Healdsburg Secures $21.1 Million in State Funding for the Saggio Hills Affordable Housing Project

A rendering of the Saggio Hills Affordable Housing Phase I project.

HEALDSBURG, CA - The City of Healdsburg is pleased to announce that Freebird Development, in partnership with Jamboree Housing, has been awarded $21.1 million in funding from the State of California’s Affordable Housing and Sustainable Communities (AHSC) program. This funding, approved by the California Strategic Growth Council, will help finance Phase I of the City-sponsored Saggio Hills Affordable Housing project, which is part of a larger 118-unit affordable housing development. The awarded funds will contribute to the construction of 48 affordable rental units in this phase, a 3,000 square foot community building, along with essential infrastructure and transportation enhancements that will benefit the entire community.

About the Project:
Saggio Hills Phase I is the first step in fulfilling the affordable housing commitments tied to the Montage Healdsburg development. “This project is a key part of Healdsburg's overall housing strategy for sustainable growth, aimed at providing affordable housing options for our local workers and neighbors and we’re excited to see it move forward,” said Mayor David Hagele.

Saggio Hills Phase I includes 48 affordable units and received the highest score in the Rural Innovation Project Area (RIPA) category in AHSC's Round 8, demonstrating its strong alignment with State goals for reducing greenhouse gas emissions. The development is expected to reduce 3,880 metric tons of CO2 equivalent over its lifespan—equivalent to removing 840 passenger vehicles from the road for a year or the carbon sequestration of approximately 64,600 trees over ten years.

Funding Breakdown:
The $21.1 million in AHSC funding will be allocated as follows:

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

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

For more information, please contact:
Stephen Sotomayor
Housing Director
City of Healdsburg
Email: ssotomayor@Healdsburg.gov
Phone: (707) 431-3396

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