Inclusionary Housing
Report and In-Lieu
Fee Discussion
April 28, 2026
Elizabeth Sorg, City Manager’s Office
Recommendations in Report
• Residential Development
• The City establish an inclusionary housing program including an onsite obligation and an in-lieu fee option
• All residential projects should be subject to an onsite obligation equal to 5% of units at Low Income
• Developments should be allowed to pay an in-lieu fee by right at $5 per square foot of living area
• Projects with nine or fewer units should be exempt from the affordable housing requirements
2 Recommendations in Report
• Non-Residential Development
• The City establish fees for affordable housing consistent with the Nexus Study’s conclusion that demand for affordable housing is created by nonresidential development
• Fees should be comparable to other similar fees in the market • New office, hotel, and commercial development fees in the market are approximately $2.75 to $3.00
Questions from March 24 Discussion
• How much vacant land for residential development is left in Rocklin, and how much fee revenue could be generated from that land if it was all developed at market rate?
• Is it possible to charge a different fee depending on the square footage of each dwelling unit and exempt smaller units from fees?
• Can developers opt to construct an accessory dwelling unit (ADU) as their on-site obligation?
• How many affordable units could be constructed with in-lieu fee revenue?
Vacant Land Zoned for Residential
Acreage GP GP Prototype
Density Low Medium High SF Low Medium High
24.0 RR 1 per acre/3 24 48 72 3500 84,000 168,000 252,000 237.3 LDR 1-3.4 246 542 839 3400 676,875 1,489,910 2,303,920
75.2 MDR 3.5-8.4 264 448 632 2500 659,038 1,121,114 1,580,690
3.3 MHDR 8.5-15.4 28 40 51 1800 50,400 72,000 91,800
32.9 HDR ≥15.5 510 790 1316 975 497,226 770,055 1,283,100 372.7 1,967,539 3,621,079 5,511,510
Number of Expected Units Anticipated Square Footage
RR: Rural Residential
LDR: Low Density Residential
MDR: Medium Density Residential
MHDR: Medium High Density Residential
HDR: High Density Residential
Fee Scenario 1
• Scenario 1: $5/square foot for all residential development • Estimated fees generated $9.8 million to $27.6 million
Fee Scenario 2
• Scenario 2: $5/square foot for residential development greater than 3,000 square feet • Estimated fees generated $3.8 million to $12.8 million
Fee Scenario 3
• Scenario 3: Graduated fee based on square footage
• <600-1000 sf: $0
• >1000-1500 sf: $1
• >1500-2000 sf: $2
• >2000-2500 sf: $3
• >2501-3500 sf: $4
• 3500+ sf: $5
• Estimated fees generated $5.2 million to $15.4 million
ADUs
• Annual Housing Element reporting limits the number of accessory dwelling units that can be claimed to meet RHNA obligations to 40 total, or five per year for the eight year cycle
• ADUs would need to be deed restricted and would be required to submit annual reports • Placer County example
• Affordable Housing Agreement recorded on each ADU
• Placer County Housing Element allows them to claim more ADUs to meet RHNA obligations
• Annual reporting to Placer County
• Options
• Update Housing Element to allow for more than five units per year • Affordable Housing Incentive Program
• $40,000 per EL/VL unit in development
• Reduction in Development Impact Fees
• Deferral of certain fees to certificate of occupancy
• Scenario 1 $5/sf for all residential development: 246 to 689 units • Scenario 2 $5/sf for residential over 3000 square foot: 95 to 319 units • Scenario 3 Graduated fee based on square footage: 130 to 385 units Note: This is the number of units that would be subsidized by the Affordable Housing Incentive Program, not that total number of units that would be constructed. The actual number of affordable units is much higher depending on the project.
Creation of Units
Sample Affordability Mixes
• Pacific Street Apartments – Oak & Pine
• City investment of $2.6 million
• 109 total affordable units; 59 EL/VL units, 50 Low units Unit Type Number of Units Size of Unit (Sq Feet) Affordability Level 1 Bedroom 12 636 30% AMI
1 Bedroom 20 636 50% AMI
1 Bedroom 18 636 60% AMI
2 Bedroom 4 858 30% AMI
2 Bedroom 9 858 50% AMI
2 Bedroom 22 858 60% AMI
3 Bedroom 12 1,075 30% AMI
3 Bedroom 2 1,075 50% AMI
3 Bedroom 10 1,075 60% AMI
Sample Affordability Mixes
• College Park Senior Project – The Steven
• City investment of $2.23 million
• 178 total affordable units; 56 EL/VL units, 122 Low units Unit Type Number of Units Size of Unit (Sq Feet) Affordability Level 1 Bedroom 12 567 30% AMI
1 Bedroom 24 567 50% AMI
1 Bedroom 28 567 60% AMI
1 Bedroom 52 567 70% AMI
2 Bedroom 7 732 30% AMI
2 Bedroom 13 732 50% AMI
2 Bedroom 42 732 70% AMI
Next Steps
• Staff are seeking direction on the following items:
• Inclusionary Policy Affordability Levels
• Confirmation of on-site obligation at current levels; or • Update to be in line with KMA analysis of 5% at Low; or • Alternate amount
• In-Lieu Fee and Fee Amount
• Direction on whether a fee is desired for residential and/or nonresidential development; and • Direction on fee amount
• ADUs
• Direction on if ADUs should be allowed to meet on-site obligations; if yes, then; • Direction on timeline for implementation
• Staff and Keyser Marston will incorporate direction and bring back necessary updates to the Inclusionary Housing Ordinance and a Resolution establishing an in-lieu fee • Updates to Inclusionary Housing Ordinance will be brought before the Planning Commission; Ordinance and Resolution will be brought to the City Council Questions
Inclusionary Housing Report
and In-Lieu Fee Discussion
April 28, 2026
Elizabeth Sorg, City Manager’s Office
City of Rocklin RHNA Obligations
Income Category Number of Units Percent of Units
Very Low (< 50% AMI) 1,911 34%
Low (50 – 80%) 1,151 20%
Moderate (80 – 120%) 771 14%
Above Moderate (Over 120%) 1,828 32%
Total 5,661 100%
C ity of Rocklin RHNA Obligations 2021-2029 RHNA C ycle City of Rocklin RHNA Production
Year Extremely Low Very Low Low Moderate Above Moderate Total 2018 0 0 0 45 540 585
2019 2 0 0 82 355 439
2020 2 0 4 151 266 423
2021 0 5 2 10 502 519
2022 32 60 196 32 239 559
2023 0 0 0 0 185 185
2024 0 0 0 0 256 256
2025 28 37 45 0 194 304
Total 64 102 247 320 2537 3270
Percent 2% 3% 8% 10% 78%