Sacramento Housing Alliance

1122 – 17^th Street, Suite B

Sacramento, CA 95814

Inclusionary Housing

Questions & Answers

What is Inclusionary Zoning? Why is it a good idea?

An inclusionary housing policy is a city or county requirement that calls for a percentage of new housing being built to be made affordable to lower-income residents.  An inclusionary policy helps to produce new, quality affordable housing units.  The policy allows for affordable units to be integrated into market rate developments, therefore creating inclusive communities.  It also gives lower-income families the opportunity to benefit from the amenities of newer neighborhoods—better schools, better parks, stability and security.  Such a policy also helps overcome one of the greatest barriers to better housing opportunities for lower-income families, namely unreasonable opposition to the construction of affordable housing. 

Is this happening anywhere else?
Over 100 cities and counties around California have implemented inclusionary zoning ordinances, including more than a dozen communities in the Sacramento region.  Among them are Davis, Folsom, the City of Sacramento, West Sacramento, Roseville, Winters, Woodland, and Yolo County.  Others, such as Placer County, are in the process of drafting inclusionary ordinances. 

Will it solve the housing crisis?
We have a long way to go to meet the housing needs of all our residents.  Unlike other approaches, inclusionary zoning ensures that units of affordable housing are actually built.  Inclusionary housing capitalizes on the booming housing market, and the partnership with builders and developers brings new resources to the table.  This is particularly important as the amount of public dollars available to fund affordable housing continues to decline.  In addition to helping increase the supply of affordable housing, inclusionary zoning is a way to help create diverse, vibrant neighborhoods as affordable units are dispersed throughout all new housing developments rather than being concentrated in certain neighborhoods. 

Won’t this cost a lot of money?  Who’s going to pay for it? 

In jurisdictions without inclusionary housing, affordable housing is paid for solely through tax credit programs and government subsidies.  Inclusionary zoning, however, brings in additional resources. Costs are shared by the government, market rate developers, and the landowner who sells the property.  The market rate homebuyer or renter continues to pay only what the market will bare. The extent to which each party will participate will depend on local market conditions.  In most cases, the market will disperse the cost, making the impacts modest.

Furthermore, inclusionary zoning can be combined with incentives such as fee waivers, reduced parking requirements, government subsidies and density bonuses to help offset any economic impacts.

 The cost of not building affordable housing, however, is much higher. Without affordable housing programs, more taxpayer dollars are spent on high-cost emergency medical care, social services, homeless programs and emergency housing.

Who will live in this housing?

Most residents of affordable housing are working. They are employed as secretaries, school teachers, local government employees, restaurant workers and sales clerks. These workers need affordable housing because of the wide gap between what they earn and what housing costs.

Seniors need affordable housing.  High housing costs can devastate their fixed incomes from pensions and Social Security. Some also need special services provided in affordable housing developments.

People with disabilities and special needs live in affordable housing. Typically, those who are disabled are also living on limited incomes, which are inadequate to pay market rents. The grant level for an individual receiving SSI is $778 each month. They can spend up to $233 each month on housing costs without breaching their affordability limit. However, the Fair Market Rent (FMR) for a studio apartment in Sacramento is $674.

Young Families are in need of affordable housing. Over 80% of young adults, age 25-30, do not have the standard 20% down payment required to purchase a home. These young families find themselves forced to stay in rental properties, and without assistance, will never be able to purchase a home.

How will affordable housing affect property values in my neighborhood? 

It is a common assumption that property values will decline in areas where affordable housing is located. However, a variety of studies, including research conducted by the State of California, have repeatedly documented that the inclusion of well-designed, well-maintained affordable housing in a neighborhood has no impact on the nearby property values.  In addition, in a series of research reviewed by the California Department of Housing and Community Development, it was found in 14 out of 15 studies that the introduction of affordable housing has either a slightly positive or negligible effect on neighboring property values.

How will affordable housing benefit my community?

Today’s affordable housing benefits the wider community in many significant ways. Typical benefits include: Revitalizing urban neighborhoods, Increasing diversity in neighborhoods and schools, Avoiding unnecessary and costly expenditures by providing stable living situations for low income families and individuals, Presenting the potential for cost savings through more efficient development patterns, Directing economic benefits to the local community, such as increased jobs and sales tax.