Mixed Income housing ordinance review
background
On September 1, 2015 the City Council adopted an updated citywide Mixed Income Housing Ordinance. The ordinance (17.712 of City Code) established a citywide Housing Impact Fee along with additional requirements for projects of 100 acres or more in size. Funds collected from this fee are transferred to the Housing Trust Fund, which is administered by the Sacramento Housing and Redevelopment Agency (SHRA) to assist in the development of affordable housing.
Implementation Program H1 of the City’s recently adopted 2021-2029 Housing Element directs the City to review the existing Mixed Income Housing Ordinance. The program commits the City to evaluating the effectiveness of the existing Mixed Income Housing Ordinance (MIHO) and conducting an economic feasibility study of potential changes to the ordinance, including the consideration of a mandatory inclusionary housing component. Amendments to the ordinance will be considered with the goal of increasing the amount of affordable housing built in the City while ensuring the requirements do not pose a constraint to overall housing production.
project overview
The Mixed Income Housing Ordinance Review Project will consist of the following components:
- A review of existing (2015) and past (2000) Mixed Income Housing Ordinances, including key features and performance.
- A review of affordable housing requirements in programs elsewhere, and
- Financial feasibility analyses including pro forma testing of alternatives such as
- Alternative fee levels, including adding fees to higher density housing projects
- Alternative onsite inclusionary requirements, ranging in terms of the percent of units set aside and the level of affordability of the units
- Modifications to or removal of the Housing Incentive Zone
- Modifications to the Mixed Income Housing Strategy requirement for sites larger than 100 gross acres
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project updates and resources
Project consultants and City staff have finalized the first component of the project - an analysis of the performance of the Mixed Income Housing Ordinance. This analysis lays the groundwork for considerations of future changes to the ordinance. Comments and questions about the report may be directed to the Project Manager, Greta Soos, at gsoos@cityofsacramento.org.
Historic Performance of Mixed Income Housing Ordinance (February 2023)
Case Studies and Surveys of Affordable Housing Requirements (Local and Non-Local) (June 2023)
project timeline
Additional resources
staff contact
Greta Soos, Associate Planner
Community Development Department
300 Richards Blvd., 3rd Floor
Sacramento, CA 95811
(916) 808-2027
gsoos@cityofsacramento.org