Affordable Housing Ordinance

​On February 25, 2014, the Sacramento County Board of Supervisors repealed and revised Chapter 22.35 of Sacramento County Code (SCC), known as the Affordable Housing Ordinance (AHO). The revised AHO requires developers of new residential developments in unincorporated Sacramento County to either include an affordable housing component in their developments or pay an in-lieu fee to the Affordable Housing Ordinance Fund. Collected AHO fees are then used to help finance and support affordable housing projects in unincorporated Sacramento County. The Affordable Housing Ordinance Fund is administered by the Sacramento Housing and Redevelopment Agency (SHRA).​

View the in-effect Affordable Housing Ordinance - SCC Chapter 22.35

Review the AHO Program Guidelines

​​

Current Affordable Housing Fee

The Affordability Fee required by the current Ordinance, Section 22.35.050 of the Sacramento County Code, is updated annually. The current fee is $3.79 per habitable square foot of each market rate unit. The fee as of March 27, 2026 has increased 3.24% to $3.91 per habitable square foot of each market rate unit.

​Affordable Housing Fee Notice for 20​26

For assistance with paying AHO fees or other questions, please reach out to:

peredr@saccounty.gov

AHO Update Focus Group meetings

Until June 30, 2026, the project team is available for one-on-one, focused meetings to discuss the results of the Technical Study. If you would like to be a part of these focused meetings, please reach out to Riley Sholes (SholesR@SacCounty.gov) and include your organization or area of expertise. 

Affordable Housing Ordinance Review Project​

Implementation Program E-3 of Sacramento County’s 2021-2029 Housing Element​ directs the County to perform an evaluation of the effectiveness of the current AHO and pursue an economic feasibility study to guide any decision-making related to amending the AHO, including the consideration of an inclusionary housing component. 

Phase 1 of the Project consists of the following components:

  • Evaluation of the effectiveness of the current AHO
    • Amount of Revenue Generated
    • Impact of Owner Builder Exemption
    • Quantity of Affordable Units produced                
  • Review of best practices of other jurisdictions with the greater Sacramento region
  • Financial feasibility analysis testing alternatives to the current AHO. This analysis will include:
    • Current housing market conditions and recent trends
    • Pro forma analysis of prototype projects
    • Analysis of the feasibility of an inclusionary housing requirement​
  • Coordination with community members and focused stakeholder meetings
  • Board of Supervisors Workshop
    • Staff will present findings to the Board
    • The Board will the direct Staff to:
      • proceed to Phase 2 to conduct further research and draft an update AHO or;
      • direct Staff to leave the AHO as is

Phase 1 Project Timeline

 Quarter  Project Actions          
 Q2 2025 Data Collection and Market Analysis Began
 Q3 2025 Community Engagement Kick Off
 Q1 2026 Market Analysis and AHO Evaluation Complete
 Q2 2026 Community Outreach
 Q3 2026 Board of Supervisors Workshop

​​​​*Project timeline subject to change based on staffing and resource availability​

 

Staff Contact

For any questions or comments on the project, or to be added to the project email list, please contact:

Riley Sholes, Associate Planner

Planning and Environmental Review

827 7th Street, Room 225

916-874-1016

sholesr@saccounty.gov​​

AHO Webinar June 10, 2026

Planning and Environmental Review hosted a webinar on June 10, 2026 to go over the findings from the AHO Technical Study. The technical study includes:

  • Executive Summary
  • Effectiveness of Current Ordinance
  • Feasibility Analysis and
  • Sacramento Area Council of Governments (SACOG) Region Affordable Housing Program Summary.

These documents, a recording of this webinar, and the slides are included in the Documents and Resources section at the bottom of this page.

Documents and Resources

AHO Update Study Documents

June 10 Webinar Files

Current AHO Documents

History of Hearings and Workshops for Current AHO

Frequently Asked Questions

Yes, if your building permit(s) for a newly constructed residential unit will be issued after March 26, 2014. The AHO includes a fee equal to $3.91 (amount adjusted annually every Marc​h) per habitable square foot of each market rate unit.

 

Yes, the following development types are exempt from the AHO obligation: 

  • Regulated, affordable housing units
  • Accessory dwelling units
  • Remodel or enlargement of a dwelling unit
  • Restoration of a unit which has been damaged or partially destroyed due to fire, flood or earthquake
  • Conversion of nonresidential buildings to residential use
  • Mobile home parks
  • Mixed income developments at a density of 17 units per acre or more and where 20 percent of the units are affordable to low income renters or buyers. Affordable units shall have a regulatory agreement recorded and monitored by SHRA
  • And Single-family homes built by an owner-builder on his/her property provided that the home is not intended for sale within two years, and the owner personally performs the work or directly hires a contractor to complete the project. ​Note: If you are selecting this option, additional paperwork is needed. Contact a planner at the Building Assistance Center for more information.

 

Sacramento County’s General Plan contains a Housing Element, which was adopted on March 8, 2022​, that per California State Law identifies programs that facilitate the provision of housing for low-income households. 

The Affordable Housing Ordinance is one of the tools that Sacramento County utilizes to support the development of affordable housing. The fees that will be collected will be used to construct affordable housing units.

 

The AHO requires that you pick one of the following compliance options. If you are applying for a building permit, you will pay a fee pursuant to A below, unless a prior entitlement approved by the County requires another compliance method – check your conditions of approval. 

You may also choose options B, C or D. These options are more likely to be chosen if you are applying for a planning entitlement (i.e. subdivision map or use permit). The affordability fee option is the most likely option for most residential building permits: 

A. Pay an affordability fee on all new market rate units equal to $3.79 (note this fee is adjusted annually every year in March) per habitable square foot (conditioned space) of each market rate unit calculated​ at the issuance of the building permit.

B. Enter into a development agreement with the County for a fee credit for land dedication, construction of affordable housing units, or other mechanisms that will lead to production of affordable units during the entitlement process for your residential project  

  • ​Dedicated land must be a site that is approved and accepted by the Sacramento Housing and Redevelopment Agency (SHRA) pursuant to future AHO Implementation Guidelines 
  • Affordable units constructed must have regulatory agreements recorded and monitored by SHRA 

​​C. Purchase credits for affordable housing units banked with SHRA. For more information on this option, including the price for the credits, contact SHRA as listed herein. 

D. Comply with Existing Affordable Housing Plan approved at the time planning entitlement was approved. If the approved affordable housing plan consists of a fee, then the fee would be set by program guidelines.​

 

Yes, residential developers may comply with the AHO by either utilizing their previously approved affordable housing plan or choosing from the options under the new AHO.

 

County of Sacramento, Department of Community Development, Planning and Environmental Review Division 
827 7th Street, Room 225, (916) 874-6141 

  • Affordable Housing Program Guideli​nes 

Nathan Serafin, Associate Planner 916-874-7708  serafinn@saccounty.gov​

Sacramento Housing and Redevelopment Agency (SHRA), Development Finance Department
801 12th Street, (916) 440-1393
www.shra.org