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File #: 1439-2018    Version: 1 Name:
Type: Consent Calendar Status: Passed
File created: 6/5/2018 In control: CITY COUNCIL OF THE CITY OF NAPA
On agenda: 6/19/2018 Final action: 6/19/2018
Title: The Reserve at Napa Senior Housing Project; a 117-unit affordable senior rental project located at 710-714 Trancas Street
Attachments: 1. ATCH 1- Resolution, 2. EX A - HOME Regulatory Agreement Subordination Agreement, 3. EX B - Inclusionary Housing Regulatory Subordination Agreement
To: Honorable Mayor and Members of City Council

From: Rick Tooker, Community Development Director

Prepared By: Andrea Clark, Affordable Housing Representative

TITLE:
Title
The Reserve at Napa Senior Housing Project; a 117-unit affordable senior rental project located at 710-714 Trancas Street

LABEL
RECOMMENDED ACTION:
Recommendation

Adopt a resolution authorizing execution of Subordination Agreements for the Regulatory Agreements for The Reserve at Napa Senior Housing Project.

Body
DISCUSSION:
In August 2001, the Housing Authority of the City of Napa (HACN) issued $6,000,000 in tax exempt housing revenue bonds. The bond proceeds were loaned to Napa Senior Apartments, L.P. (the "Developer"), a limited partnership formed by USA Properties and Napa Valley Community Housing, to construct the Reserves at Napa, a 117-unit affordable senior rental project located at 710-714 Trancas Street (the "Project"). A Bond Regulatory Agreement executed along with the bond loan agreement restricts the rents of all 117 units to very-low and low-income households for a period of 55 years.

The Developer secured additional financing for the Project from the City, funded through the State of California HOME Program, in the amount of $874,000 (the "HOME Program Loan") and from the County of Napa in the amount of $500,000. As a condition of the HOME Program Loan, the Developer executed a HOME Regulatory Agreement with the City along with the loan documents. The HOME Regulatory Agreement restricts the rent of 11 of the units to be affordable to very-low and low-income households for a period of 30 years. As a condition of the project approval, the Developer also executed an Inclusionary Housing Regulatory Agreement with the City which restricts the rent of 12 of the units to be affordable to very-low income households in perpetuity.

The housing revenue bonds were sold as private placement bonds and were structured with a final maturity of August 1, 2031, but were subj...

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