that strengthen the local community here in the capital city.”

805 R Street is the latest development spurred by Governor Newsom’s Executive Order N-06-19 for Affordable Housing Development, which prioritizes affordable housing development on excess State-owned property and pursuit of sustainable, innovative, and cost-effective construction methods.

“Projects like Monarch are helping to breathe new life into city centers,” said HCD Director Gustavo Velasquez. “It is extremely gratifying to help make the Governor’s vision for state lands a reality, as properties that are not needed for a government purpose can advance the greater good of making affordable housing available in high-resource areas that connect Californians to opportunity and community.”

“Building on the success of R Street’s WAL project, this artist-affirming affordable housing concept will serve as a catalyst for economic growth for the west end of the R Street Corridor bringing more people downtown and adding to the vibrancy of this area.”, says CADA Executive Director Danielle Foster.

“Monarch presents a significant open space on the east end at 9th and R Street along with ground floor units along R Street that provide patios with entrances directly off the street to enliven the street scene and further integrate the Monarch community into the R Street Corridor, said Architect Phil Harvey of Kuchman Architects. “The overall design of the building keys off of the industrial past of the R Street Corridor, the first warehouse and industrial area of Sacramento that included the first railroad line west of the Mississippi predating the building of the transcontinental railroad.”

The future affordable housing development is named Monarch in part to symbolize the way affordable, quality housing changes lives much like the caterpillar that transforms into the monarch butterfly. The theme of transformation is consistent with the State’s Excess Site Program and its transformative focus of providing housing on vacant and underutilized properties. It also aligns with the work of CADA and Mutual Housing in cultivating community and providing affordable housing options through infill development. In line with the theme of transformation, guests will be offered hand-painted butterfly houses crafted by youth residing in Mutual Housing’s other existing communities.

California Tax Credit Allocation and Debt Limit Allocation Committees awarded the project 4% Low-Income Housing Tax Credits. In addition, to the State Department of General Services leasing the land for the project, it also received $10 million in funding from the California’s Department of Housing and Community Development through their Local Government Matching Grants (LGMG) Program. California’s Housing Finance Authority provided a $21 million permanent loan and additional $4 million loan through their Mixed Income Program (MIP). CADA contributed a $11.3 million loan. In February, the Sacramento City Council approved a $3.3 million loan for the project. Construction is scheduled to take approximately two years. Mutual Housing California, which will manage the property and provide resident services upon completion.

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About Mutual Housing

Founded in 1988, Mutual Housing California develops, manages, and supports sustainable affordable housing where residents are partners in advancing equitable communities. More than 3,400 people – nearly half of them children – live in Mutual Housing communities. Over half of Mutual Housing residents earn below 30% of AMI. Mutual Housing is a member of NeighborWorks America, a congressionally chartered nonprofit organization that supports community development nationwide.

About CACDC & CADA

Created in 2014, CACDC is the nonprofit arm of the Capitol Area Development Authority (CADA), which was founded in 1978. CADA is a city/state Joint Powers Authority whose mission is to implement the residential and neighborhood commercial elements of the State’s Capitol Area Plan. The CACDC’s mission is to assist the city of Sacramento and the State of California in lessening the burdens of government to revitalize the neighborhood in close proximity to the California State Capitol, and is specifically focused on development of new affordable housing.

About DGS & HCD

The Department of General Services acts as the business manager for the state of California. DGS helps state government better serve the public by providing services to state agencies including procurement and acquisition solutions, real estate management, leasing and design services, environmentally friendly transportation, and architectural oversight and funding for the construction of safe schools.

The California Department of Housing and Community Development is dedicated to the preservation and expansion of safe and affordable housing, so more Californians have a place to call home. HCD works to ensure an adequate supply of housing for Californians and promotes the growth of strong communities through its leadership, policy and program development.

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