Title
City Support of Affordable Housing and Sustainable Communities (AHSC) Grant Applications for Sustainable Transportation Infrastructure Projects - Round 10
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FileID
File ID: 2026-00867
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Location
Location: 2900 Wah Avenue, District 5; 6779 Q Street, District 6; 2800 Florin Road, District 8
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Recommendation
Recommendation: Pass a Motion: in support of 1) Mutual Housing’s Affordable Housing Sustainable Communities (AHSC) program grant application for Sustainable Transportation Infrastructure and Program Costs at 2900 Wah Avenue; 2) Community HousingWork’s AHSC program grant application for Sustainable Transportation Infrastructure and Program Costs at 6779 Q Street; 3) Christian Church Homes’s AHSC program grant application for Sustainable Transportation Infrastructure and Program Costs at 2800 Florin Road.
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Contact
Contact: Ya-yin Isle, City Housing Manager, (916) 808-1869, yisle@cityofsacramento.org; Axel Magallanes, Housing Analyst, (916) 808-1844, amagallanes@cityofsacramento.org; City Manager’s Office of Innovation and Economic Development; Jesse Gothan, Supervising Engineer, (916) 808-6897, jgothan@cityofsacramento.org, Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Mutual Housing Strawberry Commons AHSC Support Letter
3-Community HousingWorks Q Street Apartments AHSC Support Letter
4-Christian Church Homes Florin Family Apartments AHSC Support Letter
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Description/Analysis
IssueDetail
Issue Detail: On March 4, 2026, the State of California issued a Notice of Funding Availability (NOFA) for approximately $750 million in statewide funding for the Strategic Growth Council's Affordable Housing and Sustainable Communities (AHSC) Program. The AHSC Program provides grants and affordable housing loans for compact transit-oriented development and related infrastructure and programs that reduce greenhouse gas (GHG) emissions. The AHSC Program uses State Cap & Trade funding from other uses throughout the state to fund these pollution reducing objectives. Applications for Round 10 of the AHSC Program are due May 4, 2026, with an award announcement anticipated in December of 2026.
AHSC is a competitive grant process, based on the extent to which developments realize the AHSC Program’s objectives of reducing GHG emissions, benefiting Disadvantaged Communities and Low-income Communities, providing affordable housing, demonstrating project readiness, and meeting other policy considerations. Typically, affordable housing developers are the primary applicants and partner with local governments and transit agencies to identify sustainable transportation infrastructure (STI)/public transit improvements surrounding the proposed project sites. The City’s Public Works Department and Office of Innovation and Economic Development’s Housing team have been working with three potential applicants to identify appropriate STI scope for their respective projects. Details regarding the proposed housing projects and STI improvements are as follows:
• Mutual Housing - Strawberry Commons: Mutual Housing California is partnering with Habitat for Humanity of Greater Sacramento to develop the 5-acre vacant site at 2900 Wah Avenue. Habitat plans to construct 23 townhomes, while Mutual Housing will develop 101 affordable multifamily apartment units (including one manager unit) on a 2.23-acre portion of the site. The site will be subdivided into two separate parcels with Mutual Housing pursuing AHSC funding for the multifamily portion only. The Strawberry Commons project will include a mix of one-, two- and three-bedroom units serving families earning between 30% and 60% of Area Median Income (AMI). The project is designed as a four-story, factory-built residential community; and planned amenities include a community room, laundry room, picnic area, play area, and two elevators. If awarded funding, construction is anticipated to begin in 2027. The Wah Ave Neighborhood Connections Project is the City STI project and will construct new Class 3 bikeways around the Strawberry Commons Project, improving accessibility and connectivity in the surrounding neighborhood.
• Community HousingWorks - Q Street Apartments: The Q Street Apartments is a new affordable housing development proposed by Community HousingWorks (CHW), located at 6779 Q Street. The project will offer 95 affordable units (including one manager unit) comprised of studios, one- and two-bedroom units for households earning between 30-80% of the Area Median Income (AMI). Amenities will include a community room, laundry facilities, free Wi-Fi onsite, bike storage, and transit passes for 3 years. The Tahoe Park Neighborhood Connections Project is the City STI project and will construct new Class 3 bikeways and curb ramp improvements around the Q Street Apartments, improving accessibility and connectivity in the surrounding neighborhood.
• Christian Church Homes - Florin Family Apartments: The Florin Family Apartments is a new 2-phase project being proposed by Christian Church Homes (CCH). The proposed project is located at 2800 Florin Road. This AHSC application supports Phase 1 of the project which will include a mix of 122 units comprised of one-, two-, and three-bedroom units. Phase 2 is envisioned to begin following the completion of Phase 1 and will include an additional 70 units. The Florin Neighborhood Connections Project is the City STI project and will construct new Class 3 bikeways and curb ramp improvements around the Florin Family Apartments, improving accessibility and connectivity in the surrounding neighborhood.
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PolicyConsiderations
Policy Considerations: Support of the three proposed AHSC grant applications provide additional potential funding for the development of the Q Street Apartments, Florin Family Apartments, and Strawberry Commons affordable housing projects; and bicycle and pedestrian infrastructure in the areas surrounding these projects which will benefit the broader community as well as residents of these projects. The proposed projects are consistent with the City’s General Plan and Climate Action and Adaptation Plan policies to promote resiliency with respect to issues such as air quality, food availability, renewable energy, sustainable land use, and the reduction of greenhouse gas emissions. The proposed affordable housing developments will deliver much-needed affordable housing, consistent with Housing Element site inventory and the City’s Regional Housing Needs Allocation (RHNA). The Sustainable Transportation Infrastructure components are consistent with the City’s Bicycle and Pedestrian Plans and Neighborhood Connections Plan.
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EconomicImpacts
Economic Impacts: Development of over 300 affordable housing units and the related bike and pedestrian infrastructure will provide hundreds of jobs in the City and stimulate additional jobs needed for the required housing development supply chain.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns fiscal activities that do not constitute a “project” as defined by the California Environmental Quality Act Guidelines Section 15378(b)(4). If the grants are awarded, environmental review of any sustainable transportation improvements or related amenities will occur by the City before construction is authorized.
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Sustainability
Sustainability: The projects will advance the goals, policies, and targets that will directly or indirectly conserve energy resources and reduce greenhouse gas emissions, in part, from 2040 General Plan and Climate Action and Adaptation Plan. Pairing these developments with the recommended accompanying pedestrian improvements makes it easier for both the affordable housing residents and surrounding residents to bike and walk in and through the area as modes of transportation.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The recommendations in this report further the City’s objective of providing a range of housing for community needs, including affordable housing, while also providing sustainably developed projects that support community infrastructure needs through this combined funding. Staff are supportive of the developers applying for this funding, as an award of funding can assist in timely development of the housing and transportation infrastructure.
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FinancialConsiderations
Financial Considerations: Receipt of AHSC funding would assist the developers of the proposed housing projects as well as provide funding for related bike and pedestrian improvements. If the grant applications are successful, local transportation funding will be needed to pay for costs related to implementation of the identified improvements that are not covered by the grant. This report assumes the following local funds would be required:
• Strawberry Commons/Wah Ave Neighborhood Connections Project - $200,000 from Active Transportation Program (T15180400)
• Florin Family Apartments/Florin Road Neighborhood Connections Project - $150,000 from Active Transportation Program (T15180400)
• Q Street Apartments/Tahoe Park Neighborhood Connections Project - $150,000 from Active Transportation Program (T15180400)
If awarded, staff will return to Council for the necessary authority to accept the grant funding for the STI projects, commit the necessary local transportation funding, establish specific Capital Improvement Projects, and perform the appropriate budgetary transfers.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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