High-Density Multi-Family
Residential Incentive Program
City Council Report Item
August 4, 2026
Planning & Economic Development Jessica Jones, Deputy Director - Planning 2 Incentive Program
• Adopted in 2018 to incentivize downtown housing development including increased density and height by reducing/deferring City development impact fees for a limited 5-year term
• Supports City Council goals to promote Citywide economic development and encourage housing for all
• Council to consider extending the Program by an additional 5 years to allow time to:
Develop an updated impact fee study
Engage with the community and developers
Update the Incentive Program
3 Background
• 2016
Development and tax revenue analysis presented to Council by Urban 3 provided economic data supporting higher density development in downtown Adopted the Santa Rosa Housing Action Plan
• 2018 - Adopted Downtown Residential Incentive Program, through 2023 • 2019 - Adopted Amendments to Incentive Program
• 2020 - Adopted the Downtown Station Area Specific Plan • 2022 - Adopted 3-year extension to Incentive Program, through 2026 4 Purpose of Incentive Program
Encourage housing development of all affordability levels and increased densities in downtown through reduction/deferral of development impact fees:
Reduced Capital Facilities fees (CFF)
Reduced Park fees
Deferral of payment of Water/Wastewater fees (no fee reduction) 5 Incentive Program Example
Park Impact Fee =
$11,519 / unit
Capital Facilities
Fee = $6,821 / unit
6 Water/Wastewater Impact Fee Incentive
• Water and Wastewater Impact Fee Deferral Program is eligible for housing projects in the Downtown that are a minimum 3 stories, with at least 2 floors dedicated to residential:
Option 1: Deferral of payment of residential water and wastewater demand fees until after 75% occupancy of all residential units within the project or 6 months from the date of final inspection approval, whichever is sooner.
Option 2: 5-year payment plan for residential water and wastewater demand fees in 5 equal annual payments subject to interest. 7 Implementation
Status Project Description Address
Complete The Cannery at Railroad
Square
129 multi-family units (100%
affordable) (6 stories)
3 West 3rd Street
Complete Pullman Lofts – Phase 1 74 multi-family units (3 stories)
701 Wilson Street
Complete Pullman Lofts – Phase 2 40 multi-family units (5 stories)
85 8th Street
Complete 888 4th Street 90 multi-family units (7
stories)
888 4th Street
Complete The Felix 168 multi-family units (8
stories)
420 Mendocino Avenue
Complete 891 3rd Street Multi-
Family Housing
18 multi-family units (3-
stories)
891 3rd Street
Pending Avenue 320 Apartments 37 multi-family units (3
stories)
320 College / 325 Lincoln
Pending Pullman Lofts III 69 multi-family units (6
stories)
700 Wilson Street
Pending Humboldt Street
Apartments
299 multi-family units (7
stories)
425 Humboldt Street
8 Next Steps
Extend current expiration date from August 31, 2026 to August 31, 2031 Engage with community and developers
Develop updated impact fee study
Amend Incentive Program
9 Recommendation
The Planning and Economic Development Department recommends that the Council, by three separate resolutions:
1. Rescind Resolution No. RES-2022-246 and set forth a revised schedule of capital facilities fees for the high density multi-family residential incentive program;
2. Rescind Resolution No. RES-2022-247 and set forth a revised schedule of park development impact fees for the high density multi-family incentive program; and
3. Rescind Resolution No. RES-2022-248 and establish payment options for water and wastewater demand fees for the high density multi-family residential incentive program to further support housing development and increased density in downtown Santa Rosa.