To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources & Development Director
Prepared By: Jonathen Sakamoto, Housing Supervisor
TITLE:
Title
Community Development Block Grant (CDBG) Program Annual Action Plan Amendment
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the Community Development Block Grant (CDBG) Amended Annual Action Plan for 2025-2026 as documented in budget adjustment 31P11 and authorizing the City Manager to execute all documents required for the submittal of the Amended Annual Action Plan to HUD.
Body
DISCUSSION:
The CDBG Annual Action Plan (“the Plan”) for Fiscal Year 2025-2026 was approved by City Council on July 15, 2025, as the first year action plan of the 2025-2030 Consolidated Plan. The Plan identifies how the City’s CDBG funding shall be allocated for the fiscal year and indicates how the intended projects meet the priorities identified in the City of Napa 2025-2030 Consolidated Plan.
In October 2025 the CDBG fund received $868,421 in program income from proceeds from the sale of two parcels at 1051-1199 Pearl Street originally purchased with U.S. Department of Housing and Urban Development (HUD) funds. The proceeds from the sale of the parcels are required to revolve into the CDBG fund as program income. Under CDBG regulations, up to 20% of the program income is available for CDBG planning and administrative activities, and the balance is available under the community development category. Because public service allocations are calculated using the previous year’s program income, none of the 1051-1199 Pearl Street program income can be allocated to public service activities.
After seeking City Council direction on February 17, 2026, regarding allocation of the program income, the City offered a special funding application in the spring of 2026. Applications for the program income funding were available starting March 6, 2026, and were due on March 27, 2026. The total available funding advertised was approximately $860,000.
The special funding round yielded two eligible applications:
|
Applicant |
Project |
Requested |
|
Napa Valley Community Housing |
Von Brand Center |
$50,000 |
|
Jamboree Housing Corporation |
Silverado Trail Acquisition Project |
$1,006,000 |
|
|
Total |
$1,056,000 |
The CDBG Citizens’ Advisory Committee (“Committee”) reviewed the applications on April 6, 2026. Staff recommended that Jamboree Housing Corporation’s application for the acquisition of land for a proposed affordable housing project to be developed at 515 Silverado Trail receive the full amount of program income funding. The Committee also recommended the funding available under the special funding round be awarded to the application completed by Jamboree Housing Corporation for the Silverado Trail Acquisition Project. The funding amount recommended by the Committee was $869,341. Since the Committee meeting, staff identified an error in the information provided to the Committee and the program income received is $868,421.
The Amended Annual Action Plan also includes minor administrative edits to sections that discuss available funding from other sources.
The Amended Annual Action Plan is required to be available for public comment for a 30-day period. A notice was published in the Napa Valley Register on April 23, 2026, announcing the availability of the draft Amended Annual Action Plan. The Amended Annual Action Plan is available for public comments through May 26, 2026. At the close of the public comment period, staff will address any public comments as an appendix to the Amended Annual Action Plan.
Subject to the City Council’s approval of the Amended Annual Action Plan, City staff will negotiate terms of a loan agreement between the City and Jamboree Housing Corporation to document the terms of the City’s commitment of $868,421 of funding towards the proposed affordable housing project, and the loan agreement will be brought back to City Council for approval at a future meeting.
FINANCIAL IMPACTS:
Approval of the City’s Fiscal Year 2025-2026 Amended Annual Action Plan and associated budget adjustment will commit $868,421 in program income funds to the Silverado Trail Acquisition Project as documented in budget adjustment 31P11.
CEQA:
The Community Resources and Development Director determined that the Recommended Action described in this Agenda Report is not, in-and-of-itself, a “project” under California Environmental Quality Act (CEQA) Guidelines Section 15378, since it does not result in a physical change in the environment. However, since some of the CDBG funds identified in the Amended Annual Plan are allocated to projects, those projects will be subject to environmental review in accordance with CEQA at the earliest feasible time prior to any approval, consistent with CEQA Guidelines Sections 15004 and 15352, except where a project is considered statutorily exempt under Section 15268 because it is a ministerial project.
City staff will return to City Council in a future public meeting with an analysis of potential impacts on the environment (in accordance with CEQA and the National Environmental Policy Act, as applicable) prior to the City’s commitment to release funds for any proposed project.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Draft 2025-2026 Amended Annual Action Plan
ATCH 2 - Draft 2025-2026 Amended Annual Action Plan Redline Version
ATCH 3 - Council Budget Amendment #31P11
NOTIFICATION:
Notice announcing the availability of the Draft Amended Annual Action Plan for a 30-day public comment period was published in the Napa Valley Register on April 23, 2026. Copies of the Draft Amended Annual Action Plan were made available at the Housing Division and placed on the Housing Division’s page on the City’s website. Copies of this agenda report were e-mailed to the CDBG Citizens’ Advisory Committee and the CDBG applicants.