Gateway Development planning permanent supportive housing in South Sac

By Ben van der Meer – Senior Reporter, Sacramento Business Journal

May 21, 2025

Gateway Development Company is working with the city of Sacramento on a permanent supportive housing project of 120 units on empty land in South Sacramento.Mayberry Workshop Architecture

A company that's primarily developed market-rate urban infill housing is pointing in a different direction on a new proposal in South Sacramento. Gateway Development Company is hoping for an early 2026 start on Mack Supportive Housing, a 120-unit project of factory-built homes for people who've been without housing or are at risk of losing it.

"This is just really an opportunity that came up, and we thought, 'why not?'" said Wesley Sagewalker, a partner and chief financial officer with Sacramento-based Gateway Development.

On 10.85 acres at 4290 Mack Road, Mack Supportive Housing would have homes of either studios or two bedrooms, with rents tied to incomes of no more than 30% of area median income.

The site would also have community green spaces, offices, laundry buildings and at the request of City Councilmember Caity Maple, a public dog park at the north end. Gateway is also looking at possible ways to add more green space, community gardens and other amenities to the site.

On Tuesday, Sacramento City Council unanimously approved applying for $35 million under the state's Homekey+ program for the project, with awards scheduled to be announced next month.

If the application for Mack Supportive Housing is successful, Sagewalker said, construction would have to start within six months of receiving the award.

"It'll be a big push, but we're using factory-built housing," he said, adding the actual construction cost is estimated at around $26 million to $27 million.

Boss Homes would build the houses, much as it is for another, similar project Gateway Development is teaming with Urban Capital LLC on in North Sacramento. The City Council approved an application under Homekey for that 100-unit project earlier this month.

Sagewalker said the main difference between the two projects is the intended population. The project on Rio Linda Boulevard is aimed at seniors and veterans who are facing housing challenges, while Mack Supportive Housing would have more residents from across generations.

While Gateway Development is currently developing a market-rate project in Davis and has others in the pipeline, Sagewalker said, "We really hope we can do this."