Supportive Affordable Housing Opens in Sacramento

May 24, 2024
HCD Director Velasquez, Mayor Steinberg and others at cutting the ribbon at the grand opening ceremony.

Central Sacramento Studios Ribbon-cutting Ceremony


HCD Director Gustavo Velasquez joined Sacramento leaders and community members to celebrate the ribbon-cutting of new supportive affordable housing in downtown Sacramento.

Funded by more than $23 million from HCD’s Homekey program, Central Sacramento Studios was converted from a Best Western hotel into 92 permanent supportive homes. The goal of the Homekey program is to rapidly expand the availability of affordable homes to help house people who are experiencing or at risk of experiencing homelessness.

“Homekey has been a speedy way in which we have turned facilities like this into housing for people who need it the most,” said Director Velasquez. “Proposition 1 has passed, and now there is an opportunity to continue this program.”

The success of Homekey, which has already funded 15,319 homes, will be expanded under voter-approved Proposition 1, ensuring California’s most vulnerable residents have permanent homes with access to vital supportive services.

“Finally, people are paying attention to behavioral health and the connection between behavioral health and housing,” said Sacramento Mayor Darrell Steinberg at the ceremony. “People need a safe place to live if they are going to have a place to heal.”

A project of Danco Communities, Central Sacramento Studios is located near transit and essential amenities and has a community room, outdoor recreation space, community garden, a fitness center, a laundry facility, a pool, and a dog park. Residents also have access to on-site support services offered by Lifesteps.

Mike, a current resident of Central Sacramento Studios, became homeless in 2019. He said he lived in his truck until he found temporary residence in a Project Roomkey facility, which led to his current permanent residence.

“It has felt like home since the first day I walked in,” said Mike. “I would still be sitting in my truck down along the American River if it wasn’t for this place.”

View the video below to hear more about the Homekey program and the importance of affordable housing.