Middle Income Housing

This program furthers the goals of the Capitol Area Development Authority (CADA) and its forming entities, the State of California and the City of Sacramento, in providing a range of housing types and affordability within the capitol area and downtown. Under this program, a short-term loan and an affordable regulatory agreement assist with housing being developed and operated for middle income households in accordance with State definitions under welfare tax code.

Geared for Sacramento residents earning 80% to 120% of the Area Median Income (AMI), this program aims to produce, convert, and preserve affordable housing within Sacramento, with an emphasis on downtown Sacramento and surrounding neighborhoods through public-private-nonprofit collaboration.

Key Program Features & Benefits

• Funding: CADA provides small short-term loans to each project that fulfill the public subsidy requirement under welfare tax exemption law.
• Affordability Agreement: Projects must meet affordability requirements for 55 years through the recorded Affordable Regulatory Agreement.
• Eligible Activities:
  • Construction of new middle-income housing.
  • Acquisition of existing aging properties (with rehabilitation).
  • Preservation of affordable housing in areas at risk of gentrification and displacement.

Goals

1. Create Middle-Income Housing Units: Ensure the production of deed-restricted units to meet local housing needs and enhance affordability.

2. Support City Initiatives: Align with Sacramento’s Housing Element priorities and contribute to progress on Regional Housing Needs Allocation (RHNA) objectives.

3. Enhance Community Impact: Encourage projects that stimulate the receipt of other tax revenues (e.g., ground floor commercial uses), include other local economic and sustainability benefits (e.g., jobs, business incubation, transit-supportive development), reinvest in aging buildings, and help revitalize blighted or underutilized areas.

4. Address Housing Crisis: Reduce the risk of displacement for middle-income households facing rising rents.

Application Process

Submission Deadline:
Applications are over the counter and will be reviewed by staff within 30 days of being found complete. All projects will require action from the CADA Board of Directors.

Eligibility & Evaluation Criteria

Applications will be assessed based on:

• Alignment with CADA’s prioritized project locations in the central city and Housing Element opportunity sites or City-prioritized commercial corridors and catalyst sites.
• Innovation, sustainability, and additional community benefits.
• Financial feasibility and timeline for project completion.
• Experience of the development and property management team.
• Provision of on-site services.
• All applications must adhere to the Middle-Income Housing Program Application Checklist, available on the Notice of Funding Availability posted on the RFP/RFQ page of the CADA website.

How to Apply

To participate, submit your application via email to:

For detailed guidelines, application materials, and further information.

Awarded Projects

Expanding Attainable Housing Across Sacramento

Explore our growing portfolio of awarded developments, including The Kind Project, Studio30, Stockton Gateway, Grace, The Woodlands Apartments, and Esperanza. These exciting projects reflect CADA’s active dedication to expanding mixed-income housing opportunities and driving fresh neighborhood investment across our community. Together, we are proud to build a more accessible, vibrant, and inclusive Sacramento for everyone to enjoy.

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The Kind Project: 72 new homes at 1901 8th Street, offering attainable, high-quality housing for local middle-income households through CADA’s Middle-Income Housing Program.

Studio30: A welcoming community at 16th and E Streets featuring 30 attainable homes for local households earning 80% to 120% of Area Median Income.

We are thrilled to highlight Esperanza, an exciting new Sacramento development that expands attainable housing opportunities for local households earning 80% to 120% of the Area Median Income through CADA’s Middle-Income Housing Program!

We are so excited to share The Grace, a vibrant new Sacramento development expanding attainable housing opportunities for our community's households earning 80% to 120% of the Area Median Income through CADA’s Middle-Income Housing Program!

Stockton Gateway: A vibrant mixed-use development bringing 196 mixed-income homes and new energy to Stockton Boulevard.