Notice Requirements and Purchase Opportunities in Sacramento

On February 25, 2014, the Board of Supervisors repealed the existing Affordable Housing Ordinance (AHO) and adopted a new one that went into effect on March 27, 2014. It requires almost every new market rate, residential building permit to either pay a set fee, or comply using a few other options.

The AHO requires that you pick one of the following compliance options. If you are applying for a building permit, you will pay a fee per habitable square foot pursuant to A below. If you are applying for a planning entitlement (subdivision map, apartments), you may pay a fee per habitable square foot of chose option B, C, or D below.You do not need to submit anything with the application unless you are requesting B or C below. The affordability fee option is the most likely option for most residential building permits:

A. Pay an affordability fee on all new market rate units equal to $2.50 per habitable square foot (conditioned space) of each market rate unit calculated at the issuance of the building permit.

B. Enter into a development agreement with the County for a fee credit for land dedication, construction of affordable housing units, or other mechanisms that will lead to production of affordable units during the entitlement process for your residential project

  • Dedicated land must be a site that is approved and accepted by the Sacramento Housing and Redevelopment Agency (SHRA) pursuant to AHO Implementation Guideline.
  • Affordable units constructed must have regulatory agreements recorded and monitored by SHRA.

C. Purchase credits for affordable housing units banked with SHRA. For more information on this option, including the price for the credits, contact SHRA program manager listed herein.

D. Comply with Existing Affordable Housing Plan approved at the time planning entitlement was approved. If the approved affordable housing plan consists of a fee, then the fee would be set by program guidelines.

Contributed By: 
National Housing Law Project

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