Today the Sacramento Housing and Redevelopment Agency will submit a report (item 9) to the City Council on the required number of residential hotel units (712) located in downtown Sacramento.
Currently there are three single room occupancy (SRO) residential hotel projects in various stages of rehabilitation or financing approval: the YWCA (32 units), the Hotel Berry (104 units), and 7th & H SRO Project ( 150 units). The rehabilitation of the YWCA is nearing completion. The Hotel Berry project received an allocation of nine percent low income housing tax credits in September 2009 and an award of American Recovery and Reinvestment Act (ARRA) exchange funds in December 2009. Disposition of the Hotel Berry property to the nonprofit developer Jamboree Housing Corporation and commencement of construction is anticipated in summer 2010. The proposed 7th & H SRO Project which will create 150 new efficiency units is applying for nine percent low income housing tax credits in June 2010. The 7th & H SRO Project has been identified as the replacement site for the 19 units that were lost at the Wendell and will further the goals of the City's SRO Preservation and Replacement Policy adopted to encourage "no net loss" of SRO units in downtown Sacramento.
Several of the hotels surveyed are less than fully occupied due to deteriorating physical conditions and the challenging rental market. Currently, city staff are evaluating financing options for the renovation of the Ridgeway Hotel which requires substantive improvements. The Marshall Hotel owner is planning to convert the property to a market rate boutique hotel when market conditions improve. If the use does change, 95 existing residential hotel units could be withdrawn and replacement units would need to be identified.