(FOX40.COM) — Local and state leaders announced the construction of 175 new tiny homes on a Sacramento site that will also house offices for a network of clinics that operates in the city.

The location is on Stockton Boulevard near Fruitridge Road, and the homes, once built, are meant to offer a temporary housing solution to people experiencing homelessness.

Sacramento officials and an advisor to the governor on homelessness spoke at a news conference Wednesday, detailing the progress on the homes, which are expected to open by the start of the new year.

“This is not intended to be a place where people live for a long time. It is a place where people come and transform their lives,” Dr. Johnathan Porteus with Wellspace Health said.

The homes will be stationed off Stockton Blvd., on the lot where the Wellspace Health community wellness campus is also being built.

The Wellspace campus plans to have a 24/7 crisis center, a dental center and a rehab facility.

However, this community of homes will operate on its own, much like a community of homes on Power Inn and Florin Roads set up by Sacramento County in August.

“This property has sat vacant for over a decade leading to blight and a lack of investment. Today, what is exciting is a process stepping forward,” Eric Guerra, Sacramento Vice Mayor, said.

The goal is to get people into the community, get them the wrap-around services they need, a safe place to stay and hopefully get them on a more permanent housing solution within a few weeks.

“Today we are already seeing the trust and relationships that were being built between the operator and the guests and our outreach workers in the community, and we are able to serve highly vulnerable people and support them with a variety of services to meet their needs,” Emily Halcon with Sacramento County said.

“This site will provide an opportunity to expand and enhance this approach which we know works.”

Local and state government officials hope this location will stand as a transformative space for people to get off the streets and change their lives for the better.

“We’re not talking about places where people come and stay forever. This is the place where they come and go through a major change,” Porteus said.

“There will be people coming in and out to work 24-hour programs and transforming what has been a blighted and actually quite frightening block.”

The community is expected to operate through July 2026.

This announcement comes just a day after the governor’s office announced over $40 million in funding for the city and county to buy and fix up two motels in the area to add more temporary beds.