Sacramento County Weighs $54.7M for Affordable Housing Complex

The proposed five-story, 73-unit project targets households earning 30-60% of the area median income.

Published on Feb. 10, 2026

Sacramento County is considering $54.7 million in financing for a five-story, 73-unit affordable housing project at 8370 Power Inn Road in South Sacramento. The project would feature a mix of one-, two-, and three-bedroom units aimed at households earning 30% to 60% of the area median income, along with on-site services and shared amenities.

Why it matters

The proposed project is one of South Sacramento's largest affordable housing developments, reflecting the region's efforts to add deeply affordable homes despite rising construction costs and financing challenges. The project's size, location, and reliance on substantial public subsidies have drawn significant attention.

The details

The plan calls for a single five-story building with 72 deed-restricted units plus one manager's unit on about 1.44 acres. The unit mix would include roughly 30 one-bedroom, 23 two-bedroom, and 20 three-bedroom units, with about 86 tuck-under and surface parking spaces. The service provider Lifesteps would offer after-school programming and other on-site support.

  • The Sacramento County Board of Supervisors will consider the $54.7 million in financing at a meeting on Tuesday, February 10, 2026.
  • The project is being processed under SB 35 as a ministerial approval.

The players

Resources for Community Development

The applicant for the affordable housing project.

Lifesteps

The service provider that would offer after-school programming and other on-site support for the project.

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What’s next

If the Sacramento County Board of Supervisors approves the financing commitments, the project would move into bond issuance and loan-closing stages handled by the Sacramento Housing and Redevelopment Agency.

The takeaway

This proposed affordable housing project in South Sacramento highlights the region's efforts to address the need for deeply affordable homes, despite the challenges of rising construction costs and financing hurdles. The project's size, location, and reliance on substantial public subsidies demonstrate the ongoing struggle to balance ambitious housing production targets with the realities of getting these types of developments built.