5. Ordinance Adding Section 13.16.125 to and Amending Section 18.52.010 of the Sacramento City Code Relating to a Storm Drainage Development Fee File ID: 2023-01134
Mutual Housing California, a long-time Sacramento-based nonprofit affordable housing developer, and the Capitol Area Development Authority (CADA) are currently partnering to develop two affordable housing projects in downtown Sacramento. We hope to begin construction on both projects, totally 420 units, in late 2024 or early 2025.
As with any affordable housing project, developers like Mutual Housing and CADA must first obtain funds from various State funding programs. Competition amongst developers for these funds is fierce, and the State’s allocations are based in large part upon a project’s development costs relative to all other projects. Obviously, local development impact fees are a major development cost.
We are writing to express our concern with the impact on future affordable housing development from the City’s adopting a new stormwater drainage fee, as well as increasing its existing water and sewer fees. We understand the City’s need to assess fees to construct needed infrastructure to mitigate development impacts to these systems. However, we feel that the increased cost to projects like ours will make the development of affordable housing in the City even more challenging than is currently the case. Before its adoption of the new and increased impact fees, we encourage the City to consider the impact on affordable housing development and ways it can assist developers in identifying funding mechanisms to cover the cost of providing utility services particularly in infill areas. Continuing to fully fund the Zero Dollar Impact Fee program for affordable housing projects is a critical component of this conversation.
Dear Committee Members:
Mutual Housing California, a long-time Sacramento-based nonprofit affordable housing developer, and the Capitol Area Development Authority (CADA) are currently partnering to develop two affordable housing projects in downtown Sacramento. We hope to begin construction on both projects, totally 420 units, in late 2024 or early 2025.
As with any affordable housing project, developers like Mutual Housing and CADA must first obtain funds from various State funding programs. Competition amongst developers for these funds is fierce, and the State’s allocations are based in large part upon a project’s development costs relative to all other projects. Obviously, local development impact fees are a major development cost.
We are writing to express our concern with the impact on future affordable housing development from the City’s adopting a new stormwater drainage fee, as well as increasing its existing water and sewer fees. We understand the City’s need to assess fees to construct needed infrastructure to mitigate development impacts to these systems. However, we feel that the increased cost to projects like ours will make the development of affordable housing in the City even more challenging than is currently the case. Before its adoption of the new and increased impact fees, we encourage the City to consider the impact on affordable housing development and ways it can assist developers in identifying funding mechanisms to cover the cost of providing utility services particularly in infill areas. Continuing to fully fund the Zero Dollar Impact Fee program for affordable housing projects is a critical component of this conversation.
Thank you for your consideration.