The Federal Emergency Management Agency has notified the City of Sacramento that building permits for Natomas may once again be issued as of June 16 of this year.
Applications can be filed starting Wednesday morning.
Councilwoman Angelique Ashby says anyone can apply for a building, major repair, or renovation permit.
"There are existing structures out there that are vacant now for whatever reason. We haven't been able to offer any users a modification on the space. We'll now be able to do that. There will also be additional facilities coming on that were already planned that were held up because of the moratorium."
Ashby says there will likely be an expansion of existing nursing homes in the area.
The city will accept an unlimited number of commercial permits, and an average of 1000 new home permits, and 500 multi-family unit permits each year for the next two years.
After Hurricane Katrina caused major flooding in New Orleans in 2005, FEMA enacted new requirements for levees throughout the country.
Sacramento fought the requirements in court and lost. Natomas has been under a de facto building moratorium since 2008.
FEMA is lifting the building restrictions now that the city has passed the halfway point of its repairs to 42 miles of levees.
About $500 million has been spent so far on levee improvements on 21 miles of levee protecting Natomas.