Sacramento Officials to Waive Fees for Affordable Housing Developments

SACRAMENTO -- Sacramento, like the rest of the state, is going through a housing crisis and it can be costly for developers to build new homes and apartments.

For the past three years, Roberto Jimenez says his agency, Mutual Housing California, has been working to turn a vacant lot into affordable housing units for seniors.

"We haven’t been able to develop another affordable housing project in Sacramento proper," Jimenez said.

Jimenez said local funding has dried up and, on top of that, Mutual Housing has to pay what's known as impact fees to the city.

"The overall impact fees for this project will be from $800,000 to $1 million," he told FOX40.

On Tuesday, Jimenez learned he and other developers may get some relief. City officials announced they’ll be waiving impact fees for certain developers to encourage more construction of affordable housing developments in Sacramento.

"It’ll save the people who are building this housing, often on very tight margins, significant amounts of money," said Sacramento Mayor Darrell Steinberg.

Fees would only be waived for developers building affordable housing. That means those living in their units would pay no more than 30 percent of their income.

In order to qualify for those homes, a family’s income would have to be less than $96,000 a year.

It’s just one part of the housing strategy.

By waiving impact fees, the city estimates it’ll lose roughly $1 million for every 100 units developers build. They’re hoping that money will be replenished by Measure U, a sales tax increase that voters will decide on come election day.

But if the city wants to see more cranes and crews building affordable homes, Jimenez says waiving impact fees certainly helps.

"I'd say with tonight’s action, they’re very good partners," Jimenez said.