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What is Affordable Housing?

According to the U.S. Department of Housing and Urban Development (HUD), housing is affordable to a household when it costs no more than 30% of the household’s monthly income.

As of March 2005, the median home price for the Sacramento region is $365,000, well above 30% of the County-wide median monthly income for a family of four. In addition to rising land prices and construction costs, the Sacramento region has a low vacancy rate, further escalating the cost of housing.

In response to the need for affordable housing in the Sacramento region, the Sacramento County Board of Supervisors approved the Affordable Housing Ordinance, requiring 15% of new residential developments of 100 units or more be made affordable to low (50 to 80% of median countywide income), very low (30 to 50% of median countywide income) and extremely low income (below 30% of median countywide income) households. The income thresholds are adjusted for family size. The affordable housing requirement can be fulfilled by providing affordable dwelling units on site or by dedicating land. Projects less than 100 units can pay fees that will be used in purchasing land for affordable housing.