State Windfall Brings $21 Million to Healdsburg

Stephen Sotomayor, the housing director for the City of Healdsburg, announced last week that Freebird Development, in partnership with Jamboree Housing, has been awarded $21.1 million in funding from the State of California’s Affordable Housing and Sustainable Communities (AHSC) program.

This funding, approved by the California Strategic Growth Council, will help finance Phase I of the City-sponsored Saggio Hills Affordable Housing project, 48 of the planned 118-unit affordable housing development in the Parkland Farms residential part of Healdsburg.

A significant portion of the funding, approximately one-third, goes to transportation and public works project that aid in the environmental goals of the city and region.

City Manager Jeff Kay called the funding “a huge shot in the arm. You all know the puzzle of putting together the funding for affordable housing projects is incredibly complex and takes many years,” he told the City Council at the Aug. 19 meeting.

“This doesn’t get us all the way there, but it gets us within shooting distance of the first phase of construction,” he said.

The awarded funds will contribute to the construction of 48 affordable rental units and a  3,000-square-foot community building, along with essential infrastructure and transportation enhancements that will benefit the entire community.

Sotomayor broke down the $21.1 million as follows:

• $15.3 million for housing development, supporting the construction of 48 affordable units and associated infrastructure.
• $5.2 million for public works and transportation improvements, including:
  • Expansion of the Healdsburg Shuttle bus route and operations with a zero-emission vehicle (ZEV)
  • Development of multi-use trails at Saggio Hills and enhancements to sidewalks along University Avenue
  • Installation of new bus shelters
  • 4 vans operated by CalVans as vanpools to connect Healdsburg workers to jobs
• $605,750 for community programs, including:
  • Transit passes for residents, promoting the use of public transportation
  • Legal aid, workforce development and internet access for residents

With the AHSC funding secured, the City and its partners are actively applying for additional funding to fully realize the Saggio Hills Affordable Housing project. Construction of Phase I is anticipated to begin in the spring of 2025.

“This project is a key part of Healdsburg’s overall housing strategy for sustainable growth, aimed at providing affordable housing options for our local workers and neighbors, and we’re excited to see it move forward,” said Mayor David Hagele.

The announcement came on the heels of another grant from the state under its pro-housing incentive program. Healdsburg applied for and received a $560,000 grant from the state “in recognition of the great work the city has done over the years in the area of affordable housing,” Kay said. 

The funds will be used for repairs and upgrades to Victory Studios and Apartments, a permanent supportive housing facility at 308 East St. for individuals who are or have previously experienced homelessness. “It’s a great resource today, but it needs a little bit of love on the physical side,” said Kay.