Renewal Enterprise District reports 632 housing units supported; Casa Roseland begins construction

The Renewal Enterprise District told the Santa Rosa City Council on March 8 that it has helped bring 632 housing units to Santa Rosa through loans and grants and that its RED Housing Fund currently stands at about $22 million.

The report, delivered by Supervisor Chris Corsi and Robin Stefani, executive director of the Renewal Enterprise District, outlined the joint powers authoritycreated in December 2018 to accelerate housing production after the 2017 fires. "The city and the county both contributed $10,000,000 to this effort," Corsi said during the presentation.

Why it matters: The RED was formed to speed creation of infill, transit-oriented and mixed-use housing and to direct limited gap financing to projects that can attract additional state, philanthropic and private investment. The districtleaders said RED money has been a lever in projects that otherwise would not have advanced.

REDstaff said the district has attracted more than $70 million in grant and program funds that have helped unlock more than $1 billion in total investment in local housing development. Robin Stefani said the RED Housing Fund aggregates the cityand county contributions with other loans and matching grants to create a roughly $22 million lending pool that can fill financing gaps for projects. "The RED Housing Fund...was then leveraged to go after additional funding...to be aggregated together for the $22,000,000 that we have in our fund right now," Stefani said.

Projects and outcomes cited - Six projects from the REDNOFA were credited with adding 632 units that are either occupied or under construction. Stefani said four projects are constructed and housing residents; two projects are in construction and represent an additional 243 units. - Casa Roseland: RED closed a loan in January and construction has started. The project is in the Roseland neighborhood on Sebastopol Road near Dutton and is intended as an element of a new town center there. - 420 Mendocino: A 68-unit market-rate, mixed-use building under construction in downtown Santa Rosa. - Pullman Lofts: A small downtown market-rate project with 14 market-rate units and two affordable units, presented as a demonstration of downtown infill viability. - Del Corazon: A 77-unit affordable project on Stony Point and Sebastopol Road with community space; RED staff said local school-district officials attended the project's opening and discussed after-school programming. - Aviara: A 36-unit affordable project adjacent to a grocery-anchored shopping area on College Avenue. - South Park Commons: A 75-unit affordable senior project that includes some Section 8 voucher recipients.

How the fund works and next steps Stefani described the fund as a recycled loan pool: market-rate loans typically return capital in about three years and can be lent again. RED staff said they expect recycled capital and maturing loans to support a new NOFA. Stefani and Supervisor Corsi told council that the district will decide whether to issue a new NOFA this year or wait until additional loans mature in 2026; Corsi noted timing depends on market conditions and incoming funds.

Council questions and clarifications Council members asked about the size of the next available loan round. Stefani said the district currently has about $2.3 million in liquid funds and expects another roughly $1.3 million to be available, producing different timing options for a new NOFA. Supervisor Corsi and Stefani discussed the possibility of using an essential-function bond to acquire market-rate projects and convert them to affordable housing, but said that option depends on improving market conditions and alignment of interest rates.

Public comment Stephanie Bauer, deputy director at Generation Housing, praised the REDas "the kind of collaborative multi-jurisdictional effort that can lead to enduring, leveraged and regional housing solutions," and said the REDHousing Fund had provided critical gap financing to bring more than 600 high-density, transit-oriented and climate-smart units to the center city.

Roseland resident Duane DeWitt, speaking during public comment, urged RED to prioritize additional housing in the Roseland neighborhood and asked the district to delay issuing a new loan round until the Mendocino loan matures so more funds would be available for projects closer to downtown and transit hubs.

Whatcomes next: RED staff said they expect to recycle existing loan capital and to consider a new NOFA in 2025 or 2026. The council did not take a formal vote on RED matters at the meeting; staff said subsequent council briefings and future NOFA timelines will return to council for consideration as funding and market conditions evolve.

Sources: Presentation to Santa Rosa City Council by Renewal Enterprise District executive director Robin Stefani and Supervisor Chris Corsi; public comments by Stephanie Bauer (Generation Housing) and Duane DeWitt (Roseland resident).