Read and Conside Ed

https://$.rrrf,.trorthb ay biz.cann\OS/O2l2gtpreserving-rohaert-parks-potentia, rr htgs://rpcity.granicus.com./Meraviewer.php?view_id=4&clip_id:358&E€ta id:333 l8 Who Can Live h Soncrna Cr;nty? of l7 established in 2001 , aimed to align new housing development with infrastructure and public service capacities, stipulating a lo% annual population growth cap (approximately 225 new housing units per annum). Notably, this ordinance exempts specihc housing categories, including affordable units for low- and very low-income households, accessory dwelling units (ADUs), model homes, mobile home park conversions, residential infill projects, and conversions of non-residential properties to residential use. Such legislative provisions indicate a pro-housing orientation within the electorate. 1.2 Land Acquisition Mechanisms Municipalities employ diverse strategies for acquiring land suitable for affordable housing. These include the disposition of surplus lands, partnerships with community land tmsts, and the formation of public-private partnerships. Along with direct land acquisition, cities develop incentive programs designed to encourage developers to integrate affordable units into larger, mixed-use projects. Within Sonoma County, prevalent strategies include the use of surplus land, land banking and navigating the land entitlement process. Sarp lus Land atifizatio n Cities may sell or lease publicly owned land for affordable housing development, subject to compliance with Califomia's Surplus Land Act (SLA )-. The SLA was updated in August2024 to further incentivize affordable housing through streamlined disposition processes. Key SLA provisions mandate: o Formal declaration ofland as surplus by local agencies at regular public meetings. o Submission of annual surplus property inventory reports to HCD. e Maintenance by HCD ofa list ofinterested affordable housing developers known as "sponsors". If land is not sold or leased to a sponsor, the public entity mu$ record an Affordable Housing Covenant mandating at least I 5% affordable units in any future project comprising l0 or more units. Healdsburs Example: In 2 003, Healdsburg's former Redevelopment Agency acquired a property at I 5 5 Dry Creek Road for $ I .8 million that was designated for low to moderate-income housing. Following the surplus land process and securing an exemption, the city transferred the property to Burbank Housinq.:, a non-profit housing development corporation, for the nominal sum of $1. An additional $1.7 million in grants has been secured for construction, with Burbank Housing actively pursuing $9.7 million in farmworker housing grants and tax credits. Rohnert Park Example: Over a decadeago, Rohnert Park purchased a 30-acre parcel for $12.5 million for a proposed downtown mixed-use developrnem. The city, in collaboration with HCD, designated this parcel as surplus, formulated a detailed development plan incorporating 150,000 sq. ft. of retail space and 400 residential units (25% designated affordable). It subsequently selected a developer via a competitive bidding process. Itnd Banking Land banking involves the acquisition and holding of land by public or private entities for future developmeng often prioritized for affordable housing or community revitalization. This shtery may encompass undeveloped, vacant, or blighted properties. Healdsburs Example: The city is currently exploring the establishment of a Housing Trust Fund to support land banking for future affordable housing initiatives. This fund may evolve into a Housing l2 htp:/tu'wT v. hcd.ca gov/ptatrdng-ed-community -development/public-lods -affordab le-hous ing-developmeat l3 httss://burbankhou sing org/ Who Can Live h Sorma County? Land Trust, with the primary objective of securing land for long-term affordability, operating independently but in alignment with city housing goals. Rohnert Park Examole: The aforementioned acquisition of the 30-acre downtown parcel for $ 12.5 million, using city funds, also exemplifies land banking for future mixed-use development. 2. The Entitlement Process A sigrrificant portion of Sonoma County's undeveloped land requires regulatory entitlements prior to residential or other forms ofdevelopment. This process entails adherenc€ to zoning regulations, land use policies, environmental review (Califomia Environmental Quality Act), and public inpul culminating in the issuance of necessary permis and approvals. Both Healdsburg and Rohnert Park have implemented mea$rresto streamline their entitlement processes to meet sixth Cycle Housing Element objectives. These include offering early developer feedback and utilizing Development Agreements @As) for large-scale projects. DAs are negotiated contracts specifyingterms for land use, public benefits, project timelines, and vesting rights, providing developers with regulatory certainty. Healdsburg Examole: The city provides no-cost pre-application meetings, offers fast-track processing for ADUs and affordable housing projects, and has established formal written pre-application procedures. Furthermore, Heald$urg prepares Program Environmental Impact Reports (EIRs) to reduce environmental review costs andtimelines for projects covered under these programmatic assessments. The city actively applies state housing laws. Rohnert Park Examole: The city offers optional pre-4plication meetings with multidisciplinary staff to provide early project feedback. Upon formal application submission, projects undergo a structured review process, typically involving three-week cycles for staff feedback. Larger multifamily projects generally necessitate Site Plan and Architectural Review, a process taking approximately 90 days from application completeness to approval. While most projects receive administrative approval, Planning Commission review may be required under specific circumstances. 3. Financing Affordable Housing Financing constitutes a critical, albeit complex, component of new housing development. A comprehensive delineation ofthe intricate and innovative financing strategies that influence the scope and viability of affordable housingprojects is beyond the purview ofthis report. This section, therefore, offers only a foundational overview. Affordable housing finance typically necessitates a confluence of public funding, private investment, and strategic partnerships. The Low-[ncome Housins Tax Credit (LIHTC).il program serves as the principal federal instrument supporting affordable rental housing, incentivizing developers through Federal tax credits. Municipalities augrnent these efforts by offering local incentives such as land donations, impact fee waivers. and density bonuses. "lnclusionary housing" has emerged as a significant mechanism for affordable housing production in Sonoma County. As housing valuations increase, cities incentivize developers and landowners by allowing higher-value property development contingent upon the inclusion of affordable units. A typical inclusionary housing program might mandae that 10-3002 of new residential units be sold or rented to ra hnp:/A,rr,r,r,v. congres s.gov/crs-product/RS2 2 3 t9#:-:texr-TheTrolow- incomeTrohousingoz20t,,<o/o20credigo20(LlHTC)%20Itrogatno/A0is,fromo/o2050yo25o/Ahoo/o2025o/45; Who C-an Live h Sarcrna C.ounty? of l7 Iower-income households. Califomia state policy empowers municipalities to implement such local inclusionary policies. Most municipalities require deed restrictions for a minimum of 45 years for for-sale projects and 55 years for rental projects on units approved under inclusionary housing programs that receive ciry financial assistance or state housing density bonuses. These restrictions ensure long-term affordability for targeted income goups and dictate terms conceming sale, rent controls, and property aesthetics. Cities also employ other financing tools, including fee waivers, density bonuses, public-private partnerships, and state funding allocations. 3.1 City-SpecificFinancingExamples Healdsbwg: A Muhi-Tiered Approach Healdsburg has advanced its affordable housing initiatives through a combination of inclusionary housing mandates, state funding, and targeted special taxes. Inclusionary llousing: Healdsburg requies 20%o of residential units to be affordable. Through negotiated Developmort Agreements @A), the city has secured affordable housing units in significant developments such as the Mill Disrict, North Village, Montage, and Hotel Trio. A notable provision in Healdsburg's DAs requires developers to obtain "certificates ofoccupancy" for affordable housing unis prior to constructing market-rate units. Project & Unit Allocation: o Mill Disrict: 42 units (The Randalt), 30 Middle Income Units o Hotel Trio: 37 Unit Citrine Apartnents (Low-to-Moderate Income) o North Village: 53 Very Low-Low Income, 27 Middle Income . Montage: 110 Affordable Units State Funding: In August 2024, Healdsburg secured $21 .l million in state funding via the Affordable Housingand Sustainable Communities (AHSC) program for Phase I of the Saggio Hills development This phase, targeting households eaming between 16-60% of area median income (AMI), will deliver 48 affordable rental units within a larger 1 l8-unit project. The funds will support the constuction of these 48 units, a 3,00o-square-foot commrmity building and essential infrastructure and transportation improvements with broader community benefits. Notably, Saggio Hills achieved the highest score in the Rural Innovation Pro ect Area zuPA rsreflecting strong alignment with state objectives for greenhouse gas emission reduction. The development is projected to reduce 3,880 metric tons of COu equivalent over its lifespan. Funding Allocation: . $15.3 million: Housing development (48 affordable rental units, associated infrastructure). o $5.2 million: Public works and transportation (Healdsburg Shuttle expansion with ZEV multi- use trails, sidewalk enhancements, new bus shelters, CalVans vanpools). o $605,750: Community programs (transit passes, legal aid, workforce developmen! improved intemet access). I5 hnps://sgc.ca.gov/grant-programVahsc/docs/20250325-AHSC R9 _Program_Overview_PDF_ADA.pdf Who Can LiYe h Scncma County? Special Taxes: The Transient Occupancy Tax (TOT), levied on lodging establishments, was increased by Healdsburg voters via Measure Sll in 2016. This authorized a 2% increase, raisingthe maximum rate from l2o/o to l4%, generating approximately $ 1.5 million annually, with all additional revenue restricted to supporting affordable housing services and programs. Rohnen Park: Diverse Financial Instrumenls Rohnert Park has employed inclusionary housing, state funding, density bonuses, and essential housing bond financing to bolster its affordable housing efforts. Inclusionary llousing: Rohnert Park is undergoing significant residential growth. During the sixth housing cycle, the city anticipates the construction of 2,834 new housing units, of which 587 are projected for very low- and low-income households, and 128 for modaate-income households. Rohnert Park's inclusionary housing policies require that all new developmots of 50 unie or more include I 5olo affordable housingunits. Generally, the city requires market-rate develop€rs to donate land to non-profit housing developers, who then secure financing (e.g., LIHTCs) for affordable unit conskuction. These completed projects are typically owned and managed by the non-profit entities. Development agreements may stipulate various arrangements for land dedication and financing sometimes requiring certificates of occrpancy for affordable units before market-rate construction can proceed. For instance, in the Willow Glen subdivision, the developer partnered with Burbank Housing for the construction of 38 low-income rental units, sharing construction and financing responsibilities, and also built affordable duet units sold via the Sonoma [,and Trust. State Funding: In August 2024, Rohnert Park secured $670,000 through the state's Prohousing Incentive Program (PIP). These funds are designated for predevelopment activities for affordable housing units in downtown Rohnert Park. Density Bonus: Density bonus programs, mandated by Califomia law, incentivize developers to include affordable units by permitting increased project density beyond standard zoning regulations. While Rohnert Park currently has a density bonus program, the city is conducting a feasibility study for a Supplemental Density Bonus Program. This study will examine provisions such as deeper affordability levels, a higher proportion of affordable units, units for indMduals exiting homelessness, and universal design standards. The study is slated for completion by luly 2026, with recommendations to be presented to the Planning Commission and City Council by year-end 2026, potentially leading to municipal code adoption within six months thereafter. Essential Housing Bond Financing: Rohnert Park is a member of the Califomia Statewide Communities Development Authority (CSCDA), a Joint Powers Authority (JPA). CSCDA administers the Workforce Housing Program, issuing tax-exempt govemmental purpose bonds to acquire existing market-rate apartrnent buildings and convert them to rent-restricted housing for lower- and moderate- income households. The city has authorizedthe JPA to issue approximately $191,264,100 in bonds. This entails foregoing an estimated $337,346 in annual property tax revenue and committing staff resources (200 hours for program establishment and 200 hours per acquisition project). This initiative is projected to deliver at least222 affordable housing unis (99 veryJow-income, 57 low-income, 66 moderate- income). The city is also committed to a 2027 evaluation of housing production, with provisions for designating additional sites if RHNA obligations are not met. l6 https://ba.[oQedia-org/Healdsburg_C.a.lifomia.-Horel-Tax-AdjusElen! Measure S-(November_2016) Who Can Live h Smoma Co.rnty? of l7 4. Leadership and Community Involvement Leadership Dynamics: For the purposes of this analysis, leadership encompasses the city councils and dedicated housing staff. A salient finding is the recognition by leadership in both municipalities that sustainable community development is untenable if it displaces the working-class populations- including farmworkers, caregivers, teachers, and service workers-who form the socio-economic bedrock of the region. City councils in both Healdsburg and Rohnert Park have demonstrated a consistent alignment on the concept of affordable housing as a core. nonpartisan community priority. thus creating a political foundation conducive to pursuing ambitious initiatives. This commitment is manifested through strategic planning, funding allocations, and policy reforms, supported by knowledgeable and empowered staff. The collaboration between housing staffand city councils is instrumental to the success ofthe affordable housing effort. Their efforts are focused on strategic planning, developing regulatory frameworks, r€source allocation, and community engagement. Healdsb urg : Slr uctured Collab o ralio n Recently, the Healdsburg City Council approved the establishment ofa forrnal Housing Departrnent and authorized a new position dedicated to implementing ie housing saates/. Key collaborative activities include: Strategic Planning: Housing staffand the City Council collaboratively develop affordable housing targets, considering market conditions, infrastructure capacity, community service needs, and resource availability. Policv Develooment and lmplementation: The City Council enacts ordinances such as inclusionary zoning policies, while housing staff ensure effective implementation and monitor ongoing compliance. Resource Allocation: The City Council actively engages in generating fmancial resources and supports viable affordable housing in itiatives. Public-Private PartnershiDs: Housing staffengage with developers and non-profit organizations to leverage resources and expertise, with City Council support in negotiating agreements aligned with affordable housing objectives. Rohnert Park: Integruted Polic!-Making Rohnert Park's collaborative approach involves: o Collaborative Policy-Makins: The City Council and housing staffjointly create and refine policies, such as density bonuses and streamlined approval processes, to facilitate affordable housing development, and continually review policies to reflect evolving needs. Proiect Evaluation and Approval: Housing staffevaluate housing proposals for viability and goal alignment, referring meritorious projects to the City Council for review, amendmenq or approval ensuring conformity with community priorities. lncentive hosrams: Housing staffdesign, implement, and manage incentive programs (e.g., reduced fees, infrastructure support), which, upon Council approval, encourage development. Regular Reporting and Assessment: Housing staffmonitor projects and provide ongoing updates to the City Council on successes and failures, ensuring policies remain current. Who Can Live ir Sonona County? PagelloflT Public Engagement Initiatives: Both entities prioritize public involvement through transparent communication and public hearings, fostering a collaborative environment. This close parurership between municipal staff and elected ofhcials is essential for crafting and implementing effective, integrated, and well-supported affordable housing strategies. 5. Community Involvement and the "Communit5r Will" While legally mandated communiry review is a component of every proposed housing project, the successful realization of affordable housing objectives usually hinges on a proactive "community will." This implies a recognized and enthtsiastically embraced need for housing by community stakeholders, driven by motivations ranging from expanding the tax base to providing housing for essential service workers. The Spanish term "chispa," or "spark," aptly describes a driving force observed in both Healdsburg and Rohnert Park, crucial for fostering a proactivg "yes in my backyard" (YIMBY) stance. Healdsbttrg: Catalyzing Engagement Healdsburg's increasing affluence has exacerbated the problem of housing affordability for long-term residents, families, and service industy workers, a situation compounded by state-mandated housing goals. The "spark" in Healdsburg was significantly fanned by the Housing Element Working Group (HEWG), a diverse nine-person body including representatives from the business community, individuals with lived experience of homelessnes, non-profits, renters, the planning commission, faith- based organizations, and the community at large. The [{EWG, in conjunction with housing staff, developed the roadmap for the 6th cycle Housing Element. Through their analysis and community surveys, the Growth Management Ordinance (GMO) was identified as the primary govemmental constaint on development, while high construction costs (land, materials, labor) were noted as the principal non-govemmental constraints. The following from Healdsburg's "Housing Element" and from the Grand Jury's interviews illustrate the city's outreach, philosophy, and culture: o A community outreach interview captured the sentiment: "Aqui en Healdsburg la renta es muy caro... Tres o m6s personas tienen que vivirjuntos para cubrir la renta." @nglish: "Here in Healdsburg, the rent is very expensive... Three or more people need to live together to cover the rent. ") . A comment by an HEWG member highlighted the city's partnership with Reach for Home, a non-profrt addressing homelessness, emphasizing a personalized approach: "In Healdsburg, they know those experiencing homelessness by name, not numbers..." o Another IIEWG committee member underscored the necessity of aust between the community, local legislature, and developers, alongside a clear, transparent plan for housing development. This holistic, community-centric approach has yielded significant outcomes: o Increasing deed-restricted affordable housing to over l0oZ oftotal housing stock in eight years. o Passage of Measure S, allocating 2oZ ofTOT revenue (approx. $1.5M annually) to affordable housing. . Passage of Measures P and H, allowing middle-income deed-restricted housing outside GMO constraints, allowing middle-income deed-restricted housing outside GMO constraints. o Negotiating workforce housing inclusion in hotel developments. Who C.an Live ir Sqrma County? Page l2 of l7 . Preserving 39 units of older, lower rent housing (often referred to as naturally occurring) affordable housing and establishing I 0 units for Permanent Supportive Housing (PSH), a term used to combine long-term affordable housing with supportiye services to help individuals, particularly those experiencing chronic homelessness, achieve housing stability. o Planning 168 affordable units on two city-owned sites. r Developing a Navigation Center providing homes for I I formerly homeless families/individuals. r Securing over $7 million in Proiect Homeker.Ll funding for an interim housing program. o Establishing a formal Housing Departsnent and new staffpositions. Healdsburg's coordinared efforts have exceeded fifth Cycle Housing Element goals and established a foundation for the sixth Cycle, driven by this "spark" of community will. Rohnert Park: hoacttve Odreach and Planning Rohnert Park has emerged as a rcgional leader, surpassing its fifth Cycle Housing Element goal (1,794 units) and positioning itself to exceed the sixth cycle requirement (1,580 units, 2023-2031). This achievement reflects a strong commurity commitnent. Rohnert Park's demographic-younger and less affluent than the county average-faces significant rental cost burdens. In response, City leadership, including a supportive mayor and city council, empowered housing saff to conduct broad public engagement and community-based planning. Key outreach elements included: o A Housin Element.!! webpage attracting over 1,200 email subscribers. o A bilingual housing needs survey (Dec 2021) with 1,344 responses. o Five public workshops engagingover30 stakeholders, includingthe Federated Indians ofGraton Rancheria- . Citywide newsletter distribution and targeted social media campaigns. o Door-to-door outeach in Spanish-speaking communities, distributing over 1,000 door hangers with multilingual QR-coded survey access. . Repeated outreach in 2023 for feedback on the draft Housing Element. o A community-wide survey offering incentives generated over 1 ,500 comments, indicating strong public interest in addressing affordability, homelessness, and infrastructure related to new housing. This consisten! multilingual, and inclusive approach fostered an informed and supportive resident base, reflecting a proactive "community will" instrumental in advancing Rohnert Park's affordable housing objectives. CONCLUSION The experiences of Healdsburg and Rohnert Park demonstrate that addressing affordable housing challenges requies a synergistic combination of adaptive growth management, strategic land acquisition, steamlined entitlement processes, diverse financing mechanisms, and robust leadership, I 7 \\I*wt /.hcd.cagov\gratrts-ed-fu trditrglhomekey rE htF:/ ^,ww.rpcity.org/city_hslydepduaenrs/development_servic.es/housing/housingelement_2123-2O3lx Who Can Live h Sonma County? Page l3 of l7 along with deep community involvenrent. While specific instrumants and approaches may vary based on local contexts, the underlfng commitrnent to proactive planning and collaborative engagement appears to be a crucial determinant of success in expanding affordable housing opportunities. The Grand Jury concluded that the key ingredient of this collaborative engagement is community will, which exists within Healdsburg and Rohnert Park and should be fostered throughout the county. The Grand Jury believes that cities, unincorporatod municipalities and the County can leam from each other by meeting periodically, sharing experiences and identifying best practices. Rohnert Park and Healdsburg housing staff, community members and city leadership generously shared their successes and challenges with the Civil Cnand Jury, and we strongly encourage the Sonoma County Board of Supervisors, housing staff, city mayors, city council members, grassroots representatives, and housing advocates throughout Sonoma County to meet with and leam from each other. FIl\DINGS The Sonoma County Civil Grand Jury determined that: Fl. Adaptive growth management is crucial but faces limits: Both Healdsburg (Measures P & H) and Rohnert Park (exemptions for affordable housing within its GMO) have actively adapted their growth management ordinances to facilitate affordable housing. However, community concems regarding local character and a perceived lack of safeguards can limit further expansions, as evidenced by the failure of Healdsburg's Measure O.

Strategic use of public land is a key lever: Both municipalities used land banking (e.g., Healdsburg's 155 Dry Creek Road, Rohnert Park's 30-acre downtown parcel) and then went through the surplus property process to make sites available for affordable housing development.

A diverse portfolio of financing mechanisms is employed: Cities do not rely on a single funding source. Healdsburg utilizes inclusionary housing, significant state grants (e.9., $21.1 million AHSC for Saggio Hills), and dedicated local revenue from special taxes (Measure S TOQ. Rohnert Park also uses inclusionary housin& state pro-housing incentives, density bonuses, and innovative bond financing through the CSCDA Workforce Housing hogram.

Streamlined entitlement processes expedite development: Both Healdsburg (no-cost pre- application meetings, fast-tracking) and Rohnert Park (optional pre-application meetings, structured review cycles) have implemented measures to streamline their entitlement processes, offering early feedback and utilizing Development Agreements (DAs) to provide certainty for developers of affordable housing.

Aligned political leadership and empowered staff are foundational: The success in both cities is partly attibuted to city councils that view affordable housing as a nonpartisan, moral imperative, coupled with knowledgeable and empowered housing staff who can effectively implement strategic plans, policy reforms, and resource allocation. Healdsburg even established a dedicated Housing Departsnent.

Proactive and inclusive community engagement cultivates "community will": Both cities demonstrated that extensive, tailored community involvement-such as Healdsburg's diverse HousingElement Working Group (HEWG) and Rohnert Park's broad, multilingual outreach and surveys-is essential for building public understanding and the "community will" (or "chispa") needed to support and overcome opposition to affordable housing projects. Who Can Live h Somra County? of l7