Placer County hires consultant to update affordable‑housing nexus study and explore incentives

Placer County supervisors on Feb. 4 authorized staff to award and execute a contract with BAE Urban Economics, Inc. to update the county’s affordable‑housing and employee‑accommodation nexus study and to examine incentives, exemptions and other tools to encourage housing production.

Nikki Stregan of the county’s economic development and housing team told the board the existing nexus study dates to 2018 and the county adopted reduced fees in 2020. State law (Mitigation Fee Act, Gov. Code §66000 et seq.) requires a nexus study to set any impact or in‑lieu fee; Stregan said the updated study will review housing needs, growth assumptions, construction costs and comparable jurisdictions and produce a “maximum justifiable fee.” The scope also directs the consultant to recommend ordinance changes and practical incentive and compliance options, including equivalency proposals (land dedication, off‑site mitigation, ADU proposals), timing of compliance, and potential funding sources for fee waivers.

Supervisors asked how the work will be coordinated with the county’s Housing Action Plan and how public outreach will be handled. Stregan said the consultant will do stakeholder interviews and focus groups with developers, affordable‑housing builders, advocacy organizations and other stakeholders and that staff will bring ordinance and funding recommendations to the board in the coming months. Several supervisors emphasized urgency given rising construction costs and unmet local housing needs.

The board approved the contract authorization and directed staff to proceed with the procurement and stakeholder process.