Cada

Downtown housing appeals to a broad spectrum of Sacramentans. Some are attracted by the art and entertainment amenities that a city lifestyle offers. Others appreciate the easy access to places of employment and services due to its central location and the availability of public transportation.

CADA believes that housing for people from a wide range of income groups enhances the Capitol Park Neighborhood. As the neighborhood’s desirability gains momentum, CADA is meeting both the growing demand for housing and the challenge of maintaining economic diversity. Over 30 years of developing and managing urban infill housing, CADA has built hundreds of units through effective public-private partnerships and has preserved and maintained the rental housing stock transferred to its care in 1978. CADA directly funds and utilizes funds available through government housing programs to assure the neighborhood includes housing units meeting the needs of low and very-low income households. These actions have resulted in a community of neighbors with diverse lifestyles including retirees on fixed incomes, students and people working in a variety of service and office capacities in the central business district, the state offices and the Capitol.

CADA’s enabling legislation sets forth specific affordable housing mandates CADA must meet and requires that 20% of the tax increment that CADA receives be used for the purpose of increasing and improving the supply of affordable housing. It is CADA’s policy to annually present the actions it has taken to meet these obligations in its year-end stakeholders report.

CADA Affordable Housing Mandates
In the Capitol Area, 25% of the units located property leased by CADA from the Department of General Services or on property sold to CADA by the Department of General Services must be affordable to low income households from inception. In the R Street Area, CADA is required to assure at least 15% of all units developed by entities other than CADA are affordable to low or moderate income households with not less than 40% of these units affordable to very low income households by build-out in 2032. CADA is also required to assure at least 30% of all units that it develops are affordable to low or moderate income households with not less than 50% of these units affordable to very low income households.

* Assumes all units built on RStreet are developed by entities other than CADA.

Use of Tax Increment
Twenty percent (20%) of CADA’s tax increment is designated as Housing Set Aside Funds because they must be used for the purpose of increasing and improving the supply of affordable housing. Eighty percent (80%) of CADA’s tax increment is designated as Unrestricted Funds because they may be used for any purpose consistent with the implementation of CADA’s redevelopment mandates. CADA is required to separately account for the utilization of the tax increment generated in the Capitol Area and R Street Area.

Tax Increment – Source and Use (Period ending June 30, 2010)