SACRAMENTO, Calif. (KTXL) — A building at 19th and Broadway is set to be transformed just as Sacramento has been declared California’s first Prohousing Designation city.

“It’s going to be a multi-story, quality building housing project for Sacramento, one of many, by the way,” said Mayor Darrell Steinberg. “In part, we’re going to build this because we’re so competitive for almost $30 million in state funding.” 

Steinberg said Sacramento has worked to break down barriers to building lower-cost housing, such as waiving some parking requirements and fees. 

“Because of that, the state of California has recognized us as the first Prohousing city in history,” Steinberg said. 

California’s Department of Housing and Community Development announced Sacramento’s designation on Thursday morning. 

“And that translates, not just to nice recognition for the city, but to real dollars for the city,” Steinberg said. 

He said the building at 19th Street and Broadway is an example of what that kind of money can do. Gustavo Velasquez, director of the Department of Housing and Community Development, echoed the need for more such projects. 

“We need more volume. It’s about volume; it’s about the number of units we can add to the inventory of housing,” Velasquez said. 

He said being a Prohousing City gives Sacramento a leg up in the bid for state housing funding. It can possibly even offer an edge over larger cities like San Francisco and Los Angeles for housing funding. 

“The more access to capital, to planning grant, to development capital, the easier it will be to get the type of housing supply that will bring, eventually cut, the cost of housing down,” Velasquez said. 

It’s something advocates at the state and local level said is critical to helping buyers and renters on many parts of the housing spectrum afford a place to live, including the estimated 5,500 people in Sacramento County who may not have shelter at all.