Santa Rosa Housing Strategy
City Council Study Session
June 2, 2026
Planning & Economic Development
Housing & Community Services
Gabe Osburn, Director
Megan Basinger, Director
2 Focus Areas
• Compliance with state law
• Community needs
• Reduce cost of housing – rent and purchase
• Increase availability
• Community growth/economic development
• Downtown/transit-oriented housing density
• Utilizing City assets
3 Roadmap
1. Study Session - General Housing Strategy
• Today
2. Study Session - Downtown Economic Development Strategy • June 16, 2026
3. Study Session - Impact fee initiatives
• Winter 2026
4 Santa Rosa Housing Strategy
VISION FRAMEWORK DELIVERY OUTCOMES
General Plan
Specific Plans
Housing Element Implementation
Tools, Policies &
Resources
Production,
Preservation &
Services
5 VISION: Housing Location and Type
General Plan 2050:
• Serves as long-term blueprint for growth and preservation • Guides where and how the City grows
Specific Plans:
• Translate General Plan policies into area-specific guidance for focused growth • Provide detailed land use and circulation planning
• Downtown Station Area (adopted)
• North Station Area (adopted; update in progress)
• Roseland Area/Sebastopol Road (adopted)
• South Santa Rosa Specific Plan (under development)
FRAMEWORK: Housing for All Incomes and Needs
Housing Element (adopted February 2023):
• Establishes the City’s policy framework for housing opportunity • Incorporates Regional Housing Needs Allocation (RHNA) • RHNA sets number of housing units needed per income level over 8-year period
• Demonstrates adequate land capacity and zoning to accommodate RHNA • Includes programs to promote housing production, meet the City’s RHNA obligation, preserve affordable housing, and address diverse housing needs 6 FRAMEWORK: Housing for All Incomes and Needs
Downtown City Asset Strategy
City has pursued a proactive strategy to evaluate underutilized, city-owned downtown properties and reposition them for redevelopment that better aligns with community priorities and long-term economic goals.
The strategy focuses on:
• Activating underutilized public land
• Supporting housing and mixed-use development opportunities • Increasing downtown vibrancy and walkability
• Strengthening economic activity to support local businesses • Creating a more active and resilient downtown core
7 FRAMEWORK: Housing for All Incomes and Needs
Downtown City Asset Strategy- Exploring the Future Potential • The City Hall site represents approximately 7 acres in the heart of downtown and is one of the most strategically located publicly owned properties in the urban core. • Prime real estate is occupied by aging civic buildings and surface parking areas that significantly underutilize the land’s economic and community potential.
Potential Opportunities
• Housing and mixed-use development
• Hotel, entertainment, and hospitality uses
• Retail, restaurants, parks, and public gathering spaces Staff will return to Council on June 16 to further discuss the long-term vision and transformational potential of the City Hall site.
8 9
Development Fee Incentives:
• Downtown Housing - Reduction of Capital Facilities and Park Impact Fees • Based on height
• Additional reduction with inclusionary affordable housing • Applies to projects breaking ground by August 2026
• Deed Restricted Affordable Units – Capital Facilities Fee Reduction • Zero-dollar fee
• Sunsets January of 2028
• Permitting fees – 50% reduction on downtown & affordable housing projects DELIVERY: Investments in Housing
10 Policy Development:
Increase available housing options and streamline process • Reduced permitting requirements adopted (Missing Middle Housing, Tiny Homes, By-Right approvals for Small Residential Developments) • Respond to State housing law requirements
DELIVERY: Investments in Housing
State Housing Laws – Focus Areas:
2016-2026 – 100+ laws to curb housing crisis
• Requires modifications to local regulations to comply • Transition from local planning to State mandated production • CEQA Streamlining and ministerial approvals (SB35 and SB9) • Mandated review shot clocks
• Density and zoning reform
DELIVERY: Investments in Housing
11 State Housing Laws – Ministerial vs. Discretionary:
Key Process Characteristics Comparison
Characteristic Ministerial Discretionary
CEQA Review Required No Yes
Public Hearings Not Required Usually Required
Staff Discretion Allowed Not Allowed Allowed
Environmental Studies Not Required Often Required
Community Input Not Required Often Required
Risk of Denial Low (if code compliant) Higher
Cost of Processing Lower Higher
Predictability High Lower
Appeals Process Limited Multiple Levels
DELIVERY: Investments in Housing
12 Service Delivery Evolution:
• Planning division provides advanced planning (policy) and development (application review) services
• Prior to 2016, long range planning consisted 2 full time planners with additional staffing resources assigned based workload
• Based on current pace of State legislation and associated mandated policy work, 4 full time planners required in long range planning • Additional staff have not been added to address fluctuations • Staff shifts from development review team to meet policy demands DELIVERY: Investments in Housing
13 DELIVERY: Investments in Housing
Affordable Housing Funding:
• Compilation of Federal, state and local funding
• Averaging $3.5M per year
• Awards allow projects to pursue tax credits, bonds and larger state awards Housing Programs:
• Affordability Agreements
o Density Bonus/Housing Allocation
o Regulatory Agreements tied to loans
• Housing Choice Vouchers
o Project Based Vouchers – site specific
14 DELIVERY: Investments in Housing
Implementing the Downtown Asset Strategy
Progress to Date:
• Surplused three underutilized, city-owned downtown properties over the past several years • Positioned key downtown sites for redevelopment and private investment • Advanced redevelopment readiness and developer engagement efforts Current Redevelopment Activity:
• 300- unit mixed-use development under Exclusive Negotiation Agreement • Redevelopment site out for RFP for a development partner • Site completed the Surplus Lands Act and is ready for RFP later this year Additional downtown assets continue to be evaluated for future redevelopment opportunities 15 OUTCOMES: New Housing by Unit Type
263
350
431
447
625
1404
1157
1708
297
847
0 200
400
600
800
1000
1200
1400
1600
1800
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Multi-Family Units Permitted Single-Family Units Permitted Accessory Dwelling Units Permitted Total Units 16 OUTCOMES: Housing Production by Income Category
263
350
431 447
625
1404
1157
1708
297
847
0 200
400
600
800
1000
1200
1400
1600
1800
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Very-Low Income Low Income Moderate Income Above Moderate Total Units 17 18
Project Name Total Units Affordable Units Affordability 2016 Benton Veterans Village 7 7 30 – 60%
2018 Clover Townhomes 5 1 50%
Crossings on Aston 27 26 30 – 60%
Crossroads 78 78 30 –60%
2020 30 Degrees North 120 18 50 – 60%
2021 Dutton Flats 41 40 30 – 50%
2022 Orchard Commons 46 45 30 – 60%
Linda Tunis Senior Apts 26 25 30 – 50%
Sage Commons 54 53 30%
OUTCOMES: Housing Production by Year
19 Project Name Total Units Affordable
Units
Affordability
2023 Stony Point Flats 50 49 30 – 60%
St. Vincent de Paul Commons 50 49 30 –60%
Laurel at Perennial Park I 94 93 30 – 60%
Laurel at Perennial Park II 38 37 30 – 60%
Caritas Homes Phase I 64 63 20 – 50%
Stony Oaks Apartments 142 15 60%
2024 South Park Commons 62 61 30 – 50%
Mahonia Glen 99 98 30 – 60%
OUTCOMES: Housing Production by Year
Affordable Housing Preservation & Housing Services
• Rehabilitation loans for mobilehome residents
• Downpayment Assistance loans to eligible homebuyers
• Fair Housing contractor serving tenants and landlords • Administration of Mobilehome Rent Control program
OUTCOMES
20 City’s efforts related to State housing legislation have focused on meeting mandated requirements and their implementation
• Optional policy tools for Council consideration:
• Senate Bill 10
• Assembly Bill 1033
• Both options require prioritization of resources
21 NEXT STEPS: Potential Policy Options
SB 10: Increases Housing Capacity in Target Areas
What it does
• Allows up to 10 units per parcel
• Applies in transit areas and urban infill sites
• Exempts rezoning from environmental review
Where it applies
• Within 1/2-mile of SMART stations or urban infill sites • Infill sites - previously developed or ≥ 75% surrounded by urban uses • Excludes very high fire severity zones and voter approved open space or recreational lands SB 10 is a zoning tool to increase allowed density in targeted areas 22 NEXT STEPS: Potential Policy Options
23 SB 10: Benefits and Considerations
Benefits
• Increases allowed housing capacity
• Expands potential housing types
• Could improve predictability if
ministerial
Considerations
• Significant staff time required
• Costs to evaluate and implement
• Limited utilization statewide
• Potential community and
environmental impacts if broadly
applied
NEXT STEPS: Potential Policy Options
24 AB 1033: Expands Homeownership Opportunities
What it does
• Allows separate sales of ADUs
• Creates a condo-style ownership model
Where it applies
• Properties with a primary unit and legal ADU
How it works
• Requires parcel map
• Homeowners Association and CC&Rs required
AB 1033 focuses on ownership, not new unit production
NEXT STEPS: Potential Policy Options
25 AB 1033: Benefits and Considerations
Benefits
• Lower-cost entry to homeownership
• Wealth-building opportunity
• Uses existing ADUs (no new
construction required)
Considerations
• Administrative complexity (HOAs,
mapping)
• Staff capacity
NEXT STEPS: Potential Policy Options
26 Staff is seeking direction on:
1. Whether to return with proposal for adoption of AB 1033
2. Whether to continue exploration of SB 10
• Bring back specific study session with options for adoption
3. Any additional input regarding housing strategies
NEXT STEPS: Potential Policy Options
Questions and Feedback