City of West Sacramento Secures $43.35 Million Affordable Housing and Sustainable Communities Grant

The City of West Sacramento has been awarded $43,350,000 through the State of California's Affordable Housing and Sustainable Communities (AHSC) Grant Program, following approval by the Strategic Growth Council on December 10, 2025. This award represents a major investment in the City's long-term housing, mobility, and climate-focused infrastructure goals.

E. Smith & Company, in partnership with the City of West Sacramento and Sacramento Regional Transit, submitted the successful application in May. The grant will support several transformative projects serving the Grand Gateway area and the broader community.

The AHSC award includes funding for:

The AHSC Program prioritizes projects that reduce greenhouse gas emissions through integrated housing and transportation investments. West Sacramento's award reflects the City's commitment to climate-aligned development, multimodal mobility, and expanded affordable housing opportunities.

"This award represents a generational investment in West Sacramento's future," said Mayor Martha Guerrero. "With this funding, we are advancing a project that combines deeply affordable housing with modern, sustainable transportation infrastructure. It is exactly the kind of community-building investment that helps our city grow responsibly while improving quality of life for residents."

District 2 City Councilmember Quirina Orozco highlighted the importance of the partnership approach to investing in housing and transportation infrastructure. "Securing the full award amount is a testament to the strength of our regional partnerships and the clarity of our vision," the Councilmember said. "The Grand Gateway has long been a priority area for the City, and for District 2. This funding moves us significantly closer to delivering an inclusive, accessible, climate-smart development that connects people to opportunity."

Grand Gateway Project

In 2023, the City posted a Request for Proposals to acquire and develop the Grand Gateway Master Plan Area ("Grand Gateway"). Grand Gateway comprises 8.6 acres of City-owned property located at the convergence of Cabaldon Parkway, West Capitol Avenue, and Grand Street in the City's Central Business District.

In 2024, the City entered into an Exclusive Negotiating Agreement with a development team including SKK Developments to acquire Grand Gateway to construct over 450 residential units, including affordable housing, 30,000 square feet of retail space, a hotel, a shared-use parking structure, a public plaza, and a public park. A preliminary development site plan is shown below.