To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources and Development Director
Prepared By: Stephanie Gaul, Housing Manager
TITLE:
Title
Affordable Housing Impact Fee Loan Reservation Extension and Community Development Block Grant Loan Reservation for 515 Silverado Trail.
LABEL
RECOMMENDED ACTION:
Recommendation
1) Adopt a resolution approving and authorizing an extension and modification of the reservation of Affordable Housing Impact Fee funds in the amount of $2,000,000 for 515 Silverado Trail, a permanent supportive housing project which includes 40 units of new construction multifamily housing, located at 515 Silverado Trail; and
2) Adopt a resolution approving and authorizing a reservation of Community Development Block Grant funds in the amount of $868,421 for 515 Silverado Trail, a permanent supportive housing project which includes 40 units of new construction multifamily housing, located at 515 Silverado Trail.
Body
DISCUSSION:
On June 20, 2023, the City Council approved an Affordable Housing Impact Fee loan reservation in the amount of $2,000,000 for the 515 Silverado Trail project (the “Project”), being proposed by the non-profit housing developer, Jamboree Housing. The Project was initially proposed to be a 41-unit multifamily property for households earning at or below 30% of Area Median Income. The project was planned to include 40 restricted one-bedroom units and one (1) three-bedroom manager’s unit. All 40 units would be provided with Permanent Supportive Housing services, for targeted special needs populations, including clients exiting homelessness. Further, on December 5, 2023, the Housing Authority of the City of Napa awarded 36 Project Based Vouchers to the Project.
The Project was approved pursuant to AB 2162, which provides for by-right development of supportive housing in zones where multifamily or mixed-use development is allowed. The project received ministerial approval in December 2023. During the term since 2023, Jamboree Housing has worked to secure the required financing for the project. Considering the highly competitive and oversubscribed affordable housing funding environment, Jamboree Housing has been required to evaluate potential project redesigns to reduce costs and maximum eligibility under competitive funding scoring criteria. Jamboree Housing has determined a project redesign to reduce the Project to 40 units overall, of which 39 would be restricted, would provide effective cost savings. Additionally, the Project would see a slight change in the affordability mix wherein 36 units would remain affordable for households earning at or below 30% Area Median Income and three (3) units would be affordable for households earning at or below 60% Area Median Income. All restricted units would remain supportive housing with services.
Because of the change in project makeup, Jamboree Housing requests an updated City Council action as Project documentation for statewide competitive funding. Additionally, updated action for the Affordable Housing Impact Fee Loan Reservation should identify an expiration of the loan reservation on June 20, 2027. This term is consistent with the standard three (3) year term typically provided for City housing loans plus a one-year extension needed for the Project to finalize all funding sources.
In the effort to secure the final required funding sources for the Project, Jamboree Housing applied for Community Development Block Grant (CDBG) funding during a recent Notice of Funding Availability (NOFA) from the City. The CDBG Citizens’ Advisory Committee recommended an amendment to the Annual Action Plan that would fund the Project all funding offered under the NOFA; the City Council approved the same on May 19, 2026. Upon the close of the required public comment period for such action on May 26, 2026, the Amended Annual Action Plan was submitted to the US Department of Housing and Urban Development (HUD). Jamboree Housing now requires a loan reservation for the Project, in the amount of $868,421 from the City’s CDBG fund, for documentation required in the application for the final Project funding source. With the CDBG loan reservation, the total City contribution to the Project is $2,868,421.
If City Council approves the loan reservation, staff will return at a future City Council meeting to seek authorization to execute loan documents for both loans. This will not occur until formal loan underwriting has been completed. Additionally, the CDBG funding subjects the Project to National Environmental Policy Act (NEPA) which requires that loan agreements not be executed until a Notice of Release of Funds is received. If the Project fails to receive formal loan approval for both loans by June 20, 2027, both loan reservations will expire.
FINANCIAL IMPACTS:
This item has no impact to the General Fund. The existing loan reservation was previously budgeted in the City’s Affordable Housing Impact Fee fund when the original loan reservation was made in 2023. Further, the amount of the CDBG loan was budgeted with a budget adjustment when the Amended Annual Action Plan was approved in May 2026.
CEQA:
Staff recommends that the City Council determine that the Recommended Action is exempt from CEQA, pursuant to Section 15332 of the CEQA Guidelines (categorical Exemptions; Class 32), which exempts in-fill development projects.
Additionally, the CDBG loan is subject to review under NEPA. The City is currently preparing the NEPA and will not execute loan agreements until a Finding of No Significant Impact (FONSI) has been prepared and an approval of a Notice of Release of Funds has been received from HUD.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
ATCH 2 - Resolution
NOTIFICATION:
Jamboree Housing was notified of this agenda item.