City Council Votes to Close Berry Hotel
By William Burg
On Tuesday Feb. 24, 2009 the City Council authorized the purchase of the Berry Hotel from its latest owners, developer AF Evans. Despite the efforts of the developer to restore the hotel and maintain its use as housing for those with very low incomes, the city will soon close the Berry, without a plan to reopen it.
Built in 1929, the Berry was part of Sacramento’s downtown hotel district, interspersed with theaters and department stores on the blocks near K Street. The Berry and other hotels like the Clunie, the Land, the Sacramento and the Clayton offered nightly rooms to some, while others were rented on a monthly basis. In the era after World War II, downtown hotels faded in popularity compared to the new motor hotels. As redevelopment changed the face of downtown Sacramento, destroying many rooming houses downtown, hotels like the Berry became more strictly residential hotels, renting almost entirely to monthly tenants. Because the rents were generally less expensive than other housing, those with the least money to spend moved into these hotels. By 1929 standards, the Berry was a comfortable and luxurious place; by the 1970s and through today, it was housing of last resort, one step above living on the street. These hotels became known as “single room occupancy” hotels, or SRO hotels.
In 2007, AF Evans and Trinity Housing purchased the Berry with the intent of renovating the hotel, but maintaining its role as an SRO. To make this project feasible, AF Evans applied for Tax Credit Allocation Committee (TCAC) low-income housing bonds. Housing developers can obtain tax credits when building low-cost housing, which helps make low-cost housing more economically feasible. A non-profit developer like AF Evans does not need tax credits, so these housing bonds can be sold to another company who needs a tax write-off. AF Evans’ objective was to use the money generated by the sale of the bonds to repair the interior of the hotel, replace its aging plumbing and electrical systems, and retain almost all of its 109 rooms. A number of rooms were to be converted to ADA-accessible use, but all would be affordable units. The agreement also included provision for an on-site case manager who would provide supportive services for residents of the hotel who are disabled or senior citizens. (more…)

