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Housing

Mixed Income Housing Ordinance

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). Funds are used to develop affordable housing units with the goal of increasing the supply available for lower income workers.

Mixed Income Housing Ordinance Review Project

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 history

Summer 2022 - Project Initiation and Draft Report Development
The City initiated the project, received input on the project scope, and released two draft report components, a Historic Performance of Mixed Income Housing Ordinance (February 2023) and Case Studies and Surveys of Affordable Housing Requirements (Local and Non-Local) (June 2023).

Summer 2023 - Feasibility Analysis, Menu of Options, and Policy Objectives
The City released the Mixed Income Housing Ordinance Draft Report in August 2023 along with a Staff Memorandum. This report brought together two previously released studies and a new financial feasibility analysis of different potential requirements on housing development projects. In addition to the draft report, a staff memorandum was released that contains draft policy objectives, a menu of potential ordinance options, and a summary tables of the case studies from the draft report. This memorandum, in conjunction with the draft report, served as the foundation for stakeholder, community member, and decision-maker conversations regarding the update to the Mixed Income Housing Ordinance.

Winter 2023 – Preliminary and Revised Recommendations
Staff released Preliminary Recommendations for the Mixed Income Housing Ordinance in October 2023 and conducted workshops with various hearing bodies. Staff then released Revised Recommendations in March 2024.

Spring 2024 – Staff Analysis of Alternative Proposals
Following the release of staff recommendations for a revised Mixed Income Housing Ordinance, several proposals for alternative policy options were brought forward by stakeholders and decisionmakers alike. Outreach was paused to review these alternatives.

Winter 2025 – Project Conclusion 
Due to changing market dynamics, staff updated the financial feasibility analysis for this project with Spring/Summer 2025 market data and returned to City Council with updated recommendations. On December 9, 2025, the City Council voted not to make changes to the current ordinance.

Project resources

Additional resources

Staff contact

Greta Soos, Senior Planner
Community Development Department
300 Richards Blvd., 3rd floor
Sacramento, CA 95811
(916) 808-2027
gsoos@cityofsacramento.org

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