Sausalito’s current Density Bonus Ordinance allows developers to increase the number of units they build in exchange for designating a portion of those units as affordable. According to the city’s municipal code, developers can receive various incentives or waivers to bypass certain zoning regulations depending on how many affordable units they provide. However, the required percentage of affordable housing units remains relatively low under these provisions.
To address Sausalito’s pressing need for affordable housing, while controlling the pace of development, the city should consider raising the minimum percentage of affordable units required to qualify for density bonuses. Here’s why this approach makes sense:
By increasing the percentage of required affordable units, Sausalito would compel developers to prioritize housing that meets the needs of lower-income residents—such as seniors, artists, teachers, and essential workers—rather than building predominantly market-rate homes. Currently, under California’s Density Bonus Law, as little as 10% of units must be affordable, depending on the type of affordability (low, very low, or moderate-income housing). Increasing this threshold to 20% would result in a significant boost to affordable housing stock while discouraging overdevelopment and gentrification.
2. Less Profit, Slower, More Manageable Growth
One important consideration is that raising the affordable housing requirement would reduce the profitability for developers, as affordable units generally yield lower returns than market-rate units. This reduction in profitability would naturally slow down the pace of new development, preventing a surge of rapid construction. A slower growth rate would allow the city to manage development more effectively, giving Sausalito the time it needs to align infrastructure expansion with population growth. This would be critical for maintaining quality of life, as hasty development often leads to overwhelmed infrastructure and services.
3. Less Development, More Time for Infrastructure Planning
Limiting the overall pace of development by raising the affordability requirement would allow Sausalito to better manage its infrastructure needs. The city’s roads, water systems, and emergency services are already stretched thin, and a sudden influx of new residents could exacerbate traffic congestion, water shortages, and evacuation risks during wildfires. Slower, more controlled growth would give Sausalito the breathing room it needs to upgrade and plan its infrastructure sustainably.
4. Align Development with Community Needs
Requiring a higher percentage of affordable units would ensure that development aligns with the actual needs of the community, rather than incentivizing luxury housing. This would also reduce the strain on local services and schools, allowing Sausalito to grow in a way that benefits both current and future residents.
Conclusion
Increasing the percentage of required affordable housing units under Sausalito’s Density Bonus Ordinance would lead to smarter, more sustainable development. Not only would it result in more housing for those who need it most, but it would also slow the pace of overall development, allowing time to plan and upgrade the city’s infrastructure, ensuring a safer and more livable community for all.
You can review the full Sausalito Density Bonus Ordinance here.