CalHFA Announces Groundbreaking of Highlands Project to Provide Housing Options for Californians

Highland Project to House 90 Families in the North Highlands Area

June 3, 2010

SACRAMENTO, CA – When Californians passed the Mental Health Services Act in 2004, they set the stage for a variety of services to assist people with mental illnesses.

Benefits from the Act will be demonstrated locally by the creation of 90 units of permanent housing for people with mental illness and their families. A recent groundbreaking ceremony kicked off construction on the new family community in the North Highlands area of Sacramento.

The Mutual Housing at the Highlands complex, which will consist of nine buildings between Freedom Park Drive and Dudley Boulevard, is the 19th project to have financing completed under a joint program administered by the California Housing Finance Agency and the California Department of Mental Health.

"Californians face many housing challenges in today's economy, but it's even more difficult for those in need of supportive services," said Steven Spears, Executive Director for the California Housing Finance Agency. "We are honored to partner with the Department of Mental Health to provide the capital financing to enable this project to move forward."

Each of the 19 facilities that have secured funding from the Mental Health Services Act Housing Program received financing for the capital costs associated with development, acquisition, construction and/or rehabilitation of permanent supportive housing for individuals with mental illness and their families, with a focus on homeless individuals with mental illness and their families.

Another 34 projects have received MHSA Housing Program funding commitments for a total $63.8 million in permanent funding and $34.7 million in operating subsidies.

In North Highlands, CalHFA and the Department of Mental Health provided $2.9 million in capital financing and a capitalized operating subsidiary of $1.8 million. Construction of the multifamily units is expected to be completed by the fall of 2011.

Additional details about this Housing Program can be accessed through the Department of Mental Health at and CalHFA at

About the California Housing Finance Agency
The California Housing Finance Agency was created in 1975 with the goal of helping more Californians live in a home they can afford. CalHFA's Multifamily Division has invested $1.4 billion for the construction and preservation of more than 33,000 affordable rental housing units to assist very low and low income Californians. For more information on Multifamily Loan Finance programs and the full complement of CalHFA programs, visit or call toll free 877.9.CalHFA (877.922.5432).

About the California Department of Mental Health
The California Department of Mental Health, entrusted with leadership of the California mental health system, ensures through partnerships the availability and accessibility of effective, efficient, culturally competent services. This is accomplished through advocacy, education, innovation, outreach, understanding, oversight, monitoring, quality improvement, and the provision of direct services. For more information, please visit

Contact: Melissa Flores
Phone: 916.324.4647
Fax: 916.322.2345

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