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On February 25, 2014, the Sacramento County Board of Supervisors repealed and revised Chapter 22.35 of Sacramento County Code (SCC), known as the Affordable Housing Ordinance (AHO).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 2026
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.
The Project consists of the following components:
- Evaluation of the effectiveness of the current AHO
- 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
2025 Project Timeline
*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:
Jacob Dawe, Senior Planner
Planning and Environmental Review
827 7th Street, Room 225
916-874-5909
dawej@saccounty.gov
Documents and Resources
Current AHO Documents
- Affordable Housing Ordinance (Effective March 27, 2014)
- Affordable Housing Program Guidelines (Approved June 9, 2015)
- Affordable Unit Fee Credits
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 March) 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 Guidelines
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