Sacramento city leaders propose sweeping policy aimed at fair housing, wages
SACRAMENTO — Finding a way to keep people in their homes and keep rent down — it's a complicated proposal amid a challenging financial market with increasing interest rates. Now, Sacramento city leaders are trying to tackle the issue.
Mayor Pro-Tem Mai Vang rallied city leaders, affordable housing advocates and members of the carpenters union outside city hall Tuesday.
"It's more than just saying enough is enough," a spokesman for the Nor Cal Carpenters Union said. "It's about coming together and bringing support and solutions to this issue."
They're pushing for a sweeping legislative package called Sacramento Forward as the city's unhoused population climbs to record levels.
Statistics show that for every person who gets housed, three more enter the system. City leaders say we cannot enforce our way out of the homeless crisis. Prevention is key.
"The five pillars are to strengthen tenant protections, to bring back an inclusionary housing ordinance, to introduce an opportunity-to-purchase act, to strengthen labor standards for all residential housing development, and to propose a comprehensive funding measure to build and acquire affordable housing," Councilmember Katie Valenzuela said.
Proponents say subsidies are part of the solution when it comes to affordable housing starts.
"The way that nearly every city in the country builds affordable housing is through a fee built into new development," said Councilmember Caity Maple. "And while communities like San Jose are receiving $43 per square foot of new build, Portland up to $27, and San Diego at $25. Sacramento's affordable housing fund receives just $3 for every square foot of new construction."
But real estate developer John Vignocchi said Sacramento is producing more affordable housing per capita than those cities. He watched with skepticism as the new policy was being pushed.
"I don't like parading people out here to push bad policy and tug on people's emotional heartstrings," he said.
His company, Urban Capital, just broke ground on 350 affordable housing units at 16th and E Streets in midtown. There will ultimately be 2,000 units, and he has other projects on the horizon.
He's been able to do it through private investors and lenders and "through value engineering, working with the right contractors. There are a lot of contractors out that are small that have low overhead, and if you work with them, you can reduce your costs and pass those savings along to the renter," Vignocchi said.
All parties have to put pen to paper. Vang said it's all part of the process.
"What we're doing right now is simply not working," Vang said. "We know what the solutions are. We just have to be bold and courageous enough to do it."
City leaders say they will be working together to finalize the legislation in the coming months before it would be presented formally to the council for a vote.
