On April 2, 2025, the Saratoga City Council officially adopted its Inclusionary Housing Ordinance, marking a significant milestone in the city’s efforts to expand housing affordability. This ordinance, a key commitment in Saratoga’s 2023–2031 Housing Element, ensures that as new housing is built, it also serves the needs of lower-income residents.
Inclusionary Housing Ordinances (IHOs) are a common tool used by cities across Santa Clara County to ensure that new development includes affordable homes. These policies require developers to set aside a percentage of units at below-market rates, creating mixed-income communities and increasing housing opportunities for lower-income residents. Saratoga’s new IHO applies to projects with five or more units, requiring 15% of homes to be affordable. Ownership units will be available to moderate-income households (80–120% of Area Median Income), while rental units will be reserved for very low- and low-income households (50% and 80% of AMI, respectively). To preserve long-term affordability, rental units must remain affordable for 55 years, while ownership units carry a 45-year restriction.
We at SV@Home commend the Saratoga City Council and staff for their leadership in adopting this important policy. As the ordinance takes effect, we look forward to seeing its impact and will continue to monitor implementation to ensure it delivers on its promises.