Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
SHRA reports surge in affordable housing production in 2024, warns of potential decline as one‑time funds dry up
Summary
Sacramento Housing and Redevelopment Agency presented its 2024 annual report to the City Council, detailing revenues from multiple housing funds, projects in construction, and that the city exceeded its supportive‑housing goals for the year but may see production slow as COVID‑era and one‑time state/federal resources end.
The Sacramento Housing and Redevelopment Agency reported to the Sacramento City Council on May 20 that the city produced more affordable housing units in 2024 than its baseline goals but warned production could decline as one‑time pandemic and state funds are exhausted.
SHRA said impact fees collected under the Housing Trust Fund Ordinance and the Mixed Income Housing Ordinance together have generated tens of millions of dollars for affordable housing. The trust fund has collected more than $39.7 million since 1989 plus about $15.3 million in loan repayments; 2024 receipts were $411,000. The residential fee-based Mixed Income Housing Ordinance—revised in 2015—has raised about $10.8 million since the change, with $1.7 million recorded in 2024.
The update also summarized state and federal grants SHRA administers. SHRA reported receiving roughly $5.7 million in Permanent Local Housing Allocation (PLHA) allocations that covered 2023 and 2024, and a $5 million local housing trust award that arrived in 2024 and largely supported the Central Sacramento Studios 2 project. Federal HOME entitlement funding in 2024 totaled $2.2 million, plus $1.3 million in loan repayments, staff said.
SHRA staff also reviewed the Single Room Occupancy (SRO) ordinance, which requires maintenance or replacement of certain downtown residential hotel units; staff reported no net withdrawals or additions of SRO units in 2024. The city‑county Affordable Housing Plan—adopted in October 2023 and developed through community input—sets measurable goals that SHRA tracks. For 2024, SHRA reported creating 303 permanent supportive housing units (exceeding the 300‑unit annual target) and more than 1,100 affordable units overall.
Council members and staff emphasized why 2024 production topped expectations. SHRA explained much of the work reflected financing decisions made years earlier and a wave of one‑time federal and state resources arriving around 2020 because of the COVID‑19 pandemic. “It takes three or four years, potentially, if not more, to get those units on the market,” a SHRA presenter said, and added that without new one‑time resources, production levels could decline in coming years.
Council members pressed staff on what the city expects in the near term and whether current revenue sources can sustain prior output. SHRA said it will continue to track and prioritize projects and coordinate with the county under the city‑county partnership. Staff also highlighted changes the county made to expedite affordable projects, and a newly established tracking mechanism from the partnership.
The presentation concluded with staff offering to take council questions and continuing to emphasize the role of fee revenues, state PLHA funds and competitive local housing trust awards in enabling 2024 production. City staff said they will return with updates as project approvals and allocations move forward.
The council did not take a separate binding vote on the report; SHRA presented the annual update for review and direction.
