Windsor, CA Inclusionary Housing Nexus Study

Town of Windsor, CA

BAE recently worked with the Town of Windsor to prepare an update of the Town’s inclusionary housing policy.

While the Town has previously implemented an inclusionary housing program, the Town has not had a substantial amount of new development subject to the ordinance. Those projects that have moved forward have opted to pay the in-lieu fee, rather than construct required affordable units onsite along with the market rate units.

The Town Council expressed concern about this pattern and requested an analysis that will provide the Town with a range of options to consider, with the goal of increasing affordable housing production. BAE analyzed the impact that market rate housing development has on affordable housing need within the Town using clear nexus methodologies that have been implemented successfully in numerous other communities.

BAE followed this work with a financial feasibility analysis which tested the impact of inclusionary requirements on market rate development with the intent of finding the right combination of in-lieu fees that encourage onsite development, contribute adequately to off-side development, and which would allow market rate development to remain financially viable. This resulted in a set of recommended revisions to the Town’s inclusionary housing program.

The recommendations are currently on hold due to the catastrophic wildfires which struck Sonoma County in fall 2017, with the Town Council deciding to prioritize fire recovery projects, but the Town is interested in revisiting its inclusionary policies later in 2019.