To: Honorable Chair and Commissioners
From: Vincent Smith, Community Development Director
Prepared By: Andrea Clark, Affordable Housing Representative
TITLE:
Title
Villa De Adobe Apartments (2270-2298 Clay Street)
LABEL
RECOMMENDED ACTION:
Recommendationle
Adopt a resolution authorizing the Executive Director to execute Assignment Agreements with the City of Napa (City) assigning the CDBG Deed of Trust and related loan documents and the HOME Deed of Trust and related loan documents to the City for Villa De Adobe, a 12-unit affordable housing project located at 2270-2298 Clay Street.
Body
DISCUSSION:
Villa De Adobe is a 12-unit development of two-bedroom units, rented to families earning between 50% and 80% of the area median income. It is located at 2270-2298 Clay Street. Napa Valley Community Housing (NVCH) acquired Villa De Adobe in 1998 for the purpose of rehabilitating the property as affordable housing. The property was originally financed with a conventional loan from Vintage Bank (now Umpqua Bank) with additional financing provided by Napa County.
In 2000, NVCH received two housing rehabilitation loans, $65,000 through the City's Community Development Block Grant (CDBG) Rental Rehabilitation Program and $150,695 from the HOME Investment Partnership (HOME) Fund. A Deed of Trust, Promissory Note, and Regulatory Agreement were executed between the Housing Authority of the City of Napa ("HACN") and NVCH for each of the loans. Both loans are repaid based on the project's residual cash receipts and are currently due in full on November 17, 2020. As of September 2019, the unpaid principal and interest balance of the CDBG loan was $114,051 and the unpaid principal and interest balance of the HOME loan was $264,414.
NVCH is proposing to refinance its existing first mortgage loan with a new loan from Mechanics Bank in order to reduce the interest rate and corresponding debt services. NVCH requested the HACN to subordinate its Deeds of Trust an...
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