What Is Inclusionary Housing?

An inclusionary housing program requires new residential developments to include a certain percentage of homes and apartments that are affordable to lower income residents in the community.

What is affordable housing?
Housing is considered affordable when a household pays no more than 30% of its income to cover its housing expenses, including mortgage payments or rent and utilities.

Who is considered lower income?
A family is considered “low income” if they earn 80% or less of the area’s median income. Firefighters and school counselors are examples of workers earning a salary that would qualify them as “low income.”

Are there lower income households in Rancho Cordova?
Yes. In Rancho Cordova, a family of three earning $46,100 or less is considered low income. Over half of the households in Rancho Cordova earn $43,211 or less. Nearly 30% of Rancho’s households earn under $35,000 and 15% of households earn less than $15,000.

Why is Inclusionary Housing a good idea for Rancho Cordova?
Inclusionary housing programs are one the best tools to ensure that future housing developments address the wide variety of housing needs in a community. Inclusionary programs provide for the following types of housing:

• Starter homes for young families
• Homes for local workers
• Senior housing

Have any other cities adopted inclusionary housing programs?
Yes. Over 170 cities and counties around California have implemented inclusionary housing programs, including more than a dozen communities in the Sacramento region. Among them are the Davis, Folsom, the City of Sacramento, the County of Sacramento, West Sacramento, Winters, Woodland and Yolo County.

Who will live in the affordable homes produced as a result of the inclusionary housing policy?
Workers such as secretaries, school teachers, local government employees, restaurant works and sales clerks need affordable housing. So do people living on fixed incomes, such as seniors and people with disabilities. Young families, many of whom do not have the standard 20% down payment to purchase new home, will also benefit.

Won’t this cost a lot of money? Who will pay for it?
The costs are generally shared by developers, landowners who sell the property, occupants of Inclusionary Housing, and the City through incentives. Cities that do not have inclusionary housing polices rely on government programs and subsidies to build affordable units, but there are not enough of these to keep up with the need for affordable homes.

Will moderate and higher income households have to pay more for housing as a result of inclusionary housing?
No. There is no evidence that home costs increase due to inclusionary housing polices. Market rate home buyers and renters will continue to pay what the market will bear.

Will affordable housing affect property values in my neighborhood?
No. Numerous studies have repeatedly documented that well-designed and well-maintained affordable housing has no impact on nearby property values.

Why does Rancho Cordova need inclusionary housing?
As the cost of housing increases in our City, more and more Rancho residents cannot afford a home. People who grew up in Rancho should be able to afford a home in their community, so they can stay and raise their families.

Without inclusionary housing, few affordable homes and apartments may be built in the new Rancho neighborhoods. As a result, older Rancho neighborhoods may become the only options for lower and modest income families and all affordable housing will be clustered in these areas.

Inclusionary housing policy will ensure affordable homes are dispersed throughout the City, creating new and vibrant neighborhoods and helping to keep older neighborhoods strong and healthy.