Sacramento’s mayor issued a ‘six-point plan’ on homelessness. Where does it stand?

It has been seven months since Sacramento Mayor Kevin McCarty announced his plans to ramp up shelter production for the thousands of unhoused residents on local streets.

Despite council tensions, a legal battle in North Natomas and budgetary constraints, city officials say they are still working to get the initiatives off the ground.

McCarty laid out what he called his “six-point plan” to address homelessness at a September city council meeting last year. It includes strategies to increase shelter, reform the city’s emergency motel voucher program and establish a grant program for nonprofits to help build tiny homes.

The plans for additional shelter included:

• Three identified locations in council Districts 1, 5 and 8 for 40-unit, city-funded tiny home communities. They would focus on unhoused seniors 55 years and older. 
• One safe camping site in Sacramento’s River District with 100 spots.
• A safe parking site in District 6 for 60 to 80 vehicles. 
• State-funded tiny home communities in Districts 2 and 5.

McCarty, who was sworn in as Sacramento’s mayor in December of 2024, campaigned on the promise of addressing the city’s homelessness crisis. He maintained that boosting the city’s supply of tiny homes would be a cost-effective way to meet that promise. 

Complicating matters, the mayor and council have contended with a $66.2 million structural budget deficit during much of McCarty’s early tenure. The mayor told CapRadio in April that this means tough decisions will be made.

“We want to keep intact our resources for our homeless response. We’ve been successful in decreasing the number of unsheltered homeless,” McCarty said. “We’re not done.”

 

Before McCarty took office, the latest point-in-time count data from Sacramento County in 2024 showed homelessness dropped by 29%, a number disputed by advocates in the region who have said that unhoused numbers are increasing or staying the same. 

Homeless advocate and Sacramento State Professor of Social Work Arturo Baiocchi said he’s not opposed to adding more shelter, but is wary of controversial elements to the mayor’s plan, such as charging unhoused seniors 30% of their income to live in the tiny home communities. 

“They’re just not used to doing that,” he said. “It’s a big psychological jump for them.”

Baiocchi said last fall he is also worried about warehousing people, noting that social services and support are just as important as having somewhere to sleep. 

“ People are gonna be there for years,” he said in October. “You need to think about those tiny homes as little communities. Here's a community garden, here's a rec center. People still need some kind of support.”

City-funded tiny home communities 

McCarty’s plans call for three tiny home sites for unhoused seniors. They’ll be located as follows: 3511 Arena Blvd in North Natomas, 6360 25th St in South Sacramento and 2461 Gardendale Road in Meadowview. 

Brian Pedro, director of the city’s Department of Community Response, said the plans are going through the building department right now and the city is on schedule to break ground by mid to late spring of this year. 

“Likely the first one will be built, if we stay on schedule, spring of 2027,” he explained. “The first one is always the slowest and once you get rolling on it we pick up speed.”

Pedro said every tiny home cost the city around $17,000 to buy, but with amenities each will cost around $85,000. The overall price tag for each community is approximately $3 million to $4 million. 

The tiny homes are intended as interim housing, and tenants will pay 30% of their income. Plans call for each 120-square-foot tiny home to be temperature controlled and come with a bed and a desk. The sites will have shared bathrooms and kitchen areas. 

The city has maintained that the “micro-communities” are not considered emergency shelters and are meant for stable individuals on fixed incomes who aren’t able to get into affordable housing. 

Pedro told CapRadio that city officials are looking to find a location in District 7, which includes the Pocket and Greenhaven neighborhoods, but finding buildable land has proven challenging.

“ We're looking at various sites and trying to determine if any of them are usable and without extensive site preparation, driving the cost up,” Pedro said.

Conflict over District 1 site 

Not everyone is in support of the locations chosen for the mayor’s plan. Some constituents have formally opposed the District 1 tiny home location and filed a lawsuit to halt the site’s development on March 30.

The Advisory Council for Legal and Ethical Oversight, made up of Natomas residents, claims the location violates city code, will decrease property values, and does not comply with the California Environmental Quality Act (CEQA).

Rosalee Lehr lives at a mobile home park nearby and is one of plaintiffs. She told CapRadio that many at the park oppose the site.

“I have never seen as many for-sale signs as I have just recently here in my park,” Lehr said. These people have been here for years, and they’re wanting to move because of this whole homeless shelter business.”

District 1 Councilmember Lisa Kaplan, who is running for reelection, initially supported the site. Since then, Kaplan has sided with her constituents and has been vocal about opposing it.

In her Feb. 20 weekly newsletter, Kaplan said she would support her constituents if they decided to take action but declined to comment on the lawsuit. 

“The last remaining option I have in my power is to attempt to get a council vote to stop the construction of the micro-community,” Kaplan wrote. “That is unless someone in the community sues to stop its construction. I will stand beside you, if that lawsuit is filed.” 

Kaplan declined to comment on the lawsuit. Fellow Natomas councilmember Karina Talamantes confirmed with CapRadio that she does not support the site, which sits on the line between the two districts.

The two, along with Councilmember Jennings, have asked to repeal an ordinance that gives the city manager sole power to approve temporary homeless shelter contracts under $5 million.

Talamantes said in a written statement to CapRadio that the request will not appear on a city council agenda. 

“I still oppose the current location and hope that our Department of Community Response can be proactive on providing answers to the questions my community members may have,” Talamantes said. 

McCarty and Pedro told CapRadio they are unsure if the lawsuit will impact the development’s timeline. 

Safe Camping in the River District

While plans for the city-funded tiny home communities are still in the works, Sacramento broke ground in February on a safe campground in the River District with 100 spaces and expects to have the site open within the next month or so.

The fenced in campground– located at 291 Sequoia Pacific Blvd– will host tents under a metal canopy between two shipping containers to account for weather. The site will also have bathrooms, kennels for animals, on-site security, and case management services. 

Councilmember Phil Pluckebaum represents District 4. He said he supports the six point plan but outlined the district specific concerns. 

“Some are concerned about the concentration of services that we’re providing in the River District,” Pluckebaum said. “Others are welcoming the opportunity to provide people already there sleeping on the streets, a place to be that's not the street, more dignified, even though it's still tents under shade.”

Earlier this year, Pluckebaum introduced an ordinance at the city’s Law and Legislation Committee that would cap the number of shelter beds the district could offer, a measure he said was already in place prior to the safe campground plan.

“ About a year ago we lifted the cap on the amount of services that we could provide in the River District, in part to make space for that campground,” he explained.

Pluckebaum said the ordinance will come to the full city council towards the end of 2026. 

Safe Parking Site in District 6

City officials are still scouting a location for the safe parking site laid out in McCarty’s six-point plan, which will include 60 to 80 parking spaces for those living in RVs or cars. 

The site is intended to provide restrooms, trash collection and places to charge electronics. It will be staffed with outreach personnel to help connect people to services, according to the city. 

Pedro said the parking site will be more geared towards families and individuals in an area that is close to businesses and schools.

At the September council meeting, Pedro initially pointed to a location at 4625 Cosumnes River Blvd in South Sacramento. But in April a city spokesperson said they have chosen to move forward with a separate, undisclosed location.

“We do have a site we’re looking at in District 6. We don’t have any final confirmation,” Pedro said. “With all of this, we have that site and a backup to a back up because if anything falls through we want the ability to pivot.” 

District 6 City Councilmember Eric Guerra said there is no timeline yet for the safe parking site, but noted business owners support the idea and are helping find a location. 

“ They see it every day. There are people parking in front of their businesses and around industrial and manufacturing sites that are dangerous,” Guerra said. “They want to find a good solution moving forward.”

State funded tiny homes in Districts 2 and 5

Along with its city-funded initiatives, Sacramento is also seeking state money to help build permanent supportive housing. Two such examples include future tiny home communities on Rio Linda Blvd in District 2 and Mack Road in District 5.

Pedro explained that the tiny homes at these future communities will be twice as large as the  120-square-foot models at the other sites, and will come with a bathroom and kitchenette inside. The sites will also include long term supportive services.

According to Sacramento's Housing Element report on March 24, the city applied for state Homekey+ funding in May and June of last year. Pedro said officials are still waiting to hear back. 

“We have two applications in. We’re going back and forth right now, it’s a very extensive process,” he said. 

Pedro said costs for permanent supportive housing can range up to $600,000 a unit, whereas using a tiny home model will cut costs to around $200,000 a unit.

“Because it is permanent housing, you’re putting in roads, you’re putting in sidewalks,” Pedro said. “...There is no cheap way to do it.”

The state helps local governments across California through the Homeless Housing, Assistance and Prevention grant program. The future of that program is uncertain but California awarded the Sacramento region $32 million on Wednesday.

Despite facing a challenging financial future and some community pushback, Sacramento officials maintain they will continue to make shelter and housing a priority in their city budget. 

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