Capitol Park Hotel

Construction Begins on Historic Capitol Park Hotel

Mercy Housing California begins conversion of historic hotel into affordable apartments for people who are homeless.

SACRAMENTO, Calif. — Construction on the former Capitol Park Hotel, located at 1125 9th Street in the city’s downtown core, will transform the building into permanent supportive housing for individuals who are experiencing homelessness. Mercy Housing’s team of contractors and engineers recently began clearing out the interior of Sacramento’s largest historic downtown single room occupancy (SRO) residential hotel, located less than a block away from the State Capitol.

“Mercy Housing’s start on the Capitol Park Hotel represents a significant milestone for our City in our efforts to address homelessness,” said Mayor Darrell Steinberg. “With 134 homes now under construction, Mercy Housing’s team makes a significant contribution to our supply of much-needed permanent supportive housing. I thank Mercy Housing for their hard work and vision to get us to this point, Sacramento Housing Redevelopment Agency (SHRA) for their shepherding of this important project, and the County of Sacramento for their continued partnership in making this project a reality. I look forward to the grand reopening of this historic building and welcoming its residents to their newly renovated and service-enriched homes.”

“This was a collective effort from the very beginning, inspired and led by Mayor Steinberg and the City Council’s call for the Sacramento community to step up our compassionate response to homelessness,” said Mercy Housing California’s President, Doug Shoemaker. He also added that, “The work of creating Permanent Supportive Housing could not be a more complex set of partnerships and funding mechanisms. We are so proud of how all our partners on this project have answered that call.”

Capitol Park Hotel is one of several successful competitive applications that Sacramento County has made to the State of California Housing and Community Development Department’s No Place Like Home (NPLH) program that includes permanent housing units for individuals and families experiencing homelessness and who are in need of mental health services.

“Sacramento County and the Sacramento Housing and Redevelopment Agency worked in close collaboration last year with Mercy Housing to weave the necessary funding together to make this vision a reality. Developers identified sites and sought funding and local approvals, and the cities have shown their support for new housing solutions,” said Acting County Executive Ann Edwards. “The work Mercy Housing is doing now is important, because it expands permanent housing and services for people in Sacramento County who are homeless and coping with serious mental illness. The County has committed to provide services for 20 years to the tenants who need them, and we will do so with compassion and dignity.”

Originally built in 1912, the building has served many purposes over the decades including as a furniture store and warehouse, two separate hotels, and a business college. Known as the Capitol Park Hotel since the 1960s, it was constructed as two separate buildings connected on all but one of its floors.

From September 2019 to October 2020, the hotel also served as a temporary homeless shelter as part of the City of Sacramento and SHRA’s urgent response to the worsening homeless crisis. “SHRA is excited to be involved in the Capitol Park Hotel rehab project with Mercy Housing, an affordable housing developer with a proven successful track record of creating quality permanent supportive housing that enhances the revitalization of the surrounding community,” said SHRA Executive Director La Shelle Dozier. “This project addresses a shared commitment with the City of Sacramento to provide housing opportunities with supportive services for our most vulnerable residents to help them experience a better quality of life in a stable living environment.”

When complete, the community will be comprised of 134 studio apartments. To ensure the building will meet current codes and last for decades to come, Mercy Housing will need to complete extensive work, while still maintaining its historic elegance. The building must be seismically upgraded with full height concrete moment frames. To reconfigure the interior rooms into studio apartments with kitchenettes and full bathrooms, nearly all interior space will be remodeled, with important historic elements preserved. Amenities will include a spacious community room, meeting areas for individual and group settings, and onsite bicycle parking. There will be onsite resident services provided by both the County of Sacramento and WellSpace Health, property management, and round-the-clock desk clerk service. Construction will take approximately 20 months with all apartment homes occupied before the end of 2022.

“There’s an ongoing need for affordable housing options across the country, which makes the adaptive reuse of the historic Capitol Park Hotel into studio units so impactful for the Sacramento community,” said James Vossoughi, Vice President, Community Development Banking, Chase. “We’re proud and excited to work with Mercy Housing on this transformational project that will make a difference for formerly homeless individuals in the surrounding community.”

Sarah Williams of Enterprise Housing Credit Investments, another long-term supporter of affordable housing, also remarked on the importance of this new development: “Enterprise is pleased to participate in the renovation of Capitol Park Hotel with Mercy Housing California, an organization that demonstrates mission and passion to serve its most vulnerable community members. The renovation of Capitol Park Hotel is a special endeavor which will preserve the building’s historic nature, at the heart of the California State Capitol, while creating the opportunity to provide formerly homeless individuals housing and services long into the future.”