Sacramento has opened a new government-run homeless camping site at an estimated cost of $2.5 million, even as an independent city audit questions whether taxpayers are receiving optimal value from the city’s homelessness programs.
The River District site, which officially opened this week, can accommodate up to 125 people. City officials estimate that each space costs approximately $20,000 to construct, with annual operating expenses projected at around $1.2 million—about $9,600 per bed annually.
Residents will receive a city-issued tent on a raised wooden platform, along with a cot, two storage bins and a lawn chair. The campground features shared showers, portable restrooms, behavioral health services and 24-hour security. While the site does not include kitchens or air conditioning, officials plan to install swamp coolers and fans during summer months.
The opening follows the release of Sacramento’s independent city auditor report, which criticized the city’s ability to measure the effectiveness of its homelessness expenditures. The audit found that Sacramento spent $63.2 million on 14 homeless shelter programs during fiscal years 2024 and 2025. Auditors concluded the city lacks a consistent method for determining when higher-cost shelter models are justified or which programs produce the strongest results, recommending the development of a system to evaluate shelter costs, outcomes and efficiencies.
The report also noted that expanding shelter capacity at relatively little additional cost could be achieved by increasing occupancy rates in existing congregate shelters instead of building new facilities. Additionally, auditors found no strong link between services provided and successful outcomes based on available data. According to the audit, more than half of those leaving city shelters, tiny-home villages and motel programs either returned to homelessness or had an unknown outcome. The report further stated that Sacramento lacks a comprehensive performance framework, making it difficult to compare programs or evaluate their effectiveness.
Mayor Kevin McCarty acknowledged the campground offers only basic accommodations but emphasized its improvement over street encampments. “There are too many people who are still languishing on our streets, and sometimes, unfortunately, dying on our streets,” he said during Tuesday’s opening. “And look, this isn’t perfect. There’s not individual A/C units for everybody here, there’s not individual bathroom facilities… But I’d like to go for a walk 100 yards down the street and ask, is it better than what we have outside?”
City Manager Maraskeshia Smith described the campground as a temporary step while residents work toward permanent housing. “The long-term solution is to get people into housing,” she said, adding that many individuals must first obtain identification, employment and supportive services before securing stable housing. The River District site replaces Sacramento’s previous sanctioned encampment, Camp Resolution, which the city closed in 2024 after officials labeled it a “failed experiment.”
