RESOLUTION R2022-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NAPA, STATE OF CALIFORNIA, AUTHORIZING AN UPDATED JUNIOR UNIT INITIATIVE PROGRAM, TO PROVIDE LOANS TO CONSTRUCT JUNIOR ACCESSORY DWELLING UNITS TO FACILITATE NEW LOW-INCOME HOUSING WHEREAS, the City operates the Junior Unit Initiative Loan Program (the “Program”) pursuant to Resolution R2017- 086, adopted on June 20, 2017, as amended by Resolution R2018-066 adopted on June 5, 2018 and Resolution R2019-123, adopted on November 5, 2019, to expand the supply of affordable housing in the City of Napa by encouraging and facilitating the creation of junior accessory dwelling units (JADU), created by carving out separate units from one or more existing bedrooms and the conversion of existing accessory structures into accessory dwelling units ( “Converted ADUs”) on properties containing owner occupied, single family residences; and WHEREAS, under the Program, the City provides financing and construction management services to homeowners who agree to make either the primary unit or the JADU/Converted ADU available for rent to low-income households at an affordable rent; and WHEREAS, the City desires to increase the maximum loan amount for JADUS from $50,000 to $75,000 and Converted ADUs from $75,000 to $100,000 due to the significant impact of the pandemic and inflation on construction costs; and WHEREAS, the City Council has considered all information related to this matter, as presented at the public meetings of the City Council identified herein, including any supporting reports by City Staff, and any information provided during public meetings.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Napa, as follows:
1. The City Council hereby finds that the facts set forth in the recitals to this Resolution are true and correct, and establish the factual basis for the City Council’s adoption of this Resolution.
2. The City Council hereby authorizes the City Manager or designee of the City Manager to establish and implement administrative procedures and necessary contract documents (collectively, “Administrative Policies and Documents") to establish and administer an updated Junior Unit Initiative Program that supersedes the Program previously established by City Council Resolution R2017-086, as amended by Resolutions R2018-066 and R2019-123. The Administrative Policies and Documents shall be in writing and approved as to form by the City Attorney. Administrative Policies and Documents, and any changes to the maximum funding amounts per eligible household as authorized under Section 2(D) below, shall be posted on the City's website for at least 30 days prior to their effective date. The Administrative Policies and Documents shall be consistent with the following general criteria: :
The program shall be used to fund construction of new “Junior Accessory Dwelling Units,” as defined under Napa Municipal Code (“NMC”) Section 17.52.015(F) (“JADUs”) and/or the conversion of existing accessory structures to “Accessory Dwelling Units” as defined under NMC Section 17.06.030 (“Converted ADUs”) and shall be open to Eligible Households, as defined under Section 2(B) below. “Eligible Households” shall mean households that own single family homes within the city limits of the City of Napa and agree to rent either the primary unit or the JADU/Converted ADU to “Low-Income Households” at affordable rents for up to 20 years. “Low Income Households” shall mean households whose total household income does not exceed 80% of area median income as established annually by the U.S. Department of HUD adjusted by actual household size.
The City Manager or their designee shall establish a set of objective review criteria and an application process, with Eligible Household applicants placed on a waiting list and selected for participation on a first come, first served basis. Financing for each Eligible Household may include:
(1) A loan of up to $75,000 for the creation of a JADU or up to $100,000 for a Converted ADU. The loan shall be in the form of a 0% interest 20-year loan of which up to $75,000 shall be forgiven at a rate of 5% per year that the Eligible Household rents either the JADU/Converted ADU or the primary unit to a Low-Income Household at an affordable rent. Any amount over $75,000 shall be deferred and repaid in full within 20 years. (2) A grant of up to $5,000 for American with Disability Act (ADA) improvements made to either the JADU/Converted ADU or the primary dwelling unit if it will be rented to the Low Income Household at affordable rent. (3) A grant of up to $2,000 for professional design services for a JADU or up to $4,000 for a Converted ADU if staff determines such services are needed. (4) A grant of up to $3,000 for engineering services for the JADU or Converted ADU if staff determines such services are needed.
The maximum funding thresholds for Eligible Households may be adjusted on an annual basis as approved by the City Manager based on the annual percentage increase of construction costs as set forth in the Engineering News -Record 20 -City average cost index.
3. This Resolution shall take effect immediately upon its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Napa at a public meeting of said City Council held on the 16th day of August, 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: ________________________
Tiffany Carranza
City Clerk
Approved as to form:
_________________________
Michael W. Barrett
City Attorney
ATTACHMENT 1
R2022-__ Page PAGE 2 of NUMPAGES 3 August 16, 2022
ATTACHMENT 1
R2019-__ Page PAGE 1 of NUMPAGES 3 August 16, 2022