Sacramento breaks ground on micro community project after pausing same effort in North Natomas

Cecil HannibalSACRAMENTO, Calif. —

Sacramento broke ground on its long-anticipated micro community project on Gardendale Road near the city’s Meadowview neighborhood. This first site is one of four the city plans to build for unhoused seniors.

“We’re going to break ground on another one in a few weeks, and we’re still working on two other sites in the city of Sacramento,” said Mayor Kevin McCarty.

Since September 2025, the city has discussed building four micro communities specifically for people 55 years and old. Each community would have a maximum of 40 prefabricated homes, shared bathrooms, shared laundry, an outdoor dining area, and some locations would have areas designated for pets.

The participants would pay 30% of their income per month after an initial 90-day grace period to help fund the effort, according to one of the city’s presentations. There will be on-site security including bag checks and good neighbor policy.

The micro community project in North Natomas is now on pause, according to multiple city officials.

KCRA 3 obtained an internal memo from the city manager’s office sent to the Sacramento City Council that reported the Arena Boulevard site’s development and construction is estimated to 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 and makes it more costly.

“In September 2025 presentations done by the head of the Department of Community Resources said these were going to cost $3.5 million….you have mine that came in as a minimum estimate of $7.1 million,” said Councilmember Lisa Kaplan, who went on to say, “I think the concept didn’t work.”

Kaplan questions whether the micro community on Arena Boulevard is the best use of city resources. “How do you do shelters for seniors where there is no gathering place, where there are no on-site services,” she said.

Kaplan is referring to a lack of nonprofit organization in the area to provide services to the participants.

Mayor McCarty emphasized this pause doesn’t mean the project won’t happen eventually saying.

“We’re still working on the economics of how you would build one in the North Natomas area. But, as our city manager just reiterated to us, you know, pause does not mean it’s done,” said McCarty.

The city plans to establish four micro communities across Sacramento, including a site in South Sacramento at 6360 25th Street, which will feature 28 120-square-foot-units, three shared bathrooms, two shared laundry facilities, and an outdoor dining area. Another site at 2461 Gardendale Road will include 40 120-square-foot units and four shared bathrooms.

Mayor McCarty said these locations will be the priority first, then the Arena Boulevard location and the city is looking at fourth site in the Land Park or Pocket area.

The proposed site on Arena Boulevard has received pushback from dozens of residents who claim to have filed a lawsuit.

“I feel like this will definitely affect my business and parents will feel unsafe to have their kids in my daycare,” said Anabelle Gonzalez.

Raisy Leer, a resident of a senior mobile home community near the Arena Boulevard site, said, “McCarty thinks that this is the answer and it’s not. We don’t want it here not that we don’t’ want something done for the homeless in our community. I don’t know what that something is.”

Leer and Gonzalez are a part of the group of neighbors pushing back against the site’s construction. Both claim the city hasn’t been transparent in the planning process.

Mayor Kevin McCarty addressed the situation, saying, “I think people just don’t want these in their backyard…there’s nothing being hidden because nothing is being spent.”

McCarty emphasized the need for equitable solutions to homelessness, “I think, unfortunately, this boils down to people that just don’t want these in their backyards. They want us to solve homelessness, but they want us to put the locations in someone else’s neighborhood…We got into this problem together. We’re going to get out of this problem together. We can’t just continue to say, oh, let’s put all the homeless in the poor neighborhoods.”

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