Title
Approval of Revised Mixed Income Housing and Density Bonus Ordinance Regulatory Agreement for the Cottages at Laguna Project
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FileID
File ID: 2026-00227
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Location
Location: 8570 Center Parkway, District 8
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Recommendation
Recommendation: 1) Adopt a City Council Resolution: 1) declaring that the conditions requiring the current Cottages at Laguna For-Sale Affordable Housing Regulatory agreement no longer apply; 2) authorizing the Sacramento Housing and Redevelopment Agency (Agency) to execute a release of the Cottages at Laguna For-Sale regulatory agreement and to remove the agreement from the chain of title; 3) authorizing the Agency to execute a new rental affordable housing regulatory agreement for the Cottages at Laguna Development and record the agreement on title; and 4) make related findings.
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Contact
Contact: Christine Weichert, Director Development Finance, (916) 440-1353, cweichert@shra.org, Sacramento Housing and Redevelopment Agency
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-City Council Resolution
3-Map
4-Site Plan
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Description/Analysis
IssueDetail
Issue Detail: The Sacramento Housing and Redevelopment Agency (Agency) partners with the City of Sacramento (City) to implement the City’s Mixed Income Housing Ordinance (Ordinance) by executing regulatory agreements on single- and multi-family developments subject to the Ordinance to ensure that the affordable housing production goals are documented and monitored. The Cottages at Laguna project is one such project and is the subject of this report.
The Cottages at Laguna Project (Project) is residential condominium community located at 8570 Center Parkway in Sacramento on a 3.48-acre site (APN 117-0140-039). The developer of the Project is Axiom Homes (Developer). The project is located on the east side of Center Parkway, south of Calvine Road. The City approved 62 condominium units, 54 units allowed by zoning code, plus 8 additional units to fulfill the requirement of the Mixed Income Housing and Density Bonus Ordinances. The units are in eight buildings, and a separate clubhouse building is also included. Construction on the project is expected to be completed in January/February of 2026. The Developer’s original intention was to construct a residential for-sale condominium community and to sell 54 units at market rate and eight units to very-low and low-income household as required by the City’s Density Bonus and Mixed Income Housing Ordinances. In 2019, the Agency entered into a regulatory agreement with Axiom Homes (Cottages at Laguna LLC) for the Cottages at Laguna project which required that the Developer sell eight units at an affordable price - three to very low-income buyers (50 percent AMI) and five to low-income buyers (80 percent AMI).
The Developer completed the entitlement process in 2022 and attempted to obtain financing for the project as originally envisioned. Despite reaching out to several financial institutions, they were only able to secure financing for a rental product. The Developer approached the Agency is June of 2025 to request that the current regulatory agreement on the property be rescinded, and a new agreement be put in place to allow the units to be used as rental property. Agency staff reviewed the proposal and consulted with the City’s Planning Director, City Attorney, and Agency legal counsel. All parties agreed that the revised plan for eight rental units in lieu of for-sale units met the requirements of both the Density Bonus and Mixed Income Housing Ordinances. Council approval is required to allow for the removal of the current regulatory agreement for the sale units and the execution and recording of the new regulatory agreement for affordable rental units on the property. The regulatory agreement will be for a 55-year term, and the units will be regulated at the same affordability level as the originally proposed for-sale product which was three units rented to very low-income households (50 percent AMI) and five to low-income households (80 percent AMI). The remaining 54 units will be rented as market rate units.
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PolicyConsiderations
Policy Considerations: The action recommended complies with the City’s current Mixed Income Housing Ordinance and Density Bonus Ordinance. No new policies are recommended in this report.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): Pursuant to Cal. Code Regs., tit. 14., section 15378 subds. (b)(2) and (5), the recommended action is not considered a “project,” as it constitutes an administrative activity that will not result in direct or indirect physical changes to the environment. Alternatively, if a determination is made that the action does constitute a project subject to CEQA, the recommended action is exempt pursuant to Cal. Code Regs., tit. 14, section 15061(b)(3), as it does not have the potential to have a significant effect on the environment.
National Environmental Policy Act (NEPA): There is no federal funding involved in the recommended action and NEPA does not apply.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The actions recommended in this report support the Agency’s ability to continue to fulfill its mission of providing a range of affordable housing opportunities in the City and are consistent with the City’s Mixed Income Housing and Density Bonus Ordinances.
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FinancialConsiderations
Financial Considerations: Not applicable.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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