August 15, 2025
Healdsburg City Council
Council Chamber, City Hall
401 Grove St, Healdsburg
RE: Item 8.C: Inclusionary Housing Ordinance In-Lieu Fee Dear Mayor Mitchell, Vice Mayor Herrod, Councilmembers, and Staff Generation Housing appreciates the City looking at options to make small-scale housing more feasible by examining changes to your Inclusionary Housing Ordinance in-lieu fee. This is the kind of step that can remove barriers and encourage the type of infill and “missing middle” housing that our region needs.
While this fee is an important part of the picture, it’s only a piece of a larger picture. We encourage the City to take a broader view and conduct a comprehensive review of its development impact fees. The in-lieu fee is just one of several costs that can determine whether housing projects move forward. Addressing these costs holistically could make a significant difference in the feasibility of both small and large developments.
Other jurisdictions in Sonoma County are already taking similar steps. The County of Sonoma, Santa Rosa, Petaluma, and Cotati have revamped or are actively reviewing their fee structures offering fee reductions that incentivize affordable housing production.
We see an opportunity for the City Council to direct staff to conduct a review of all development impact fees, and understand whether a fee reduction pilot program, modeled after either Petaluma, Santa Rosa or County of Sonoma’s programs could incentivize affordable and climate-friendly infill housing in Healdsburg neighborhoods.
We also want to acknowledge the positive feedback you’re receiving from the Sonoma County Civil Grand Jury for your work on housing and governance. This recognition underscores Healdsburg’s leadership and expanding this in-lieu fee discussion into a full fee review is a chance to build on that momentum and set the standard for pro-housing policy in Sonoma County. Generation Housing is ready to partner with the City in this work so that together we can provide feedback on a pilot program that supports both affordability and production.
In partnership,
Stephanie Picard Bowen
Deputy Director, Generation Housing