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Housing Impact Fee
Summary
On September 1, 2015, the City Council adopted a new, citywide Mixed Income Housing Ordinance. The Housing Impact Fee is a citywide fee on all new residential units, as established in the Mixed Income Housing Ordinance (17.712 of City Code). The new fee took effect on November 1, 2015. The fees are calculated and assessed by the Planning Division under the direction of the Planning Director per 17.712.050.E. A nexus study was performed which demonstrates how new market rate housing creates a need for more workforce affordable housing.
Funds collected are transferred to the Housing Trust Fund, which is administered by the Sacramento Housing and Redevelopment Agency (SHRA). SHRA uses the fund to assist in the development of affordable workforce housing.
Mixed income housing ordinance review
Per the City’s adopted 2021-2029 Housing Element Program H1, the City is currently conducting a review of the existing Mixed Income Housing Ordinance. The Housing Element 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. To learn more about this project and sign up for email updates, visit the Mixed Income Housing Ordinance Update webpage.
Current fee amount
The fee amount depends on the location and type of residential project as indicated in the fee notice. The fees will be automatically adjusted to take into consideration inflation on July 1 of each year.
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Exempt projects
The following Projects are exempt from the Housing Impact Fee
1. Room additions.
2. Second residential units.
3. Developments with 10% regulated low income housing units.
4. A new single-unit dwelling built by an owner-builder on their property. (Please Complete the Owner/Builder Fee Waiver Form)
5. Projects with an in-force development agreement adopted prior to the current ordinance.
6. Mobilehome parks.
7. Development projects, not previously subject to the former Mixed Income Housing Ordinance [Map of Former Mixed Income Areas], which have received approval of site plan and design review and/or a tentative map prior to the effective date of the ordinance.
8. Multi-unit dwelling developments that have submitted an application for site plan and design review prior to November 1, 2015.
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