State Awards $21.1M For Healdsburg's Saggio Hills Affordable Housing

HEALDSBURG, CA — The state of California has awarded $21.1 million in funds that will help finance the first phase of the city-sponsored Saggio Hills 118-unit affordable housing development, the city of Healdsburg announced Thursday.

The money was awarded to Freebird Development, in partnership with Jamboree Housing, through the state's Affordable Housing and Sustainable Communities —AHSC — program.

Approved by the California Strategic Growth Council, the funding will contribute to the construction of 48 affordable rental units in Phase 1, a 3,000-square-foot community building and essential infrastructure and transportation enhancements that will benefit the entire community.

City officials said 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 David Hagele, mayor of Healdsburg.

Saggio Hills Phase I 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 10 years.

Funding Breakdown

The $21.1 million in AHSC funding is to 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
  • Four 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

Construction of Phase I is anticipated to begin next spring. With the AHSC funding secured, the city and its partners are actively applying for additional funding to construct the Saggio Hills affordable housing project in its entirety.