City Spends $445,000 Per Unit for “Micro-Apartments”

The city of Sacramento is spending more than $445,000 per unit for 250-square-foot “micro apartments” for homeless people, The Sacramento Bee reported September 15.


The project to renovate the Capitol Park Hotel near the Golden 1 Center “has been hailed as an important step to house Sacramento’s homeless population,” The Bee noted, but “will come at an extraordinarily high price to taxpayers and the nonprofit groups involved in the project.”


The cost for a single unit exceeds Sacramento’s median home value of $425,000 for houses more than 1,600 square feet, the newspaper reported.


Mayor Darrell Steinberg told The Bee he had no regrets about the project and “would do it again,” citing a “moral imperative to bring people who are unsheltered indoors.”


Sacramento has a history of spending heavily to rehabilitate downtown hotels. In 2012, Hotel Berry was rehabilitated for a cost of approximately $252,000 per unit, and in 2018 the Shasta Hotel was rehabilitated for approximately $308,000 per unit. (Source: The Sacramento Bee, September 15.)

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