To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources and Development Director
Prepared By: Molly Rattigan, Community Resources and Development Director
TITLE:
Title
Affordable Housing Infill Infrastructure Grant
LABEL
RECOMMENDED ACTION:
Recommendation
1. Adopt a resolution authorizing the City Manager to accept and execute with Napa Redevelopment Partners LLC, the award for an Infill Infrastructure grant (IIG) in the amount of $3,774,200 for the Napa Pipe Master Plan Project and determining that the actions authorized by this resolution were adequately analyzed by a previous CEQA action; and
2. Authorize the City Manager to enter into all related agreements to execute this grant.
Body
DISCUSSION:
Napa Redevelopment Partners LLC is the landowner and developer (the “Developer”) of the Napa Pipe Project (the “Project”). The Napa Pipe property is approximately 154 acres in size, generally located at 1025 Kaiser Road, south of Kaiser Road and east of the Napa River (Assessor’s Parcel Numbers 046-400-054, 046-400-055, 046-412-006 and 046-412-007). The Project includes both commercial and residential development. The Project is subject to an Affordable Housing Plan. In addition to a requirement that the greater of 6.7% or 44 units of the market rate housing units developed in the Project are affordable for moderate-income households, the Project must also include 140 very-low and low-income affordable units.
Under the approved land plan for Napa Pipe, 84 of the low and very-income units would be developed by non-profit housing developer Mid-Peninsula Housing in the initial phase of the Project.
The State of California Department of Housing and Community Development issued a Notice of Funding Availability for its Infill Infrastructure Grant (IIG) Program for Small Jurisdictions in October 2019. IIG provides grants to developers to install infrastructure improvements in order to assist in the development of affordable housing projects. The amount of funding a Project is eligible for is based on a formula which includes the number of bedrooms and the affordability levels of units in an affordable housing project.
In partnership with the Developer, the City was awarded $3,774,200 in funds under the Infill Infrastructure grant in 2020. Since 2020, the City and the Developer have been working with the State of California on the terms of the agreement and commitment for the development of affordable housing. The State of California has recently authorized the completion of infrastructure work to be the benchmark for releasing grant funds.
IIG guidelines require a local jurisdiction to be a co-applicant and recipient of the funds who verify the completion of the work. As a result, the City of Napa will enter into an agreement with Napa Redevelopment Partners or any future successors related to this grant.
FINANCIAL IMPACTS:
This grant provides $3,774,200 in grant funds to the City of Napa that will be passed through to Napa Redevelopment Partners for the infrastructure work to support affordable housing. A future no impact budget adjustment to revenue and expenditures within the Community Development Special Revenue Fund (296) may be necessary to facilitate this pass through, of which the City Manager has the authority to approve.
CEQA:
Pursuant to CEQA Guidelines Section 15164, the Addendum to the Napa Pipe EIR for the Napa Pipe Project dated November 2019 (“2019 Addendum”) was prepared by the City as an addendum to the Napa Pipe Final Environmental Impact Report certified by Napa County Board of Supervisors on January 14, 2013 (State Clearinghouse No. 2008122111) (the “Certified EIR”) to analyze the potential environmental impacts of the Project.
The Community Development Director recommends that the City Council determine that the potential environmental effects of the Recommended Actions described in this Staff report fall within the scope of the Certified EIR as documented in the 2019 Addendum, pursuant to CEQA Guidelines Section 15162 and were adequately evaluated and addressed in the 2019 Addendum, and that the Recommended Action would not have any environmental effects that were not addressed in the Certified EIR.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
NOTIFICATION:
Napa Redevelopment Partners