Major Components of City of Sacramento Mixed-Income Housing Ordinance


Goal		Production of affordable housing in new growth areas through shared and equitable obligations. Developers have the responsibility to see that affordable housing is produced; The City and Sacramento Housing and Redevelopment Agency (SHRA) have the responsibility to offer regulatory and financial incentive packages to assist in that production, if requested by developers.
Obligation		Ten percent (10%) of residential units in the entire development must be affordable to households with incomes at or below 50 percent of the area median ($26,450 for a four-person household), which is the definition of a "very low-income" household. Five percent (5%) of residential units in the entire development must be affordable to households with incomes at or below 80 percent of the area median ($42,300 for a four-person household), which is the definition of a "low-income" household.
Housing Type		Units can be single family, alternative ownership housing, duplex, multifamily, or a combination. Developer should take full advantage of multiple housing type and target average densities in the applicable Community Plan.
Process		Developer proposes Inclusionary Housing Plan at the time of the first legislative entitlement (master parcel map, PUD schematic plan, etc.), identifying number, type, location, and phasing of affordable units. Developer and SHRA, with advice of Planning Director, negotiate Inclusionary Housing Agreement. Examples of City's commitments include fee waivers, density bonus, other development cost-savings, and/or local public funding. No Development Agreement or project-specific approval can be issued without the Agreement.
Who Builds		Developer can choose to build affordable units, sell or donate land to affordable housing developer, partner with others, or dedicate land to SHRA. Planning Director can approve developer's request to dedicate land to SHRA if more cost-efficient solution.
Location/Timing		Units must be dispersed to maximum extent feasible, and built contemporaneously with other residential components.
SHRA Financing		If a developer applies for SHRA financing, SHRA will use the same guidelines and underwriting standards as it uses for other applicants.
Off-Site Option		Exclusively single-family projects (ordinance protects against carving up larger projects) may propose off-site development of inclusionary units if site is superior and approved by Planning Director. Site must be in a new growth area.
Term of Affordability		Inclusionary units must remain affordable for at least 30 years.
Developer's Right to Assert Regulation Would Be a Taking		A developer may request a determination that the inclusionary housing obligation, including the City's financial incentives as described in the Inclusionary Housing Agreement, would deprive the developer of substantially all the economic value and would constitute a taking of the property of the entire residential project without just compensation. The ordinance outlines a process through which this determination is made.

Elizabeth S. Noling
Legal Services of Northern California
916.551.2150
lnoling@lsnc.net