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SITE NAVIGATION

Housing

Reduction of Development Impact Fees for New Housing

Housing

Reduction of Development Impact Fees for New Housing

Background

The City collects development impact fees to finance the design, construction, installation, and acquisition of public infrastructure or to recover the costs of adding capacity in existing public infrastructure. While development impact fees are necessary to support public infrastructure, payment of development impact fees may constitute a barrier for the construction of affordable housing dwelling units.

On October 30, 2018, City Council passed a resolution reducing certain development impact fee residential rates for new affordable dwelling units to a zero-dollar rate for building permit applications accepted on or after December 30, 2018.

This impact fee reduction program is subject to funding availability. As of February 1, 2023, there was approximately $2.4 million available to cover uncollected impact fees under this program. To qualify for this fee reduction, the City must receive confirmation from the appropriate agency (SHRA, CADA, etc.) that the affordable dwelling units meet the following criteria:

Rental units: To be eligible for this fee reduction, an “affordable dwelling unit” means a dwelling unit or facility (1) to be occupied by low or moderate income households as defined in section 50093 of the California Health and Safety Code, and (2) offered at an affordable rent as defined in section 50053 of the California Health and Safety Code for a period of at least 30 years. The “affordable dwelling unit” shall be either: Subject to restriction for a period of at least 30 years under a recorded regulatory agreement between the property owner and the City, the Sacramento Housing and Redevelopment Agency, or another local, state or federal agency; or for projects that do not otherwise require a regulatory agreement, the applicant must demonstrate to the satisfaction of the Planning Director in the Director’s sole discretion that the principles of (1) and (2) of this section B are met.

For-sale units: To be eligible for this fee reduction, an “affordable dwelling unit” for a for-sale unit means (1) a unit sold at an affordable housing price as defined in section 17.712.020 of Sacramento City Code, and (2) to be occupied by low-income households as defined in section 50079.5 of the California Health and Safety Code for a period of at least 30 years. An “affordable dwelling unit” for a for-sale unit means (1) a unit sold at an affordable housing price as defined in section 17.712.020 of Sacramento City Code, and (2) to be occupied by low-income households as defined in section 50079.5 of the California Health and Safety Code for a period of at least 30 years.

Rate reductions are applied proportionately to development projects according to the number of qualifying affordable dwelling units in the project.

List of Residential Rates Reduced for Affordable Dwelling Units:

Water system development fee (Ch. 13.04.820)
Sewer development fee (Ch. 13.08.480)
Combined sewer development fee (Ch. 13.08.490)
North Natomas Planning Area Development Fees (Ch. 18.24)
Park Development Impact Fee (Ch. 18.56, Article II)
65th Street Area Impact Fee (Ch. 18.56, Article V)
Jacinto Creek Planning Area Impact Fee Ch. 18.56, Article VII
Willowcreek Impact Fee Ch. 18.32 River District Fee Ch. 18.56, Article VI
Central City Impact Fee (Ch. 18.56 Article VIII)
Railyards Impact Fee Ch 18.56 (Article IX)

Documents and Forms:

Application for Reduced Residential Development Impact Fee Rates for Affordable Dwelling Units - CDD-0410

Resolution2019-0815

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