Sacramento halts North Natomas ‘micro community’ for the unhoused
Sacramento has paused plans to build 40 tiny homes for homeless individuals aged 55 and older in North Natomas due to escalating costs and concerns about the site’s location in a flood zone.
The project was planned to be developed on Arena Boulevard near El Centro Road. It’s one of four micro-community projects proposed to the City Council in the fall of 2025.
KCRA 3 obtained an internal memo from the city manager’s office sent to the Sacramento City Council that reported the site’s development and construction would cost at least $7.1 million.
Officials said the increase is due to the site being in an A-99 flood zone, which complicates the construction process for this specific site.
“It should really be on pause because it’s not the right place,” Councilmember Lisa Kaplan said. “Once we found out it was designated as a flood area, it’s just not appropriate. You’re going to have to build up a minimum of 12 inches to maybe three feet. It makes it cost prohibitive.”
Another issue is that the city manager can approve projects for the unhoused without council approval if the cost is under $5 million. Since the Arena Boulevard project exceeds that amount, it cannot move forward without council authorization.
The original proposal included four micro-community sites. According to a memo from the city manager’s office, two other locations—Gardendale and 25th Street—are still moving forward.
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