Skip to content

Santa Clara · Building on your lot

Affordable units in new housing (inclusionary) in Santa Clara

Santa Clara's own rules on affordable units in new housing (inclusionary), with the code text for every value.

Each rule below links to the section of the Santa Clara Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Santa Clara's code says

Santa Clara code What Santa Clara's code adds
How long units stay affordable
  • Affordable for-sale units stay affordable at least 20 years.
    Applies: The City's Below Market Purchase Program manual sets the exact period.
    § 17.40.050 · code text
    For-sale and rental affordable units shall be maintained as affordable housing for a period as identified in the City Below Market Purchase Program Policies and Procedures Manual, but not less than twenty (20) years applicable to for-sale units and fifty-five (55) years applicable to rental units.
  • Affordable rental units stay affordable at least 55 years.
    Applies: The City's Below Market Purchase Program manual sets the exact period.
    § 17.40.050 · code text
    For-sale and rental affordable units shall be maintained as affordable housing for a period as identified in the City Below Market Purchase Program Policies and Procedures Manual, but not less than twenty (20) years applicable to for-sale units and fifty-five (55) years applicable to rental units.
Exemptions
  • Projects under 10 units skip the 15% set-aside; they may provide an affordable unit or pay the in-lieu fee.
    Applies: Applies to residential rental projects of fewer than 10 units.
    § 17.40.090 · code text
    Residential rental projects of fewer than ten units may either provide an affordable unit or pay an in-lieu fee identified for residential rental projects in the affordable housing master fee schedule.
  • Projects under 10 units skip the 15% set-aside; they may provide one affordable dwelling or pay the in-lieu fee.
    Applies: Applies to residential ownership projects of fewer than 10 units.
    § 17.40.080 · code text
    Residential ownership projects of fewer than ten units may either provide one dwelling at an affordable housing cost for a household earning up to one hundred percent (100%) of AMI, or pay an in-lieu fee identified for residential ownership projects in the affordable housing master fee schedule.
Fee instead of units
  • The affordable housing master fee schedule sets the fee; the code gives no figure.
    Applies: Applies to rental projects of fewer than 10 units that choose a fee instead of an affordable unit.
    § 17.40.090 · code text
    Residential rental projects of fewer than ten units may either provide an affordable unit or pay an in-lieu fee identified for residential rental projects in the affordable housing master fee schedule.
  • The affordable housing master fee schedule sets the fee; the code gives no figure.
    Applies: Applies to ownership projects of fewer than 10 units that choose a fee instead of one affordable dwelling.
    § 17.40.080 · code text
    Residential ownership projects of fewer than ten units may either provide one dwelling at an affordable housing cost for a household earning up to one hundred percent (100%) of AMI, or pay an in-lieu fee identified for residential ownership projects in the affordable housing master fee schedule.
  • Fee is new gross residential floor area minus existing residential floor area, times the per-square-foot fee.
    Applies: Applies to residential rental projects.
    § 17.40.090 · code text
    (Gross square feet of total residential floor area) minus (square feet of existing residential floor area) multiplied by (per square foot fee) equals (total housing impact fee).
  • Fee is new gross residential floor area minus existing residential floor area, times the per-square-foot fee.
    Applies: Applies to residential ownership projects.
    § 17.40.080 · code text
    (Gross square feet of total residential floor area) minus (gross square feet of existing residential floor area) multiplied by (per square foot fee) equals (total housing in-lieu or impact fee).
  • An in-lieu fee goes to the City affordable housing fund.
    Applies: Applies when the calculation results in a fractional unit.
    § 17.40.090 · code text
    Where the calculation of affordable housing requirements described in this section results in a fractional unit, the applicant shall either pay an in-lieu fee to the City affordable housing fund or the development shall provide an additional unit to satisfy the requirement.
Projects it applies to
  • The rule applies to projects of 10 or more units.
    Applies: Applies to residential rental projects.
    § 17.40.090 · code text
    Residential rental projects of ten or more units must provide at least fifteen percent (15%) of the units at affordable housing costs made available at affordable rental prices to extremely low, very low, low and moderate income households as long as the distribution of affordable units averages to a maximum of one hundred percent (100%) area median income.
  • The rule applies to projects of 10 or more units.
    Applies: Applies to residential ownership projects.
    § 17.40.080 · code text
    Residential ownership projects of ten or more units must provide at least fifteen percent (15%) of the units at affordable housing costs for extremely low, very low, low and moderate income households, or some combination of those income categories.
Share of affordable units
  • At least 15% of units must be affordable.
    Applies: Applies to rental projects of 10 or more units; for extremely low to moderate income households, averaging at most 100% of area median income.
    § 17.40.090 · code text
    Residential rental projects of ten or more units must provide at least fifteen percent (15%) of the units at affordable housing costs made available at affordable rental prices to extremely low, very low, low and moderate income households as long as the distribution of affordable units averages to a maximum of one hundred percent (100%) area median income.
  • At least 15% of units must be affordable.
    Applies: Applies to ownership projects of 10 or more units; for extremely low to moderate income households, averaging at most 100% of area median income.
    § 17.40.080 · code text
    Residential ownership projects of ten or more units must provide at least fifteen percent (15%) of the units at affordable housing costs for extremely low, very low, low and moderate income households, or some combination of those income categories.
  • The City Council may allow less than 15%, set in a development agreement.
    Applies: Applies only if units are restricted to extremely low, very low or low income households and give equal or greater subsidy value.
    § 17.40.090 · code text
    The City Council may authorize a developer to provide a percentage of affordable units lower than fifteen percent (15%), if such units are restricted to extremely low, very low or low income households and would represent an equal or greater amount of value in subsidy.

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Does Santa Clara require affordable units in new housing?

Santa Clara's code: Affordable for-sale units stay affordable at least 20 years. (The City's Below Market Purchase Program manual sets the exact period.) (§ 17.40.050); Affordable rental units stay affordable at least 55 years. (The City's Below Market Purchase Program manual sets the exact period.) (§ 17.40.050).

General information, not legal advice.

Ask about a specific Santa Clara property

Ask GoCodebook how Santa Clara's affordable units in new housing (inclusionary) rules apply to your situation and get an answer that cites the section.

Ask your question

More on building on your lot in Santa Clara