Sacramento's affordable housing landscape in 2025–26 is defined by major new development activity, state-led conversions of surplus buildings and persistent affordability gaps despite record regional construction.
Several large-scale projects are adding hundreds of income‑restricted units across Sacramento and deals are being made.
Among them is the National affordable housing preservation company Hudson Valley Property Group (HVPG), which has acquired Mosa Apartment Homes, a newly constructed affordable housing community in the Sacramento metropolitan area, for $83.6 million.
The deal reflects HVPG's strategy involving the repositioning of legacy properties, expanding its presence in California and growing its national portfolio to 18,700 units across 99 properties in 13 states.
"The acquisition reflects HVPG's focus on creative preservation strategies that protect long-term affordability while supporting operational stability," Andy Cavaluzzi, co-founder and partner at Hudson Valley Property Group, told GlobeSt.com.
"In high-cost markets like California, preserving newer affordable housing communities is becoming increasingly important."
Deal Has Three Structured Partnerships
Mosa is a 387-unit, newly constructed affordable multifamily rental community located at 10149 Bruceville Road in Elk Grove.
Completed in 2025, the 14-building, garden-style family community offers a mix of unit types serving a broad range of household income levels. The property is structured across three Low-Income Housing Tax Credit (LIHTC) partnerships, each subject to its own regulatory agreement covering 100% of units, with HVPG acquiring the general partner interests in the entire trio.
Approximately 8% of units are further supported by tenant-based vouchers and income restrictions range from 30%, 50%, 60% and 80% of the area's median income (AMI). As a result of HVPG's acquisition, affordability at Mosa is locked in for an additional 30 years and no residents will be displaced as a result of the transaction.
The acquisition was financed through three Freddie Mac loans originated by Greystone, with tax credit equity provided by Red Stone Equity Partners and public finance support facilitated by the California Municipal Finance Authority (CMFA) and the city of Elk Grove.
Pacific Housing will serve as the general managing partner in the transaction and will provide on-site residence services, including after-school and teen programming, adult education and skill-building classes and individualized service coordination connecting tenants to community resources.
The property also features a fitness center, library, in-unit washers and dryers and advanced high-definition site monitoring. Rooftop solar panels power the units, reducing tenant utility costs and the property's carbon footprint.
New Supply Not Enough
Yet, Sacramento continues to face significant affordability challenges, even with the new supply coming online. The median rent for a one‑bedroom in Sacramento is $1,511/month, underscoring the gap between wages and housing costs.
The 2025 Sacramento County Affordable Housing Need Report highlights persistent shortages in LIHTC production, rising asking rents and local wages falling short of housing costs.
These indicators show that low‑income households remain heavily cost‑burdened, limiting affordability gains.
The bright side for tenants is that product is making its way through the pipeline, with hundreds of income‑restricted units under construction or planned through state conversions. Demand remains high, driven by wage‑rent mismatches and limited existing affordable stock.
Policy interventions (public land reuse, student housing grants, zoning reforms) are beginning to show measurable impact. While affordability gaps remain, these trends could bode well for everyone, from developers to tenants in the long run.
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