City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00227 2/10/2026
Approval of Revised Mixed Income Housing and Density Bonus Ordinance Regulatory Agreement for the Cottages at Laguna Project
File ID: 2026-00227
Location: 8570 Center Parkway, District 8
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.
Contact: Christine Weichert, Director Development Finance, (916) 440-1353, [email protected], Sacramento Housing and Redevelopment Agency
Presenter: None
Attachments:
1-Description/Analysis
2-City Council Resolution
3-Map
4-Site Plan
Description/Analysis
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,
File ID: 2026-00227 2/10/2026
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.
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.
Economic Impacts: None.
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.
File ID: 2026-00227 2/10/2026
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
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.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION 2026-
Adopted by the Sacramento City Council
February 10, 2026
Cottages at Laguna Project: Authorization to Execute Affordable Rental Housing Regulatory Agreement and to Remove Current For-Sale Regulatory Agreement from Chain of Title
BACKGROUND
A. The Sacramento Housing and Redevelopment Agency (SHRA) 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.
B. The Cottages at Laguna Project (Project) is residential condominium community located at 8570 Center Parkway (APN 117-0140-039) in Sacramento on a 3.48-acre site that is subject to both the Mixed Income Housing Ordinance and the City’s Density Bonus Ordinance. The developer of the Project is Axiom Homes (Developer).
C. In 2019, SHRA entered into a regulatory agreement with Axiom Homes (Cottages at Laguna LLC) for th e 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).
D. The Developer completed the entitlement process in 2 022 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 SHRA in June of 2025 to request t hat 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.
E. It is proposed that the current reg ulatory agreement be removed and a new regulatory agreement be placed on the property for a 55-year term which will rent restrict the units as follows: three units will be rented to very low-income households (50 percent AMI) and five to low-income households (80 percent AMI).
F. 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 and alternatively if a determination is made that the action does constitute a project subject to the California Environmental Quality Act (CEQA), the recommended action is exempt pursuant to section 15061(b)(3) as it does not have the potential for a significant effect on the environment.
G. No federal funding is involved in the recommended action and therefore the National Environmental Policy Act (NEPA) does not apply.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1.
All evidence presented havin g been duly considered, the findings, includin g e nvironmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved adopted.
SECTION 2.
The City Council d eclares that conditions requiring the current Cottages at Laguna For Sale Affordable Housing Regulatory agreement no longer apply.
SECTION 3.
The Sacramento Housing and Redevelopment Agency (Agency) is authorized t o execute a release of the Cottages at Laguna For Sale Regulatory Agreement and to remove the agreement from the chain of title.
SECTION 4.
The Agency is authorized to execute a new regulatory agreement for the Cottages at Laguna Development that will restrict eight (8) units under the City’s Density Bonus and Mixed Income Housing Ordinances. The units will be affordable rental units as follows: three (3) units rented to very low income (50 percent of Area Median Income) households and five (5) units to low-income households (80 percent of Area Median Income).
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