Sacramento County homeless shelter delayed, now over $1 million above budget

The new 350-bed facility on Watt Avenue was supposed to open last year but now has no firm opening date.

Apr. 7, 2026 at 5:49am

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An abstract, impressionistic scene of a blurred urban street with indistinct figures and structures, conveying the mood of homelessness and the community's anticipation for the new shelter.As Sacramento County struggles to open a new $64 million homeless shelter, the community awaits relief from the visible signs of homelessness that have plagued the Watt Avenue corridor.Today in Sacramento

Sacramento County's new $64 million homeless shelter on Watt Avenue is months behind schedule and more than $1 million over budget. The 13-acre warehouse and parking lot facility was originally slated to open in December 2025 but is still an empty building with a dug-up parking lot as of April 2026. County officials cite issues with utilities, fire protection, and other construction problems for the delays.

Why it matters

The new shelter is intended to be Northern California's largest and is seen as critical to reducing neighborhood crime and blight along the Watt Avenue corridor. Businesses in the area are eager for the shelter to open so that people feel safe visiting the area.

The details

The county spent just under $23 million to purchase the property in October 2022, paying nearly $6 million above the appraised value. The plans call for a facility that can accommodate 350 people with emergency shelter beds, sleeping cabins, and parking spaces for those living in their vehicles. The county says it's behind schedule due to problems with the property's utilities, fire protection, storm drains and other construction issues.

  • The shelter was originally scheduled to open in December 2025.
  • As of early April 2026, the shelter is still an empty building with a dug-up parking lot.

The players

Rich Desmond

A Sacramento County Supervisor overseeing the homeless shelter project.

Jhason Wint

The executive director of the 80 Watt Business District, a group representing businesses along the Watt Avenue corridor.

Mel Sattler

A homeowner in the nearby Fair Oaks community who is disappointed by the delays in opening the shelter.

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What they’re saying

“Government works slowly, but it should not be working this slowly.”

— Rich Desmond, Sacramento County Supervisor

“People want to make sure that they are safe to go back and forth, whether they work there or they're going to frequent a business.”

— Jhason Wint, Executive Director, 80 Watt Business District

“It seems like so many times government things take forever to happen, if they happen.”

— Mel Sattler, Fair Oaks Homeowner

What’s next

The county is not releasing an updated opening date, but Supervisor Desmond is hoping some part of the shelter will be up and running by this summer.

The takeaway

This project's delays and cost overruns highlight the challenges local governments face in addressing homelessness, even when funding and political will exist. The community is eager for the shelter to open, but the county must first resolve the construction issues that have pushed the timeline and budget past initial projections.