To: Honorable Mayor and Members of City Council
From: Vincent Smith, Community Development Director
Prepared By: Stephanie Gaul, Assistant Housing Manager
TITLE:
Title
Valley Lodge Apartments Loan
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution authorizing the City Manager to negotiate and execute loan documents with Burbank Housing Development Corporation for a 55-year residual receipts loan of up to $3,000,000, with 3 % interest, from the City of Napa Affordable Housing Impact Fee Fund for the Valley Lodge Apartments Project, which includes 55 rehabilitated and repurposed units of permanent supportive housing, located at 200 South Coombs Street and determining that the actions authorized by this resolution are exempt from CEQA.
Body
DISCUSSION:
In October 2021, City Council approved a loan reservation of $3 million of Affordable Housing Impact Fees for the Valley Lodge Apartments, a 55-unit affordable rental project proposed at the site of Wine Valley Lodge Motel, located at 200 South Coombs Street (the “Project”). The Project is being undertaken by the non-profit housing developer Burbank Housing Development Corporation (the “Developer”). The Project would include 54 studios and one unrestricted manager’s unit. All the restricted units would be permanent supportive housing for recently homeless residents referred through the County of Napa’s Coordinated Entry System and would be targeted to 30% area median income and below. This would include 14 units for homeless youth, 20 units for chronically homeless and 20 units for general homeless.
This project includes acquisition and minor rehabilitation of an existing structure that has been used for transient occupancy and does not require any land use entitlements for its conversion to multi-family residential. Only building permits would be required for the rehabilitation and conversion to residential use.
The City’s loan would be leveraged with several funding sources. Other sources of proposed financing include the State Project Homekey, County of Napa, and Providence Queen of the Valley Medical Center. The Project would also include 38 Section 8 project-based vouchers. The Developer anticipates the Project being completed by September 2022 and fully occupied by October 2022
The City’s $3 million loan would be at a 3% interest rate for a term of 55 years. It would be repayable from residual receipts. The loan would be secured by a Deed of Trust and a Regulatory Agreement recorded against the property.
The entire Project would be professionally managed by Burbank Housing Development Corporation. On and off-site supportive services would be provided by Abode Services, the County of Napa, and VOICES. As part of the joint City/County homeless system re-design, national experts Corporation for Supportive Housing and National Alliance to End Homelessness identified increasing the community’s supply of permanent supportive housing units as a critical part of solving homelessness in Napa. This Project would provide permanent, stable housing for 54 of Napa’s most vulnerable community members. Both Burbank Housing Development Corporation and Abode Services have experience operating affordable housing developments which include permanent supportive housing units.
FINANCIAL IMPACTS:
This item has no impact to the General Fund. The funding was previously committed in the City’s Affordable Housing Impact Fee Fund (22201-58608). There is currently an uncommitted fund balance of approximately $3.18 million available for other affordable housing projects.
CEQA:
The Community Development Director has determined that the Recommended Action described in this Agenda Report is exempt from CEQA in accordance with CEQA Guidelines Section 15301 (minor alterations to existing structures involving negligible expansion of use) and Section 15303 (conversion of small structures from one use to another where exterior modifications are minimal). In addition, the project is statutorily exempt under Public Resources Code Section 21080.50, which exempts conversion of motels/hotels to transitional or supportive housing.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
NOTIFICATION:
Burbank Housing Development Corporation, Abode Services, the County, Providence Queen of the Valley Medical Center, and VOICES were notified of this agenda item.