On February 20, 2025, the City of Sonoma’s Planning Commission held a study session with a developer interested in building a 120 unit rental apartment project at 20540 Broadway. The parcel is currently outside of the City Limit but is adjacent to it; it will have to be annexed into the city for the application to proceed.
Technically in the Gateway Commercial zone, the proposed project is entirely residential. No units will exceed 850 sq. ft., entitling the developer to build a project without any inclusionary units that meet government affordability requirements, which would normally be 25% of the total units and deed restricted in perpetuity. Notwithstanding, the developer will voluntarily include six units for very low-income residents which will remain so in perpetuity.
A study session is hearing during which commissioners can give feedback on a project concept but not offer any categorical opinion, nor are any votes taken.
The discussion centered around the 850-ft. exemption, and its efficacy. The underlying concept is that market-rate housing of smaller size within multi-family, shared wall buildings will be offered at lower market prices than larger single-family units. The concept is at yet untested, and the commission agreed that projects like this will provide a “proof of concept” about market-rate affordability.
When Affordable units are required by the city, their cost is absorbed by the developer and the limited revenue stream offset by a higher price to the public for the market-rate units, essentially as subsidy. The exemption removes the subsidy generated by market-rate units.
The developer, Red Tail Multifamily Development, specializes in such projects and during the session pointed out that they do not build, lease and then sell the development; rather, they build, lease and retain ownership of the development, giving them a long-term investment in each community in which they build.
Overall, the tone of the commission was positive. The City of Sonoma has long wanted to see an increase in rental apartment projects that can house workforce employees and missing middle renters. It is rare for a developer to propose an all-rental, market-rate, multifamily project.
Should the project proceed, the standard studies and evaluation will be required for traffic impacts, hydrology, and conformance with the city’s development standards.
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