Sacramento Spending Another $12 Million on Tiny Homes for Homeless – Plus Billions More

The City of Sacramento Department of Community Response received a $12.35 million “Encampment Resolution Funds grant” from the California Department of Housing and Community Development in October 2024 – 10 months ago – “to purchase and construct additional tiny homes for homeless vagrants.

They’re just getting to it now?

The goal is to “improve overall infrastructure at the campus, expand outreach services in the community and enhance shelter and housing support.”

“The grant also funds operations at the campus for two years.”

That’s $12,035,000 million dollars to spend on housing a small number of Sacramento’s mentally-ill homeless drug addicts.

The mission of the taxpayer funded Department of Community Response “is to provide compassionate and individualized support to people experiencing homelessness with the goal of aiding them on their path toward recovery, wellness and self-sufficiency.”

“Initially opened in 2024, the Roseville Road campus – located at a former U.S. Air National Guard facility – currently features approximately 100 tiny homes and trailers sheltering people experiencing homelessness.”

No mention of the mental illness or drug addiction Sacramento’s homeless suffer.

They are “sheltering people experiencing homelessness.”

Running the operation are two non-profits: The Gathering Inn and First Step Communities.

Besides building 135 ready-to-assemble “Boss Cubez” tiny homes, which says they are “building dignified homes to transform lives.”

The Gathering Inn has been around since 2004 working with homeless, “aiming to welcome new beginnings and transform lives.” They offer emergency housing, medical triage, mental health treatment, life skills classes, and they work with their  homeless residents to find permanent housing.

This sounds like a thorough and comprehensive program to actually help change the lives of the homeless, and has 5 locations – two in Auburn, one in Roseville, one in Sacramento, and one in Elk Grove. And it takes employees to run these facilities.

The organization has a sizable budget, big officers’ salaries, and obtains most of its income from government grants, based on its 2024 IRS Form 990:

That is $6,274,629 in government grants, $250,000 in fundraising and $1,949,158 in “other” contributions, gifts and grants.

The total of the officer’s salaries is $690,899, and $33,175 in other benefits.

The other expenses are big as well – $4,712,664 in “other salaries and wages,” and $399,607 in other employee benefits.

It’s a big operation, and spends $$$ on IT, marketing, as well as payroll taxes, legal, and $12,619 on travel.

First Step Communities was only created in 2016 as a “Housing First model as a top priority.” Housing First was first pushed by the Obama administration, rather than prioritizing mental health and drug treatment, and life skills.

Their Executive Director and COO are paid $122,50 and $91,340 respectively.

Their consultant/accountant was paid $169,660.

Other salaries and wages totaled $3,782,991.

They paid $494,350 for insurance, and $29,991 for travel.

Since 2016, First Step Communities has accumulated $20,049,817 in grants and contributions.

You can see that Sacramento’s original $12 million grant for tiny homes ends up being a great deal more, and thus far, we have only seen more homeless drug addicts on Sacramento Streets, and that is because of the failed and corrupt Housing First policy. Only triage and treatment will lead to recovery. But if the homeless are treated and successfully transitioned back into society, the government gravy train of taxpayer funds ends.

Notably, “the First Step Communities (FSC) organization, along with other catalysts of this work such as Sacramento Steps Forward (SSF) and the Sacramento Continuum of Care (CoC), are in agreement with HUD’s direction towards Housing First as the priority model.”

The Globe has covered Sacramento’s gross homeless spending, as well as Sacramento Steps Forward.

The City of Sacramento blew through $57 Million on homeless spending in 2023, the Globe reported in 2024:

“The significant growth of the Sacramento homeless population has devoured resources, strained relationships, provoked litigation, and thrust the City of Sacramento (City) into the national spotlight for facing one of the most challenging homeless crises in the country,” the Sacramento City Auditor said in a new report. “The City Council has deemed homelessness an existential threat to the individuals living without housing and to the public health and safety of Sacramento’s residents and businesses.”

Here is an example of their “Solution-Oriented Investments:

“To work towards ending homelessness, the City invests in longer-term solutions that are designed to support the functioning of the homeless response system, prevent individuals from becoming unhoused,
and improve the housing supply.”

and;

“City leaders have also been actively discussing how the City can become more involved in prevention programs, including committing more funding.”

And this is because the former Mayor, and current Mayor, and City Council refuse to build tried-and-true programs in dealing with the homeless. Instead, out of incompetence, laziness or greed they pretend that “Housing First” is the solution.

The failed “Housing First” policy this state has spent billions on is… well… a failure – except for the contractors refurbishing and building the “housing” for the homeless.

In 2022, the Globe reported that Sacramento Steps Forward, responsible for “continuum of care” for the homeless, had a really fuzzy mission with really big funding.

“The Globe tried to access other Sacramento Steps Forward annual reports since 2011 on its website, but there are no live links.

In 2019-2020, Sacramento Steps Forward received $25,990,012 from the State, and $23,349,292 from the Federal government (above). Most of the nearly $50 million was earmarked for housing. They spent nearly $802,000 on “administration.”

The 2023 IRS Form 990 for Sacramento Steps Forward shows $37,576,604 in contributions and grants, $532,220 in investment income, $5,326,863 in salaries and benefits.

The compensation for officers and directors is nice and totals $923,592 in salaries and $48,993 in benefits:

But the icing on the cake is the $36,479,059 in government grants.

Is it any wonder we have more homeless drug addicts living on our streets with so many well-paid non-profit employees, tiny houses, renovated motels, and trailers – and $30,196 in travel?