Key points:
- Sacramento Mayor Kevin McCarty announces 135 tiny homes for homeless at Roseville Road Shelter.
- Each tiny home will have electricity, air conditioning, and secure doors to be operated by The Gathering Inn.
- Sacramento’s homeless crisis persists despite efforts to provide housing solutions.
SACRAMENTO, CA — Mayor Kevin McCarty this week announced the construction of 135 tiny homes at the Roseville Road Shelter‑and‑Service Campus, presenting them as a cornerstone of a strategy to pivot away from costly supportive housing models toward more scalable, cost‑effective shelter solutions, according to the Sacramento Bee.
The homes—each equipped with electricity, air conditioning and secure doors—will be operated by The Gathering Inn and join the existing First Steps community, which currently houses more than 100 people transitioning from homelessness.
“The big picture is that there are 135 individuals who won’t be sleeping in the park or at City Hall or in our neighborhoods and will have a place to go,” McCarty told the Sacramento Bee. “This is kind of the future of where we’re headed with our homeless response.”
The announcement coincided with a new city ordinance taking effect that bans overnight camping at City Hall, part of a broader strategy to reduce visible encampments downtown while signaling that new housing capacity is coming online.
Advocates for unhoused residents have raised concerns that such ordinances may displace people before meaningful alternatives exist.
Since taking office in December, McCarty has pushed for smaller, community‑based housing methods over large congregate shelters or expensive permanent supportive housing. He told the Sacramento Bee that “these tiny homes are $15,000 — it costs more to put in electricity and everything else — but the SHRA [Sacramento Housing and Redevelopment Agency] model, the permanent supportive housing of $1 million for an apartment for homeless individuals, is unviable.
“Mathematically, it makes people scratch their heads,” he said. “You can have $1 million, gold plated solutions for a few or practical solutions for the masses. We’re pivoting to how can we be more cost‑effective with our taxpayer dollars so we can serve more people.”)
McCarty added that with $1 million the city could build 35 to 40 tiny homes—serving dozens—compared to just one permanent supportive housing unit at similar cost.
“It’s a piece of the puzzle,” he told the Bee. “It’s three similar paths with all the same call: to serve the homeless and get people off the streets,” citing the city’s Safe Parking program at a Sacramento Regional Transit lot and a motel‑conversion initiative.
The Roseville Road site is one of four microvillage locations planned across the city, intended to be distributed evenly across neighborhoods.
“From Natomas all the way to District 7, the South Land Park/Pocket area, we all know we need to be answering the call, providing a place for the homeless to live,” McCarty said. “It won’t be perfect, but it’s something that we’re taking seriously. These microvillage sites will be distributed evenly throughout the city.”
One village will serve seniors transitioning from homelessness, who will pay 30 percent of their income for rent—a concept debated for months as a way to defray operational costs while maintaining affordability. Details of the broader strategy and microvillage rollout are to be presented at the City Council’s Sept. 16 meeting.
Ben Worrell, chief operating officer of First Steps, said the expansion will significantly enhance the campus as a comprehensive service hub.
“We’re excited to see this. The residents are eagerly watching,” he told the Bee. “This will replace the current travel trailers on the south side of the property. We’re excited for the expansion of the campus. The city has been very flexible with us. The city is planning a full service campus that will be easier for people to engage.”
First Steps serves 111 residents on site, many currently navigating construction activity.
However, while tiny homes offer quicker shelter, some homelessness experts caution they should not be viewed as a long‑term fix.
In California, some advocates emphasize that tiny homes are valuable for immediate shelter but should not overshadow the need for permanent supportive housing. Jennifer Loving, CEO of Destination: HOME in Santa Clara County, said, “Non‑congregate tiny homes are better than congregate shelter, but people are still homeless when they live there.”
Critics elsewhere have documented limited long‑term outcomes.
A study of tiny home villages in Los Angeles found that less than one‑quarter of residents moved into permanent housing, while more than half fell back into homelessness after leaving the villages. Complaints about noise, harassment, maintenance issues—including leaks and broken heaters—were common.
Local Sacramento context adds complexity. Some neighboring communities have voiced concerns over tiny home proposals, citing safety and security worries.
Advocates and experts also note that unless tied to comprehensive support services—mental health, job placement, case management—tiny homes risk becoming temporary shelters that do not lead to lasting stability.
California overall confronts a persistent homelessness crisis. The state’s 2022 Point‑in‑Time count recorded more than 9,200 people experiencing homelessness countywide—a 67 percent increase since 2019.
Homeless policy analysts say tiny homes can help reduce the number of people sleeping outdoors immediately, but should form part of a broader Housing‑First framework prioritizing permanent, service‑rich housing.
Despite limitations, McCarty insists the tiny homes are a meaningful, scalable start rather than a replacement for permanent housing.
“We want to bring more cost‑effective solutions,” he told the Bee. “For $1 million, we’ll be able to put together 35 to 40 tiny homes. We can serve 35 to 40 people. With permanent supportive housing, it’s $1 million for one person.
He reaffirmed that the city will continue pursuing safe parking, motel conversions and microvillages as complementary strategies. “It’s three similar paths with all the same call: to serve the homeless and get people off the streets.”
With construction underway at Roseville Road and more sites pending, Sacramento appears poised to reshape its homeless response toward distributed, lower-cost shelters with the potential to rapidly scale shelter access.
The City Council’s upcoming Sept. 16 presentation will be pivotal in assessing how these efforts mesh with permanent housing goals. In the meantime, the inclusion of advocate perspectives underscores the need to balance urgency with long-term outcomes.
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