This situation is not new but it is growing worse because it is not addressing the scope of need. Incremental progress has been made in developing affordable and workforce housing, but it is not enough to ensure our future as a vibrant community which offers a sustained economy and quality of life for our residents. Limited, competitive funding for affordable and workforce development and recent actions by the state government that have focused on incentivizing market-rate developers to help solve the program has had limited impact in the Sonoma Valley.
Currently, the development of affordable housing in the Sonoma Valley is driven in a piecemeal manner by a variety of non-profit or market-rate developers working independently on a project-based basis with no coordinated effort between municipalities and developers. Relying upon market-rate developers has not substantively impacted the number of affordable, workforce housing units needed in Sonoma Valley because market-rate developers require the projects to ‘pencil-out’ to make a profit.
Non-profit affordable housing developers are a key resource in expanding this housing stock bringing extensive experience in pulling together stack funding. However, most non-profit affordable housing developers have a business model that requires a minimum of 40-50 units/acre/project phase to optimize the funding, and many land parcels don’t have the size or zoning to accommodate large infill projects. Additionally, the majority of government funding and affordable housing development is for rental properties; only a few non-profit organizations and government funding are focused on home ownership. Lastly, an otherwise excellent Sonoma County program, the Renewal Enterprise District (RED) to date has only funded projects in Santa Rosa. The RED was designed to accelerate housing production in transit-rich areas, and Sonoma Valley has not qualified due to its limited transit. However, a small segment along Highway 12 in The Springs does fall within RED’s eligibility map. This presents a clear opportunity: by advocating to unlock RED funding for targeted projects along Highway 12, we can expand housing opportunities in one of the county’s most overcrowded areas and demonstrate RED’s commitment to equitable, countywide housing solutions.