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Novato has doubled its contribution to a nonprofit’s housing project.
The City Council voted unanimously Tuesday to approve an additional $1 million to support Habitat for Humanity’s 100% affordable housing complex at 8161 Redwood Blvd. The funds will help the nonprofit pay for processing fees related to the project.
Maureen Sedonaen, the chief executive officer of Habitat for Humanity Greater San Francisco, said the nonprofit appreciates the city’s support, especially in a “crazy time” for affordable housing providers.
“We do believe that affordable home ownership is not only such an important element in the city’s housing element, because you will be getting taxpayers, you will have people who send their children to your schools,” Sedonaen said. “Also, these are forever affordable homes.”
The city’s contribution includes $800,000 from its affordable housing fund and $200,000 from the general fund. The project will build 80 for-sale homes, including 60 for low-income households and 20 for moderate-income households. The project also includes a building for a Habitat for Humanity office and community center.
The city approved the project in 2022 and provided $161,000 as part of a three-way matching grant with the county and the state. In 2023, the city offered more support by waiving about $591,000 in development fees and providing about $350,000 from the affordable housing fund.
Sidney Stone, a vice president for Habitat for Humanity, said the city’s additional $1 million grant could “unlock” another $6 million in county funding. Overall, the project is expected to cost more than $84 million, including $50 million in infrastructure and $7.5 million in just fees, Stone said.
Clare Hartman, director of the Novato Community Development Department, said the project will be the largest project of for-sale, affordable housing in the county. The city is under a state mandate to allow 2,090 new residences by 2031.
“We often get for-rent affordable housing, but this one is for sale, so it’s really important,” Hartman said.
Hartman said low-income housing projects like the Habitat for Humanity complex often require public subsidies. She said a “matrix of funding” is needed to make such projects happen.
Habitat for Humanity will require no down payment on residences and offer a no-interest mortgage. The housing costs will be capped at 30% of the household’s income.
“There’s a lot of good people in Novato that are just looking to try to get their first home,” said Councilmember Pat Eklund. “I certainly would think we could do a lot to help those people out.”
Eklund said the site of nearly 14 acres does not have many public transportation options and asked if Habitat for Humanity has found any solutions.
Sedonaen said she’s met with several transit authorities.
“Everyone tells us there’s big plans at some point to do something, so I think that’s what we’re hoping for,” Sedonaen said. “We’re just a smidge over a quarter-mile to the SMART train, and with the project down the street there is a public bus station there now.”
Eklund asked if residents would have first priority for the housing. Sedonaen said the first month of marketing is aimed at people who live and work in Novato. She said 80% of people in the nonprofit’s projects lived within 2 miles of the projects when they moved into them.
Hartman said the nonprofit is in the permitting process and is looking to begin construction this year.
