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Citrus Heights Messenger

Sayonara Housing Development Project Moves Forward

Jun 25, 2024 03:56PM ● By Thomas J. Sullivan

The new 26 half-plex housing units, will be built by Habitat for Humanity of Sacramento, each on its own parcel with a front yard and private backyard, and be sold to qualifying low-income households who participate its existing program to provide affordable home ownership opportunities. Photo courtesy of Habitat for Humanity - Sacramento


CITRUS HEIGHTS, CA (MPG) - A joint moderate to low-income housing development project between Habitat for Humanity of Greater Sacramento (HfHGS) and the city of Citrus Heights to build 26 half-plex ownership housing units in the 7800 block of Sayonara Drive continues to move forward. That’s as a critical source of needed CalHome state funding remains in question.

Governor Gavin Newsom’s proposed state budget for 2024-25 zeroes out CalHome funding for the upcoming fiscal year and recommends taking back $152.5 million that has already been allocated.

CalHome, as the sole state funding source for the building and rehabilitation of ownership homes, is widely used by nonprofit developers, including Habitat for Humanity throughout California, to support new home construction and home preservation.

Habitat for Humanity California and its network of 33 affiliates in 42 counties applied for $87 million in CalHome funds last year but only $52 million was granted due to the scarcity of funds. According to Habitat for Humanity, this unmet demand means hundreds of affordable homes across the state are going unbuilt.

Construction of these new units by Habitat on 12 vacant city-owned lots in Citrus Heights, using CalHome funding, will meet the city’s obligation to replace blighted rental units that were demolished between 2008 and 2010.

Due to the city’s prior use of redevelopment funds, the city is required to replace the occupied units demolished during that time to reduce blight and crime in the area, said Marisa Brown, the city’s communications officer.

The city has received a 23-unit credit for the low-income Sunrise Pointe Apartments recently completed on Sunrise Boulevard but still needs to build a total of 12 units to fulfill its obligation to replace units previously demolished, Brown said.

The new, for sale, housing units, built by Habitat for Humanity, each on its own parcel with a front yard and a private backyard, will be sold to qualifying low-income households that participate in its existing program which provides affordable home ownership opportunities, said its President and CEO Leah Miller.

The Citrus Heights City Council has chosen the two housing units per parcel option, for a total of 26 half-plex units, according to chief city planner Alison Bermudez.

Groundbreaking and infrastructure improvements for the Sayonara project are now targeted for winter 2024 with construction to start on the first phase of new homes in summer 2025.

Sayonara Drive Habitat for Humanity

 Pictured here is the lot on Sayonara Drive, where Habitat for Humanity hopes to further their developments. Photo by Tom Sullivan


The new, all electric, energy efficient, two, three and four-bedroom duet style homes range from 999 to 1,397 square feet. When completed, the project would provide housing for nearly 120 low-income individuals (including children).

Construction will be done in three stages of eight to 10 units per stage, according to the Habitat for Humanity project overview, with each stage taking approximately a year to complete.

A self-help contributed labor component is also required, with each home-buyer household providing 500 hours of sweat equity in building their or their neighbor’s homes, Miller said.

In all, there will be two two-bedroom/one bathroom units (971 square feet), 12 three-bedroom-two bathroom units (1,214 square feet), 10 four-bedroom two-bathroom units (1,407 square feet) and two five-bedroom two bathroom units (1,523 square feet) built according to project plans.

The Sayonara Habitat housing project provides a first-time homebuyer opportunity for qualified low-income families earning 30 to 80 percent of the area median income (AMI) with an affordable 30-year, zero percent interest equivalent fixed-rate mortgage.

Sayonara Drive Habitat for Humanity

 Pictured here is the lot on Sayonara Drive, where Habitat for Humanity hopes to further their developments. Photo by Tom Sullivan


Overall project cost is estimated at close to $8 million, Miller said. With current funds on hand, some $6 million in gap funding is needed before groundbreaking can begin.

Secured funds include an estimated $1.9 million from the city of Citrus Heights and $1,050,000 in federal Community Project Funding obtained with support from Congressman Ami Bera.

Other Sayonara project funding will come from multiple sources, including corporate sponsorships, individual giving and special events, Miller said.

“We also anticipate raising $1.95 million in sponsorship funding from these sources,” Miller said.

Additional material support before the start of construction, including in-kind material or services donations such as HVAC, plumbing, windows, roofing and lumber, are also needed.

Labor is typically provided by volunteers who will help build the new homes (no experience necessary; training and tools are provided by Habitat for Humanity) when construction starts.

Both parties are now moving forward toward a construction timeline but an actual groundbreaking date “remains fluid,” Brown said.

“Since the state’s proposed budget which eliminates CalHome funding, which serves a major part of Habitat’s funding for the Sayonara project, Habitat will need to provide an alternate funding source if CalHome isn’t restored into the state budget,” she said.

The Citrus Heights City Council declared the property surplus in May 2022 and the state of California approved the surplus declaration in June 2022.

“The vacant lots will officially be transferred to Habitat for Humanity following the approval of development plans, sometime in July,” Brown said.

“We’re excited to partner with the city of Citrus Heights as we work forward toward the construction and completion of this important housing project, which will create stable housing for so many,” Miller said, speaking on behalf of Habitat for Sacramento.

Potential applicants seeking to qualify for Habitat homeownership can learn more at https://habitatgreatersac.org/home-ownership/apply. General information for those who might want to volunteer to work on this project or to donate to the cost of its construction can be found at habitatgreatersac.org

For further information on the Sayonara Housing Development Project Phase 1, visit www.citrusheights.net/132/Community-Development-Department.