To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Molly Rattigan, Deputy City Manager
TITLE:
Title
Council Budget Adjustment - 4th and Division Street Real Property Purchases
LABEL
RECOMMENDED ACTION:
Recommendation
Approve Council Budget Adjustment No. 103P3 for the purchase of 1415 Division Street, and if Homekey+ Funds are received, 1443 Division Street.
Body
DISCUSSION:
On September 2, 2025, the City Council approved a plan for City staff to proceed with the purchase of 1415 Division Street for affordable housing purposes, and if Homekey+ Funds were awarded, the purchase of 1443 Division Street with both properties being used as Permanent Supportive Housing under the Homekey+ Guidelines.
Today’s action is the budget actions necessary to follow City Council’s direction. This budget adjustment establishes revenues and expenditures, presuming the award of Homekey+ as well as the dedication of Affordable Housing Impact Fee Funds for this purpose. If awarded, the Homeykey+ funds will total $7,627,399 with a required match and contingency from the Affordable Housing Impact Fee fund of $3,564,077. This is a reduction of $235,923 from Affordable Housing Impact Fee funds previously reserved for this program.
The result of this program will be the preservation and deepened affordability of 23 housing units and the provision of permanent supportive housing services on site.
FINANCIAL IMPACTS:
The commitment from the City of Napa is $3,564,077 in affordable housing funds. If Homekey+ funds are awarded, an additional $7,627,399 will be available for this project. If funds are awarded, 1443 Division Street will be purchased in addition to 1415 Division Street.
CEQA:
The City Manager has determined that the actions authorized by this action are exempt from the requirements of CEQA pursuant to CEQA Guidelines Sections 15378 (government fiscal activities without any commitment to any specific project) and 15301 (minor alterations to existing structures involving negligible expansion of use). Both would apply on a separate and independent basis with 15378 applicable because this is a City financial activity with a plan to spend the funds to purchase the properties and 15301 is applicable to the extent that the funds are used to purchase and improve the properties with minor alterations.
DOCUMENTS ATTACHED:
ATCH 1 – Council Budget Adjustment No. 103P3
NOTIFICATION:
None.