The Alyvia FAQ says a buyer who signs a contract today for one of the 12 Residences at Alyvia puts down 5% at ratification. The next 5% is due "at the start of construction," with two more 5% payments six and twelve months after that. The city's 2026 major project list expected construction on the 53-key hotel to begin in spring 2026. By July 31, the North Bay Business Journal reported that the hotel and residences were "set to come out of the ground by year-end." I have not found a published report confirming a groundbreaking. So the date that sets most of a buyer's deposit schedule is still an open question.
That timing question sits on top of a bigger one. Alyvia and its neighbor, Canopy at Mill District, are both condominiums in the same Replay Destinations redevelopment of the old Healdsburg lumber mill. They are legally different things to own, and the difference traces back to what the city approved on each lot.
The Rule Under Both Buildings
Healdsburg defines a vacation rental as "the rental/letting of a complete residential unit, including bedroom(s), kitchen and bath, for a period of less than 30 days for transient lodging purposes and with no on-site management." A recent city staff report says the CD downtown district "is the only zoning district in the City where vacation rentals are permitted," and even there a conditional use permit is required. The same report counted ten legal vacation rental units in the entire CD district at that time. The city's Housing Element goes further. Policy H-27 calls for stronger enforcement of the ban on stays of fewer than 30 days in residential zones "to ensure the housing stock is available for long-term residents."
The City of Healdsburg approved Canopy's condominiums on Mill District Lot 4, and the permit was later amended to allow 43 units. Lot 4 carries a Mixed Use general plan and zoning designation, so it is not CD. Under the city's published rules, a Canopy owner cannot turn the unit into a nightly rental. The most recent city summary of those rules I found is dated 2023, so confirm current code with the city before relying on it. Canopy's own HOA rental terms are not public.
Alyvia sits on Lot 1, which has the same Mixed Use designation but was approved for a 53-room hotel and commercial uses, according to the City of Healdsburg. Its 12 residences are mapped condominiums governed by an HOA, and they are also rooms in that hotel. That is how Alyvia can advertise short-term stays "not subject to the typical 30-day minimum." Those nights are hotel lodging run by an on-site operator, which is exactly the element the vacation rental definition excludes. I have not seen a city document that formally rules on how the 12 residences are classified. The reading above follows from the hotel entitlement and the operator-run rental program.
Both lots share a zoning district. What separates them is the hotel entitlement, and the Mill District sells nightly rental income in only one of its two buildings.
What the Hotel Asks in Exchange
Alyvia gives owners access to nightly rental income. The developer's FAQ is candid about what owners give up for it. Here is how the two buildings compare on the questions buyers raise most often.
| Question | Canopy at Mill District | The Residences at Alyvia |
|---|---|---|
| Lot and zoning | Lot 4, Mixed Use | Lot 1, Mixed Use |
| Approved use | Residential condominiums | 53-room hotel and commercial uses |
| Nightly rentals under 30 days | Not permitted under the city's vacation rental rules | Rented as a hotel room when the owner is not in residence |
| Owner use | Not limited by a hotel program | Up to 90 days per calendar year, maximum 30 consecutive |
| Who manages rentals | Not applicable to nightly stays | Mayacama Hospitality only, under a Rental Management Agreement |
| Personal belongings | Your home | Not stored in the unit; each owner gets a storage unit about 2' x 2' x 8' tall |
| Shared amenities | The Poolhouse, a private residents' facility with a 75-foot pool | Solene Wellness Center pool; owners may bring up to four guests |
Rental revenue is calculated for your specific unit. It is not pooled with other owners. The operator takes a 10% management fee off gross revenue, and what remains is split 50/50 between the residence owner and the hotel owner. The hotel collects transient occupancy tax from guests, and owners are not charged it during their own stays.
The Arithmetic of Ninety Nights
The Alyvia FAQ lists monthly HOA and facilities charges of $1,386.25. That is a $173.35 condominium association fee plus a $1,212.90 shared facilities fee, and it covers water, electricity, gas and internet. The developer's worksheet estimates annual fixed expenses of $59,183. That includes $37,148 in property tax estimated at 1.27%, $16,635 in HOA fees, $2,400 for insurance and $3,000 for repairs. A 3% replacement reserve is taken from gross rental revenue. The worksheet says plainly that these are estimates, not a guarantee of income.
The property tax line works out to a purchase price of about $2.925 million, which matches the list price the Business Journal reported for the two-bedroom flats. An owner who uses the full 90-day allowance carries roughly $658 in fixed costs for each night in residence. That is before any rental income and before the optional Mayacama membership. The FAQ calls that membership optional at $1,200 a month, adjusted annually. It also says a residence purchase "includes the initiation" of the membership at that monthly cost. I would settle that in writing before signing. The FAQ also mentions possible non-resident tax withholding under the management agreement and deductions for damage beyond normal wear. Those are questions for your own tax and legal advisors.
Size matters too. Alyvia residences average 1,249 square feet. At $2.925 million, that is about $2,340 a square foot, close to the figure that set Sonoma County's condo record a few steps away.
The Record That Came After a Price Cut
On June 18, 2026, a 3,624-square-foot Canopy penthouse sold for $7.8 million, or about $2,152 a square foot. The Business Journal called it the highest price for a condominium in Sonoma County. It had been listed at $8.6 million for a year, came off the market, and was relisted in May at $7.8 million. Both things are true of the same sale. It set a record, and it closed about 9% below its original asking price.
That penthouse carries no nightly rental rights. Its buyer paid a county record per square foot for a residence alone. The Alyvia flats are listed at a similar price per square foot, and buyers there get a unit they can occupy for only a quarter of the year, with rental income on the rest. Taken together, the two prices suggest that buyers in this corner of Healdsburg are paying for location, design and service, and that rental rights are not what sets the price.
Canopy's buyer pool supports that reading. In its July 31 report, the North Bay Business Journal quoted Replay Vice President of Development Mike McCone describing it as local owners moving out of single-family homes, primary-home buyers from elsewhere in California and as far as New York and Florida, and second-home buyers who come for weekends or long stretches in high season. McCone said contract pricing had "held up very well." The report said that after $21 million in sales this year, one penthouse remained at almost $7.3 million and seven smaller flats, one of them under contract. That count is from late July and may have changed.
Where These Prices Sit in the Wider Town
The rest of Healdsburg moves at a different pace. In Q2 2026, according to Vanguard figures cited by the Journal, 45 homes sold in the city at a median of $1.33 million, up 9% from a year earlier. Median days on market rose to 43 from 34. BAREIS counted 13 residential sales in the Healdsburg area in August 2026, averaging $1,791,584 with 90 days on market. July had 20 sales averaging $1,499,625 with 66 days on market. With samples that small, one or two large sales can move the average a long way. For comparison, the countywide median in August 2026 was $750,000.
Against those numbers, a Mill District condo is a premium product in a slower market. A buyer choosing between the two buildings is choosing a way to own more than a price point. Canopy is a home with a pool club. Alyvia is a hotel room with a deed, an operator, a storage locker and a deposit schedule tied to a groundbreaking that has not been confirmed.
Questions I've Been Getting
Can I rent my Canopy condo to weekend visitors? Under the city's published rules, stays of fewer than 30 days are vacation rentals, and vacation rentals are allowed only in the CD district with a permit. Canopy's lot is zoned Mixed Use. Longer-term rental rules depend on the HOA documents, which you should review during escrow.
Can I keep my own furniture and wine at Alyvia? The unit itself cannot be customized or used for storage. Your belongings go in a dedicated storage unit, and the operator brings them to your residence when you arrive.
Do Alyvia owners share in the hotel's overall revenue? No. Proceeds are calculated on your unit's own performance.
Does the Mayacama membership transfer if I sell? The FAQ says membership privileges transfer to the new owner, subject to club approval.
If you are weighing a Canopy residence against an Alyvia hotel condo, or either one against a single-family home off the Plaza, I am glad to go through the documents, the deposit timing and the numbers with you. Kellie Larson and our team can help you compare the costs of each before you commit. Contact Us.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
