To: Honorable Mayor and Members of City Council
From: Rick Tooker, Community Development Director
Prepared By: Lark Ferrell, Housing Manager
TITLE:
Title
Junior Unit Initiative Program
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving amendments to the Junior Unit Initiative Program and a budget adjustment for the Program.
Body
DISCUSSION:
On June 20, 2017, the City authorized the Junior Unit Initiative Program (the "Program"). The Program provides financing and technical assistance to help homeowners create junior accessory dwelling units ("Junior Units"). Junior Units are created by carving out separate units from one or more bedrooms of owner-occupied, single family homes. Under the terms of the Program, either the Junior Unit or the primary unit must be rented to a low-income tenant at an affordable rent. Under the Program, for each year the unit is available as an affordable rental unit, the City shall forgive 5% of the loan until the loan is fully forgiven at the end of 20 years. Since the Program's launch, there have been issues that require amendments to the Program criteria approved by Council last year.
When the City initially launched the Program, it contracted with Lilypad Homes, a non-profit agency based in Marin County, to conduct feasibility assessments for homeowners interested in creating accessory dwelling units "ADU's). In December, the City and Lilypad Homes jointly held a workshop. Over 100 people attended the workshop to learn about the requirements for creating Junior Units and about the Program. From this initial outreach, Lilypad completed 18 feasibility assessments for Napa homeowners interested in creating ADUs, including Junior Units. Of these, six homeowners submitted loan applications to the Program, and of these, four are currently moving forward to create Junior Units through the Program.
Unfortunately, the Program's launch has not been without a few complications. One major issue is...
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