Sacramento Regional Transit has landed $25.8 million in state grants aimed at speeding up clean-transit upgrades and getting more affordable housing built along major rail and bus corridors. The money will pay for new low-floor light-rail vehicles, station and signal upgrades, and help push three housing projects next to transit from planning into actual construction. Officials say the package is designed to cut greenhouse gas emissions while making it easier for Sacramentans to live closer to jobs and frequent transit service.
According to SacRT, the $25.8 million comes through three grants under Round 9 of the Affordable Housing and Sustainable Communities program and is part of more than $126 million secured by SacRT and local partners from the same funding round. The agency says the awards will pay for transit-signal priority at 33 intersections, platform work at Florin Station so it matches the new vehicle height, and the purchase of four low-floor light-rail vehicles. SacRT also notes that the grants will move forward construction work tied to the Sacramento Valley Station transit hub.
What Officials Are Saying
This funding is a game changer for our region, SacRT General Manager and CEO Henry Li said in a SacRT news release. The release quotes state and local lawmakers who argue that pairing housing with reliable transit opens doors to jobs and services while pulling growth away from sprawl. Supporters are pitching the grants as both a climate win and a housing boost for neighborhoods lining the light-rail network.
Housing Near Transit
The grants will back three developments that together add 546 affordable homes: I Street Apartments with 84 units near Sacramento Valley Station, Clover Apartments with 348 units near the Meadowview light-rail stop, and MOSA Apartment Homes at Gateway with 114 units in West Sacramento, according to ABC10. Each site includes new bikeways, sidewalk fixes, and workforce or housing-stability programs that developers say are meant to keep the projects affordable over the long haul. Local partners listed in the filings include AMCAL Multi-Housing, Community HousingWorks, and E. Smith & Company.
Statewide Context And Climate Goals
The local awards are part of a much bigger statewide push. The Strategic Growth Council recently announced more than $866 million for 39 projects across three state climate programs, with roughly $835 million flowing to AHSC Round 9 affordable-housing and green-transportation projects, the Strategic Growth Council said. The council highlights that Round 9 will create thousands of rent-restricted homes and fund new bikeways, bus shelters, and zero-emission vehicles across California. Officials frame AHSC as a core tool for using California Climate Investments to cut vehicle miles traveled while putting more housing near transit.
What Riders Will Notice
For riders, the changes should show up in fewer red-light waits where transit-signal priority is installed and easier boarding once SacRT rolls out the new low-floor light-rail vehicles. Industry reporting from Railway Age notes that the agency will add four low-floor cars, two of which are slated for the planned Downtown Riverfront streetcar, and will upgrade Florin Station so its platforms meet the new vehicles' height requirements. Signal upgrades along the Meadowview corridor and downtown J and L streets are intended to smooth bus and light-rail traffic during peak hours.
What's Next
SacRT and its city and developer partners say the grants will help close funding gaps and shift projects from design desks to actual construction sites over the next few years, with vehicle purchases and platform work moving through standard contracting and permitting steps. ABC10 also reports that the Sacramento Valley Station effort already has roughly $30 million in prior funding, which partners plan to build on as they lock in final designs and tax-credit applications.
Local Reaction
Lawmakers and transit advocates are treating the awards as a rare double play: building affordable housing while investing in cleaner, more dependable transit. Supporters say combining housing, bikeways, and transit upgrades is a straightforward way to cut car dependence and shrink household transportation costs. Riders and nearby residents will now be watching for vehicle delivery dates and visible construction at the Valley Station hub. For the moment, agency officials say the new grants give the region fresh momentum on both housing and climate goals.
