HomeMy WebLinkAboutPlanning Commission Resolution 2023-03 03/14/2023
Planning Commission Resolution No. 2023-03 Page 1
RESOLUTION 2023-03
CITY OF PETALUMA PLANNING COMMISSION
RECOMMENDING THAT THE CITY COUNCIL ADOPT A GENERAL PLAN AMENDMENT TO
REPEAL THE 2015-2023 HOUSING ELEMENT, ADOPT THE CITY OF PETALUMA HOUSING
ELEMENT OF THE GENERAL PLAN FOR THE PERIOD OF 2023-2031 WITH FINDINGS THAT IT
SUBSTANTIALLY COMPLIES WITH STATE HOUSING ELEMENT LAW, AND INCLUDING
APPROVAL OF AN ADDENDUM TO THE PREVIOUSLY APPROVED NEGATIVE DECLARATION
FOR THE 2015-2023 HOUSING ELEMENT
WHEREAS, the California Legislature has found that “California has a housing supply and affordability
crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis
are hurting millions of Californians, robbing future generations of the chance to call California home,
stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and
undermining the state’s environmental and climate objectives” (Government Code Section 65589.5.);
and
WHEREAS, the Legislature has further found that “Among the consequences of those actions are
discrimination against low-income and minority households, lack of housing to support employment
growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air
quality deterioration” (Government Code Section 65589.5.); and
WHEREAS, the Legislature recently adopted the Housing Crisis Act of 2019 (SB 330) which states that
“In 2018, California ranked 49th out of the 50 states in housing units per capita… California needs an
estimated 180,000 additional homes annually to keep up with population growth, and the Governor has
called for 3.5 million new homes to be built over 7 years”; and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the
City of Petaluma’s City Council adopt a Housing Element for the eight-year period 2023-2031 to
accommodate the City of Petaluma’s regional housing need allocation (RHNA) of 1,910 housing units,
comprised of 499 very-low income units, 288 low-income units, 313 moderate-income units, and 810
above moderate-income units; and
WHEREAS, to comply with State Housing Element Law, the City of Petaluma has prepared the Housing
Element 2023-2031 (the Housing Element) in compliance with State Housing Element Law and has
identified sites that demonstrate the City’s capacity to accommodate housing units necessary to comply
with the City of Petaluma’s RHNA; and
WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the Housing Element
constitutes a General Plan Amendment; and
WHEREAS, as provided in Government Code Sections 65352 – 65352.5, the City of Petaluma mailed a
public notice to all California Native American tribes provided by the Native American Heritage
Commission and to other entities listed; and
WHEREAS, a request for consultation was received from the Federated Indians of Graton Rancheria in
response to the mailed public notice; and
WHEREAS, the City of Petaluma consulted with the Federated Indians of Graton Rancheria; and
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WHEREAS, the Federated Indians of Graton Rancheria expressed no objection to the 2023-3031
Housing Element as drafted following the completion of the requested consultation; and
WHEREAS, the preparation, adoption, and implementation of the Housing Element requires a diligent
effort to include all economic segments of the community; and
WHEREAS, the City of Petaluma conducted extensive community outreach as part of their General
Plan Update process, which was initiated in 2020 with a community-wide survey and community focus
groups; and
WHEREAS, the City conducted engagement related specifically to the Housing Element starting in
March 2022 and including multiple public meetings with the General Plan Advisory Committee, Planning
Commission, and City Council; and
WHEREAS, additional engagement specific to the Housing Element took place as part of a community
workshop on April 7, 2022; and
WHEREAS, in accordance with Government Code Section 65585(b), on August 29, 2022, the City of
Petaluma posted the draft Housing Element and requested public comment for a 30-day review period,
and on October 30, 2022, after responding to public comments, the City of Petaluma submitted the draft
Housing Element to the State Department of Housing and Community Development (HCD) for its review;
and
WHEREAS, the City held a Community Open House on September 20, 2022, to solicit community input
on the Draft Housing Element; and
WHEREAS, the City developed a public online survey that was available to solicit public comments
during the 30-day public review period for the Draft Housing Element; and
WHEREAS, all comments generated during the public review period for the Draft Housing Element
were compiled in the Housing Element Comment Matrix and submitted to HCD; and
WHEREAS, in January 2023, HCD contacted the City of Petaluma to discuss the adequacy of the draft
Housing Element, and based upon this, the City revised the draft Housing Element to include the
additional information and data that was requested; and
WHEREAS, the City posted the revised draft on January 20, 2023, seven days prior to the conclusion of
HCD’s 90-day review period; and
WHEREAS, on January 27, 2023, the City of Petaluma received a letter from HCD providing its findings
and comments on the draft Housing Element; and
WHEREAS, at their regular meeting on February 14, 2023, the Planning Commission received a
presentation and provided feedback on policy items to respond to HCD comments; and
WHEREAS, at their regular meeting on February 16, 2023, the General Plan Advisory Committee
received a presentation and provided feedback on policy items to respond to HCD comments; and
WHEREAS, at their regular meeting on February 27, 2023, the City Council received a presentation,
considered feedback from the previous Planning Commission and General Plan Advisory Committee
meetings, and provided direction on policy items to incorporate into the final Housing Element; and
WHEREAS, on March 3, 2023, the City published public notification as a 1/8-page ad in the Argus
Courier of the Planning Commission’s consideration and recommendation of a General Plan Amendment
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to repeal the 2015-2023 Housing Element and adopt the Housing Element for the 2023-2031 planning
period; and
WHEREAS, on March 6, 2023, the City of Petaluma published the final draft of the Housing Element and
requested public comment on the final draft; and
WHEREAS, the City of Petaluma finds that the Housing Element is in substantial compliance with State
Housing Element Law and will comply with State Housing Element Law when it is adopted; and
WHEREAS, the final draft Housing Element does not involve site-specific projects or changes in the
currently adopted General Plan land uses; and
WHEREAS, the adoption of the Housing Element is consistent with the City of Petaluma, 2015-2023
Housing Element Initial Study – Negative Declaration (IS-ND) (5th Cycle Housing Element IS-ND). State
Clearinghouse Number 2014102018 adopted on December 1, 2014.; and
WHEREAS, no substantial environmental changes beyond what was studied in the 5th Cycle Housing
Element IS-ND would result from the implementation of the 2023-2031 Housing Element, and there are no
substantial changes in the circumstances under which the Housing Element will be implemented that will
require major revisions to the previous IS-ND due to the involvement of significant new environmental
effects or a substantial increase in the severity of previously identified significant effects. Also, there is no
“new information of substantial importance” as that term is used in CEQA Guidelines Section 15162(a)(3).;
and
WHEREAS, the previously adopted IS-ND is adequate and the City of Petaluma prepared an
Addendum to the 5th Cycle Housing Element IS-ND for the 2023-2031 Housing Element (6th Cycle); and
WHEREAS, the Addendum to the 5th Cycle Housing Element IS-ND contains all the requirements of
CEQA Guidelines Section 15164, inclusive of the references, appendices, and all attachments thereto;
and
WHEREAS, on March 14, 2023, the Planning Commission conducted a duly and properly noticed public
hearing to take public testimony and consider this Resolution regarding the proposed final draft Housing
Element, reviewed the final draft Housing Element and all pertinent maps, documents, and exhibits,
including HCD’s findings, the City of Petaluma’s response to HCD’s findings, the staff report and all
attachments, and oral and written public comments.
NOW, THEREFORE, BE IT RESOLVED, that the Planning Commission of the City of Petaluma hereby finds that,
based on substantial evidence in the record, that:
1. The foregoing recitals are true and correct and are incorporated by reference into this action.
2. The California Environmental Quality Act (CEQA) Guidelines Sections 15162 and 15164 establishes
criteria to assess which level of environmental review is appropriate when a project analyzed in a
previously approved CEQA Analysis (e.g., Initial Study/Negative Declaration [ND]) has changed,
or the environmental setting within which the review was carried out has changed. It is up to the
Lead Agency to determine whether an addendum, supplemental, or subsequent environmental
document is appropriate. The lead or responsible agency may choose to prepare an Addendum
rather than a supplemental or subsequent ND if the following findings can be made:
• No new significant impacts will result from the project or from new mitigation measures.
• No substantial increase in the severity of the environmental impact will occur.
• No new feasible alternatives or mitigation measures that would reduce impacts previously
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found not to be feasible have, in fact, been found to be feasible.
3. As outlined in the Addendum, which is incorporated by reference, it was determined that based
on the proposed Housing Element (6th Cycle 2023-2031) relative to the previously adopted Housing
Element (5th Cycle 2015-2023), changes to the approved project (Housing Element) and/or
changes to the project setting will not result in potentially significant impacts not previously
identified or analyzed nor would they increase the severity of any previously identified impacts.
Further, there are no previously infeasible alternatives that are now considered feasible. Finally,
none of the factors set forth in 15162(a)(3) were found to exist.
4. Only minor additions or changes are necessary to make the previous environmental document
(Initial Study/Negative [IS/ND] Declaration adopted for the 5th Cycle Housing Element) (SCH
#2014102018) adequately apply to the proposed Housing Element (6th Cycle). As such, the City of
Petaluma, as the Lead Agency, has determined that an Addendum to the IS/ND is the
appropriate review level and is sufficient to address any revisions or changes to the project and/or
that of the environmental setting.
5. The conclusions of the Addendum to the adopted Initial Study/Negative Declaration prepared
for the Housing Element (6th Cycle) remain consistent with those findings made in the IS/ND
prepared for the 2015-2023 (5th Cycle) Housing Element adopted December 1, 2014 (State
Clearinghouse Number 2014012018). There is no indication that the Housing Element Update
would generate new impacts or more severe impacts beyond those identified in the adopted
IS/ND.
6. The Planning Commission recommends the City Council adopt the addendum to the Negative
Declaration approved by the City Council (December 2014) for the 2015-2023 Housing Element
(SCH #2014102018) containing all the requirements of CEQA Guidelines Section 15164, inclusive of
the references, appendices, and all attachments thereto.
7. The Housing Element substantially complies with State Housing Element Law.
8. Government Code Section 65358 allows General Plan amendments when it is deemed in the
public interest to do so.
9. The Planning Commission finds that the proposed amendments to the General Plan are in the
public interest as the Housing Element enables the City to comply with State Housing Element Law
and makes the City eligible for State housing funding.
10. The Planning Commission recommends that the City Council repeal the 2015-2023 Housing
Element and adopt the 2023-2031 Housing Element attached hereto as Exhibit A, incorporated by
this reference.
11. The Planning Commission recommends that as part of the City Council’s consideration and
adoption of the General Plan Amendment to repeal the 2015-2023 Housing Element and adopt
the Housing Element for the 2023-2031 planning period that the final resolution incorporate findings
for self-certification as part of local adoption and authorizes the City Manager to make technical
edits that do not have policy implications as necessary to respond to HCD comments on the
adopted Housing Element as part of the certification process.
Exhibit A: 2023-2031 City of Petaluma Housing Element
Exhibit B: HCD Finding Letter, dated January 27, 2023
Exhibit C: Response to HCD Findings March 6, 2023 (Housing Element with tracked changes)
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ADOPTED this 14th day of March 2023, by the following vote:
Commission Member Aye No Absent Abstain
Councilmember Cader Thompson X
Chair Bauer X
Vice Chair Hooper X
McErlane X
Potter X
Racusen X
Whisman X
___________________________________
Heidi Bauer, Chair
ATTEST: APPROVED AS TO FORM:
________________________________________ _________________________________________
Andrew Trippel, Planning Manager Dylan Brady, Assistant City Attorney
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Table of Contents
1. Introduction ........................................................................................................................................... 1
A Portrait of the Community ................................................................ 1
California Housing Element Law .......................................................... 1
Relationship to the General Plan ......................................................... 2
Relationship to Climate Goals ............................................................. 3
Community Participation ...................................................................... 3
2. Resources to Accomplish Goals ........................................................................................................ 5
Fiscal Resources and Leveraging History ........................................... 5
Article 34 Authority .............................................................................. 6
Partnership Opportunities .................................................................... 7
Regional Housing Needs Assessment ................................................. 8
3. Housing Action Plan .......................................................................................................................... 11
Goals and Policies .............................................................................. 11
Housing Programs .............................................................................. 13
Affirmatively Furthering Fair Housing................................................ 36
Summary of Quantified Objectives .................................................... 43
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1. Introduction
A Portrait of the Community
Petaluma is located 40 miles north of San Francisco in southern Sonoma County, bisected by the Petaluma
River and under the backdrop of the Sonoma Mountains. It is a unique, geographically defined community
with a distinctive character derived from its geography, physical diversity, and small town atmosphere.
Petaluma was incorporated in 1858 and grew steadily following incorporation. There was a notable
residential growth spurt following suburbanization from the 1950s to 1970s, resulting in the adoption of its
residential growth management program. Following that landmark legislation, the City slowed its residential
growth rate to not exceed 500 units per year through the turn of the 20th century. In recent years, the
average number of building permits rarely comes close to 500 units annually. Limited local and regional
housing construction has placed strong economic pressure on the local housing prices and rents, and
housing is becoming increasingly unaffordable to the workforce. This 2023-2031 Housing Element presents
a proactive strategy to create new housing opportunities and preserve housing affordability in the
community.
California Housing Element Law
Enacted in 1969, State housing element law mandates that local governments adequately plan to meet the
existing and projected housing needs of all economic segments of the community. The law acknowledges
that in order for the private market to adequately address housing needs and demand, local governments
must adopt land use plans and regulatory systems that provide opportunities for, and do not unduly
constrain, housing development.
The Housing Element is subject to detailed statutory requirements regarding its content and is subject to
mandatory review by the California Department of Housing and Community Development (HCD). The
Housing Element must be updated every eight years. According to State law, the statutory due date to
update the Housing Element for jurisdictions in the Association of Bay Area Governments (ABAG) region
is January 31, 2023. A key component of the Housing Element requirement is the jurisdiction’s ability to
accommodate the City’s share of Regional Housing Needs Assessment, (RHNA) as determined by HCD.
For this sixth cycle of the Housing Element update, the City of Petaluma has been assigned a RHNA of
1,910 housing units.
1.1.1. Housing Element Components
State law requires the Housing Element to include the following information:
• An analysis of population and employment trends and documentation of projections, and a
quantification of the existing and projected housing needs for all income levels, including extremely
low income households.
• An analysis and documentation of household characteristics, including level of payment compared
to ability to pay, housing characteristics, including overcrowding, and housing stock condition.
• An inventory of land suitable and available for residential development, including vacant sites and
sites having realistic and demonstrated potential for redevelopment during the planning period.
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• The identification of a zone or zones where emergency shelters are allowed as a permitted use
without a conditional use or other discretionary permit.
• An analysis of potential and actual governmental and non-governmental constraints upon the
maintenance, improvement, or development of housing for all income levels.
• An analysis of any special housing needs, such as those of the elderly; persons with disabilities,
including a developmental disability; large families; farmworkers; families with female heads of
households; and families and experiencing homelessness.
• An analysis of opportunities for energy conservation.
• An analysis of existing assisted housing developments that are eligible to change from low income
housing uses during the next 10 years.
• A statement of the community’s goals, quantified objectives, and policies relative to affirmatively
furthering fair housing and to the maintenance, preservation, improvement, and development of
housing.
The housing element establishes an action plan that details the actions, or programs, that will implement
the goals and policies. For each program, the action plan must identify the agency responsible and the
timeframe for implementation.
1.1.2. Organization of the Housing Element
This 2023-2031 Housing Element for the City of Petaluma is organized into the following sections and
appendices:
Section 1 – Introduction
Section 3 – Resources to Accomplish Goals
Section 3 – Housing Action Plan
Appendix A: Housing Needs Assessment
Appendix B: Housing Constraints
Appendix C: Sites Inventory
Appendix D: Review of Past Accomplishments
Appendix E: Affirmatively Furthering Fair Housing
Appendix F: Summary of Community Outreach
Relationship to the General Plan
The City of Petaluma is developing a comprehensive update to the 2025 General Plan (adopted May 2008)
concurrently with the required update of the Housing Element. The General Plan update may introduce
additional opportunities for residential growth beyond current land use policy. The General Plan update is
anticipated to conclude in late 2023. To meet the January 2023 statutory deadline for the Housing Element,
this Housing Element relies on sites that are currently designated and zoned for residential development
and do not anticipate the need to modify current land use designation or zoning to accommodate the 6th
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cycle RHNA. Therefore, this Housing Element is consistent with the current 2025 General Plan and will be
consistent with the 2045 General Plan update.
Relationship to Climate Goals
The City of Petaluma is committed to achieving greenhouse gas carbon neutrality Petaluma by 2030. To
further this work, the City plans to develop and adopt a Climate Action and Adaptation Plan in 2023. The
City has also considered and worked to reduce climate impacts in the Housing Element. Climate-related
actions and programs include a focus on infill development accessible to transit and away from high-VMT
areas, water conservation initiatives, increased densities in transit-accessible areas, revising the City’s
development fee structure to promote the development of smaller and more affordable units, and revising
the City’s parking ordinance to encourage a mode shift away from single-occupancy vehicles. The Climate
Action and Adaptation Plan will additionally focus on energy and water efficiency in new and existing
buildings, a shift away from natural gas usage, and many other avenues for climate impact reduction.
Community Participation
The City has implemented an extensive community outreach program for the Housing Element, that is being
updated as part of the comprehensive update to the General Plan. A detailed summary of the outreach
efforts and results is provided in Appendix F to this Housing Element.
The Draft Housing Element was available for public review between August 29, 2022 and October 3, 2022.
The City also help public meetings before the Planning Commission (September 13) and City Council
(October 3) to review the Draft Housing Element. Comments received on the Draft Housing Element are
summarized by theme below, along with the City’s responses.
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2. Resources to Accomplish Goals
Fiscal Resources and Leveraging History
With the dissolution of redevelopment by the State legislature in 2012, local jurisdictions’ ability to expand
affordable housing opportunities has been seriously compromised. In many cases, local jurisdictions lack
a steady source of revenue to finance affordable housing. State and federal programs such as Low Income
Housing Tax Credits are highly competitive. Increasingly, local jurisdictions are looking to locally generated
resources to support affordable housing development. To the extent feasible, the housing programs
outlined in this Housing Element will utilize the following sources of revenue to fund its projects and
programs.
2.1.1. Inclusionary Housing In-Lieu Fund
In 2018, Petaluma adopted an Ordinance (No. 2300 N.C.S.) implementing a housing in lieu fee for
residential development to contribute to satisfy affordable housing requirements. The Inclusionary Housing
In-Lieu Fund is generated by payments from developers in-lieu of providing inclusionary affordable units.
The Fund is used to expand and preserve affordable housing opportunities for lower income households
through land acquisition and assistance to non-profit developers with pre-development costs and subsidies
for on- and off-site improvements. The City’s current inclusionary housing ordinance was adopted in 2018
and eliminated the ability for a developer to meet inclusionary housing requirement through payment of an
in-lieu fee unless separately approved as alternative compliance by the City Council. Therefore, the
generation of housing in-lieu fees has significantly slowed in recent years. Additionally, the City has recently
provided local funding for several affordable housing projects which has reduced the balance of the fund.
As of July 1, 2022, the In-Lieu Fund has a balance of $3,323,128, which is expected to fluctuate through
October 2022.
2.1.2. Commercial Linkage Fee
In 2004, Petaluma adopted an Ordinance (No. 2171 N.C.S.) implementing a commercial linkage fee for
nonresidential development to mitigate the impacts on affordable housing linked to nonresidential
development and to provide housing affordable to those with incomes between 80 and 100 percent of the
Area Median Income. In June 2011, the Ordinance was revised to limit the type of nonresidential
development to new or expanded nonresidential gross square footage. For purposes of this Fee,
nonresidential land uses are classified as commercial, retail, or industrial. Funds collected may be used to
directly finance the development of affordable housing units between the range 80 to 100 percent of AMI.
The current fee schedule (July 2022) establishes the fee at $3.36 per square foot of commercial
development, $5.81 per square foot of retail development, and $3.46 per square foot of industrial
development. As of July 1, 2022, the Commercial Linkage Fee has a balance of $2,158,717.
2.1.3. Community Development Block Grant
The Community Development Block Grant Program (CDBG) is a “pass-through” program that allows local
governments to use federal funds to alleviate poverty and blight. The U.S. Department of Housing and
Urban Development (HUD) makes allocations based on a formula that takes population, poverty, and
housing distress into account. CDBG funds are used for a variety of housing and community development
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efforts. With population over 50,000, Petaluma is considered an entitlement jurisdiction to receive CDBG
funds from HUD directly. For FY 2022-2023, the City has been allocated $329,577 in CDBG funds.
2.1.4. HOME Investment Partnership
The HOME Investment Partnership Act is a formula-based block grant program similar to CDBG. HOME
funds are intended to expand affordable housing through acquisition, construction, and rehabilitation of
rental and ownership units. However, Petaluma does not qualify as an entitlement jurisdiction to receive
HOME funds directly from HUD and must apply to the State HOME program on a competitive basis.
Specifically, the City used $900,000 of program income from the State HOME program for a MidPen
development. HOME program income is comprised of interest earned and loan payoffs from earlier HOME
financed projects. The project is located at 414 Petaluma Blvd North. The development will provide 43 units
between 30 and 60 percent AMI. Construction started on the project in Spring of 2022 and will be ready for
occupancy in fall of 2023.
2.1.5. Permanent Local Housing Allocation
In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the State’s housing
shortage and high housing costs. Specifically, it included the Building Homes and Jobs Act (SB 2, 2017),
which establishes a $75 recording fee on real estate documents to increase the supply of affordable homes
in California. Because the number of real estate transactions recorded in each county will vary from year
to year, the revenues collected will fluctuate.
The first year of SB 2 funds are available as planning grants to local jurisdictions. For the second year and
onward, 70 percent of the funding will be allocated to local governments for affordable housing purposes
and will be distributed using the same formula used to allocate Federal CDBG. This funding is known as
the Permanent Local Housing Allocation (PLHA) and can be used to:
• Increase the supply of housing for households at or below 60 percent of AMI
• Increase assistance to affordable owner-occupied workforce housing
• Assist persons experiencing or at risk of homelessness
• Facilitate housing affordability, particularly for lower and moderate income households
• Promote projects and programs to meet the local government’s unmet share of regional housing
needs allocation
The City is eligible to receive approximately $250,000 in PLHA annually. The program has a current fund
balance of $470,905 from the program years 2019-2020. A Housing Element certified by the State HCD is
a prerequisite for receiving PLHA funds.
Article 34 Authority
Article XXXIV of the California Constitution requires that when the City develops, constructs, or acquires a
housing project targeted towards lower income households, its qualified electors must approve the project
by a majority. The City has secured Article 34 authority for elderly affordable housing (up to 5 percent of
the total housing stock) and has been otherwise effective in providing affordable housing to lower income
households by partnering with non-profit developers.
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Partnership Opportunities
The City partners with a number of housing developers to construct, acquire/rehabilitate, and preserve
affordable housing and special needs housing in the community. Active nonprofit developers include:
• Eden Housing
• Burbank Housing
• MidPen Housing
• PEP Housing
• DANCO Communities
• Housing Land Trust of Sonoma County
Opportunities for Energy Conservation
Housing has a large role to play in energy conservation and the reduction of greenhouse gas emissions in
terms of both its location and its construction methods. Petaluma is committed to lessening the impact of
greenhouse gas emissions by reducing emissions and conserving resources through the implementation
of the goals, policies and programs outlined in the General Plan.
The City’s General Plan promotes energy conservation by reducing reliance on non-renewable energy
sources in existing and new development:
2-P-118 As part of the Development Code and Standards Updates, incorporate sustainable site
planning, development, and maintenance standards and procedures, reflecting conditions in
the variety of Petaluma settings (such as hillsides and floodplains).
4-P-18 Develop and adopt local energy standards that would result in less energy consumption than
standards set by the California Energy Commission’s (CEC) Title 24 or updates thereto.
4-P-19 Encourage use and development of renewable or nontraditional sources of energy.
To implement these policies, the City prepares, periodically updates, and implements green building
guidelines and/or standards, appropriate to the Petaluma context, to ensure high level of energy efficiency
and reduction of life-cycle environmental impacts associated with construction and operations of buildings.
The City adopts green street standards, and incorporates these practices in design of city streets. The City
also identifies and implements energy conservation measures that are appropriate for public buildings and
facilities, such as:
• Schedule energy efficiency “tune-ups” of existing buildings and facilities.
• Institute a lights-out-at-night policy in all public buildings where feasible.
• Continue to retrofit older lighting fixtures in City facilities until all buildings have been upgraded.
• Where new traffic signals or crosswalk signals are installed, or existing signals are upgraded,
continue to use LED bulbs or other equivalent efficient technology that may develop.
• Evaluate the possibility of decreasing the average daily time streets lights are on.
• Periodically evaluate the efficiency of potable and sewer pumping facilities and identify measures
to improve pumping efficiency.
• Encourage the County of Sonoma to upgrade existing, inefficient facilities which serve Petaluma
(e.g. potable water pumping facilities).
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The City adopted the Climate Energy Framework in 2021 with the goal of achieving carbon neutral by 2030.
Specifically relating to residential new construction, the City requires the use of all electrical appliances.
The City’s website includes a dedicated page “Climate Ready 2030” that provides information on ways to
reduce greenhouse gas emissions, including energy efficiency and renewable energy retrofits. This
Housing Element includes an action to assist households in the disadvantage neighborhoods to move
toward all electrical appliances. The City is in the process of updating its General Plan, including the
development of a Climate Action and Adaptation Plan.
Regional Housing Needs Assessment
2.4.1. Overview of RHNA
The Regional Housing Needs Assessment (RHNA) is a key tool for local governments to plan for anticipated
growth. The RHNA quantifies the anticipated need for housing within each jurisdiction for the eight-year
period. The regional housing needs analysis is derived from the statewide growth forecast, which is then
allocated to regions, counties, and cities. The statewide determination is based on population projections
produced by the California Department of Finance and the application of specific adjustments to determine
the total amount of housing needs for the region. The adjustments are a result of recent legislation that
sought to incorporate an estimate of existing housing need by requiring the State HCD to apply factors
related to a target vacancy rate, the rate of overcrowding, and the share of cost-burdened households. The
new laws governing the methodology resulted in a significantly higher number of housing units for which
the Bay Area must plan compared to previous RHNA cycles. The RHNA for Bay Area jurisdictions was
adopted by the Association of Bay Area Governments (ABAG) in December 2021.
2.4.2. RHNA for Petaluma
California housing element law requires that each city and county develop local housing programs to meet
its “fair share” of existing and future housing needs for all income groups, as determined by the jurisdiction’s
council of governments. The Regional Housing Needs Allocation (RHNA) is the share of housing assigned
to each jurisdiction by the Association of Bay Area Governments (ABAG) in the Bay Area for the eight-year
planning period (January 31, 2023 to January 31, 2031). This “fair share” allocation concept seeks to ensure
that each jurisdiction accepts responsibility for the housing needs of not only its resident population, but
also for its share of projected regional housing growth across all income categories and demonstrates
capacity to accommodate its housing share.
The RHNA represents the minimum number of housing units each community is required to provide
“adequate sites” for through zoning and is one of the primary threshold criteria necessary to achieve State
certification of the Housing Element.
In December 2021, ABAG approved the Final RHNA Plan. Petaluma must plan for a RHNA of 1,910 units,
a substantial increase from the last cycle, accommodating not only future needs but also factoring in the
unmet demand of the previous cycles. Petaluma’s RHNA is divided into four income categories (i.e., very
low, low, moderate, and above moderate) as shown in Table 1 below.
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Table 1: City of Petaluma RHNA (2023-2031)
Petaluma
Extremely
Low/
Very Low Low Moderate
Above
Moderate Total
RHNA 499 288 313 810 1,910
% of Total 26% 15% 16% 42% 100%
Source: ABAG 6th Cycle Final RHNA Allocation Plan, adopted December 2021
*The RHNA does not include the extremely low category. It is estimated to be ½ of the very low income need, per
Government Code §65583.a.1. The total very low income RHNA is 499 units; therefore, 254 units are designated
as extremely low income and 254 units are designated as very-low-income. However, for the sites inventory
purposes, no separate accounting is required for the extremely low income category
2.4.3. Summary
The Housing Element must include an inventory of land with potential for residential development during
the Housing Element planning period. In conducting this adequate sites analysis, jurisdictions can
accommodate the RHNA through the following:
Likely Sites:
• Projected ADU Trend: State law allows jurisdictions to project the number of ADUs to be
constructed over eight years based on the recent trend of ADU construction. ABAG prepared a rent
study that received preliminary approval from HCD. Based on a survey of rental listings for ADUs
and similar units, ABAG established an income/affordability distribution for ADUs at 30 percent very
low income, 30 percent low income, 30 percent moderate income, and 10 percent above moderate
income.
• Credits toward RHNA (Pipeline Projects): While the new 6th cycle Housing Element begins January
31, 2023, the baseline project period for the RHNA begins on June 30, 2022. Housing units under
construction, approved, entitled, or permitted but not expected to be finaled until after June 30,
2022 can be credited toward the 6th cycle RHNA.
Sites Inventory:
• Opportunity Sites: Accounting for projected ADUs and eligible credits, the City must identify
adequate sites to fully accommodate the remaining RHNA obligations. Opportunities sites are sites
that are currently zoned for residential or mixed use development, where existing uses on site are
considered underutilized with potential for redevelopment. Sites with expressed interests for
redevelopment from property owners and developments are also included.
Table 2 provides a summary of the City’s strategy for meeting the 6th cycle RHNA. The total realistic capacity
shown is 3,241 units, which exceeds the target of 1,910 units the City is required to accommodate for its
RHNA. The capacity identified in the site inventory includes an approximately 19 percent buffer in the lower
income categories to ensure that Petaluma is proactively identifying sites to meet housing needs for the
most vulnerable. Additionally, the overall buffers are recommended by HCD and provide assurance that
Petaluma has adequate sites to meet the local RHNA.
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Table 2: Summary of RHNA Strategy
Units by Income Group
Total Very Low Low Moderate
Above
Moderate
RHNA 499 288 313 810 1,910
Likely Sites 236 191 106 1,355 1,888
Potential ADUs 38 38 38 14 128
Pipeline Projects 198 153 68 1,341 1,760
Remaining RHNA 263 97 207 (545) 567
Opportunity Sites 214 215 358 566 1,353
Vacant Sites 37 37 44 220 338
Parking Lots of
Shopping Centers 10 11 - 221 242
Underutilized sites 167 167 314 125 773
Total Capacity 450 406 464 1,921 3,241
Buffer (Opportunity
Sites over Remaining
RHNA)1
+19% +73% N/A2 NA
1. Buffer percentage was calculated by diving the surplus/deficit by the remaining need.
2 There is no remaining need for Above Moderate units (RHNA was met with pipeline projects and
potential ADUs).
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3. Housing Action Plan
3.1. Goals and Policies
Goal 1: Housing Availability and Choices
Provide opportunities for residential development to accommodate projected residential growth and diverse
housing needs of all existing and future Petalumans.
Policy 1.1 Promote residential development within the Urban Growth Boundary, especially near transit
and services and areas of high resource, as defined under Affirmatively Furthering Fair Housing
legislation.
Policy 1.2 Work towards the City’s goal of being climate neutral by 2030 by developing a Climate Action
and Adaptation Plan that includes reducing the carbon footprint of housing in the city.
Policy 1.3 Encourage infill housing development with a particular focus on facilitating development near
transit and services to support City climate goals.
Policy 1.4 Establish flexibility in the City’s standards and regulations to encourage a variety of housing
types, including mixed-use and flexible-use buildings, and affordable housing development.
Policy 1.5 Encourage the efficient use of residential and mixed-use land by facilitating development at the
upper end of the density range.
Policy 1.6 Encourage the development of ADUs and JADUs as affordable housing resources.
Policy 1.7 Facilitate the transition of existing neighborhoods into more walkable neighborhoods with
integrated services, amenities, and a diversity of housing choices.
Policy 1.8 Monitor and minimize the impact of short-term rentals on the City’s supply of housing available
for long-term residential uses.
Policy 1.9 Work towards a pro-housing designation with the Department of Housing and Community
Development.
Goal 2: Development Constraints
Remove or mitigate constraints on housing development to expedite construction and lower development
costs while avoiding impacts on environmentally sensitive areas.
Policy 2.1 Review and adjust city residential and mixed-use development standards that are determined
to be a constraint to the development and improvement of housing.
Policy 2.2 Streamline the City’s review and approval process for residential and mixed-use projects to
ensure objective evaluation and greater certainty in outcomes to facilitate affordable housing
production.
Policy 2.3 Develop incentives such as streamlined review, fee adjustments, and objective design
standards to encourage residential development that is affordable and environmentally
appropriate.
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Policy 2.4 Periodically review and update the City’s impact fees to ensure adequate fees are collected to
provide services, infrastructure, and facilities for the projected population. Waive, reduce, or
defer fees for affordable housing units and climate-friendly development.
Policy 2.5 Update the City’s residential impact fees based on unit size to incentivize smaller units.
Policy 2.6 Periodically review the City’s development standards, regulations, and procedures to ensure
that the City responds to the changing market conditions and development trends in a timely
manner.
Goal 3: Affordable Housing
Promote the development, preservation, and improvement of housing affordable to lower and moderate
income households, including extremely low income households.
Policy 3.1 Expand revenue sources to provide housing affordable to extremely low to moderate income
households, and those with special needs.
Policy 3.2 Partner with developers of market-rate housing and non-residential projects, as well as
employers, to address the housing needs in the community.
Policy 3.3 Facilitate the entry of lower and moderate income households into the housing market.
Policy 3.4 Streamline the review process for projects with 20 percent or more units affordable to lower
income households.
Policy 3.5 Evaluate City-owned parcels for affordable housing development. Rezone, as necessary,
identified parcels to allow housing development.
Goal 4: Housing Preservation
Improve the quality and diversity of residential neighborhoods, preserve the City's existing affordable
housing, and ensure the long-term affordability of new below-market-rate units.
Policy 4.1 Preserve the affordability of the City’s existing affordable housing stock.
Policy 4.2 Ensure the long-term affordability of units developed or provided with City assistance.
Policy 4.3 Promote the improvement and maintenance of existing residential units.
Policy 4.4 Provide incentives for longer affordability terms.
Policy 4.5 Develop financial and technical assistance for renovation and upgrades to affordable units.
Policy 4.6 Develop programs and actions to address the risks and impacts of economic displacement.
Goal 5: Special Needs Housing
Promote housing opportunities for persons and households with special needs, including the elderly,
disabled, large households, female-headed households, farmworkers, and persons experiencing
homelessness.
Policy 5.1 Support efforts to prevent homelessness and to rapidly re-house the recently homeless.
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Policy 5.2 Provide housing and support services for persons experiencing homelessness.
Policy 5.3 Facilitate the development of transitional and supportive housing for those moving from
homelessness to independent living.
Policy 5.4 Promote the construction and maintenance of housing for the elderly and provide housing
choices to allow older residents to age in place.
Policy 5.5 Promote the development of housing that is designed to accommodate the needs of persons
with disabilities, including supportive housing with on- or off-site services.
Policy 5.6 Promote the construction of adequately sized rental units for large households.
Policy 5.7 Facilitate the provision of housing for the workforce, including those in the agricultural and
hospitality industries.
Goal 6: Fair Housing
Affirmatively further fair housing to promote equal access to housing opportunities for all existing and future
residents.
Policy 6.1 Comply with federal, state, and local Fair Housing and anti-discrimination laws, and
affirmatively further fair housing for all, ensuring equal access to housing regardless of their
special circumstances as protected by fair housing laws.
Policy 6.2 Promote housing mobility by expanding housing choices and increasing housing opportunities
in high resource areas.
Policy 6.3 Protect tenants from discriminatory housing practices and displacement.
Policy 6.4 Promote the integration of affordable and special needs housing projects in existing
neighborhoods.
Policy 6.5 Collaborate with and support efforts of organizations dedicated to eliminating housing
discrimination.
Policy 6.6 Ensure City boards and commissions include members who are representative of the targeted
populations.
Housing Programs
3.2.1. Housing Availability and Choices
Program 1: Adequate Sites for RHNA and Monitoring of No
Net Loss
The City of Petaluma has been allocated 1,910 units (499 very low income, 288 low income, 313 moderate
income, and 810 above moderate income units). Based on projected ADUs and entitled projects, the City
has met all its RHNA for above moderate income units, with a remaining RHNA of 567 units (263 very low
income; 102 low income; and 212 moderate income units). Using factors such as existing uses, zoning,
and development standards, the City has identified an inventory of sites with potential for redevelopment
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over the eight-year planning period to fully accommodate the remaining RHNA. Specifically, vacant and
underutilized sites identified with near-term development potential can accommodate 1,632 units (524 lower
income units; 444 moderate income units; and 664 above moderate income units). The City is able to
accommodate its full RHNA based on existing land use policy and zoning provisions. The City has
endeavored to identify sites that that are located in areas with a VMT at or below the citywide average in
order to reduce the carbon and ecological impacts of new development to support the City’s climate goals.
To comply with the AB 1397 requirements for reusing sites that were identified in previous Housing Element
cycles, the City will amend the Zoning Code to permit residential/mixed use projects on these reuse sites
by right without discretionary review if the project includes 20 percent of units affordable to lower income
households.
To ensure that the City complies with SB 166 (No Net Loss), the City will monitor the consumption of
residential and mixed-use acreage to ensure an adequate inventory is available to meet the City's RHNA
obligations. To ensure sufficient residential capacity is maintained to accommodate the RHNA, the City will
develop and implement a formal ongoing (project-by-project) evaluation procedure pursuant to Government
Code Section 65863. Should an approval of development result in a reduction in capacity below the
residential capacity needed to accommodate the remaining need for lower and moderate income
households, the City will identify and if necessary, rezone sufficient sites to accommodate the shortfall and
ensure “no net loss” in capacity to accommodate the RHNA.
The City’s Residential Growth Management System (RGMS) caps the number of housing units at 500,
exempting multi-family housing for the elderly, lower income households, and projects with fewer than 30
units. The RGMS has not had any material impact on limiting housing production except for its first few
years of implementation in the 1970s, and it is not expected to impede the City in meeting its RHNA of
1,904 units for the 6th cycle Housing Element.
Specific Actions and
Timeline
• Maintain an inventory of the available sites for residential development
and provide it to prospective residential developers. Update the sites
inventory at least annually. Fully accommodate the RHNA of 1,910 units
(495 very low income; 288 low income; 313 moderate income; and 810
above moderate income units).
• By January 2024, as part of an update to the General Plan, pursue
land use and zoning strategies to allow the evolution of
predominantly single-family neighborhoods to facilitate the
development of a wider diversity of housing typologies as well as
neighborhood services.
• By January 2024, amend the Zoning Code to permit residential/mixed
use projects by right without discretionary review on reuse sites from
previous Housing Elements, if the project includes 20 percent of the
units affordable to lower income households.
• By January 2024, implement a formal evaluation procedure pursuant to
Government Code Section 65863 to monitor the development of vacant
and nonvacant sites in the sites inventory and ensure that adequate
sites are available to meet the remaining RHNA by income category, and
include this data in the annual Housing Element Progress Report.
• In 2025, conduct community education to discuss the impacts of the
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RGMS on housing production and housing needs, and initiate a process
to review the RGMS for consistency with State law and identify
mitigating actions if necessary.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 2: Replacement Housing
Development on nonvacant sites with existing residential units is subject to a replacement requirement.
Specifically, AB 1397 requires the replacement of units affordable to the same or lower income level as a
condition of any development on a nonvacant site. Replacement requirements per AB 1397 are consistent
with those outlined in the State Density Bonus Law.
To further mitigate any impacts relating to displacement, the City will consider requiring the first right of
refusal for the displaced tenants.
Specific Actions and
Timeline
• By December 2024, update the Zoning Code to specify the replacement
requirements for redevelopment of properties with existing residential
uses. As part of this Code update:
o Identify specific properties in the sites inventory with existing
residential units that may be subject to replacement requirements
and monitor development activities.
o Consider requiring the first right of refusal for the displaced tenants
or develop alternative strategies to mitigate displacement by July
2025.
• Ongoing on a project-by-project basis, provide technical assistance to
project applicants regarding compliance with replacement requirements.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 3: Accessory Dwelling Units
Accessory Dwelling Units (ADUs) represent an important resource to providing lower and moderate income
housing in Petaluma. To facilitate ADU production, the City will:
• Dedicate a specific page of the City website to provide information on and resources for ADU
construction.
• Develop an ADU construction guide to clarify the process and requirements for permit applications.
The guide will outline the required review by various departments, the fees required, and if a new
address is required for the ADU.
• Create a permit center to coordinate application and review processing by various departments.
• Provide specific staff familiar with ADUs to respond to questions and offer office hours to answer
questions, offer technical assistance, and provide seminars or other education to the public, and
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provide other support to those increased in creating ADUs and JADUs.
• Consider reducing or waiving plan check fees if the applicant chooses one of the plans pre-
approved or pre-reviewed by the City.
• Consider setting aside funding or offering other financial incentives to encourage ADUs to be made
available at affordable costs to lower income households. A loan or grant may be offered to property
owners in exchange for deed restricting ADUs as housing affordable for lower income households.
• Develop an amnesty program for illegally constructed ADUs to legalize these units as long as these
units are code corrected to meet health and safety, and building standards. A checklist will be
developed to assist homeowners in assessing their eligibility/feasibility and in estimating costs
before applying for amnesty.
• Promote ADU-related programs and/or ADU construction in neighborhoods with a higher need for
affordable housing, or relatively high capacity for ADU development.
• As part of the Inclusionary Housing program review and update, allow ADUs in multi-family
developments to count toward the inclusionary housing requirement (see Program 11).
• Work with regional organizations to develop and implement best practices to support the
conversion of garages into ADUs.
Specific Actions and
Timeline
• Continue to promote and facilitate the development of ADUs through a
partnership with a regional organization such as the Napa-Sonoma ADU
Center, including through financial support of the Center.
• Permit on average 16 ADUs or JADUs per year (128 ADUs or JADUs
over eight years). If an average of 16 ADUs per year are not achieved by
2025, consider adopting additional measures that are supportive of ADU
development.
• By December 2022, create a streamlined process application and review
process, update the City website to create a dedicated page for ADU
resources, and develop an ADU construction guide. Update the ADU
webpage semi-annually to ensure information addresses questions
raised by applicants.
• By December 2023, amend the ADU Ordinance as necessary, to
address comments from HCD to comply with State law.
• By December 2023, allocate staffing resources to expedite the ADU
review and approval process and create a permit center to coordinate
the review of ADU applications.
• In 2023 and annually thereafter, pursue financial incentives to encourage
affordable ADUs (fee waivers or direct subsidies) and allocate resources
as appropriate, with the goal of achieving 16 affordable ADUs over eight
years.
• In 2024, evaluate and develop an ADU amnesty program, with the goal
of converting 16 unpermitted units into ADUs that meet building codes,
for an average of two unit per year. (This estimate is included in the 16
ADUs per year projected.)
• In 2024, identify neighborhoods with capacity for ADU development and
conduct targeted outreach.
• Provide an annual update on ADU permit progress to Planning
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Commission and City Council.
Primary Responsible
Departments Community Development (Planning, Building)
Funding Sources General Fund
Program 4: Efficient Use of Multi-Family Land
The City permits single-family homes in all residential zones and the MU1 C mixed-use zone, potentially
reducing the achievable density in multi-family zones. Establishing increased minimum densities for multi-
family and mixed-use zones will ensure efficient use of the City's multi-family land, including requiring multi-
family densities in multi-family zones.
Specific Actions and
Timeline
• By June 2024 adopt the Zoning Text Amendment to modify residential
product types allowed in higher density zones.
• By December 2024, as part of the General Plan update:
o Establish minimum densities for multi-family and mixed-use zones
and if appropriate, develop target density policies.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
Program 5: Flexible Development Standards
The City will continue to support neighborhood vibrancy through flexible development standards. As part of
the General Plan update process, the City will explore land use policy and development code changes to
encourage the integration of mixed-use and residential development. These may include:
• Conversion of nonresidential uses into housing. Strategies may include the waiving of additional
parking requirements or the ability to pay into a parking assessment district.
• Small lot development in Downtown Petaluma. Many Downtown parcels are small and
consolidation for large-scale development may be challenging. To facilitate residential development
in Downtown, consider allowing up to six units on small lots with 6,000 square feet and explore
policies that facilitate small lot consolidation.
• The minimum retail requirement may be a constraint to developing mixed-use buildings given the
evolving retail and office markets. Currently, certain streets within SmartCode areas do not have
minimum retail requirements. Explore and possibly expand areas where a minimum nonresidential
component may be reduced or eliminated.
• Due to the changing economy and impacts of COVID, regionally communities are experiencing
changes to the commute patterns, level of home occupancy, and remote working. The City will
evaluate the definition of live/work and work/live units and the provisions for such housing types to
allow flexibility in various living and working arrangements. An emerging trend is to allow co-working
spaces to fulfill the nonresidential component of mixed-use development.
• Develop objective design standards for residential and mixed use development.
Specific Actions and
Timeline
• By July 2023, adopt objective design standards and parking standards
for multi-family residential and mixed use development (currently
underway).
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• By December 2023, as part of the General Plan update, adjust the
mixed-use development requirements and address zoning code
constraints, such as parking, to support adaptive reuse of nonresidential
spaces. Create 40 new units through adaptive reuse and conversion of
nonresidential use, for an average of five units annually, representing the
potential conversion of one to two second floor office uses per year.
• By December 2023, adopt live/work standards to encourage a greater
range of options.
• By December 2023, update onsite parking regulations to reduce barriers
to housing development and to support the City's affordable housing
development and climate goals. Specifically, reduce the parking
standards for small units (such as micro units, studio/efficiency units,
and one-bedroom units) and based on location relative to transit and
amenities.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
Program 6: Religious and Institutional Facility Housing
Overlay
AB 1851 of 2020 allows an affordable housing project to be developed at a place of worship owned by a
religious institution even if the development requires the reduction of the number of religious-use parking
spaces. This bill applies to religious facilities that are located in zones that allow residential uses.
The City will explore establishing a Religious and Institutional Facility Housing Overlay with the following
potential provisions:
• Expand the provisions of AB 1851 to other institutional uses, such as schools and hospitals, as well
as religious facilities located in zones that currently do not allow residential uses.
• Allow religious and institutional uses to construct up to four ADUs and/or JADUs on site.
• Allow safe parking on site as desired by the institution.
• Allow 100% affordable housing projects in the Civic Facility (CF) zone
Specific Actions and
Timeline
• By December 2024, as part of the General Plan update, establish a
Religious and Institutional Facility Housing Overlay Zone.
• By December 2025, convene a meeting with religious and institutional
facilities to discuss opportunities for affordable housing.
• Create 50 new housing units affordable to lower income households in
Overlay, representing the typical approximate size of an affordable
housing project using LIHTC.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
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3.2.2. Development Constraints
Program 7: Zoning Code Amendments
The City will amend the Zoning Code to address the following to facilitate the development of a variety of
housing types:
• Parking: The City currently requires one space per bedroom but no fewer than 1.5 spaces per
multi-family unit. These parking standards may be considered a constraint to large units (with three
or more bedrooms) and small units (such as efficiency units). The City will establish updated
parking standards for various housing types, including minimums and maximums where
appropriate, consider the need for unbundling parking, and EV parking needs. Specifically, the
City will reduce the parking standards for small units (such as micro units, studio/efficiency units,
and one-bedroom units) and based on location relative to transit and amenities.
• Density Bonus: The City’s Density Bonus must be updated to reflect recent changes to State law,
such as AB 1763, which made several changes to density bonus requirements for 100 percent
affordable projects, and AB 2345, that further incentivizes the production of affordable housing.
• Residential Care Facilities: The City permits residential care facilities for six or fewer persons in
residential and mixed-use zones. However residential care facilities for seven or more persons are
not permitted in any residential zones, but are permitted or conditionally permitted on an upper floor
or behind a ground floor fronting use in mixed use and commercial zones. Furthermore, residential
care for the chronically ill and adult residential facilities are subject to additional restrictions (such
as a maximum capacity of 25). The requirement for placing the facility on an upper floor and behind
a ground floor street fronting use may constrain the development of larger residential care facilities.
The City will evaluate this constraint and amend the Zoning Code to mitigate this constraint to
facilitate the development of additional types of residential care facilities. Specifically, residential
care facilities for seven or more persons will be conditionally permitted in residential zones, mixed
use, and commercial zones subject to findings for approval that are objective and provide certainty
in outcomes. The placement requirement for upper floor and behind a ground floor street fronting
use will be removed. These revisions are in accordance with State interpretation of Affirmatively
Furthering State Housing legislation.
• Supportive Housing (AB 2162): While the City has already developed a procedure to process
supportive housing pursuant to AB 2162, this 2023-2031 Housing Element includes a program
action to amend the City’s Zoning Code to clarify that eligible projects are permitted in all multi-
family zones and nonresidential zones (such as mixed use zones) that permit multi-family housing.
• Low Barrier Navigation Center (LBNC): AB 101 requires that LBNCs be permitted by right in
areas zoned for mixed-use and nonresidential zones that permit multi-family housing. The City will
update the Zoning Code to reflect State law. A Low-Barrier Navigation Center (LBNC) is a "Housing
First," low barrier, temporary, service-enriched shelter that helps homeless individuals and families
to quickly obtain permanent housing.
• Reasonable Accommodation: The City will work to develop a formal Reasonable Accommodation
procedure to provide flexibility in the implementation of the City’s land use and zoning policies to
address housing for persons with disabilities. Reasonable Accommodation requests should be
considered via a ministerial process. Criteria for review and approval will be objective and facilitate
certainty in outcomes.
• Civic Facility: Consider amending the Zoning Code to permit residential uses in the Civic Facility
zone and incorporate deed restrictions to ensure residential units are affordable.
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• Emergency Shelter Zoning: Evaluate and designate the appropriate residential and/or mixed use
zoning districts where emergency shelters will be permitted by right and amend the Zoning Code
to establish objective development standards pursuant to AB 2339. This new bill requires that the
identified zones to meet at least one of the following: (1) vacant and zoned for residential use; (2)
vacant and zoned for nonresidential use if the local government can demonstrate how the sites are
located near amenities and services that serve people experiencing homelessness; or (3)
nonvacant if the site is suitable for use as a shelter in the current planning period.
• Employee Housing: Amend the Zoning Code to comply with Employee Housing Act (H&S 17021.5
and 17021.6). Specifically, employee housing providing accommodation for six or fewer employees
is deemed a single-family structure with a residential land use designation. Farm labor housing of
no more than 36 beds or 12 units is deemed an agricultural land use to be similarly permitted as
other agricultural uses in the same zone.
• Single-Room Occupancy (SRO) Housing: Amend the Zoning Code to identify SRO as a
permitted use in MU, R4 and R5 districts where high density multi-family housing is already allowed.
• Open Space Requirement: Study open space requirements for comparable housing types in the
region and reduce the open space requirements to align with regional trends and to ensure
maximum allowable density in each district can be achieved.
Specific Actions and
Timeline
• By December 2024, amend the Zoning Code to address specific issues
as outlined above.
• Create 100 new housing units for special needs groups, including for
seniors, disabled, farmworkers, hospitality workers, and the homeless,
representing approximately two affordable housing projects over eight
years, at typical size of approximately 50 units per project utilizing
LIHTC.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 8: Development Fees
The City's development impact fees are established on a per-unit basis without consideration of unit size.
This fee structure is not conducive to promoting the development of a range of unit sizes, particularly smaller
units. The City will review and revise its fee structure to encourage a range of unit sizes and to facilitate the
development of affordable housing. Potential revisions may include:
• Reviewing fees in general
• Shifting impact fees to $ per square foot to encourage more compact units
• Shifting impact fees for parking aligned to City’s goals
• Reducing impact fees for floors above third story to encourage development of higher intensity
projects
• Reducing fees for affordable units
• Reducing fees to incentivize affordable housing development
• Amortizing fees over a period of time for affordable housing
Specific Actions and
Timeline
• By December 2024, conduct an impact fee analysis and revise the
development fee structure to encourage a range of housing unit sizes by
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utilizing a sliding scale based on unit size or fee schedule per square
foot basis.
• Create 100 new housing units for special needs groups, including for
seniors, disabled, farmworkers, hospitality workers, and the homeless
representing approximately two affordable housing projects over eight
years, at typical size of approximately 50 units per project utilizing LIHTC
(see also Program 7).
Primary Responsible
Departments Community Development
Funding Sources General Fund
Program 9: Shopping Center Conversion
Throughout the state, and even nationwide, the shift to online shopping has resulted in changes to the retail
landscape. Many shopping centers are being reimagined as vibrant residential/commercial mixed use
development. However, redeveloping shopping centers presents some challenges, such as the large site
scale, configuration of existing structures and parking areas, existing lease terms, CC&R provisions, shared
parking agreements, and community desire to maintain and rejuvenate retail services. The City will
establish policies and development regulations to enable a residential development through a range of
approaches including:
• Full redevelopment;
• Addition of residential uses in existing surface parking areas;
• Cluster residential development on underutilized portions of the site; and/or
• Addition to or reconfiguration of the existing structures to include residential uses.
Specifically, policies and zoning development standards will be written to facilitate:
• Subdividing, if necessary, of the parking areas to create developable parcels;
• Clustering of densities on portions of the parking areas; and
• Shared access to existing structures to allow existing uses to remain while the parking areas are
being redeveloped or reconfigured
• Increase height limits and permit shared parking options
• A strong sense of place and cohesive urban design both within the site and in relation to the
surrounding neighborhood.
Specific Actions and
Timeline
• By March 2023, develop land use policies and development standards to
facilitate shopping center redevelopment with a strong sense of urban
design cohesion.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
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Program 10: Water Master Plan and Priority for Water and
Sewer Services
The City is implementing its current water master plan as it develops an updated water master plan. The
City purchases most of its drinking water from Sonoma Water and is a party to the Restructured Agreement
for Water Supply (Restructured Agreement) between Sonoma Water and its water contractors. As required
by the Restructured Agreement, the city is an active participant in the Sonoma Marin Saving Water
Partnership which provides regional solutions for water use efficiency. The city is participating with Sonoma
Water in a Regional Water Supply Resiliency Study.
As an urban water supplier, the City prepares an updated Urban Water Management Plan (UWMP) every
five years which assesses the reliability of water sources over a 20-year planning horizon. Part of the UWMP
is the Water Shortage Contingency Plan (WSCP) which is enacted during water shortage events. As part
of the City development impact fees, the City charges water and sewer capacity fees for new connections.
By December 2022, the City will conduct a water and sewer capacity fee study and revise its capacity fees
to reflect the current cost of growth for future customers.
The City has a robust water conservation strategy that offers many programs to help residential and
commercial water customers conserve water including rebates, water use evaluations, leak detection, and
free water-saving devices. The water conservation program contracts with the local non-profit organization
Daily Acts to provide water conservation outreach and programming.
The City has the following efforts planned to increase local water supply resiliency and water use efficiency:
• Drought Ready Ordinance – a requirement to pre-plumb new buildings for graywater.
• WSCP Update – plan update to include restrictions for some new water customer connections that
occur during a water shortage periods.
• Recycled Water Program Expansion – expand urban recycled water pipeline to irrigate additional
parks, schools, and public landscape areas.
• Expand the water conservation rebate program
• Aquifer Storage and Recovery Plan – plan to study taking surplus drinking water from the Russian
River system during wet winter years and storing it in the deep underground aquifer in the Petaluma
groundwater basin. The stored water would then be available as an emergency backup supply.
• Expand local municipal groundwater wells – develop new wells and implement decentralized
treatment for existing wells with impaired water quality.
• The City is a member of the Petaluma Valley Groundwater Sustainability Agency (GSA) which is a
public agency formed in 2017 to sustainably manage groundwater in the Petaluma Valley
groundwater basin.
• Advanced Metering Infrastructure (AMI) – replacement project for all existing 20,000 + water meters
to AMI technology. AMI will increase water conservation and provide water customers with real-
time leak detection alerts and water use information.
As an urban water supplier and wastewater service provider, the City will comply with SB 1087 to establish
priority water and sewer services for new affordable housing development applications.
Specific Actions and
Timeline
• Ongoing participation in the update and implementation of the water
master plan.
• On-going compliance with the Restructured Agreement and participation
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in the Sonoma Marin Saving Water Partnership.
• On-going implementation and expansion of water conservation program.
• On-going recycled water program expansion.
• By December 2022, an estimated 5 new recycled water connections off
Maria Drive to serve public parks and landscape areas
• By December 2022, Drought Ready Ordinance to City Council for
consideration and adoption.
• By December 2022, begin Aquifer Storage and Recovery Plan.
• By September 2022, update UWMP and WSCP.
• By December 2022, begin updated water and sewer capacity fee study
and implement revised capacity fees.
• By December 2023, adopt policy for prioritizing water and sewer
services to new affordable housing development applications, consistent
with SB 1087.
• FY23-24, Installation of new municipal groundwater well.
• Planning stages for well treatment at existing groundwater wells.
• By December 2025, the Advanced Metering Infrastructure installation
complete.
Primary Responsible
Departments Public Works and Utilities
Funding Sources Water Enterprise
AFFH Themes Not applicable
3.2.3. Affordable Housing
Program 11: Inclusionary Housing
The City implements its local Inclusionary Housing program that requires 15 percent of the units in new
development (of five or more units) to be rented or sold at prices affordable to lower low and very low and/or
low and moderate income households. To facilitate housing development, the City will evaluate the
Inclusionary Housing program to:
• Assess the threshold for applying the inclusionary requirements, including the appropriate unit
threshold for in-lieu options.
• Establish specific alternative options for fulfilling the inclusionary housing requirements, such as
payment of an in-lieu fee, donation of land, acquisition/rehabilitation and deed restriction of existing
housing, preservation of affordable housing at risk of converting to market rate, or allowance of
ADUs in multi-family development to count toward the requirement.
Specific Actions and
Timeline
• Continue implementation of the Inclusionary Housing Program to create
1,000 affordable units (400 very low income; 400 low income; 200
moderate income) over eight years, inclusive of the 419 affordable units
in the pipeline.
• In 2024, evaluate the Inclusionary Housing program to ensure the in-lieu
options, threshold and fee structure for in-lieu options are appropriate to
facilitate housing development given the current market conditions.
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• At least every four years, review the in-lieu fee calculations to ensure the
fees reflect current market conditions.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
AFFH Themes
• New Opportunities in High Resource Areas
• Housing Mobility
• Anti-Displacement and Tenant Protection
Program 12: Housing-Commercial Linkage Fee
The City implements the Housing-Commercial Linkage Fee program to facilitate affordable housing
development. The program requires all construction or expansion of nonresidential development to pay a
linkage fee for affordable housing. Nonresidential uses include commercial, retail, and industrial uses. The
collected fee is used to provide affordable housing for households with incomes between 80 and 100
percent of the Area Median Income (AMI). However, this income range does not cover many workers in the
farming or hospitality industries who are at lower pay scales. To ensure the success of the Housing-
Commercial Linkage fee in helping the City meet workforce housing needs in the community, the City
should evaluate the appropriateness of the 80 to 100 percent AMI target and consider modifying the fee to
allow for use in lower income categories. Additionally, the fee as currently adopted does not include the
annual increase by CPI that many other City impact fees have. Therefore, the Linkage fee should be
modified to include an annual adjustment to keep up with market trends.
Specific Actions and
Timeline
• In 2024, review the existing nexus study.
• At least every four years, review and revise the Linkage fee calculations
to ensure the fee reflects current market conditions.
• In 2024, modify fee resolution to include an automatic annual increase
by CPI.
• By the end of 2024, revise the target AMI range for the program to up to
100 percent AMI (to encompass the very low income and extremely low
income groups).
• Facilitate the development of 1,000 affordable units over eight years,
inclusive of the 419 affordable units in the pipeline.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
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Program 13: Local Housing Trust Fund
A major constraint to affordable housing development is the lack of funding. The City has established a
Local Housing Trust Fund but has limited sources of revenue for the Trust Fund. Currently, available
sources include fees generated from the Inclusionary Housing in-lieu fee, Housing-Commercial Linkage
Fee, and Permanent Local Housing Allocation. With the City’s focus on on-site production of affordable
units, the In-Lieu fee is not a significant revenue for the Trust Fund.
The City is exploring participation in the Joint Powers Authority (JPA) with the City of Santa Rosa and the
County of Sonoma. The JPA was created with the PG&E settlement funding from the 2017 and 2018
wildfires.
The City will explore other funding sources, including:
• General Fund
• Transient Occupancy Tax
• Short-Term Rental registration fee
• Vacant Home Tax - Imposing a tax on homes that are unoccupied for an extended period
• Employer Fee – Requiring major employers to contribute to affordable housing
Specific Actions and
Timeline
• Ongoing exploration of additional funding sources for the Housing Trust
Fund and pursue appropriate options by 2025.
Primary Responsible
Departments Community Development (Housing)
Funding Sources Housing Trust Fund
Program 14: Incentives for Affordable Housing
The City will continue to facilitate the development of affordable housing, especially housing for lower
income households (including extremely low income) and those with special housing needs (including
persons with disabilities/developmental disabilities). Incentives may include, but are not limited to:
• Expedited review of affordable housing projects
• Dedicated project manager to help navigate the City process
• Financial participation using the Local Housing Trust Fund
• Support and assistance in project developer's applications for other local, state, and federal funds
• Density bonus beyond State law
• Waived, reduced, or deferred impact fees for affordable housing units (potentially scaled on the
basis of affordability level and percent of affordable units)
• Streamlined review for 100 percent affordable housing projects
Specific Actions and
Timeline
• This work is ongoing.
• Annually, pursue funding from local, state, and federal programs to
facilitate the development of affordable housing, including housing for
those making extremely low incomes and those with special housing
needs.
• By December 2023, establish an incentive package for affordable
housing development, such as the percentage of affordable units to
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qualify for expedited review and local density bonus.
• Facilitate the development of 1,000 affordable units in eight years (400
very low income; 400 low income; and 200 moderate income), inclusive
of the 419 affordable units in the pipeline.
• Target at least 40 percent of new affordable units in high resource areas.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 15: Workforce and Missing Middle Housing
In general, the concept of missing middle housing refers to two scenarios. One, housing is not affordable
to middle income households. Two, the range of housing available in a community is missing housing types
at medium densities. Often these two scenarios overlap, as affordability is correlated with density. Housing
in Petaluma is generally not affordable to lower and moderate income households. Even middle income or
workforce households, defined as households making up to 150% of the area median income, have
difficulty locating affordable and adequate housing options. More than three-quarters of the City’s housing
stock is comprised of single-family detached homes, a housing type that is generally not affordable to
middle income households. The City will explore various strategies to promote workforce/missing middle
housing. Potential strategies may include:
• Transitioning single-family neighborhoods into 15-minute walkable neighborhoods by integrating
neighborhood-serving uses, and live/work spaces with residential uses. This approach enhances
housing options by introducing medium density housing into single-family neighborhoods, providing
the middle income housing that is missing in the City's range of housing choices. To implement this
goal, the City will explore several changes to the Zoning Code, including but not limited to:
o Allowing neighborhood-serving nonresidential uses into residential neighborhoods,
including co-working spaces
o Redefining home occupation and live/work arrangements
o Implementing SB 9
o Promoting small lot subdivisions and appropriately-scaled multi-family buildings
• Allowing small complexes, up to six units, on lots of at least 6,000 square feet citywide.
• Facilitating lot consolidation.
• Establishing a requirement for an average unit size per development to balance between density
and unit sizes and encourage the development of smaller units.
• Pursuing the acquisition and deed restriction of apartments for middle income households.
Specific Actions and
Timeline
• By December 2023, as part of the City's General Plan update, develop
land use policies to facilitate the transitioning of single-family detached
neighborhoods and to increase opportunities for medium density
residential for middle income housing.
• By December 2023, develop application and process materials for SB 9
applications. In the interim, work with applicants one-on-one to ensure
the City is implementing State mandates.
• In 2024, pursue opportunities with Joint Powers Authorities to acquire
and deed restrict apartments as middle income housing.
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• Create 80 new units (duplex, triplex, fourplex, and small multi-family
complex) in single-family and other lower density neighborhoods, for an
average of ten units per year as part of the City’s efforts to create 15-
minute neighborhoods.
Primary Responsible
Departments Community Development (Planning, Housing); City Attorney’s Office
Funding Sources Housing Trust Fund
AFFH Themes • Housing Mobility
• New Opportunities in High Resource Areas
Program 16: Community Land Trust/Land Banking
Community land trusts are nonprofit, community-based organizations designed to ensure community
stewardship of the land. Community land trusts can be used for many types of development (including
commercial and retail), but are primarily used to ensure long-term housing affordability. To do so, the trust
acquires land and maintains ownership of it permanently.
The CLT model is often used for the ownership of affordable housing because the cost of land is not factored
into the price of the home. Prospective homeowners enter into a long-term renewable lease with the CLT
instead of a traditional sale. When the homeowner sells, the seller earns only a portion of the increased
property value. The remainder is kept by the trust, preserving the affordability for future low to moderate
income households. For rental housing, the CLT guarantees the affordability of the properties in perpetuity.
The City may also pursue an alternative approach to CLT, by acquiring and retaining ownership of the land
but leasing the land to developers for affordable housing for $1 per year.
Specific Actions and
Timeline
• Partnership with a regional community land trust is ongoing.
• In 2024, conduct outreach to nonprofit housing developers and other
Community-Based Organizations (CBOs) to explore the feasibility of
establishing a CLT. If feasible, identify funding sources to seed the CLT
and in 2025, establish a CLT for affordable housing or develop an
alternative land banking strategy.
Primary Responsible
Departments Community Development (Housing)
Funding Sources Housing Trust Fund
3.2.4. Housing Preservation
Program 17: Housing Rehabilitation
In recent years, the City has been providing Community Development Block Grant (CDBG) funds to
Rebuilding Together to provide major and minor rehabilitation services to lower income households. The
City will continue to support nonprofit efforts for the improvement of housing conditions for lower income
households, especially those with special needs. Eligible improvements include emergency health and
safety housing repairs, energy conservation, and accessibility improvements.
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The City will also explore using available resources to assist disadvantaged neighborhoods in moving
toward all electrical utilities and appliances per the City’s Climate Action and Adaptation Plan.
Specific Actions and
Timeline
• Continue to provide funding for housing rehabilitation services to assist
an average of 30 households annually or 240 households over eight
years.
• By 2025, pursue funding for decarbonization of housing for low income
households to assist a minimum of 40 households over eight years.
• Require that projects seeking local funding for housing rehabilitation
demonstrate a commitment to electrification.
Primary Responsible
Departments Community Development (Housing)
Funding Sources CDBG
Program 18: Preservation of At-Risk Housing
The City has an inventory of publicly assisted housing projects that offer affordable housing opportunities
for lower income households. Most of these projects are deed-restricted for affordable housing use long
term. However, eight projects (300 units) in the City utilize Section 8 rental assistance from HUD to further
subsidize the affordability of these units. These subsidy contracts require renewal periodically. However,
all except one of these projects are owned by nonprofit organizations. Therefore, the likelihood of these
projects opting out of low income use is limited.
The City will work to preserve the long-term affordability of its affordable housing inventory, including these
eight projects with project-based Section 8 contracts. A possible strategy for preserving the affordable
housing inventory is to acquire and maintain the affordable projects through the Community Land Trust if
one is established (Program 17).
Specific Actions and
Timeline
• The City is currently working to support the preservation of at-risk
housing.
• Annually monitor and report on the status of the at-risk units with the
goal of preserving the existing 300 at-risk units.
• Ensure tenants are properly noticed by the property owners should a
Notice of Intent to opt-out of low income use is filed. Notices must be
filed three years, one year, and six months in advance of conversion.
• If HUD Section 8 contracts are not renewed, work with property owners
to pursue other funding to preserve affordability. Outreach to other
nonprofit housing providers to acquire projects opting out of low income
use.
• Work with property owners to encourage the acceptance of Section 8
vouchers by securing resources and or partnerships to that would
support a Housing Locator position within the community or through a
regional partnership. The position would be focused on marketing the
Section 8 Program, building relationships with landlords, and linking
landlords with community service providers as resource.
• Pursue acquisition and expansion of the affordable units through the
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Community Land Trust if one is established.
Primary Responsible
Departments Community Development (Housing)
Funding Sources Housing Trust Fund
Program 19: Mobile Home Rent Stabilization
The City implemented rent stabilization for mobile home spaces in 1994 to ensure affordability for
homeowners, most of whom are on fixed incomes. At the same time, rent stabilization is intended to allow
mobile home park owners to maintain a fair and reasonable return. Rent stabilization applies to spaces that
have a rental agreement term of 12 months or less. Annual rent increases are limited to the percentage
change in the Consumer Price Index (CPI), but any increase is limited to a maximum of 6 percent.
The City promotes the long-term affordability of the mobile home units through the following actions:
• The land use classification of the seven mobile home parks in Petaluma is Mobile Homes. This
classification protects the mobile home parks from possible future development by limiting the
housing types to only mobile homes. Any proposed change would require a General Plan
amendment.
• Support the administration of the Mobile Home Rent Control Program that was implemented to
provide rent stabilization for over 317 lower income mobile home park tenants, most of whom are
elderly.
(See Program 29: Tenant Protection Strategies that cover housing opportunities citywide.)
Specific Actions and
Timeline
• Continue to support the affordability of mobile home parks by working
with residents and property owners to monitor rents and ensure rent
increases are economically feasible, in addition to putting in place tenant
protections city wide.
• Annually monitor mobile home park rents to ensure compliance with the
Rent Stabilization Ordinance.
• As requested, conduct mediation between tenants and mobile home
park owners for rent increases.
• By December 2022, update the Mobile Home Rent Stabilization
Ordinance.
Primary Responsible
Departments Community Development (Housing); City Attorney’s Office
Funding Sources Mobile Home Rent Stabilization Fee
Program 20: Historic Preservation
The City has many homes older than 50 years that are eligible for historic preservation through the Mills
Act. The City will explore adopting a Mill Act Program to preserve and enhance the quality of historic homes,
while still increasing the housing supply. A potential adaptive reuse approach is to convert these older
homes into smaller living quarters or other living arrangements.
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Specific Actions and
Timeline
• In 2024, adopt a Mills act program based on City priorities or develop
alternative tools to facilitate historic preservation.
• Annually outreach to historic homes through the City newsletter
regarding the tax benefits through Mills Act.
• Provide technical assistance to interested property owners in converting
large historic homes into smaller housing units such as creating JADUs
within the existing square footage or converting into co-housing
arrangements.
Primary Responsible
Departments Community Development (Planning); City Attorney’s Office
Funding Sources Housing Trust Fund
Program 21: Condominium Conversion
The City allows the conversion of apartments into condominiums only when the rental vacancy rate is above
three percent, or if one-for-one replacement of rental units of a similar type occurs, or if two-thirds of the
adult tenants agree to the conversion. However, given the tight rental housing market in Petaluma,
condominium conversion is not anticipated to be a significant trend in the foreseeable future. Should this
become an issue, the City will also consider a Tenant Opportunity to Purchase Act (TOPA) to mitigate the
displacement impacts.
Specific Actions and
Timeline
• Bi-Annually monitor the vacancy rate.
• If condominium conversion becomes a market trend again, within one
year of identifying a revived trend, pursue Tenant Opportunity to
Purchase Act to allow a tenant the first right of refusal or other
alternative tools to mitigate displacement impacts.
Primary Responsible
Departments Community Development (Planning, Housing); City Attorney’s Office
Funding Sources General Fund
3.2.5. Special Needs Housing
Program 22: Project HomeKey
In March 2022, the City was awarded $15,385,000 funding from the State of California, Housing and
Community Development Department (HCD), for Project Homekey. The project scope includes the
acquisition and rehabilitation of an existing 62-unit hotel. The project will provide sixty units of permanent
supportive housing for members of the community who are chronically unhoused.
Specific Actions and
Timeline
• This work is ongoing.
• In 2023, identify additional potential locations that may be appropriate as
Project HomeKey sites and conduct outreach to interested nonprofit
developers to pursue funding from HCD. The goal is to potentially
achieve additional projects.
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Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources HCD Project HomeKey Funds, City/County housing funds
Program 23: Support for Homeless Services and Facilities
In June of 2022, the city adopted the Strategic Plan to End Homelessness. This includes a vision and specific
strategies to guide the City’s homelessness policies, programs, and investments during the upcoming three-
year action cycle, covering July 1, 2022 through June 30, 2024. The Plan was developed through a three-
phase process which included: 1) Discovery (local input through community feedback sessions and
individual interviews – with an emphasis on incorporating lived experience input from people who had
experienced or who currently are experiencing homelessness, and research of related reports and studies
on homelessness in Petaluma and Sonoma County as well as at regional, state and federal levels), 2)
Analysis (review of data sources, identification of strengths/weaknesses/opportunities/threats within the
current system, and development of a “pathway to housing framework” to better identify gaps and
opportunities), and 3) Feedback and Adoption (iteration and review of the Plan with staff, service providers,
and the broader community. As funding permits, the City continues to support the provision of housing and
services for community members who are unhoused. In the past, the City has supported the following
programs and facilities:
• Petaluma People Services Center (PPSC) Rental Assistance Program: This program assists
Petaluma individuals and families seeking to retain affordable housing by making a one-time
payment of rent or mortgage on their behalf. Clients also receive information, referrals, and
counseling services to prevent future threats to their stability.
• Mary Isaak Center (MIC): MIC contains an 80-bed dormitory, a large dining area, a six-bed sick
room, a large training/service kitchen, a living room, a conference/counseling room, a laundry room,
offices, lockers, and men's and women's bathroom facilities with showers. All clients participate in
multi-level case management and goal-setting program that helps clients with basic needs and
access to social services, including life skills workshops, counseling services, referrals, showers,
lockers, mail, laundry facilities, telephone, and message services.
• Committee on the Shelterless (COTS) Family Shelter: MIC has a 32-bed transitional housing
program for families located on the 2nd floor of the Mary Isaak Center. The program is designed to
be the final step on their way to stability in permanent, independent housing.
• People's Village: The Village is comprised of 25 non-congregate tiny homes adjacent to the COTS
Mary Isaak Center. The program includes intensive case management services and is focused on
transitioning clients into long-term housing solutions.
• Committee on the Shelterless (COTS) Family Transitional Homes: The COTS program has a total
of 12 homes, four of which are City-owned, while eight are market-rate and leased by COTS and
have County Housing Vouchers. This program provides housing for clients transitioning out of an
emergency shelter.
• City-Owned Homes: The City owns a four-bedroom house on Rocca Drive, leased and operated
by the America's Finest (formerly Vietnam Veterans of America) serving homeless veterans who
are unsheltered and are enrolled in the Agency's Employment and Training Program.
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Specific Actions and
Timeline
This work is ongoing. Annually assist various local nonprofits that serve the
homeless:
o 100 households through PPSC Rental Assistance
o 80 bed nights through Mary Isaak Center
o People’s Village 25 Non- congregate interim housing
o 60 individuals through COTS Family Shelter
o 80 individuals through COTS Family Transitional Homes
o 12 individuals through City-owned Transitional Home
Primary Responsible
Departments Community Development (Housing)
Funding Sources Housing Trust Fund; CDBG
Program 24: Senior Housing Options
The City has an aging population and there are generally limited options for seniors to trade down their
current homes for smaller units that may require less upkeep and repairs. The City will explore incentives
to encourage the development of a range of senior housing options, such as senior apartments,
condominiums/townhomes, assisted living, co-housing, and intergenerational housing. Development
standards may need to be modified to accommodate alternative housing options such as co-housing and
tiny homes. Other policies may include encouraging developers to include accessible homes that utilize
universal design principles. In addition, the City will promote programs such as Home Match to assist
seniors who would like to remain in their homes but rent out the excess rooms or develop ADUs.
Specific Actions and
Timeline
• Some of this work is ongoing.
• In 2024, develop incentives and modifications to development standards
to facilitate a variety of housing options for seniors. Specifically, establish
appropriate parking standards for different types of senior housing.
• Continue to promote Home Match and similar programs that help match
seniors with potential tenants and help navigate the rental leasing
process.
• Create 50 new senior units, representing an average approximate size of
an affordable housing development using LIHTC.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 25: Adequately Sized Rental Housing for Families
The rental housing market of Petaluma offers limited large rental units that would be considered adequate
for large households or families with children. When such units are available, the rents are not affordable
to lower and moderate income households. The City may consider policies to facilitate the development of
large rental units. Potential considerations may include:
• Requiring projects above a certain size to include units with three or more bedrooms
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• Allowing large units to qualify as more than one inclusionary unit
• Reducing parking requirements (currently one per bedroom) to facilitate larger rental units
• Allowing ADUs to exceed State size requirements
Specific Actions and
Timeline
• In 2024, develop incentives and modifications to development standards
to facilitate large rental units.
• Target 20 percent of new rental units to have three or more bedrooms.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
Program 26: Universal Design and Visitability
Universal design is the design of buildings or environments to make them accessible to all people,
regardless of age, disability, or other factors. Universal design goes beyond ADA requirements but may
add to the cost of construction. Typically, communities incentivize the use of universal design principles.
Currently, visitability is a requirement for HUD-funded single-family or owner-occupied housing. Visitability
is housing designed in such a way that it can be lived in or visited by people who have trouble with steps
or who use wheelchairs or walkers. The City demonstrates its support for visitability by requiring design
measures for developments with five units and under and expanding visitability to 30 percent of multi-family
housing with the Visitability and Universal Design Ordinance approved by City Council on February 28,
2022.
Specific Actions and
Timeline
• In 2022, research and develop an ordinance to ensure Visitability and
Universal Design for future residential development for both single family
and multifamily development.
• In 2022, approve a Visitability and Residential Design Ordinance
(adopted June 6, 2022).
• Continue to implement and enforce visitability and universal design
compliance.
• By 2026 evaluate impact of the ordinance and if appropriate, expand to
higher percentage of multi-family units.
• Consistent with the City’s recently adopted Ordinance, achieve 30
percent of multi-family units meeting visitability or universal design
requirements.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
Program 27: Housing for Farmworkers and Hospitality
Workers
Sonoma County is known for its wide range of agricultural activities. Agricultural activities and the hospitality
industry associated with local wineries represent a significant segment of the regional economy. Although
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the City of Petaluma does not have a large farmworker population, farmworkers live outside of City limits
and access public services within City limits. Also, about 22 percent of employees in Petaluma are
employed in retail and service sectors that support the hospitality industry. Farmworkers and hospitality
employees typically earn lower wages and have limited affordable housing options in Petaluma. To
participate in addressing this regional housing need, the City may explore policies that facilitate the
provision of affordable housing for these workers. Potential considerations may include:
• Adjusting the Housing-Commercial Linkage Fee program requirement for affordable housing to
households earning up to 100 percent of AMI (encompassing very low income and extremely low
income households) (see Program 13)
• Setting aside a specific percentage of affordable housing units for farmworkers and hospitality
workers
• Partnering with other jurisdictions, farm operators, wineries, hotels, and other hospitality employers
in the region to contribute to an affordable housing fund or Community Land Trust
• Requiring hospitality employers to provide housing for temporary employees during peak seasons
Specific Actions and
Timeline
• In 2025, reach out to other jurisdictions, farm operators, and hospitality
employers to explore strategies for providing affordable housing options
to farmworkers and hospitality employees. Develop strategies by
December 2025.
• Create 50 units for farm workers and/or hospitality workers, representing
the typical size of an affordable housing project using LIHTC.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
3.2.6. Fair Housing
Program 28: Fair Housing Outreach and Enforcement
The City of Petaluma provides funding annually to Petaluma People Services Center (PPSC), which
provides several services including mediation and resolution of tenant/landlord disputes, helping tenants
complete state and federal complaint forms, investigating complaints of housing discrimination, and
providing outreach services.
Specific Actions and
Timeline
• This work is ongoing.
• Assist an average of 300 residents annually with tenant/landlord dispute
resolution, and fair housing inquiries and investigations.
• By December 2023, update the City website to provide a range of fair
housing resources, including PPSC, State Department of Fair
Employment and Housing (DFEH), and HUD Fair Housing and Equal
Opportunity (FHEO) Office, along with State tenant protection provisions.
• By December 2023, work with PPSC to expand methods of information
dissemination, including print, website, and other social media outlets.
Specifically, work with PPSC to develop materials on the State’s source
of income protection and distribute them as part of the ADU permit
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application package.
Primary Responsible
Departments Community Development (Housing)
Funding Sources City Housing In-Lieu
Program 29: Tenant Protection Strategies
Throughout the region, tenants are facing rising rents and the risk of eviction due to the economic impact
of COVID, as well as displacement impact from the economic pressure of new development. The City will
explore a series of strategies that offer tenant protection. These may include:
• Rent stabilization: Currently, the State imposes rent caps on some residential rental properties (AB
1482) through 2030. However, AB 1482 exempts single-family homes and condominiums for rent,
and multi-family housing units built within the previous 15 years. A strategy for rent stabilization is
to make permanent the policy and possibly expand the policy to units not covered by AB 1482.
However, compliance with the 1995 Multi-Family Housing Act (Costa Hawkins) is critical.
• Just Cause for Eviction: AB 1482 also establishes a specific set of reasons that a tenancy can be
terminated. These include: 1) default in rent payment; 2) breach of lease term; 3) nuisance activity
or waste; 4) criminal activity; 5) subletting without permission; 6) refusal to provide access; 7) failure
to vacate; 8) refusal to sign lease; and 9) unlawful purpose. The City may consider adopting a local
Just Cause for Eviction ordinance that offers greater protection in the scope of units covered.
• Tenant Commission: Typically, most land use policies and planning decisions are made from the
perspective of property owners. Tenants lack a voice in the planning process. A Tenant
Commission or Advisory Committee may be an avenue where they can bring policy discussions
that highlight tenant interests to the City.
• Right to Purchase: When tenants are being evicted due to condominium conversion or
redevelopment, the Right to Purchase policy/program ensures the first right of refusal to displaced
tenants to purchase the units.
• Right to Return: When tenants are being evicted due to rehabilitation/renovation of the property,
the Right to Return policy/program offers the first right of refusal to displaced tenants to return to
the improved property.
Specific Actions and
Timeline
• In 2023, begin community outreach to discuss various strategies of
tenant protection.
• In 2024, adopt appropriate tenant protection strategies, such as right to
purchase policies, just cause for evictions, relocation assistance, and
rent stabilization.
Primary Responsible
Departments Community Development (Planning); City Attorney’s Office
Funding Sources General Fund
AFFH • Tenant Protection and Anti-Displacement
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Affirmatively Furthering Fair Housing
The following table summarizes the City’s implementation actions to further fair housing. Individual housing
programs may have different impacts on furthering housing choices in Petaluma. Fair housing actions are
grouped into the five themes:
• Fair housing outreach and enforcement
• Housing mobility through expanded choices in housing types and locations
• New opportunities in high resource areas
• Place-based strategies for neighborhood improvements
• Tenant protection and anti-displacement
Housing programs are often implemented citywide. However, individual programs may have targeted
locations for specific actions, increased outreach efforts, and/or priority for allocation of resources, and
program-level metrics are not mutually exclusive.
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Table 1: Affirmatively Furthering Fair Housing Action Matrix
Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Housing Mobility
Program 5:
Flexible Development
Standards
As part of the General Plan
update, adjust the mixed-use
development requirements
and address zoning code
constraints, such as parking
requirements, to adaptive
reuse of nonresidential
spaces.
By
December
2023
Downtown
Create 40 new units through adaptive
reuse and conversion of nonresidential
use
Program 6:
Religious and Institutional
Facility Housing Overlay
As part of the General Plan
update, establish a Religious
and Institutional Facility
Housing Overlay.
By
December
2024
Citywide
Create 50 new housing units affordable
to lower income households in Overlay,
representing the typical size of an
affordable housing project using LIHTC
Program 7:
Zoning Code Amendments
Revise the Zoning Code to
facilitate a variety of housing
types.
By
December
2024
Citywide
Create 100 new housing units for
special needs groups, including for
seniors, disabled, farmworkers,
hospitality workers, and the homeless. Program 8:
Development Fees
Conduct an impact fee
analysis and revise the
development fee structure to
encourage a range of housing
unit sizes.
By
December
2024
Citywide
Program 15:
Workforce/Missing Middle
Housing
Develop land use policies to
facilitate the transitioning of
single-family neighborhoods
and to increase opportunities
for medium density residential
By
December
2023
Single-family
neighborhoods and
lower density areas
Create 80 new units (duplex, triplex,
fourplex, and small multi-family
complex) in single-family and other
lower density neighborhoods, for an
average of 10 units per year.
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
for workforce and middle
income housing.
Program 24:
Senior Housing Options
Develop incentives and
modifications to development
standards to facilitate a variety
of housing options for seniors.
In 2024 Citywide
Create 50 new senior units,
representing an average size of an
affordable housing development using
LIHTC
Promote Home Match and
similar programs that help
match seniors with potential
tenants and help navigate the
rental leasing process.
Ongoing Citywide Not applicable
Program 25:
Adequately Sized Rental
Housing for Families
Develop incentives and
modifications to development
standards to facilitate large
rental units.
In 2024
Citywide, with an
emphasis on
Midtown/Downtown
neighborhood
(Tracts 1507.01,
1509.01)
Target 20 percent of new rental units to
have three or more bedrooms
Program 26:
Universal Design and Visitability
Research and develop an
ordinance to ensure Visitability
and Universal Design for
future residential development
for both single family and
multifamily development.
By 2026 Citywide, with an
emphasis on
Midtown/Downtown
neighborhood
(Tracts 1507.01,
1509.01)
Consistent with the City’s recently
adopted Ordinance, achieve 30
percent of multi-family units meeting
visitability or universal design
requirements. Approve a Visitability and
Residential Design Ordinance
at
In 2022
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Continue to implement and
enforce visitability and
universal design compliance.
Ongoing
Evaluate impact of the
ordinance and consider
expansion to higher
percentage of multifamily
units.
By 2026
Program 27:
Housing for Farmworkers and
Hospitality Workers
Outreach to other jurisdictions,
farm operators, and hospitality
employers to explore
affordable housing solutions
for farmworkers and hospitality
employees and develop
appropriate implementation
strategies.
By 2025 Citywide
Create 50 units for farm workers and/or
hospitality workers, representing an
average size of an affordable housing
project using LIHTC.
New Opportunities in High Resource Areas
Program 3:
Accessory Dwelling Units
Develop and implement an
outreach program to promote
ADU/JADU in Planned Unit
Development (PUD) areas that
previously do not allow such
units.
In 2023 PUD areas Create 16 ADUs/ JADUs in PUD areas
Program 11:
Inclusionary Housing
Continue to implement the
Inclusionary Housing Program. Ongoing Citywide
Create 1,000 new affordable units,
inclusive of the 419 affordable units in
the pipeline.
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Program 14:
Incentives for Affordable
Housing
Develop an incentive package
for affordable housing
development, such as the
percentage of affordable units
to qualify for expedited review
and local density bonus.
By
December
2023
High resource
areas
Target at least 40 percent of new
affordable units in high resource areas
Place-Based Strategies for Neighborhood Improvements
Program 3:
Accessory Dwelling Units
Promote opportunities to
property owners, particularly
those in the Disadvantaged
Communities as outlined in the
Environmental Justice
Element.
Within six
months of
adopting
an
amnesty
program
Disadvantaged
Communities:
1506.01
1506.09
1509.01
1506.03, Block
Group 1
1506.03, Block
Group 2
1506.03, Block
Group 5
1506.07, Block
Group 2
1508.00, Block
Group 3
1512.01, Block
Group 4
Achieve code compliance or
legalization of 40 units over eight years
Program 17:
Housing Rehabilitation
Pursue funding for
decarbonization of housing for
low income households.
Beginning
2025
Assist a minimum of 40 lower income
households in Disadvantaged
Communities
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Adobe
Neighborhood
(Low Resource)
1506.01
1506.02
1506.11
Tenant Protection and Anti-Displacement
Program 2:
Replacement Housing
Update the Zoning Code to
address the replacement
requirements and to consider
requiring the first right of
refusal for displaced tenants.
By
December
2024
Citywide No net loss of existing affordable
housing
Program 18:
Preservation of At-Risk Housing
Take actions to preserve at-
risk units. Ongoing Citywide Preserve all 300 at-risk units
Program 19:
Mobile Home Rent Stabilization
Monitor mobile home park
rents to ensure compliance
with the Rent Stabilization
Ordinance.
Annually Citywide Preserve affordable rents for 317
mobile home park tenants
Program 29
Conduct community outreach
to discuss various strategies of
tenant protection and adopt
appropriate tenant protection
strategies.
In 2024
Citywide, with an
emphasis on Tract
1508 (identified as
a sensitive
community at risk
of displacement)
Not applicable
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Fair Housing Outreach and Enforcement
Program 28:
Fair Housing Outreach and
Enforcement
Continue to outreach to
residents regarding fair
housing rights.
Ongoing
Citywide Assist 400 residents, housing
providers, and housing professionals
When vacancies at City
boards and commissions
become available (especially
those with the ability to
influence housing policies),
conduct citywide outreach to
recruit members who are
representative of the targeted
populations
Ongoing
Units listed in the metrics are inclusive of the units listed in Table 2: Summary of Quantified Objectives (below).
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3.4. Summary of Quantified Objectives
The following table summarizes the City's quantified objectives for the various housing programs outlined
above related to Affirmatively Furthering Fair Housing.
Table 2: Summary of Quantified Objectives (2023-2031)
Extremely
Low1 Very Low Low Moderate
Above
Moderate Total
RHNA 247 248 288 313 810 1,910
New Construction2 100 300 400 200 2,500 3,500
Rehabilitation 20 120 140 -- -- 280
Preservation3 75 75 150 -- -- 300
Conservation4 100 100 117 -- -- 317
Notes:
1. State law requires projecting the needs of extremely low income households. One allowable methodology is to
assume that 50% of the very low income housing needs are extremely low income.
2. New construction is generally estimated by doubling housing units from pipeline projects, assuming new
development and adaptive reuse activities in the next eight years will at least reflect the projects already in the
pipeline and assume a steady trend of about 200 units per year. Specifically, the City has 1,760 units in the
pipeline as of November 2022 that are anticipated to be constructed within the 6th cycle Housing Element
planning period.
3. Preservation of 300 at-risk housing units
4. Mobile home rent stabilization program benefiting 317 tenants.
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov
January 27, 2023
Brian Oh, Director
Community Development Department City of Petaluma 11 English Street Petaluma, CA 94952
Dear Brian Oh: RE: Review of the City of Petaluma’s 6th Cycle (2023-2031) Draft Housing Element
Thank you for submitting the City of Petaluma’s (City) draft housing element received
for review on October 31, 2022, along with revisions received on January 20, 2023. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of
its review. In addition, HCD considered comments from Margaret DeMatteo, Legal Aid
of Sonoma County, Public Interest Law Project, NAACP Santa Rosa-Sonoma, Fair Housing Advocates of Northern California, Sonoma County Tenants Union, Generation Housing, TransForm, YIMBY Law, East Bay YIMBY, and Greenbelt Alliance pursuant to Government Code section 65585, subdivision (c).
The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.
Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly
available and considering and incorporating comments where appropriate. Please be
aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.
Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill
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Brian Oh, Director Page 2
(SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s
Affordable Housing and Sustainable Communities programs; and HCD’s Permanent
Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City meets housing element requirements for these and other funding sources.
For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.
HCD appreciates the responsiveness, dedication, and collaboration of the City’s housing element team during the course of our review. We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have
any questions or need additional technical assistance, please contact Jose Ayala, of our
staff, at Jose.Ayala@hcd.ca.gov. Sincerely,
Melinda Coy Proactive Housing Accountability Chief
Enclosure
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APPENDIX CITY OF PETALUMA The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.
Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for
Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/planning-and-
community-development/housing-elements/building-blocks and includes the Government Code addressing State Housing Element Law and other resources. A. Housing Needs, Resources, and Constraints
1. An inventory of land suitable and available for residential development, including
vacant sites and sites having realistic and demonstrated potential for redevelopment
during the planning period to meet the locality’s housing need for a designated income
level, and an analysis of the relationship of zoning and public facilities and services to
these sites. (Gov. Code, § 65583, subd. (a)(3).) Accessory Dwelling Units (ADUs): While the element now adds information regarding ADU permits issues in 2022 to establish a baseline for ADU assumptions during the
planning period, the element must also incorporate ADUs permitted in 2018 (five
ADUs). Per HCD’s Sites Inventory Memo, jurisdictions may opt to use trends in ADU construction since January 2018 to estimate new production; currently, the element estimate production beginning with 2019 ADU permit information. The element must reconcile this information and add 2018 ADU permitting information to estimate
production for the planning period.
Realistic Capacity: The element appears to assume residential development on sites with zoning that allow 100 percent nonresidential uses. While the element mentions the identified sites represent a substantial opportunity for housing and the area is adjacent
to, or within, the Downtown Core, it must still account for the likelihood of non-residential uses. The element should include analysis based on factors such as development trends, performance standards, or other relevant factors. For example, the element could analyze all development activity in these nonresidential zones, how often residential development occurs, and adjust residential capacity calculations,
policies, and programs accordingly. For additional information, see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks/analysis-sites-and-zoning. Suitability of Nonvacant Sites: The element lists various factors (e.g., age of structure,
improvement to land value ratio, existing density versus potential density) utilized to
indicate the potential for redevelopment in the planning period (p. C-0); however, it
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should support the validity of these factors. To support these factors, the element
should evaluate development trends or recent experience in redevelopment relative to the factors. For example, the element could utilize Table C-6 (Trends to Determine Realistic Density) and list the values of the factors for prior uses. The element must be able to make a connection between past redevelopment and sites listed in the inventory by citing similar characteristics by describing existing uses, development
trends, market conditions, and development incentives. Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing
element. The City must utilize standards, forms, and definitions adopted by HCD.
Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-community-development/housing-elements for a copy of the form and instructions. The City can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance.
Sites with Zoning for a Variety of Housing Types:
• Permitted Uses – Single Room Occupancy (SRO) Units: Table B3 (page B-16) and subsequent analysis describes permitted uses for a variety of housing types but do
not address how single room occupancy (SROs) units are allowed. The element
must include a description of how the uses are allowed and conformity with applicable state laws. 2. An analysis of potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the types of
housing identified in paragraph (1) of subdivision (c), and for persons with disabilities
as identified in the analysis pursuant to paragraph (7), including land use controls,
building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall
also demonstrate local efforts to remove governmental constraints that hinder the
locality from meeting its share of the regional housing need in accordance with
Government Code section 65584 and from meeting the need for housing for persons
with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7). (Gov. Code, § 65583, subd. (a)(5).)
Land-Use Controls: While the element describes development standards and some land use controls, it must also analyze those land use controls for impacts on housing supply (number of units), costs, financial feasibility, timing, approval certainty, and ability to achieve maximum densities without exceptions (e.g., conditional use permits,
variance, planned development).
In addition, the element (page B-10) states the minimum open space requirement could preclude the development of multifamily rental apartments but does not commit to addressing this constraint in Program 7. Therefore, the element must include actions
that commit the City to remove this constraint.
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Furthermore, the element (pages B-10 and B-11) clarifies covered/uncovered parking
requirements for multifamily residential projects. However, the element does not fully describe the requirement for a project to provide an overall ratio of at least 1.5 spaces per unit as a potential constraint to smaller-unit residential projects. Therefore, the element should analyze this parking requirement and add or modify programs to address this constraint.
Local Processing and Permit Procedures: While the element (page B-28) describes typical planning application and processing timelines, it should also describe the approval body, the number of public hearings if any, and any other relevant information. The analysis should address impacts on housing cost, supply, timing, and
approval certainty. Constraints on Housing for Persons with Disabilities: While the element modifies Program 7 to permit residential care facilities for seven or more persons in residential
zones subject to a conditional use permit (CUP) with findings that promote objectivity
and certainty, the element does not address the current requirement for residential care facilities to be permitted on an upper floor or behind a ground floor street fronting use in the MU1A, MU1B, MU1C, C1, and C2 zones. This requirement is a constraint on housing for persons with disabilities being built and the element must add or modify a
program to remove this constraint.
3. An analysis of potential and actual nongovernmental constraints upon the
maintenance, improvement, or development of housing for all income levels, including
the availability of financing, the price of land, the cost of construction, the requests to
develop housing at densities below those anticipated in the analysis required by
subdivision (c) of Government Code section 65583.2, and the length of time between
receiving approval for a housing development and submittal of an application for
building permits for that housing development that hinder the construction of a locality’s
share of the regional housing need in accordance with Government Code section
65584. The analysis shall also demonstrate local efforts to remove nongovernmental
constraints that create a gap between the locality’s planning for the development of
housing for all income levels and the construction of that housing. (Gov. Code,
§ 65583, subd. (a)(6).)
Developed Densities: The element must be revised to analyze requests to develop housing at densities below those anticipated in the sites inventory, including hindrance on the construction of a locality’s share of the regional housing need. 4. Analyze the opportunities for energy conservation with respect to residential
development. (Gov. Code, § 65583(a)(8).) While the element provides some information on energy conservation (page B-31) by describing Building Code amendments, the element must provide a full analysis of opportunities for energy conservation.
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B. Housing Programs
1. Include a program which sets forth a schedule of actions during the planning period,
each with a timeline for implementation, which may recognize that certain programs
are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to
implement the policies and achieve the goals and objectives of the Housing Element
through the administration of land use and development controls, the provision of
regulatory concessions and incentives, and the utilization of appropriate federal and
state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the
various actions. (Gov. Code, § 65583, subd. (c).) All programs should be evaluated to ensure meaningful and specific actions, objectives, and commitments. Multiple programs do not have any quantifiable metric to track and measure program success and must be revised to incorporate a quantifiable
metric or outcome. In addition, programs containing unclear language (e.g. “Evaluate”; “Consider”; “Explore”; etc.) must be amended to include more specific and measurable actions. These programs include Program 1 (Adequate Sites for regional housing needs allocation (RHNA) and Monitoring of No Net Loss), Program 2 (Replacement Housing), Program 3 (Accessory Dwelling Units), Program 4 (Efficient Use of Multi-
Family Land), Program 5 (Flexible Development Standards), Program 6 (Religious and Institutional Facility Housing Overlay), Program 7 (Zoning Code Amendments), Program 12 (Housing-Commercial Linkage Fee), Program 20 (Historic Preservation), Program 21 (Condominium Conversion), Program 25 (Adequately Sized Rental Housing for Families), Program 26 (Universal Design and Visitability), Program 27
(Housing for Farmworkers and Hospitality Workers), and Program 29 (Tenant Protection Strategies). In addition, many program actions involve a review of existing standards, procedures, and practices, and additional actions “as appropriate”. For example, the programs
should list the specific trigger for additional action for allocating resources to Program 3 (Accessory Dwelling Units) and revising the minimum open space requirement and parking requirements in Program 7 (Zoning Code Amendments). Additional programs include Program 4 (Efficient Use of Multi-Family Land), The element should review all
programs with such language, and describe what action, or lack thereof, would trigger additional program changes. 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to
accommodate that portion of the city’s or county’s share of the regional housing need
for each income level that could not be accommodated on sites identified in the
inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and
to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types
of housing for all income levels, including multifamily rental housing, factory-built
housing, mobilehomes, housing for agricultural employees, supportive housing, single-
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room occupancy units, emergency shelters, and transitional housing.
(Gov. Code, § 65583, subd. (c)(1).) As noted in Finding A1, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise
programs to address a shortfall of sites or zoning available to encourage a variety of housing types. 3. Address and, where appropriate and legally possible, remove governmental and
nongovernmental constraints to the maintenance, improvement, and development of
housing, including housing for all income levels and housing for persons with
disabilities. The program shall remove constraints to, and provide reasonable
accommodations for housing designed for, intended for occupancy by, or with
supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).)
As noted in Findings A2 and A3, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.
C. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1
& 2).) The element must include quantified objectives to establish an estimate of housing units by income category that can be conserved over the planning period. Conservation objectives
could be incorporated using anticipated outcomes from Program 19 (Mobile Home Rent
Stabilization).
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Table of Contents
1. Introduction ........................................................................................................................................... 1
A Portrait of the Community ................................................................ 1
California Housing Element Law .......................................................... 1
Relationship to the General Plan ......................................................... 2
Relationship to Climate Goals ............................................................. 3
Community Participation ...................................................................... 3
2. Resources to Accomplish Goals ........................................................................................................ 5
Fiscal Resources and Leveraging History ........................................... 5
Article 34 Authority .............................................................................. 6
Partnership Opportunities .................................................................... 7
Regional Housing Needs Assessment ................................................. 8
3. Housing Action Plan .......................................................................................................................... 11
Goals and Policies .............................................................................. 11
Housing Programs .............................................................................. 13
Affirmatively Furthering Fair Housing................................................ 39
Summary of Quantified Objectives .................................................... 46
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1. Introduction
A Portrait of the Community
Petaluma is located 40 miles north of San Francisco in southern Sonoma County, bisected by the Petaluma
River and under the backdrop of the Sonoma Mountains. It is a unique, geographically defined community
with a distinctive character derived from its geography, physical diversity, and small town atmosphere.
Petaluma was incorporated in 1858 and grew steadily following incorporation. There was a notable
residential growth spurt following suburbanization from the 1950s to 1970s, resulting in the adoption of its
residential growth management program. Following that landmark legislation, the City slowed its residential
growth rate to not exceed 500 units per year through the turn of the 20th century. In recent years, the
average number of building permits rarely comes close to 500 units annually. Limited local and regional
housing construction has placed strong economic pressure on the local housing prices and rents, and
housing is becoming increasingly unaffordable to the workforce. This 2023-2031 Housing Element presents
a proactive strategy to create new housing opportunities and preserve housing affordability in the
community.
California Housing Element Law
Enacted in 1969, State housing element law mandates that local governments adequately plan to meet the
existing and projected housing needs of all economic segments of the community. The law acknowledges
that in order for the private market to adequately address housing needs and demand, local governments
must adopt land use plans and regulatory systems that provide opportunities for, and do not unduly
constrain, housing development.
The Housing Element is subject to detailed statutory requirements regarding its content and is subject to
mandatory review by the California Department of Housing and Community Development (HCD). The
Housing Element must be updated every eight years. According to State law, the statutory due date to
update the Housing Element for jurisdictions in the Association of Bay Area Governments (ABAG) region
is January 31, 2023. A key component of the Housing Element requirement is the jurisdiction’s ability to
accommodate the City’s share of Regional Housing Needs Assessment, (RHNA) as determined by HCD.
For this sixth cycle of the Housing Element update, the City of Petaluma has been assigned a RHNA of
1,910 housing units.
1.1.1. Housing Element Components
State law requires the Housing Element to include the following information:
• An analysis of population and employment trends and documentation of projections, and a
quantification of the existing and projected housing needs for all income levels, including extremely
low income households.
• An analysis and documentation of household characteristics, including level of payment compared
to ability to pay, housing characteristics, including overcrowding, and housing stock condition.
• An inventory of land suitable and available for residential development, including vacant sites and
sites having realistic and demonstrated potential for redevelopment during the planning period.
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• The identification of a zone or zones where emergency shelters are allowed as a permitted use
without a conditional use or other discretionary permit.
• An analysis of potential and actual governmental and non-governmental constraints upon the
maintenance, improvement, or development of housing for all income levels.
• An analysis of any special housing needs, such as those of the elderly; persons with disabilities,
including a developmental disability; large families; farmworkers; families with female heads of
households; and families and experiencing homelessness.
• An analysis of opportunities for energy conservation.
• An analysis of existing assisted housing developments that are eligible to change from low income
housing uses during the next 10 years.
• A statement of the community’s goals, quantified objectives, and policies relative to affirmatively
furthering fair housing and to the maintenance, preservation, improvement, and development of
housing.
The housing element establishes an action plan that details the actions, or programs, that will implement
the goals and policies. For each program, the action plan must identify the agency responsible and the
timeframe for implementation.
1.1.2. Organization of the Housing Element
This 2023-2031 Housing Element for the City of Petaluma is organized into the following sections and
appendices:
Section 1 – Introduction
Section 3 – Resources to Accomplish Goals
Section 3 – Housing Action Plan
Appendix A: Housing Needs Assessment
Appendix B: Housing Constraints
Appendix C: Sites Inventory
Appendix D: Review of Past Accomplishments
Appendix E: Affirmatively Furthering Fair Housing
Appendix F: Summary of Community Outreach
Relationship to the General Plan
The City of Petaluma is developing a comprehensive update to the 2025 General Plan (adopted May 2008)
concurrently with the required update of the Housing Element. The General Plan update may introduce
additional opportunities for residential growth beyond current land use policy. The General Plan update is
anticipated to conclude in late 2023. To meet the January 2023 statutory deadline for the Housing Element,
this Housing Element relies on sites that are currently designated and zoned for residential development
and do not anticipate the need to modify current land use designation or zoning to accommodate the 6th
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cycle RHNA. Therefore, this Housing Element is consistent with the current 2025 General Plan and will be
consistent with the 2045 General Plan update.
Relationship to Climate Goals
The City of Petaluma is committed to achieving greenhouse gas carbon neutrality Petaluma by 2030. To
further this work, the City plans to develop and adopt a Climate Action and Adaptation Plan in 2023. The
City has also considered and worked to reduce climate impacts in the Housing Element. Climate-related
actions and programs include a focus on infill development accessible to transit and away from high-VMT
areas, water conservation initiatives, increased densities in transit-accessible areas, revising the City’s
development fee structure to promote the development of smaller and more affordable units, and revising
the City’s parking ordinance to encourage a mode shift away from single-occupancy vehicles. The Climate
Action and Adaptation Plan will additionally focus on energy and water efficiency in new and existing
buildings, a shift away from natural gas usage, and many other avenues for climate impact reduction.
Community Participation
The City has implemented an extensive community outreach program for the Housing Element, that is being
updated as part of the comprehensive update to the General Plan. A detailed summary of the outreach
efforts and results is provided in Appendix F to this Housing Element.
The Draft Housing Element was available for public review between August 29, 2022 and October 3, 2022.
The City also help public meetings before the Planning Commission (September 13) and City Council
(October 3) to review the Draft Housing Element. Comments received on the Draft Housing Element are
summarized by theme below, along with the City’s responses.
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2. Resources to Accomplish Goals
Fiscal Resources and Leveraging History
With the dissolution of redevelopment by the State legislature in 2012, local jurisdictions’ ability to expand
affordable housing opportunities has been seriously compromised. In many cases, local jurisdictions lack
a steady source of revenue to finance affordable housing. State and federal programs such as Low Income
Housing Tax Credits are highly competitive. Increasingly, local jurisdictions are looking to locally generated
resources to support affordable housing development. To the extent feasible, the housing programs
outlined in this Housing Element will utilize the following sources of revenue to fund its projects and
programs.
2.1.1. Inclusionary Housing In-Lieu Fund
In 2018, Petaluma adopted an Ordinance (No. 2300 N.C.S.) implementing a housing in lieu fee for
residential development to contribute to satisfy affordable housing requirements. The Inclusionary Housing
In-Lieu Fund is generated by payments from developers in-lieu of providing inclusionary affordable units.
The Fund is used to expand and preserve affordable housing opportunities for lower income households
through land acquisition and assistance to non-profit developers with pre-development costs and subsidies
for on- and off-site improvements. The City’s current inclusionary housing ordinance was adopted in 2018
and eliminated the ability for a developer to meet inclusionary housing requirement through payment of an
in-lieu fee unless separately approved as alternative compliance by the City Council. Therefore, the
generation of housing in-lieu fees has significantly slowed in recent years. Additionally, the City has recently
provided local funding for several affordable housing projects which has reduced the balance of the fund.
As of July 1, 2022, the In-Lieu Fund has a balance of $3,323,128, which is expected to fluctuate through
October 2022.
2.1.2. Commercial Linkage Fee
In 2004, Petaluma adopted an Ordinance (No. 2171 N.C.S.) implementing a commercial linkage fee for
nonresidential development to mitigate the impacts on affordable housing linked to nonresidential
development and to provide housing affordable to those with incomes between 80 and 100 percent of the
Area Median Income. In June 2011, the Ordinance was revised to limit the type of nonresidential
development to new or expanded nonresidential gross square footage. For purposes of this Fee,
nonresidential land uses are classified as commercial, retail, or industrial. Funds collected may be used to
directly finance the development of affordable housing units between the range 80 to 100 percent of AMI.
The current fee schedule (July 2022) establishes the fee at $3.36 per square foot of commercial
development, $5.81 per square foot of retail development, and $3.46 per square foot of industrial
development. As of July 1, 2022, the Commercial Linkage Fee has a balance of $2,158,717.
2.1.3. Community Development Block Grant
The Community Development Block Grant Program (CDBG) is a “pass-through” program that allows local
governments to use federal funds to alleviate poverty and blight. The U.S. Department of Housing and
Urban Development (HUD) makes allocations based on a formula that takes population, poverty, and
housing distress into account. CDBG funds are used for a variety of housing and community development
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efforts. With population over 50,000, Petaluma is considered an entitlement jurisdiction to receive CDBG
funds from HUD directly. For FY 2022-2023, the City has been allocated $329,577 in CDBG funds.
2.1.4. HOME Investment Partnership
The HOME Investment Partnership Act is a formula-based block grant program similar to CDBG. HOME
funds are intended to expand affordable housing through acquisition, construction, and rehabilitation of
rental and ownership units. However, Petaluma does not qualify as an entitlement jurisdiction to receive
HOME funds directly from HUD and must apply to the State HOME program on a competitive basis.
Specifically, the City used $900,000 of program income from the State HOME program for a MidPen
development. HOME program income is comprised of interest earned and loan payoffs from earlier HOME
financed projects. The project is located at 414 Petaluma Blvd North. The development will provide 43 units
between 30 and 60 percent AMI. Construction started on the project in Spring of 2022 and will be ready for
occupancy in fall of 2023.
2.1.5. Permanent Local Housing Allocation
In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the State’s housing
shortage and high housing costs. Specifically, it included the Building Homes and Jobs Act (SB 2, 2017),
which establishes a $75 recording fee on real estate documents to increase the supply of affordable homes
in California. Because the number of real estate transactions recorded in each county will vary from year
to year, the revenues collected will fluctuate.
The first year of SB 2 funds are available as planning grants to local jurisdictions. For the second year and
onward, 70 percent of the funding will be allocated to local governments for affordable housing purposes
and will be distributed using the same formula used to allocate Federal CDBG. This funding is known as
the Permanent Local Housing Allocation (PLHA) and can be used to:
• Increase the supply of housing for households at or below 60 percent of AMI
• Increase assistance to affordable owner-occupied workforce housing
• Assist persons experiencing or at risk of homelessness
• Facilitate housing affordability, particularly for lower and moderate income households
• Promote projects and programs to meet the local government’s unmet share of regional housing
needs allocation
The City is eligible to receive approximately $250,000 in PLHA annually. The program has a current fund
balance of $470,905 from the program years 2019-2020. A Housing Element certified by the State HCD is
a prerequisite for receiving PLHA funds.
Article 34 Authority
Article XXXIV of the California Constitution requires that when the City develops, constructs, or acquires a
housing project targeted towards lower income households, its qualified electors must approve the project
by a majority. The City has secured Article 34 authority for elderly affordable housing (up to 5 percent of
the total housing stock) and has been otherwise effective in providing affordable housing to lower income
households by partnering with non-profit developers.
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Partnership Opportunities
The City partners with a number of housing developers to construct, acquire/rehabilitate, and preserve
affordable housing and special needs housing in the community. Active nonprofit developers include:
• Eden Housing
• Burbank Housing
• MidPen Housing
• PEP Housing
• DANCO Communities
• Housing Land Trust of Sonoma County
Opportunities for Energy Conservation
Housing has a large role to play in energy conservation and the reduction of green housegreenhouse gas
emissions in terms of both its location and its construction methods. Petaluma is committed to lessening
the impact of greenhouse gas emissions by reducing emissions and conserving resources through the
implementation of the goals, policies and programs outlined in the General Plan.
The City’s General Plan promotes energy conservation by reducing reliance on non-renewable energy
sources in existing and new development:
2-P-118 As part of the Development Code and Standards Updates, incorporate sustainable site
planning, development, and maintenance standards and procedures, reflecting conditions in
the variety of Petaluma settings (such as hillsides and floodplains).
4-P-18 Develop and adopt local energy standards that would result in less energy consumption than
standards set by the California Energy Commission’s (CEC) Title 24 or updates thereto.
4-P-19 Encourage use and development of renewable or nontraditional sources of energy.
To implement these policies, the City prepares, periodically updates, and implements green building
guidelines and/or standards, appropriate to the Petaluma context, to ensure high level of energy efficiency
and reduction of life-cycle environmental impacts associated with construction and operations of buildings.
The City adopts green street standards, and incorporates these practices in design of city streets. The City
also identifies and implements energy conservation measures that are appropriate for public buildings and
facilities, such as:
• Schedule energy efficiency “tune-ups” of existing buildings and facilities.
• Institute a lights-out-at-night policy in all public buildings where feasible.
• Continue to retrofit older lighting fixtures in City facilities until all buildings have been upgraded.
• Where new traffic signals or crosswalk signals are installed, or existing signals are upgraded,
continue to use LED bulbs or other equivalent efficient technology that may develop.
• Evaluate the possibility of decreasing the average daily time streets lights are on.
• Periodically evaluate the efficiency of potable and sewer pumping facilities and identify measures
to improve pumping efficiency.
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• Encourage the County of Sonoma to upgrade existing, inefficient facilities which serve Petaluma
(e.g. potable water pumping facilities).
• The City adopted the Climate Energy Framework in 2021 with the goal of achieving carbon
neutral by 2030. Specifically relating to residential new construction, the City requires the use of all electrical
appliances. The City’s website includes a dedicated page “Climate Ready 2030” that provides information
on ways to reduce greenhouse gas emissions, including energy efficiency and renewable energy retrofits.
This Housing Element includes an action to assist households in the disadvantage neighborhoods to move
toward all electrical appliances. The City is in the process of updating its General Plan, including the
development of a Climate Action and Adaptation Plan.
Regional Housing Needs Assessment
2.4.1. Overview of RHNA
The Regional Housing Needs Assessment (RHNA) is a key tool for local governments to plan for anticipated
growth. The RHNA quantifies the anticipated need for housing within each jurisdiction for the eight-year
period. The regional housing needs analysis is derived from the statewide growth forecast, which is then
allocated to regions, counties, and cities. The statewide determination is based on population projections
produced by the California Department of Finance and the application of specific adjustments to determine
the total amount of housing needs for the region. The adjustments are a result of recent legislation that
sought to incorporate an estimate of existing housing need by requiring the State HCD to apply factors
related to a target vacancy rate, the rate of overcrowding, and the share of cost-burdened households. The
new laws governing the methodology resulted in a significantly higher number of housing units for which
the Bay Area must plan compared to previous RHNA cycles. The RHNA for Bay Area jurisdictions was
adopted by the Association of Bay Area Governments (ABAG) in December 2021.
2.4.2. RHNA for Petaluma
California housing element law requires that each city and county develop local housing programs to meet
its “fair share” of existing and future housing needs for all income groups, as determined by the jurisdiction’s
council of governments. The Regional Housing Needs Allocation (RHNA) is the share of housing assigned
to each jurisdiction by the Association of Bay Area Governments (ABAG) in the Bay Area for the eight-year
planning period (January 31, 2023 to January 31, 2031). This “fair share” allocation concept seeks to ensure
that each jurisdiction accepts responsibility for the housing needs of not only its resident population, but
also for its share of projected regional housing growth across all income categories and demonstrates
capacity to accommodate its housing share.
The RHNA represents the minimum number of housing units each community is required to provide
“adequate sites” for through zoning and is one of the primary threshold criteria necessary to achieve State
certification of the Housing Element.
In December 2021, ABAG approved the Final RHNA Plan. Petaluma must plan for a RHNA of 1,910 units,
a substantial increase from the last cycle, accommodating not only future needs but also factoring in the
unmet demand of the previous cycles. Petaluma’s RHNA is divided into four income categories (i.e., very
low, low, moderate, and above moderate) as shown in Table 1 below.
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Table 1: City of Petaluma RHNA (2023-2031)
Petaluma
Extremely
Low/
Very Low Low Moderate
Above
Moderate Total
RHNA 499 288 313 810 1,910
% of Total 26% 15% 16% 42% 100%
Source: ABAG 6th Cycle Final RHNA Allocation Plan, adopted December 2021
*The RHNA does not include the extremely low category. It is estimated to be ½ of the very low income need, per
Government Code §65583.a.1. The total very low income RHNA is 499 units; therefore, 254 units are designated
as extremely low income and 254 units are designated as very-low-income. However, for the sites inventory
purposes, no separate accounting is required for the extremely low income category
2.4.3. Summary
The Housing Element must include an inventory of land with potential for residential development during
the Housing Element planning period. In conducting this adequate sites analysis, jurisdictions can
accommodate the RHNA through the following:
Likely Sites:
• Projected ADU Trend: State law allows jurisdictions to project the number of ADUs to be
constructed over eight years based on the recent trend of ADU construction. ABAG prepared a rent
study that received preliminary approval from HCD. Based on a survey of rental listings for ADUs
and similar units, ABAG established an income/affordability distribution for ADUs at 30 percent very
low income, 30 percent low income, 30 percent moderate income, and 10 percent above moderate
income.
• Credits toward RHNA (Pipeline Projects): While the new 6th cycle Housing Element begins January
31, 2023, the baseline project period for the RHNA begins on June 30, 2022. Housing units under
construction, approved, entitled, or permitted but not expected to be finaled until after June 30,
2022 can be credited toward the 6th cycle RHNA.
Sites Inventory:
• Opportunity Sites: Accounting for projected ADUs and eligible credits, the City must identify
adequate sites to fully accommodate the remaining RHNA obligations. Opportunities sites are sites
that are currently zoned for residential or mixed use development, where existing uses on site are
considered underutilized with potential for redevelopment. Sites with expressed interests for
redevelopment from property owners and developments are also included.
Table 2 provides a summary of the City’s strategy for meeting the 6th cycle RHNA. The total realistic capacity
shown is 3,257 241 units, which exceeds the target of 1,910 units the City is required to accommodate for
its RHNA. The capacity identified in the site inventory includes an approximately 22 19 percent buffer in the
lower income categories to ensure that Petaluma is proactively identifying sites to meet housing needs for
the most vulnerable. Additionally, the overall buffers are recommended by HCD and provide assurance
that Petaluma has adequate sites to meet the local RHNA.
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Table 2: Summary of RHNA Strategy
Units by Income Group
Total Very Low Low Moderate
Above
Moderate
RHNA 499 288 313 810 1,910
Likely Sites 236241 191196 106111 1,3551,355 1,8881,904
Potential ADUs 3843 3843 3843 1414 128144
Pipeline Projects 198 153 68 1,341 1,760
Remaining RHNA 263258 9792 207202 (545)(545) 567552
Opportunity Sites 214 215 358 566 1,353
Vacant Sites 37 37 44 220 338
Parking Lots of
Shopping Centers 10 11 - 221 242
Underutilized sites 167 167 314 125 773
Total Capacity 450455 406411 464469 1,9211,921 3,2413,257
Buffer (Opportunity
Sites over Remaining
RHNA)1
+2219% +737% N/A2 NA
1. Buffer percentage was calculated by diving the surplus/deficit by the remaining need.
2 There is no remaining need for Above Moderate units (RHNA was met with pipeline projects and
potential ADUs).
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3. Housing Action Plan
3.1. Goals and Policies
Goal 1: Housing Availability and Choices
Provide opportunities for residential development to accommodate projected residential growth and diverse
housing needs of all existing and future Petalumans.
Policy 1.1 Promote residential development within the Urban Growth Boundary, especially near transit
and services and areas of high resource, as defined under Affirmatively Furthering Fair Housing
legislation.
Policy 1.2 Work towards the City’s goal of being climate neutral by 2030 by developing a Climate Action
and Adaptation Plan that includes reducing the carbon footprint of housing in the city.
Policy 1.3 Encourage infill housing development with a particular focus on facilitating development near
transit and services to support City climate goals.
Policy 1.4 Establish flexibility in the City’s standards and regulations to encourage a variety of housing
types, including mixed-use and flexible-use buildings, and affordable housing development.
Policy 1.5 Encourage the efficient use of residential and mixed-use land by facilitating development at the
upper end of the density range.
Policy 1.6 Encourage the development of ADUs and JADUs as affordable housing resources.
Policy 1.7 Facilitate the transition of existing neighborhoods into more walkable neighborhoods with
integrated services, amenities, and a diversity of housing choices.
Policy 1.8 Monitor and minimize the impact of short-term rentals on the City’s supply of housing available
for long-term residential uses.
Policy 1.9 Work towards a pro-housing designation with the Department of Housing and Community
Development.
Goal 2: Development Constraints
Remove or mitigate constraints on housing development to expedite construction and lower development
costs while avoiding impacts on environmentally sensitive areas.
Policy 2.1 Review and adjust city residential and mixed-use development standards that are determined
to be a constraint to the development and improvement of housing.
Policy 2.2 Streamline the City’s review and approval process for residential and mixed-use projects to
ensure objective evaluation and greater certainty in outcomes to facilitate affordable housing
production.
Policy 2.3 Develop incentives such as streamlined review, fee adjustments, and objective design
standards to encourage residential development that is affordable and environmentally
appropriate.
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Policy 2.4 Periodically review and update the City’s impact fees to ensure adequate fees are collected to
provide services, infrastructure, and facilities for the projected population. Waive, reduce, or
defer fees for affordable housing units and climate-friendly development.
Policy 2.5 Update the City’s residential impact fees based on unit size to incentivize smaller units.
Policy 2.6 Periodically review the City’s development standards, regulations, and procedures to ensure
that the City responds to the changing market conditions and development trends in a timely
manner.
Goal 3: Affordable Housing
Promote the development, preservation, and improvement of housing affordable to lower and moderate
income households, including extremely low income households.
Policy 3.1 Expand revenue sources to provide housing affordable to extremely low to moderate income
households, and those with special needs.
Policy 3.2 Partner with developers of market-rate housing and non-residential projects, as well as
employers, to address the housing needs in the community.
Policy 3.3 Facilitate the entry of lower and moderate income households into the housing market.
Policy 3.4 Streamline the review process for projects with 20 percent or more units affordable to lower
income households.
Policy 3.5 Evaluate City-owned parcels for affordable housing development. Rezone, as necessary,
identified parcels to allow housing development.
Goal 4: Housing Preservation
Improve the quality and diversity of residential neighborhoods, preserve the City's existing affordable
housing, and ensure the long-term affordability of new below-market-rate units.
Policy 4.1 Preserve the affordability of the City’s existing affordable housing stock.
Policy 4.2 Ensure the long-term affordability of units developed or provided with City assistance.
Policy 4.3 Promote the improvement and maintenance of existing residential units.
Policy 4.4 Provide incentives for longer affordability terms.
Policy 4.5 Develop financial and technical assistance for renovation and upgrades to affordable units.
Policy 4.6 Develop programs and actions to address the risks and impacts of economic displacement.
Goal 5: Special Needs Housing
Promote housing opportunities for persons and households with special needs, including the elderly,
disabled, large households, female-headed households, farmworkers, and persons experiencing
homelessness.
Policy 5.1 Support efforts to prevent homelessness and to rapidly re-house the recently homeless.
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Policy 5.2 Provide housing and support services for persons experiencing homelessness.
Policy 5.3 Facilitate the development of transitional and supportive housing for those moving from
homelessness to independent living.
Policy 5.4 Promote the construction and maintenance of housing for the elderly and provide housing
choices to allow older residents to age in place.
Policy 5.5 Promote the development of housing that is designed to accommodate the needs of persons
with disabilities, including supportive housing with on- or off-site services.
Policy 5.6 Promote the construction of adequately sized rental units for large households.
Policy 5.7 Facilitate the provision of housing for the workforce, including those in the agricultural and
hospitality industries.
Goal 6: Fair Housing
Affirmatively further fair housing to promote equal access to housing opportunities for all existing and future
residents.
Policy 6.1 Comply with federal, state, and local Fair Housing and anti-discrimination laws, and
affirmatively further fair housing for all, ensuring equal access to housing regardless of their
special circumstances as protected by fair housing laws.
Policy 6.2 Promote housing mobility by expanding housing choices and increasing housing opportunities
in high resource areas.
Policy 6.3 Protect tenants from discriminatory housing practices and displacement.
Policy 6.4 Promote the integration of affordable and special needs housing projects in existing
neighborhoods.
Policy 6.5 Collaborate with and support efforts of organizations dedicated to eliminating housing
discrimination.
Policy 6.6 Ensure City boards and commissions include members who are representative of the targeted
populations.
Housing Programs
3.2.1. Housing Availability and Choices
Program 1: Adequate Sites for RHNA and Monitoring of No
Net Loss
The City of Petaluma has been allocated 1,910 units (499 very low income, 288 low income, 313 moderate
income, and 810 above moderate income units). Based on projected ADUs and entitled projects, the City
has met all its RHNA for above moderate income units, with a remaining RHNA of 572 567 units (26358
very low income; 102 low income; and 212 moderate income units). Using factors such as existing uses,
zoning, and development standards, the City has identified an inventory of sites with potential for
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redevelopment over the eight-year planning period to fully accommodate the remaining RHNA. Specifically,
vacant and underutilized sites identified with near-term development potential can accommodate 1,632
units (524 lower income units; 444 moderate income units; and 664 above moderate income units). The
City is able to accommodate its full RHNA based on existing land use policy and zoning provisions. The
City has endeavored to identify sites that that are located in areas with a VMT at or below the citywide
average in order to reduce the carbon and ecological impacts of new development to support the City’s
climate goals.
To comply with the AB 1397 requirements for reusing sites that were identified in previous Housing Element
cycles, the City will amend the Zoning Code to permit residential/mixed use projects on these reuse sites
by right without discretionary review if the project includes 20 percent of units affordable to lower income
households.
To ensure that the City complies with SB 166 (No Net Loss), the City will monitor the consumption of
residential and mixed-use acreage to ensure an adequate inventory is available to meet the City's RHNA
obligations. To ensure sufficient residential capacity is maintained to accommodate the RHNA, the City will
develop and implement a formal ongoing (project-by-project) evaluation procedure pursuant to Government
Code Section 65863. Should an approval of development result in a reduction in capacity below the
residential capacity needed to accommodate the remaining need for lower and moderate income
households, the City will identify and if necessary, rezone sufficient sites to accommodate the shortfall and
ensure “no net loss” in capacity to accommodate the RHNA.
The City’s Residential Growth Management System (RGMS) caps the number of housing units at 500,
exempting multi-family housing for the elderly, lower income households, and projects with fewer than 30
units. The RGMS has not had any material impact on limiting housing production except for its first few
years of implementation in the 1970s, and it is not expected to impede the City in meeting its RHNA of
1,904 units for the 6th cycle Housing Element.
Specific Actions and
Timeline
• Maintain an inventory of the available sites for residential development
and provide it to prospective residential developers. Update the sites
inventory at least annually. Fully accommodate the RHNA of 1,910 units
(495 very low income; 288 low income; 313 moderate income; and 810
above moderate income units). Facilitate the overall development of
3,500 units (see ), including 1,000 lower and moderate income units over
eight years.
•
• By January 2024, as part of an update to the General Plan, consider
pursue land use and zoning strategies to allowing the evolution of
predominantly single-family neighborhoods to facilitate the development
of a wider diversity of housing typologies as well as neighborhood
services.
• By January 2024, amend the Zoning Code to permit residential/mixed
use projects by right without discretionary review on reuse sites from
previous Housing Elements, if the project includes 20 percent of the
units affordable to lower income households.
• By January 2024, implement a formal evaluation pro: cedure pursuant to
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Government Code Section 65863 to monitor the development of vacant
and nonvacant sites in the sites inventory and ensure that adequate
sites are available to meet the remaining RHNA by income category, and
include this data in the annual Housing Element Progress Report.
In 2025, conduct community education to discuss the impacts of the
RGMS on housing production and housing needs, and initiate a process
to review the RGMS for consistency with State law and identify
mitigating actions if necessary.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 2: Replacement Housing
Development on nonvacant sites with existing residential units is subject to a replacement requirement.
Specifically, AB 1397 requires the replacement of units affordable to the same or lower income level as a
condition of any development on a nonvacant site. Replacement requirements per AB 1397 are consistent
with those outlined in the State Density Bonus Law.
To further mitigate any impacts relating to displacement, the City will consider requiring the first right of
refusal for the displaced tenants.
Specific Actions and
Timeline
• By December 2024, update the Zoning Code to specify address the
replacement requirements for redevelopment of properties with existing
residential uses. As part of this Code update:
o Identify specific properties in the sites inventory with existing
residential units that may be subject to replacement requirements
and monitor development activities.
o , Cconsider requiring the first right of refusal for the displaced
tenants or develop alternative strategies to mitigate displacement
by July 2025...
• Ongoing on a project-by-project basis, provide technical assistance to
project applicants regarding compliance with replacement requirements.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 3: Accessory Dwelling Units
Program 3: Accessory Dwelling Units: Accessory Dwelling Units (ADUs) represent an important resource
to providing lower and moderate income housing in Petaluma. To facilitate ADU production, the City will:
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• Dedicate a specific page of the City website to provide information on and resources for ADU
construction.
• Develop an ADU construction guide to clarify the process and requirements for permit applications.
The guide will outline the required review by various departments, the fees required, and if a new
address is required for the ADU.
• Create a permit center to coordinate application and review processing by various departments.
• Provide specific staff familiar with ADUs to respond to questions and offer office hours to answer
questions, offer technical assistance, and provide seminars or other education to the public, and
provide other support to those increased in creating ADUs and JADUs.
• Consider reducing or waiving plan check fees if the applicant chooses one of the plans pre-
approved or pre-reviewed by the City.
• Consider setting aside funding or offering other financial incentives to encourage ADUs to be made
available at affordable costs to lower income households. A loan or grant may be offered to property
owners in exchange for deed restricting ADUs as housing affordable for lower income households.
• Develop an amnesty program for illegally constructed ADUs to legalize these units as long as these
units are code corrected to meet health and safety, and building standards. A checklist will be
developed to assist homeowners in assessing their eligibility/feasibility and in estimating costs
before applying for amnesty.
• Promote ADU-related programs and/or ADU construction in neighborhoods with a higher need for
affordable housing, or relatively high capacity for ADU development.
• As part of the Inclusionary Housing program review and update, allow ADUs in multi-family
developments to count toward the inclusionary housing requirement (see Program 11).
• Work with regional organizations to develop and implement best practices to support the
conversion of garages into ADUs.
Specific Actions and
Timeline
• Continue to promote and facilitate the development of ADUs through a
partnership with a regional organization such as the Napa-Sonoma ADU
Center, including through financial support of the Center.
• Permit on average 18 16 ADUs or JADUs per year (144 128 ADUs or
JADUs over eight years). If an average of 18 16 ADUs per year are not
achieved by 2025, consider adopting additional measures that are
supportive of ADU development.
• By December 2022, create a streamlined process application and review
process, update the City website to create a dedicated page for ADU
resources, and develop an ADU construction guide. Update the ADU
webpage semi-annually to ensure information addresses questions
raised by applicants.
• By December 2023, amend the ADU Ordinance as necessary, to
address comments from HCD to comply with State law.
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• By December 2023, allocate staffing resources to expedite the ADU
review and approval process and create a permit center to coordinate
the review of ADU applications.
• In 2023 and annually thereafter, consider pursue financial incentives to
encourage affordable ADUs (fee waivers or direct subsidies) and
allocate resources as appropriate, with the goal of achieving 16
affordable ADUs over eight years..
• In 2024, evaluate and develop an ADU amnesty program, with the goal
of converting 1616 unpermitted units into ADUs that meet building
codes, for an average of two unit per year. (This estimate is included in
the 16 ADUs per year projected.).
• In 2024, identify neighborhoods with capacity for ADU development and
conduct targeted outreach.
• Provide an annual update on ADU permit progress to Planning
Commission and City Council.
Primary Responsible
Departments Community Development (Planning, Building)
Funding Sources General Fund
Program 4: Efficient Use of Multi-Family Land
The City permits single-family homes in all residential zones and the MU1 C mixed-use zone, potentially
reducing the achievable density in multi-family zones. Establishing increased minimum densities for multi-
family and mixed-use zones will ensure efficient use of the City's multi-family land, including requiring multi-
family densities in multi-family zones.
Specific Actions and
Timeline
• By June 2024 adopt the Zoning Text Amendment to modify residential
product types allowed in higher density zones.
• By December 2024, as part of the General Plan update:
o Consider eEstablishing minimum densities for multi-family and
mixed-use zones .
o Explore and, if appropriate, develop target density policies.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
Program 5: Flexible Development Standards
The City will continue to support neighborhood vibrancy through flexible development standards. As part of
the General Plan update process, the City will explore land use policy and development code changes to
encourage the integration of mixed-use and residential development. These may include:
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• Conversion of nonresidential uses into housing. Strategies may include the waiving of additional
parking requirements or the ability to pay into a parking assessment district.
• Small lot development in Downtown Petaluma. Many Downtown parcels are small and
consolidation for large-scale development may be challenging. To facilitate residential development
in Downtown, consider allowing up to six units on small lots with 6,000 square feet and explore
policies that facilitate small lot consolidation.
• The minimum retail requirement may be a constraint to developing mixed-use buildings given the
evolving retail and office markets. Currently, certain streets within SmartCode areas do not have
minimum retail requirements. Explore and possibly expand areas where a minimum nonresidential
component may be reduced or eliminated.
• Due to the changing economy and impacts of COVID, regionally communities are experiencing
changes to the commute patterns, level of home occupancy, and remote working. The City will
evaluate the definition of live/work and work/live units and the provisions for such housing types to
allow flexibility in various living and working arrangements. An emerging trend is to allow co-working
spaces to fulfill the nonresidential component of mixed-use development.
• Develop objective design standards for residential and mixed use development..
Specific Actions and
Timeline
• By January July 2023, adopt objective design standards and parking
standards for multi-family residential and mixed use development
(currently underway).
• By December 2023, as part of the General Plan update, adjust the
mixed-use development requirements and address zoning code
constraints, such as parking, to support adaptive reuse of nonresidential
spaces. Create 10040 new units through adaptive reuse and conversion
of nonresidential use, for an average of five units annually, representing
the potential conversion of one to two second floor office uses per year.
• By December 2023, adopt live/work standards to encourage a greater
range of options.
• By December 2023, update onsite parking regulations to reduce barriers
to housing development and to support the City's affordable housing
development and climate goals. Specifically, remove the 1.5 space per
unit requirement for small units and reduce the replace with parking
standards for small based on units size (such as micro units,
studio/efficiency units, and one-bedroom units) and based on location
relative to transit and amenities.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
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Program 6: Religious and Institutional Facility Housing
Overlay
AB 1851 of 2020 allows an affordable housing project to be developed at a place of worship owned by a
religious institution even if the development requires the reduction of the number of religious-use parking
spaces. This bill applies to religious facilities that are located in zones that allow residential uses.
The City will explore establishing a Religious and Institutional Facility Housing Overlay with the following
potential provisions:
• Expand the provisions of AB 1851 to other institutional uses, such as schools and hospitals, as well
as religious facilities located in zones that currently do not allow residential uses.
• Allow religious and institutional uses to construct up to four ADUs and/or JADUs on site.
• Allow safe parking on site as desired by the institution.
• Allow 100% affordable housing projects in the Civic Facility (CF) zone
Specific Actions and
Timeline
• By December 2024, as part of the General Plan update, establish a
Religious and Institutional Facility Housing Overlay Zone.
• .By December 2025, convene a meeting with religious and institutional
facilities to discuss opportunities for affordable housing.
• Create 50 new housing units affordable to lower income households in
Overlay, representing the typical approximate size of an affordable
housing project using LIHTC..
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
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3.2.2. Development Constraints
Program 7: Zoning Code Amendments
The City will amend the Zoning Code to address the following to facilitate the development of a variety of
housing types:
• Parking: The City currently requires one space per bedroom but no fewer than 1.5 spaces per
multi-family unit. These parking standards may be considered a constraint to large units (with three
or more bedrooms) and small units (such as efficiency units). The City will establish updated
parking standards for various housing types, including minimums and maximums where
appropriate, consider the need for unbundling parking, and EV parking needs. This process does
not provide certainty in outcomes. Specifically, the City will reduce the parking standards for small
units (such as micro units, studio/efficiency units, and one-bedroom units) and based on location
relative to transit and amenities.Specifically, the City will reduce 1.5 space per unit requirement for
small units such as micro units, studios, and one-bedroom units.
• Density Bonus: The City’s Density Bonus must be updated to reflect recent changes to State law,
such as AB 1763, which made several changes to density bonus requirements for 100 percent
affordable projects, and AB 2345, that further incentivizes the production of affordable housing.
• Residential Care Facilities: The City permits residential care facilities for six or fewer persons in
residential and mixed-use zones. However residential care facilities for seven or more persons are
not permitted in any residential zones, but are permitted or conditionally permitted on an upper floor
or behind a ground floor fronting use in mixed use and commercial zones. Furthermore, residential
care for the chronically ill and adult residential facilities are subject to additional restrictions (such
as a maximum capacity of 25). The requirement for placing the facility on an upper floor and behind
a ground floor street fronting use may constrain the development of larger residential care facilities.
The City will evaluate this constraint and amend the Zoning Code to mitigate this constraint to
facilitate the development of additional types of residential care facilities. Specifically, residential
care facilities for seven or more persons will be conditionally permitted in residential zones, mixed
use, and commercial zones subject to findings for approval that are objective and provide certainty
in outcomes. The placement requirement for upper floor and behind a ground floor street fronting
use will be removed. These revisions are in accordance with State interpretation of Affirmatively
Furthering State Housing legislation.
• Transitional and Supportive Housing (AB 2162): While the City has already developed a
procedure to process supportive housing pursuant to AB 2162, this 2023-2031 Housing Element
includes a program action to amend the City’s Zoning Code to clarify that eligible projects are
permitted in all multi-family zones and nonresidential zones (such as mixed use zones) that permit
multi-family housing.Pursuant to State law (SB 745 of 2014), transitional and supportive housing is
a residential use and should be subject to those restrictions that apply to other residential dwellings
of the same type in the same zone. The City does not differentiate between transitional and
supportive types of housing and other types of housing in its zoning use restrictions or process for
zoning approvals. The City has already established AB 2162 compliance procedure.
•
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• Low Barrier Navigation Center (LBNC): AB 101 requires that LBNCs be permitted by right in
areas zoned for mixed-use and nonresidential zones that permit multi-family housing. The City will
update the Zoning Code to reflect State law. A Low-Barrier Navigation Center (LBNC) is a "Housing
First," low barrier, temporary, service-enriched shelter that helps homeless individuals and families
to quickly obtain permanent housing.
• Reasonable Accommodation: The City will work to develop a formal Reasonable Accommodation
procedure to provide flexibility in the implementation of the City’s land use and zoning policies to
address housing for persons with disabilities. Reasonable Accommodation requests should be
considered via a ministerial process. Criteria for review and approval will be objective and facilitate
certainty in outcomes.
• Civic Facility: Consider amending the Zoning Code to permit residential uses in the Civic Facility
zone and incorporate deed restrictions to ensure residential units are affordable.
• Emergency Shelter Zoning: Re-eEvaluate and designate the appropriateness appropriate
residential and/or mixed use zoning districts where of allowing emergency shelters will be permitted
by right in the Industrial zone and amend the Zoning Code to establish objective development
standards pursuant to AB 2339. This new bill requires that the identified zones to meet at least one
of the following: (1) vacant and zoned for residential use; (2) vacant and zoned for nonresidential
use if the local government can demonstrate how the sites are located near amenities and services
that serve people experiencing homelessness; or (3) nonvacant if the site is suitable for use as a
shelter in the current planning period.
• Employee Housing: Amend the Zoning Code to comply with Employee Housing Act (H&S 17021.5
and 17021.6). Specifically, employee housing providing accommodation for six or fewer employees
is deemed a single-family structure with a residential land use designation. Farm labor housing of
no more than 36 beds or 12 units is deemed an agricultural land use to be similarly permitted as
other agricultural uses in the same zone.
• Single-Room Occupancy (SRO) Housing: Amend the Zoning Code to identify SRO as a
permitted use in MU, R4 and R5 districts where high density multi-family housing is already allowed.
• Open Space Requirement: Revise Study open space requirements for comparable housing types
in the region Review and revisereduce as appropriate the open space requirements to align with
regional trends and to ensure maximum allowable density in each district can be achieved.
Specific Actions and
Timeline
• By December 2024, amend address the Zoning Code to address specific
issues revisions as outlined above.
• Create 100 new housing units for special needs groups, including for
seniors, disabled, farmworkers, hospitality workers, and the homeless,
representing approximately two affordable housing projects over eight
years, at typical size of approximately 50 units per project utilizing
LIHTC..
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
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Program 8: Development Fees
The City's development impact fees are established on a per-unit basis without consideration of unit size.
This fee structure is not conducive to promoting the development of a range of unit sizes, particularly smaller
units. The City will review and revise its fee structure to encourage a range of unit sizes and to facilitate the
development of affordable housing. Potential revisions may include:
• Reviewing fees in general
• Shifting impact fees to $ per square foot to encourage more compact units
• Shifting impact fees for parking aligned to City’s goals
• Reducing impact fees for floors above third story to encourage development of higher intensity
projects
• Reducing fees for affordable units
• Reducing fees to incentivize affordable housing development
• Amortizing fees over a period of time for affordable housing
Specific Actions and
Timeline
• By December 2024, conduct an impact fee analysis and revise the
development fee structure to encourage a range of housing unit sizes by
utilizing a sliding scale based on unit size or fee schedule per square
foot basis..
• Create 100 new housing units for special needs groups, including for
seniors, disabled, farmworkers, hospitality workers, and the homeless
representing approximately two affordable housing projects over eight
years, at typical size of approximately 50 units per project utilizing LIHTC
(see also Program 7).Create 100 new housing units for special needs
groups.
Primary Responsible
Departments Community Development
Funding Sources General Fund
Program 9: Shopping Center Conversion
Throughout the state, and even nationwide, the shift to online shopping has resulted in changes to the retail
landscape. Many shopping centers are being reimagined as vibrant residential/commercial mixed use
development. However, redeveloping shopping centers presents some challenges, such as the large site
scale, configuration of existing structures and parking areas, existing lease terms, CC&R provisions, shared
parking agreements, and community desire to maintain and rejuvenate retail services. The City will
establish policies and development regulations to enable a residential development through a range of
approaches including :
• Full redevelopment;
• Addition of residential uses in existing surface parking areas ;
• Cluster residential development on underutilized portions of the site; and/or
• Addition to or reconfiguration of the existing structures to include residential uses.
Specifically, policies and zoning development standards will be written to facilitate:
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• Subdividing, if necessary, of the parking areas to create developable parcels;
• Clustering of densities on portions of the parking areas; and
• Shared access to existing structures to allow existing uses to remain while the parking areas are
being redeveloped or reconfigured
• Increase height limits and permit shared parking options
• A strong sense of place and cohesive urban design both within the site and in relation to the
surrounding neighborhood.
Specific Actions and
Timeline
• By March 2023, develop land use policies and development standards to
facilitate shopping center redevelopment with a strong sense of urban
design cohesion.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
Program 10: Water Master Plan and Priority for Water and
Sewer Services
The City is implementing its current water master plan as it develops an updated water master plan. The
City purchases most of its drinking water from Sonoma Water and is a party to the Restructured Agreement
for Water Supply (Restructured Agreement) between Sonoma Water and its water contractors. As required
by the Restructured Agreement, the city is an active participant in the Sonoma Marin Saving Water
Partnership which provides regional solutions for water use efficiency. The city is participating with Sonoma
Water in a Regional Water Supply Resiliency Study.
As an urban water supplier, the City prepares an updated Urban Water Management Plan (UWMP) every
five years which assesses the reliability of water sources over a 20-year planning horizon. Part of the UWMP
is the Water Shortage Contingency Plan (WSCP) which is enacted during water shortage events. As part
of the City development impact fees, the City charges water and sewer capacity fees for new connections.
By December 2022, the City will conduct a water and sewer capacity fee study and revise its capacity fees
to reflect the current cost of growth for future customers.
The City has a robust water conservation strategy that offers many programs to help residential and
commercial water customers conserve water including rebates, water use evaluations, leak detection, and
free water-saving devices. The water conservation program contracts with the local non-profit organization
Daily Acts to provide water conservation outreach and programming.
The City has the following efforts planned to increase local water supply resiliency and water use efficiency:
• Drought Ready Ordinance – a requirement to pre-plumb new buildings for graywater.
• WSCP Update – plan update to include restrictions for some new water customer connections that
occur during a water shortage periods.
• Recycled Water Program Expansion – expand urban recycled water pipeline to irrigate additional
parks, schools, and public landscape areas.
• Expand the water conservation rebate program
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• Aquifer Storage and Recovery Plan – plan to study taking surplus drinking water from the Russian
River system during wet winter years and storing it in the deep underground aquifer in the Petaluma
groundwater basin. The stored water would then be available as an emergency backup supply.
• Expand local municipal groundwater wells – develop new wells and implement decentralized
treatment for existing wells with impaired water quality.
• The City is a member of the Petaluma Valley Groundwater Sustainability Agency (GSA) which is a
public agency formed in 2017 to sustainably manage groundwater in the Petaluma Valley
groundwater basin.
• Advanced Metering Infrastructure (AMI) – replacement project for all existing 20,000 + water meters
to AMI technology. AMI will increase water conservation and provide water customers with real-
time leak detection alerts and water use information.
• As an urban water supplier and wastewater service provider, the City will comply with SB 1087 to
establish priority water and sewer services for new affordable housing development applications.
Specific Actions and
Timeline
• Ongoing participation in the update and implementation of the water
master plan.
• On-going compliance with the Restructured Agreement and participation
in the Sonoma Marin Saving Water Partnership.
• On-going implementation and expansion of water conservation program.
• On-going recycled water program expansion.
• By December 2022, an estimated 5 new recycled water connections off
Maria Drive to serve public parks and landscape areas
• By December 2022, Drought Ready Ordinance to City Council for
consideration and adoption.
• By December 2022, begin Aquifer Storage and Recovery Plan.
• By September 2022, update UWMP and WSCP.
• By December 2022, begin updated water and sewer capacity fee study
and implement revised capacity fees.
• By December 2023, adopt policy for prioritizing water and sewer
services to new affordable housing development applications, consistent
with SB 1087.
• FY23-24, Installation of new municipal groundwater well.
• Planning stages for well treatment at existing groundwater wells.
• By December 2025, the Advanced Metering Infrastructure installation
complete.
Primary Responsible
Departments Public Works and Utilities
Funding Sources Water Enterprise
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AFFH Themes Not applicable
3.2.3. Affordable Housing
Program 11: Inclusionary Housing
The City implements its local Inclusionary Housing program that requires 15 percent of the units in new
development (of five or more units) to be rented or sold at prices affordable to lower low and very low and/or
low and moderate income households. To facilitate housing development, the City will evaluate the
Inclusionary Housing program to:
• Assess the threshold for applying the inclusionary requirements, including the appropriate unit
threshold for in-lieu options.
• Establish specific alternative options for fulfilling the inclusionary housing requirements, such as
payment of an in-lieu fee, donation of land, acquisition/rehabilitation and deed restriction of existing
housing, preservation of affordable housing at risk of converting to market rate, or allowance of
ADUs in multi-family development to count toward the requirement.
Specific Actions and
Timeline
• Continue implementation of the Inclusionary Housing Program to create
1,000 affordable units (400 very low income; 400 low income; 200
moderate income) over eight years, inclusive of the 419 affordable units
in the pipeline..
• In 2024, evaluate the Inclusionary Housing program to ensure the in-lieu
options, threshold and fee structure for in-lieu options are appropriate to
facilitate housing development given the current market conditions.
• At least every four years, review the in-lieu fee calculations to ensure the
fees reflect current market conditions.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
AFFH Themes
• New Opportunities in High Resource Areas
• Housing Mobility
• Anti-Displacement and Tenant Protection
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Program 12: Housing-Commercial Linkage Fee
The City implements the Housing-Commercial Linkage Fee program to facilitate affordable housing
development. The program requires all construction or expansion of nonresidential development to pay a
linkage fee for affordable housing. Nonresidential uses include commercial, retail, and industrial uses. The
collected fee is used to provide affordable housing for households with incomes between 80 and 100
percent of the Area Median Income (AMI). However, this income range does not cover many workers in the
farming or hospitality industries who are at lower pay scales. To ensure the success of the Housing-
Commercial Linkage fee in helping the City meet workforce housing needs in the community, the City
should evaluate the appropriateness of the 80 to 100 percent AMI target and consider modifying the fee to
allow for use in lower income categories. Additionally, the fee as currently adopted does not include the
annual increase by CPI that many other City impact fees have. Therefore, the Linkage fee should be
modified to include an annual adjustment to keep up with market trends.
Specific Actions and
Timeline
• In 2024, review the existing nexus study.
• At least every four years, review and revise the Linkage fee calculations
to ensure the fee reflects current market conditions.
• In 2024, mModify fee resolution to include an automatic annual increase
by CPI.
• In 2024, review the existing nexus study.
• By the end of 2024, consider reviseing the target AMI range for the
program to up to 100 percent AMI (to encompass the very low income
and extremely low income groups).
• Facilitate the development of 1,000 affordable units over eight years,
inclusive of the 419 affordable units in the pipeline..
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 13: Local Housing Trust Fund
A major constraint to affordable housing development is the lack of funding. The City has established a
Local Housing Trust Fund but has limited sources of revenue for the Trust Fund. Currently, available
sources include fees generated from the Inclusionary Housing in-lieu fee, Housing-Commercial Linkage
Fee, and Permanent Local Housing Allocation. With the City’s focus on on-site production of affordable
units, the In-Lieu fee is not a significant revenue for the Trust Fund.
The City is exploring participation in the Joint Powers Authority (JPA) with the City of Santa Rosa and the
County of Sonoma. The JPA was created with the PG&E settlement funding from the 2017 and 2018
wildfires.
The City will explore other funding sources, including:
• General Fund
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• Transient Occupancy Tax
• Short-Term Rental registration fee
• Vacant Home Tax - Imposing a tax on homes that are unoccupied for an extended period
• Employer Fee – Requiring major employers to contribute to affordable housing
Specific Actions and
Timeline
• Ongoing exploration of additional funding sources for the Housing Trust
Fund and pursue appropriate options by 2025.
Primary Responsible
Departments Community Development (Housing)
Funding Sources Housing Trust Fund
Program 14: Incentives for Affordable Housing
The City will continue to facilitate the development of affordable housing, especially housing for lower
income households (including extremely low income) and those with special housing needs (including
persons with disabilities/developmental disabilities). Incentives may include, but are not limited to:
• Expedited review of affordable housing projects
• Dedicated project manager to help navigate the City process
• Financial participation using the Local Housing Trust Fund
• Support and assistance in project developer's applications for other local, state, and federal funds
• Density bonus beyond State law
• Waived, reduced, or deferred impact fees for affordable housing units (potentially scaled on the
basis of affordability level and percent of affordable units)
• Streamlined review for 100 percent affordable housing projects
Specific Actions and
Timeline
• This work is ongoing.
• Annually, pursue funding from local, state, and federal programs to
facilitate the development of affordable housing, including housing for
those making extremely low incomes and those with special housing
needs.
• By December 2023, establish an incentive package for affordable
housing development, such as the percentage of affordable units to
qualify for expedited review and local density bonus.
• Facilitate the development of 1,000 affordable units in eight years (400
very low income; 400 low income; and 200 moderate income), inclusive
of the 419 affordable units in the pipeline.
.
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• Target at least 40 percent of new affordable units in high resource areas.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 15: Workforce and Missing Middle Housing
In general, the concept of missing middle housing refers to two scenarios. One, housing is not affordable
to middle income households. Two, the range of housing available in a community is missing housing types
at medium densities. Often these two scenarios overlap, as affordability is correlated with density. Housing
in Petaluma is generally not affordable to lower and moderate income households. Even middle income or
workforce households, defined as households making up to 150% of the area median income, have
difficulty locating affordable and adequate housing options. More than three-quarters of the City’s housing
stock is comprised of single-family detached homes, a housing type that is generally not affordable to
middle income households. The City will explore various strategies to promote workforce/missing middle
housing. Potential strategies may include:
• Transitioning single-family neighborhoods into 15-minute walkable neighborhoods by integrating
neighborhood-serving uses, and live/work spaces with residential uses. This approach enhances
housing options by introducing medium density housing into single-family neighborhoods, providing
the middle income housing that is missing in the City's range of housing choices. To implement this
goal, the City will explore several changes to the Zoning Code, including but not limited to:
o Allowing neighborhood-serving nonresidential uses into residential neighborhoods,
including co-working spaces
o Redefining home occupation and live/work arrangements
o Implementing SB 9
o Promoting small lot subdivisions and appropriately-scaled multi-family buildings
• Allowing small complexes, up to six units, on lots of at least 6,000 square feet citywide.
• Facilitating lot consolidation.
• Establishing a requirement for an average unit size per development to balance between density
and unit sizes and encourage the development of smaller units.
• Pursuing the acquisition and deed restriction of apartments for middle income households.
Specific Actions and
Timeline
• By December 2023, as part of the City's General Plan update, develop
land use policies to facilitate the transitioning of single-family detached
neighborhoods and to increase opportunities for medium density
residential for middle income housing.
• By December 2023, develop application and process materials for SB 9
applications. In the interim, work with applicants one-on-one to ensure
the City is implementing State mandates.
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• In 2024, pursue opportunities with Joint Powers Authorities to acquire
and deed restrict apartments as middle income housing.
• Create 20080 new units (duplex, triplex, fourplex, and small multi-family
complex) in single-family and other lower density neighborhoods, for an
average of ten units per year as part of the City’s efforts to create 15-
minute neighborhoods.
Primary Responsible
Departments Community Development (Planning, Housing); City Attorney’s Office
Funding Sources Housing Trust Fund
AFFH Themes • Housing Mobility
• New Opportunities in High Resource Areas
Program 16: Community Land Trust/Land Banking
Community land trusts are nonprofit, community-based organizations designed to ensure community
stewardship of the land. Community land trusts can be used for many types of development (including
commercial and retail), but are primarily used to ensure long-term housing affordability. To do so, the trust
acquires land and maintains ownership of it permanently.
The CLT model is often used for the ownership of affordable housing because the cost of land is not factored
into the price of the home. Prospective homeowners enter into a long-term renewable lease with the CLT
instead of a traditional sale. When the homeowner sells, the seller earns only a portion of the increased
property value. The remainder is kept by the trust, preserving the affordability for future low to moderate
income households. For rental housing, the CLT guarantees the affordability of the properties in perpetuity.
The City may also pursue an alternative approach to CLT, by acquiring and retaining ownership of the land
but leasing the land to developers for affordable housing for $1 per year.
Specific Actions and
Timeline
• Partnership with a regional community land trust is ongoing.
• In 2024, conduct outreach to nonprofit housing developers and other
Community-Based Organizations (CBOs) to explore the feasibility of
establishing a CLT. If feasible, identify funding sources to seed the CLT
and in 2025, establish a CLT for affordable housing or develop an
alternative land banking strategy.
Primary Responsible
Departments Community Development (Housing)
Funding Sources Housing Trust Fund
3.2.4. Housing Preservation
Program 17: Housing Rehabilitation
In recent years, the City has been providing Community Development Block Grant (CDBG) funds to
Rebuilding Together to provide major and minor rehabilitation services to lower income households. The
City will continue to support nonprofit efforts for the improvement of housing conditions for lower income
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households, especially those with special needs. Eligible improvements include emergency health and
safety housing repairs, energy conservation, and accessibility improvements.
The City will also explore using available resources to assist disadvantaged neighborhoods in moving
toward all electrical utilities and appliances per the City’s Climate Action and Adaptation Plan.
Specific Actions and
Timeline
• Continue to provide funding for housing rehabilitation services to assist
an average of 30 households annually or 240 households over eight
years.
• By 2025, pursue funding for decarbonization of housing for low income
households to assist a minimum of 40 households over eight years.
• Require that projects seeking local funding for housing rehabilitation
demonstrate a commitment to electrification.
Primary Responsible
Departments Community Development (Housing)
Funding Sources CDBG
Program 18: Preservation of At-Risk Housing
The City has an inventory of publicly assisted housing projects that offer affordable housing opportunities
for lower income households. Most of these projects are deed-restricted for affordable housing use long
term. However, eight projects (300 units) in the City utilize Section 8 rental assistance from HUD to further
subsidize the affordability of these units. These subsidy contracts require renewal periodically. However,
all except one of these projects are owned by nonprofit organizations. Therefore, the likelihood of these
projects opting out of low income use is limited.
The City will work to preserve the long-term affordability of its affordable housing inventory, including these
eight projects with project-based Section 8 contracts. A possible strategy for preserving the affordable
housing inventory is to acquire and maintain the affordable projects through the Community Land Trust if
one is established (Program 17).
Specific Actions and
Timeline
• The City is currently working to support the preservation of at-risk
housing.
• Annually monitor and report on the status of the at-risk units with the
goal of preserving the existing 300 at-risk units.
• Ensure tenants are properly noticed by the property owners should a
Notice of Intent to opt-out of low income use is filed. Notices must be
filed three years, one year, and six months in advance of conversion.
• If HUD Section 8 contracts are not renewed, work with property owners
to pursue other funding to preserve affordability. Outreach to other
nonprofit housing providers to acquire projects opting out of low income
use.
• Work with property owners to encourage the acceptance of Section 8
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vouchers by securing resources and or partnerships to that would
support a Housing Locator position within the community or through a
regional partnership. The position would be focused on marketing the
Section 8 Program, building relationships with landlords, and linking
landlords with community service providers as resource.
• Pursue acquisition and expansion of the affordable units through the
Community Land Trust if one is established.
Primary Responsible
Departments Community Development (Housing)
Funding Sources Housing Trust Fund
Program 19: Mobile Home Rent Stabilization
The City implemented rent stabilization for mobile home spaces in 1994 to ensure affordability for
homeowners, most of whom are on fixed incomes. At the same time, rent stabilization is intended to allow
mobile home park owners to maintain a fair and reasonable return. Rent stabilization applies to spaces that
have a rental agreement term of 12 months or less. Annual rent increases are limited to the percentage
change in the Consumer Price Index (CPI), but any increase is limited to a maximum of 6 percent.
The City promotes the long-term affordability of the mobile home units through the following actions:
• The land use classification of the seven mobile home parks in Petaluma is Mobile Homes. This
classification protects the mobile home parks from possible future development by limiting the
housing types to only mobile homes. Any proposed change would require a General Plan
amendment.
• Support the administration of the Mobile Home Rent Control Program that was implemented to
provide rent stabilization for over 317 lower income mobile home park tenants, most of whom are
elderly.
(See Program 29: Tenant Protection Strategies that cover housing opportunities citywide.)
Specific Actions and
Timeline
• Continue to support the affordability of mobile home parks by working
with residents and property owners to monitor rents and ensure rent
increases are economically feasible, in addition to putting in place tenant
protections city wide.
• Annually monitor mobile home park rents to ensure compliance with the
Rent Stabilization Ordinance.
• As requested, conduct mediation between tenants and mobile home
park owners for rent increases.
• By December 2022, update the Mobile Home Rent Stabilization
Ordinance.
Primary Responsible
Departments Community Development (Housing); City Attorney’s Office
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Funding Sources Mobile Home Rent Stabilization Fee
Program 20: Historic Preservation
The City has many homes older than 50 years that are eligible for historic preservation through the Mills
Act. The City will explore adopting a Mill Act Program to preserve and enhance the quality of historic homes,
while still increasing the housing supply. A potential adaptive reuse approach is to convert these older
homes into smaller living quarters or other living arrangements.
Specific Actions and
Timeline
• In 2024, explore of the viability of adopting a Mills act program based on
City priorities or develop alternative tools to facilitate historic
preservation..
• Annually outreach to historic homes through the City newsletter
regarding the tax benefits through Mills Act.
• Provide technical assistance to interested property owners in converting
large historic homes into smaller housing units such as creating JADUs
within the existing square footage or converting into co-housing
arrangements.
Primary Responsible
Departments Community Development (Planning); City Attorney’s Office
Funding Sources Housing Trust Fund
Program 21: Condominium Conversion
The City allows the conversion of apartments into condominiums only when the rental vacancy rate is above
three percent, or if one-for-one replacement of rental units of a similar type occurs, or if two-thirds of the
adult tenants agree to the conversion. However, given the tight rental housing market in Petaluma,
condominium conversion is not anticipated to be a significant trend in the foreseeable future. Should this
become an issue, the City will also consider a Tenant Opportunity to Purchase Act (TOPA) to mitigate the
displacement impacts.
Specific Actions and
Timeline
• Bi-Annually monitor the vacancy rate.
• If condominium conversion becomes a market trend again, within one
year of identifying a revived trend, pursue Tenant Opportunity to
Purchase Act to allow a tenant the first right of refusal should
condominium conversion become a significant trend in the futureor other
alternative tools to mitigate displacement impacts.
Primary Responsible
Departments Community Development (Planning, Housing); City Attorney’s Office
Funding Sources General Fund
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3.2.5. Special Needs Housing
Program 22: Project HomeKey
In March 2022, the City was awarded $15,385,000 funding from the State of California, Housing and
Community Development Department (HCD), for Project Homekey. The project scope includes the
acquisition and rehabilitation of an existing 62-unit hotel. The project will provide sixty units of permanent
supportive housing for members of the community who are chronically unhoused.
Specific Actions and
Timeline
• This work is ongoing.
• In 2023, identify additional potential locations that may be appropriate as
Project HomeKey sites and conduct outreach to interested nonprofit
developers to pursue funding from HCD. The goal is to potentially
achieve additional projects.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources HCD Project HomeKey Funds, City/County housing funds
Program 23: Support for Homeless Services and Facilities
In June of 2022, the city adopted the Strategic Plan to End Homelessness. This includes a vision and specific
strategies to guide the City’s homelessness policies, programs, and investments during the upcoming three-
year action cycle, covering July 1, 2022 through June 30, 2024. The Plan was developed through a three-
phase process which included: 1) Discovery (local input through community feedback sessions and
individual interviews – with an emphasis on incorporating lived experience input from people who had
experienced or who currently are experiencing homelessness, and research of related reports and studies
on homelessness in Petaluma and Sonoma County as well as at regional, state and federal levels), 2)
Analysis (review of data sources, identification of strengths/weaknesses/opportunities/threats within the
current system, and development of a “pathway to housing framework” to better identify gaps and
opportunities), and 3) Feedback and Adoption (iteration and review of the Plan with staff, service providers,
and the broader community. As funding permits, the City continues to support the provision of housing
and services for community members who are unhoused. In the past, the City has supported the following
programs and facilities:
• Petaluma People Services Center (PPSC) Rental Assistance Program: This program assists
Petaluma individuals and families seeking to retain affordable housing by making a one-time
payment of rent or mortgage on their behalf. Clients also receive information, referrals, and
counseling services to prevent future threats to their stability.
• Mary Isaak Center (MIC): MIC contains an 80-bed dormitory, a large dining area, a six-bed sick
room, a large training/service kitchen, a living room, a conference/counseling room, a laundry room,
offices, lockers, and men's and women's bathroom facilities with showers. All clients participate in
multi-level case management and goal-setting program that helps clients with basic needs and
access to social services, including life skills workshops, counseling services, referrals, showers,
lockers, mail, laundry facilities, telephone, and message services.
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• Committee on the Shelterless (COTS) Family Shelter: MIC has a 32-bed transitional housing
program for families located on the 2nd floor of the Mary Isaak Center. The program is designed to
be the final step on their way to stability in permanent, independent housing.
• People's Village: The Village is comprised of 25 non-congregate tiny homes adjacent to the COTS
Mary Isaak Center. The program includes intensive case management services and is focused on
transitioning clients into long-term housing solutions.
• Committee on the Shelterless (COTS) Family Transitional Homes: The COTS program has a total
of 12 homes, four of which are City-owned, while eight are market-rate and leased by COTS and
have County Housing Vouchers. This program provides housing for clients transitioning out of an
emergency shelter.
• City-Owned Homes: The City owns a four-bedroom house on Rocca Drive, leased and operated
by the America's Finest (formerly Vietnam Veterans of America) serving homeless veterans who
are unsheltered and are enrolled in the Agency's Employment and Training Program.
Specific Actions and
Timeline
This work is ongoing. Annually assist various local nonprofits that serve the
homeless:
o 100 households through PPSC Rental Assistance
o 80 bed nights through Mary Isaak Center
o People’s Village 25 Non- congregate interim housing
o 60 individuals through COTS Family Shelter
o 80 individuals through COTS Family Transitional Homes
o 12 individuals through City-owned Transitional Home
Primary Responsible
Departments Community Development (Housing)
Funding Sources Housing Trust Fund; CDBG
Program 24: Senior Housing Options
The City has an aging population and there are generally limited options for seniors to trade down their
current homes for smaller units that may require less upkeep and repairs. The City will explore incentives
to encourage the development of a range of senior housing options, such as senior apartments,
condominiums/townhomes, assisted living, co-housing, and intergenerational housing. Development
standards may need to be modified to accommodate alternative housing options such as co-housing and
tiny homes. Other policies may include encouraging developers to include accessible homes that utilize
universal design principles. In addition, the City will promote programs such as Home Match to assist
seniors who would like to remain in their homes but rent out the excess rooms or develop ADUs.
Specific Actions and
Timeline
• Some of this work is ongoing.
• In 2024, develop incentives and modifications to development standards
to facilitate a variety of housing options for seniors. Specifically, establish
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appropriate parking standards for different types of senior housing.
• Continue to promote Home Match and similar programs that help match
seniors with potential tenants and help navigate the rental leasing
process.
• Create 50 new senior units, representing an average approximate size of
an affordable housing development using LIHTC.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
Program 25: Adequately Sized Rental Housing for Families
The rental housing market of Petaluma offers limited large rental units that would be considered adequate
for large households or families with children. When such units are available, the rents are not affordable
to lower and moderate income households. The City may consider policies to facilitate the development of
large rental units. Potential considerations may include:
• Requiring projects above a certain size to include units with three or more bedrooms
• Allowing large units to qualify as more than one inclusionary unit
• Reducing parking requirements (currently one per bedroom) to facilitate larger rental units
• Allowing ADUs to exceed State size requirements
Specific Actions and
Timeline
• In 2024, develop incentives and modifications to development standards
to facilitate large rental units.
• Target 20 percent of new rental units to have three or more bedrooms.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
Program 26: Universal Design and Visitability
Universal design is the design of buildings or environments to make them accessible to all people,
regardless of age, disability, or other factors. Universal design goes beyond ADA requirements but may
add to the cost of construction. Typically, communities incentivize the use of universal design principles.
Currently, visitability is a requirement for HUD-funded single-family or owner-occupied housing. Visitability
is housing designed in such a way that it can be lived in or visited by people who have trouble with steps
or who use wheelchairs or walkers. The City demonstrates its support for visitability by requiring design
measures for developments with five units and under and expanding visitability to 30 percent of multi-family
housing with the Visitability and Universal Design Ordinance approved by City Council on February 28,
2022.
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Specific Actions and
Timeline
• In 2022, research and develop an ordinance to ensure Visitability and
Universal Design for future residential development for both single family
and multifamily development.
• In 2022, approve a Visitability and Residential Design Ordinance
(adopted June 6, 2022). at
• Continue to implement and enforce visitability and universal design
compliance.
• By 2026 evaluate impact of the ordinance and if appropriate, consider
expansion expand to higher percentage of multi-family units.
• Consistent with the City’s recently adopted Ordinance, Increase the
proportion of accessible units beyond Building Code minimum
requirements, with the goal of achieveing 1030 percent of affordable
units multi-family units meeting visitability or universal design
requirements.
Primary Responsible
Departments Community Development (Planning)
Funding Sources General Fund
Program 27: Housing for Farmworkers and Hospitality
Workers
Sonoma County is known for its wide range of agricultural activities. Agricultural activities and the hospitality
industry associated with local wineries represent a significant segment of the regional economy. Although
the City of Petaluma does not have a large farmworker population, farmworkers live outside of City limits
and access public services within City limits. Also, about 22 percent of employees in Petaluma are
employed in retail and service sectors that support the hospitality industry. Farmworkers and hospitality
employees typically earn lower wages and have limited affordable housing options in Petaluma. To
participate in addressing this regional housing need, the City may explore policies that facilitate the
provision of affordable housing for these workers. Potential considerations may include:
• Adjusting the Housing-Commercial Linkage Fee program requirement for affordable housing to
households earning up to 100 percent of AMI (encompassing very low income and extremely low
income households) (see Program 13)
• Setting aside a specific percentage of affordable housing units for farmworkers and hospitality
workers
• Partnering with other jurisdictions, farm operators, wineries, hotels, and other hospitality employers
in the region to contribute to an affordable housing fund or Community Land Trust
• Requiring hospitality employers to provide housing for temporary employees during peak seasons
Specific Actions and
Timeline
• In 2025, reach out to other jurisdictions, farm operators, and hospitality
employers to explore strategies for providing affordable housing options
to farmworkers and hospitality employees. Develop strategies by
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December 2025.
• Create 520 units for farm workers and/or hospitality workers,
representing the typical size of an affordable housing project using
LIHTC.
Primary Responsible
Departments Community Development (Planning, Housing)
Funding Sources General Fund
3.2.6. Fair Housing
Program 28: Fair Housing Outreach and Enforcement
The City of Petaluma provides funding annually to Petaluma People Services Center (PPSC), which
provides several services including mediation and resolution of tenant/landlord disputes, helping tenants
complete state and federal complaint forms, investigating complaints of housing discrimination, and
providing outreach services.
Specific Actions and
Timeline
• This work is ongoing.
• Assist an average of 300 residents annually with tenant/landlord dispute
resolution, and fair housing inquiries and investigations.
• By December 2023, update the City website to provide a range of fair
housing resources, including PPSC, State Department of Fair
Employment and Housing (DFEH), and HUD Fair Housing and Equal
Opportunity (FHEO) Office, along with State tenant protection provisions.
• By December 2023, work with PPSC to expand methods of information
dissemination, including print, website, and other social media outlets.
Specifically, work with PPSC to develop materials on the State’s source
of income protection and distribute them as part of the ADU permit
application package.
Primary Responsible
Departments Community Development (Housing)
Funding Sources City Housing In-Lieu
Program 29: Tenant Protection Strategies
Throughout the region, tenants are facing rising rents and the risk of eviction due to the economic impact
of COVID, as well as displacement impact from the economic pressure of new development. The City will
explore a series of strategies that offer tenant protection. These may include:
• Rent stabilization: Currently, the State imposes rent caps on some residential rental properties (AB
1482) through 2030. However, AB 1482 exempts single-family homes and condominiums for rent,
and multi-family housing units built within the previous 15 years. A strategy for rent stabilization is
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to make permanent the policy and possibly expand the policy to units not covered by AB 1482.
However, compliance with the 1995 Multi-Family Housing Act (Costa Hawkins) is critical.
• Just Cause for Eviction: AB 1482 also establishes a specific set of reasons that a tenancy can be
terminated. These include: 1) default in rent payment; 2) breach of lease term; 3) nuisance activity
or waste; 4) criminal activity; 5) subletting without permission; 6) refusal to provide access; 7) failure
to vacate; 8) refusal to sign lease; and 9) unlawful purpose. The City may consider adopting a local
Just Cause for Eviction ordinance that offers greater protection in the scope of units covered.
• Tenant Commission: Typically, most land use policies and planning decisions are made from the
perspective of property owners. Tenants lack a voice in the planning process. A Tenant
Commission or Advisory Committee may be an avenue where they can bring policy discussions
that highlight tenant interests to the City.
• Right to Purchase: When tenants are being evicted due to condominium conversion or
redevelopment, the Right to Purchase policy/program ensures the first right of refusal to displaced
tenants to purchase the units.
• Right to Return: When tenants are being evicted due to rehabilitation/renovation of the property,
the Right to Return policy/program offers the first right of refusal to displaced tenants to return to
the improved property.
Specific Actions and
Timeline
• In 2023, begin community outreach to discuss various strategies of
tenant protection.
• In 2024, adopt appropriate tenant protection strategies, such as right to
purchase policies, just cause for evictions, relocation assistance, and
rent stabilitationstabilization..
Primary Responsible
Departments Community Development (Planning); City Attorney’s Office
Funding Sources General Fund
AFFH • Tenant Protection and Anti-Displacement
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Affirmatively Furthering Fair Housing
The following table summarizes the City’s implementation actions to further fair housing. Individual housing
programs may have different impacts on furthering housing choices in Petaluma. Fair housing actions are
grouped into the five themes:
• Fair housing outreach and enforcement
• Housing mobility through expanded choices in housing types and locations
• New opportunities in high resource areas
• Place-based strategies for neighborhood improvements
• Tenant protection and anti-displacement
Housing programs are often implemented citywide. However, individual programs may have targeted
locations for specific actions, increased outreach efforts, and/or priority for allocation of resources, and
program-level metrics are not mutually exclusive.
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Table 1: Affirmatively Furthering Fair Housing Action Matrix
Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Housing Mobility
Program 5:
Flexible Development
Standards
As part of the General Plan
update, adjust the mixed-use
development requirements
and address zoning code
constraints, such as parking
requirements, to adaptive
reuse of nonresidential
spaces.
By
December
2023
Downtown
Create 100 40 new units through
adaptive reuse and conversion of
nonresidential use
Program 6:
Religious and Institutional
Facility Housing Overlay
As part of the General Plan
update, establish a Religious
and Institutional Facility
Housing Overlay.
By
December
2024
Citywide
Create 50 new housing units affordable
to lower income households in Overlay,
representing the typical size of an
affordable housing project using LIHTC
Program 7:
Zoning Code Amendments
Revise the Zoning Code to
facilitate a variety of housing
types.
By
December
2024
Citywide
Create 100 new housing units for
special needs groups, including for
seniors, disabled, farmworkers,
hospitality workers, and the homeless. Program 8:
Development Fees
Conduct an impact fee
analysis and revise the
development fee structure to
encourage a range of housing
unit sizes.
By
December
2024
Citywide
Program 15:
Workforce/Missing Middle
Housing
Develop land use policies to
facilitate the transitioning of
single-family neighborhoods
and to increase opportunities
for medium density residential
By
December
2023
Single-family
neighborhoods and
lower density areas
Create 200 80 new units (duplex,
triplex, fourplex, and small multi-family
complex) in single-family and other
lower density neighborhoods, for an
average of 10 units per year.
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
for workforce and middle
income housing.
Program 24:
Senior Housing Options
Develop incentives and
modifications to development
standards to facilitate a variety
of housing options for seniors.
In 2024 Citywide
Create 50 new senior units,
representing an average size of an
affordable housing development using
LIHTC
Promote Home Match and
similar programs that help
match seniors with potential
tenants and help navigate the
rental leasing process.
Ongoing Citywide Not applicable
Program 25:
Adequately Sized Rental
Housing for Families
Develop incentives and
modifications to development
standards to facilitate large
rental units.
In 2024
Citywide, with an
emphasis on
Midtown/Downtown
neighborhood
(Tracts 1507.01,
1509.01)
Target 20 percent of new rental units to
have three or more bedrooms
Program 26:
Universal Design and Visitability
Research and develop an
ordinance to ensure Visitability
and Universal Design for
future residential development
for both single family and
multifamily development.
By 2026 Citywide, with an
emphasis on
Midtown/Downtown
neighborhood
(Tracts 1507.01,
1509.01)
Consistent with the City’s recently
adopted Ordinance, achieve 30
percent of multi-family units meeting
visitability or universal design
requirements.Increase accessible units
beyond Building Code minimum
requirements
Approve a Visitability and
Residential Design Ordinance
at
In 2022
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Continue to implement and
enforce visitability and
universal design compliance.
Ongoing
Evaluate impact of the
ordinance and consider
expansion to higher
percentage of multifamily
units.
By 2026
Program 27:
Housing for Farmworkers and
Hospitality Workers
Outreach to other jurisdictions,
farm operators, and hospitality
employers to explore
affordable housing solutions
for farmworkers and hospitality
employees and develop
appropriate implementation
strategies.
By 2025 Citywide
Create 50 units for farm workers and/or
hospitality workers, representing an
average size of an affordable housing
project using LIHTC.Create 20 units for
farm workers and/or hospitality workers
New Opportunities in High Resource Areas
Program 3:
Accessory Dwelling Units
Develop and implement an
outreach program to promote
ADU/JADU in Planned Unit
Development (PUD) areas that
previously do not allow such
units.
In 2023 PUD areas Create 16 ADUs/ JADUs in PUD areas
Program 11:
Inclusionary Housing
Continue to implement the
Inclusionary Housing Program. Ongoing Citywide
Create 1,000 new affordable units,
inclusive of the 419 affordable units in
the pipeline.
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Program 14:
Incentives for Affordable
Housing
Develop an incentive package
for affordable housing
development, such as the
percentage of affordable units
to qualify for expedited review
and local density bonus.
By
December
2023
High resource
areas
Target at least 40 percent of new
affordable units in high resource areas
Place-Based Strategies for Neighborhood Improvements
Program 3:
Accessory Dwelling Units
Promote opportunities to
property owners, particularly
those in the Disadvantaged
Communities as outlined in the
Environmental Justice
Element.
Within six
months of
adopting
an
amnesty
program
Disadvantaged
Communities:
1506.01
1506.09
1509.01
1506.03, Block
Group 1
1506.03, Block
Group 2
1506.03, Block
Group 5
1506.07, Block
Group 2
1508.00, Block
Group 3
1512.01, Block
Group 4
Achieve code compliance or
legalization of 40 units over eight years
Program 17:
Housing Rehabilitation
Pursue funding for
decarbonization of housing for
low income households.
Beginning
2025
Assist a minimum of 40 lower income
households in Disadvantaged
Communities
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Adobe
Neighborhood
(Low Resource)
1506.01
1506.02
1506.11
Tenant Protection and Anti-Displacement
Program 2:
Replacement Housing
Update the Zoning Code to
address the replacement
requirements and to consider
requiring the first right of
refusal for displaced tenants.
By
December
2024
Citywide No net loss of existing affordable
housing
Program 18:
Preservation of At-Risk Housing
Take actions to preserve at-
risk units. Ongoing Citywide Preserve all 300 at-risk units
Program 19:
Mobile Home Rent Stabilization
Monitor mobile home park
rents to ensure compliance
with the Rent Stabilization
Ordinance.
Annually Citywide Preserve affordable rents for 317
mobile home park tenants
Program 29
Conduct community outreach
to discuss various strategies of
tenant protection and adopt
appropriate tenant protection
strategies.
In 2024
Citywide, with an
emphasis on Tract
1508 (identified as
a sensitive
community at risk
of displacement)
Not applicable
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Program Specific Commitment Timeline Geographic
Targeting Eight-Year Metrics1
Fair Housing Outreach and Enforcement
Program 28:
Fair Housing Outreach and
Enforcement
Continue to outreach to
residents regarding fair
housing rights.
Ongoing
Citywide Assist 400 residents, housing
providers, and housing professionals
When vacancies at City
boards and commissions
become available (especially
those with the ability to
influence housing policies),
conduct citywide outreach to
recruit members who are
representative of the targeted
populations
Ongoing
Units listed in the metrics are inclusive of the units listed in Table 2: Summary of Quantified Objectives (below).
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3.4. Summary of Quantified Objectives
The following table summarizes the City's quantified objectives for the various housing programs outlined
above related to Affirmatively Furthering Fair Housing.
Table 2: Summary of Quantified Objectives (2023-2031)
Extremely
Low1 Very Low Low Moderate
Above
Moderate Total
RHNA 247 248 288 313 810 1,910
New Construction2 100 300 400 200 2,500 3,500
Rehabilitation 20 120 140 -- -- 280
Preservation3 75 75 150 -- -- 300
Conservation4 100 100 117 -- -- 317
Notes:
1. State law requires projecting the needs of extremely low income households. One allowable methodology is to
assume that 50% of the very low income housing needs are extremely low income.
2. New construction is generally estimated by doubling housing units from pipeline projects, assuming new
development and adaptive reuse activities in the next eight years will at least match reflect the projects already
in the pipeline and assume a steady trend of about 200 units per year. Specifically, the City has 1,760 units in
the pipeline as of November 2022 that are anticipated to be constructed within the 6th cycle Housing Element
planning period.
3. Preservation of 300 at-risk housing units
3.4. Mobile home rent stabilization program benefiting 317 tenants.
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