Affordable Housing and Employee Accommodation Ordinance and Fee
On April 19, 2022, the Board of Supervisors approved the 2022 Annual Adjustment of Impact Fees including an adjustment to the Affordable Housing and Employee Accommodation Fee. Effective July 1, 2022, the fee was adjusted from $2.12 to $2.45.
Affordable Housing Ordinance
The purpose of the ordinance is to increase affordable housing in Placer County by requiring that at least 10% of the units of all new private housing development projects are in the affordable range.
Affordable Housing Fee
Developments with 8 to 100 units have the option to instead pay an in-lieu fee of $2.45 per habitable square foot of each market rate unit.
Employee Accommodation Fee
The Employee Accommodation Fee is $2.45 per net building area square foot and applies to all new non-residential (commercial) development in the Sierra Nevada and Lake Tahoe area. Payment of the fee is required prior to building permit issuance. The intent is to address the affordable housing demand from new workers resulting from the construction of non-residential development such as hotels, office space, retail, and restaurants.
- What development projects are affected by the ordinance?
- What will the fee be used for?
- How was the $2.45 fee determined?
- All new residential development of 8 to 100 units may pay the Affordable Housing Fee at the time of building permit issuance or dedicate 10% of its units as affordable.
- All new residential development of greater than 100 units must provide for 10% of its units as affordable.
- All new non-residential development in the Sierra Nevada and Lake Tahoe area shall pay an Employee Accommodation Fee prior to building permit issuance. The boundary for the payment of the fee is the Tahoe Truckee Unified School District.
The revenue generated from the affordable housing and employee accommodation fee collected will be used for projects related to affordable housing including:
- Construction of affordable housing development
- Preserving existing affordable units
- Acquiring and rehabilitating multifamily projects
- First time homebuyer assistance
- Residential full-time occupancy projects seven (7) units or less, or residential projects with majority of units are less than 1,600 square feet
- All public projects
- Accessory dwelling units and deed restricted affordable housing
- Rehabilitation of existing residence or conversion of nonresidential to residential
- Single dwelling unit constructed by an owner/builder
- Dormitories, fraternity/sorority houses, boarding housing, residential hotels, single room occupancy units, and live/work units (not considered a permanent dwelling unit)
- Development of an infill site, and warehouse or industrial developments (such as in the Sunset Area)
- Residential project located within a “transit priority area”
- Homeless/emergency shelters, care homes, community care/health care facilities, childcare facilities, churches, mobile home parks
- Residential mixed-use project with at least 70% of the total project floor area is constructed for residential use
To see the full list of exemptions refer to Section 15.65.050 under Exempted Development on pages 6-7 here Version OptionsAffordable Housing and Employee Accommodation Ordinance and FeeHeadline.
How to Calculate the Fees
Affordable Housing Fee for New Residential Development
|Number of Units||30|
|Unit Size||2,800 square feet*|
|Total Square Footage||30 x 2,800 = 84,000|
|Fee Assessed||84,000 x $2.45 = $205,800|
*Habitable square foot of each market unit
Employee Accommodation Fee for New Non-Residential Development in East Placer County
|Size of Development||150,000 square feet*|
|Fee Assessed||150,000 x $2.45 = $367,500|
*Gross square feet non-residential minus existing square feet floor area
- Ordinance Fact Sheet (updated 7/01/2022)
- Resolution No. 2020-209 passed by the Board on 10/6/2020
- Ordinance No. 6050-B passed by the Board on 10/27/2020
- News Release 10/27/2020
- Board of Supervisors Presentation 10/6/2020
- Eastern Placer Affordable Housing Fee Study 10/17/2018
- Western Placer Affordable Housing Fee Study 10/17/2018