Soon after Rancho Cordova incorporated as a city, its new City Council agreed to require that at least 10 percent of the homes in any new development in the city must be affordable for people of moderate to low incomes. The city is now poised to back away from that commitment. That would be a mistake.
Without a hard, unambiguous numerical requirement for affordable housing in place, Rancho is in danger of becoming divided into a city of haves and have-nots. Future residents who move into new housing likely to be built over the next decade on huge swaths of undeveloped land south of Highway 50 will be the haves. Those who continue to live in the older parts of Rancho, mostly north of Highway 50, will be the have-nots.
Council members who support the change, including Mayor Linda Budge, insist that the city remains committed to the goal of mixed income neighborhoods. Budge thinks that in the current tough economic times, the city urgently needs to encourage new construction. Builders need as much flexibility as possible.
But once a hard number is removed, the city's commitment to affordable housing is undermined. A standard that was once clear becomes ambiguous. The unmistakable signal the council will send to home builders is that they no longer have to worry about building affordable housing in Rancho Cordova.
In any event, retaining the 10 percent affordability rule does not prelude flexibility. Other cities – including Folsom, which has a 15 percent affordable housing requirement – have found a number of creative ways for home builders to comply.
For example, smaller projects could be exempted from the 10 percent rule entirely or required to pay fees instead. In lieu of building affordable housing at a specific location or even within a specific development, builders could set aside land on nearby properties.
Given Rancho Cordova's stock of aging and substandard housing in the older parts of the city, the council could consider allowing some developers to fulfill their affordable mandate by rehabilitating older apartment complexes or single-family homes elsewhere in the city.
Rancho Cordova council member Ken Cooley is the strongest voice for retaining the 10 percent rule. He believes rightly that the decision "will shape Rancho's future, whether we grow up as one community or two sharply differing economic areas staring at one another across U.S. 50."
As housing prices continue to slide, Rancho Cordova will not be the only city under pressure to back away from its commitment to affordable housing. Rancho Cordova leaders can set an example for other cities by maintaining a firm commitment to affordable housing and showing how to keep that commitment with creativity.
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