Legislation Details

File #: 2026-01055    Version: 1
Type: Discussion Item Status: Agenda Ready
File created: 5/7/2026 In control: City Council - 2PM
On agenda: 6/9/2026 Final action:
Title: Annual Reports of the Housing Trust Fund Ordinance, Mixed-Income Housing Ordinance, HOME Investment Partnerships Program, Permanent Location Housing Allocation, State Local Housing Trust Fund, Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance
Attachments: 1. 2026-01055 STAFF REPORT
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Title

Annual Reports of the Housing Trust Fund Ordinance, Mixed-Income Housing Ordinance, HOME Investment Partnerships Program, Permanent Location Housing Allocation, State Local Housing Trust Fund, Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance

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FileID

File ID: 2026-01055

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Location

Location: Citywide

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Recommendation

Recommendation: Review, comment, and provide direction.

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Contact

Contact: Christine Weichert, Director, (916) 440-1353, cweichert@shra.org, Sacramento Housing and Redevelopment Agency

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Presenter

Presenter: Christine Weichert, Director, (916) 440-1353, cweichert@shra.org, Sacramento Housing and Redevelopment Agency

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Attachments

Attachments:

1-Description/Analysis

2-2025 City Staff Report Annual Housing Report-final                                                                                                         

3-Housing Trust Fund Ordinance Annual Report

4-Mixed-Income Housing Ordinance Annual Report                                                                                    

5-HOME Investment Partnerships Program Annual Report

6-Permanent Local Housing Allocation Program Annual Report

7-State Local Housing Trust Fund Program Annual Report

8-Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance Annual

   Report

9-PPT Annual Housing Reports - City 2026.1

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Description/Analysis

IssueDetail

Issue Detail: This report provides information to fulfill the annual reporting requirements of the City’s Housing Trust Fund (HTF) Ordinance, Mixed-Income Housing Ordinance, HOME Investment Partnerships (HOME) Program, Permanent Local Housing Allocation (PLHA), State Local Housing Trust Fund (LHTF), and the Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance for calendar year 2025. Sacramento Housing and Redevelopment Agency (SHRA) administers these on behalf of the City of Sacramento (City).

 

Below is an overview of some of the units under construction and complete in 2025 using these sources.

 

Name of Development

Address

Number of Units

Funding Source

2025 Expenditure

Status

Central Sacramento Studios 2

1100 H Street

51

HTF & State LHTF

$1,977,831 $1,977,830

Under construction

39th and Broadway

3900 Broadway

43

MIHO

$ 506,841

Complete

Capitol Park

1125 9th Street

134

HOME

$320,000

Complete

Northview Pointe

2314 Northview Drive

66

HOME

$250,000

Complete

Donner Field

3311 45th Street

67

HOME

$1,025,550

Under Construction

Central Sacramento Studios 1

1100 H Street

92

PLHA

$121,000

Complete

On Broadway

1901 Broadway

140

HOME

$0

Under Construction

Mirasol D

1381 Swallowtail Avenue

116

HTF/MIHO

$0

Under Construction

 

Housing Trust Fund - The City Housing Trust Fund Ordinance authorizes the collection of fees on non-residential construction to fund the development of low and very low-income housing. The HTF Ordinance was adopted in 1989 to raise local funds for affordable housing near employment centers. Fees imposed on non-residential developments generate revenue based on an economic nexus analysis, which determined that the construction of commercial projects such as offices, business parks, hotels, warehouses, and shopping centers played a major role in attracting new, very low- and low-income workers to Sacramento. See Attachment 3 for the Housing Trust Fund Annual Report for 2025.

 

Mixed-Income Housing Ordinance - On September 1, 2015, the City Council adopted a revised citywide Mixed-Income Housing Ordinance. The Mixed-Income Housing Ordinance requires an affordable housing impact fee for all new housing units and large subdivisions to assist with the provision of housing for a variety of incomes and household types. The fee-generated revenue is placed in the citywide Housing Trust Fund. It is used to develop affordable housing units with the goal of increasing the supply available for lower-income workers. See Attachment 4 for the Mixed-Income Housing Ordinance Annual Report for 2025.

 

HOME Investment Partnerships Program - The federal HOME Investment Partnerships Program provides funds for a wide range of activities, including construction, acquisition, and/or rehabilitation of affordable housing. See Attachment 5 for the 2025 HOME Program Annual Report.

 

Permanent Local Housing Allocation Program - In 2017, the PLHA program was created which was the first permanent source of funding for affordable housing in the State of California. Revenue is generated through recording fees on real estate transactions and will, therefore, vary from year to year depending upon activity. In 2019, the City Council authorized the Sacramento Housing and Redevelopment Agency (SHRA) to apply to the State of California on behalf of the City and to receive and administer the City’s PLHA entitlement. A minimum of 30 percent of the funds must be spent on affordable single family housing activities. See Attachment 6 for the 2025 Permanent Local Housing Allocation Report.

 

State Local Housing Trust Fund - The State of California Local Housing Trust Fund (LHTF) provides matching funds on a competitive basis to local and regional housing trust funds dedicated to the creation, rehabilitation, or preservation of affordable housing.  Matching grants (dollar for dollar) are awarded to local governments with established sources of affordable housing funds. Local funding sources such as the Mixed Income Housing Ordinance fees and City Housing Trust Funds must be used as the match to be eligible for this program, as other funds restricted under federal or state law are not eligible. Loans for multifamily rental housing projects require resident income and rent restrictions imposed through a regulatory agreement for 55 years. SHRA has been successful in one recent funding round under this competitive program, which has brought an additional $5 million in resources to the City. See Attachment 7 for the LHTF Annual Report.

 

SHRA follows the Multifamily Lending and Mortgage Revenue Bond Policies approved by the Council on December 3, 2019, to allocate HTF, Mixed-Income Housing Ordinance, HOME, PHLA, and LHTF funds to affordable housing projects. As approved by the Council on December 3, 2024, pre-applications for funding in 2025 were accepted on January 2 and July 1.

 

Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance - On November 1, 2016, the Council adopted an amendment to the Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance. Pursuant to the Ordinance, SHRA is required to provide an annual report on the number of residential hotel units withdrawn, the number of new units expected based on approved replacement housing plans, and the number of units constructed in anticipation of conversions or withdrawals. To comply with the Ordinance reporting requirements, SHRA sent correspondence in January 2025 to the owners of residential hotels subject to the Ordinance, including an annual certification on the status of the residential hotel. See Attachment 8 for the 2025 Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance Annual Report.

 

Affordable Housing Plan - The City and the County of Sacramento entered into a partnership agreement in 2022 to improve coordination on permanent supportive housing (PSH) production and re-housing (RH) efforts for the homeless. The agreement required the preparation of an Affordable Housing Plan (AHP) to analyze the issue and set goals. The AHP was developed in 2023 with community input and approved by both the County Board of Supervisors and City Council on October 24, 2023. The annual report that is typically attached to this report is not included at this time and will instead be presented to a joint City-County meeting later this year.

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PolicyConsiderations

Policy Considerations: Not applicable.

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EconomicImpacts

Economic Impacts: None.

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EnvironmentalConsiderations

Environmental Considerations: Annual reporting does not constitute a project pursuant to Cal. Code Regs., tit. 14, section 15378, and no federal action is being taken.

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Sustainability

Sustainability: Not applicable.

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Commission/Committee Action

Commission/Committee Action: At its June 3, 2026, meeting, the Sacramento Housing and Redevelopment Commission reviewed the information contained in this report.

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RationaleforRecommendation

Rationale for Recommendation: Not applicable.

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FinancialConsiderations

Financial Considerations: The City Housing Trust Fund collected a total of $6,485,663 in fees, interest, and loan repayments in 2025. After subtracting for funded projects, the 2025 funds available for new projects was $2,001,539 as of December 31, 2025.

 

The City Mixed-Income Housing Ordinance collected a total of $2,217,716 in fees, interest and loan repayments in 2025. After subtracting for funded projects, the 2025 funds available for new projects was $904,494 as of December 31, 2025.

 

The City HOME Investment Partnerships Program received $3,546,871 in entitlement income, interest, and loan repayments in 2025. After subtracting for funded projects, the 2025 funds available for new projects was $1,801,308 as of December 31, 2025.

 

The City Permanent Local Housing Allocation Program Fund received $8,598,654 in entitlement income and loan repayments in 2025. After subtracting for funded projects, the 2025 funds available for single-family down payment assistance was $2,030,612 and the 2025 funds available for multifamily projects was $5,870,000.

 

The City received a competitive allocation from the State Local Housing Trust Fund of $5,000,000 in 2024. As of December 31, 2025, the remaining available balance for new projects was $1,050,000.

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LocalBusinessEnterprise

LBE - M/WBE and Section 3 requirements: The items discussed in this report have no M/WBE or Section 3 impact; therefore, M/WBE and Section 3 considerations do not apply. 

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