Petaluma continued to add affordable housing and accessory dwelling units in 2025, but lags behind its state-mandated goals for building middle-income housing units. And much more new housing is in the works.

These are the key takeaways from the city’s 2025 Housing Element progress report, presented by Director of Community Development Brian Oh and Planning Manager Andrew Trippel at Monday night’s City Council meeting. The Housing Element, a plan for building new housing across all income levels, is required by state law – as are annual progress reports.

Since 2022, the city has issued building permits for 648 out of 1,910 housing units targeted in its current Housing Element, or about 34%. To meet this goal, Petaluma will have to issue permits for 1,262 additional units by the end of 2031. 

Construction of the all-affordable River Place Apartments at 1601 Petaluma Blvd. South last year “represents a major milestone for lower-income housing production” in Petaluma, according to a staff report on the city’s headway toward its current Housing Element goals.

In 2025 the city also issued building permits for 49 extremely low income (0% to 50% of the area’s median income) and very low income (30% to 50%) units at Washington Commons, a multifamily rental complex at 825 E. Washington St.

On the accessory dwelling unit front, in 2025 the city issued 33 Certificates of Occupancy (indicating that construction is complete), including six at the new Riverbend development. It also issued 31 building permits, up from 20 in 2024 and 22 in 2023. The city’s goal is to permit 16 units per year.

“Petaluma has been very successful in exceeding expectations for accessory dwelling units, or ADUs, which are generally faster to build, less complex, and supported by streamlined state policies,” said city spokesperson Jamieson Bunn.

Meanwhile, progress has been slow in adding new housing for residents earning 80% to 120% of the area median income. Since 2022 the city has permitted only 35 of the 313 moderate income units it has committed to build by 2031.

“Moderate-income housing is often the most difficult to produce because it typically doesn’t qualify for the same subsidies as lower-income housing, while still facing high construction and land costs,” Bunn said.

In all, the city issued 99 Certificates of Occupancy in 2025.

Yet hundreds of additional housing units are coming down the pike. Last year the city issued building permits for 33 new single-family detached homes and 164 new rentals in larger structures. Among these, the vast majority will be classified as very-low- or low-income. 

Currently under construction are Meridian at Petaluma North Station, 890 North McDowell Blvd. (131 units within multiple three- and four-story buildings); Drift at Riverfront, at the end of Caulfield Lane (50 townhomes in two- and three-story buildings); and Rovina Lane Apartments, 2 Rovina Lane (32 units in two three-story buildings). 

Looking farther down the line, the city approved entitlements for 333 additional units this year, meaning they don’t yet have building permits secured. These include the Gallaher Senior Living complex, 1221 Petaluma Blvd. North (85 rentals); Sid Commons, 70 Jess Ave. (180 rentals); Creekwood Condominiums, near Rocky Memorial Dog Park at the end of Casa Grande Road (59 units); and Cherry Suites, 495 Cherry St. (nine units).