Sacramento says it is building a ‘model’ homeless housing community. It may only last two years

Sacramento Mayor Darrell Steinberg lauded plans Wednesday for a new tiny home community at the site of a future medical campus as a model for the state, pairing critically needed housing for homeless individuals with mental health services nearby.

“This is a vision in action,” Steinberg said. “It’s going to become a model for how we build these multi-service center campuses — not only throughout the Sacramento region but throughout the state of California.”

But because of lease restrictions at the site, that model could last just two years.

Sacramento County, in partnership with the city, has negotiated a tentative lease to place tiny homes in a parking lot adjacent to an abandoned office complex at 6780 Stockton Blvd., which WellSpace Health is transforming into a health and wellness campus.

The site is expected to hold 175 tiny homes, a portion of the 1,200 units Gov. Gavin Newsom pledged earlier this year to provide cities across the state. Sacramento is slated to receive 350 homes. Cal Expo is a confirmed site for at least some, according to the mayor.

Sacramento’s homeless housing, health services model may quickly expire

WellSpace Health operates the region’s Suicide Prevention Crisis Line, 988. The campus the company is building will include a call center, community health and dental care and a 24/7 receiving center, where people experiencing serious mental health episodes could go for help.

The parking lot lease, which still must be approved by the Sacramento County Board of Supervisors, is set to expire in July 2026, according to WellSpace CEO Jonathan Porteus. After that, the tiny homes would be displaced by a residential rehabilitation and re-entry center for those getting treatment for substance abuse disorders.

The first part of the medical campus, the calling and receiving centers, is expected to open sometime in the summer of 2024. Steinberg said the tiny home community will break ground by the end of the year, but it is unclear at what point in 2024 the homes will begin housing individuals.

“I know everyone asks about timelines. What’s next? When are we going to actually see the tiny homes here? The answer is soon,” Steinberg said, without offering any further specificity.

Newsom said earlier this year that the homes would be delivered by fall, but construction has not begun. Officials said they hope to finalize contracts for construction by the end of this month, but they refuse to provide a new target date for when homeless individuals may begin moving in.

Newsom Administration will not set a target opening date for tiny homes

Hafsa Kaka, Newsom’s senior advisor for homelessness, became flustered and dodged questions on Wednesday when asked about the delay and why the state wouldn’t provide a new timeline for completion.

Kaka repeatedly said there was “no holdup” with the project and that the state was “continuing the momentum.”

“We have made significant progress today. We should be celebrating today,” Kaka said, before adding, “I’ll take the next question.”

When pressed about why the city and county chose a site with such a short expiration date, Steinberg said, “When we prove this model of success, leases will get extended long-term.”

Porteus said that over the course of the 2.5-year lease, WellSpace will explore how it “can use the land around it efficiently,” holding out the possibility that the tiny homes might be able to stay somewhere on the site.

“If that’s possible, then we can maintain programs,” he said. “If not, then we already have an infrastructure and a way of doing things so we can move.”

Steinberg did not answer a question about where the tiny homes would be moved if the lease was not extended further than July 2026.

The board of supervisors is expected to vote on the lease agreement at its Nov. 7 meeting.