RESOLUTION R2022-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NAPA, STATE OF CALIFORNIA, AUTHORIZING AN INCREASE TO THE RESERVATION OF TRANSIENT OCCUPANCY SPECIAL TAX FOR AFFORDABLE AND WORKFORCE HOUSING FUNDS IN THE AMOUNT OF $1,995,000 FOR A TOTAL OF $3,761,224 FOR THE NAPA HHS HOUSING PROJECT, WHICH INCLUDES SIXTEEN NEW CONSTRUCTION MODERATE-INCOME OWNERSHIP UNITS, LOCATED AT 2344 OLD SONOMA ROAD AND APPROVING AN ASSOCIATED EXPENDITURE BUDGET INCREASE, AS DOCUMENTED IN BUDGET ADJUSTMENT NO. 234 WHEREAS, there is a significant need for both affordable housing and workforce housing in Napa; and WHEREAS, in July 2021, the City published a Notice of Funding Availability (NOFA) for up to $4,000,000 in Affordable Housing Impact Fee funds and up to $2,000,000 in Transient Special Occupancy Tax (TOT) for Affordable and Workforce Housing funds (1% TOT Funds”) ; and WHEREAS, on October 19, 2021, the City Council adopted Resolution Number R2021-102 reserving $1,766,224 in 1% TOT Funds for eight new construction moderate-income units at 2344 Old Sonoma Road (“Napa HHS Project”); and WHEREAS, the NOFA has continued on a rolling basis for applications seeking available funds from the Affordable Housing Impact Fee funds and the 1% TOT Fund; and WHEREAS, there is a current available fund balance of approximately $5.3 million in the 1% TOT Fund; and WHEREAS, the proposed Napa HHS Project would include the repurposing of the former Napa County Health and Human Services property into a residential development comprised of approximately 140 to 150 housing units, including both rental and ownership units; and WHEREAS, the applicant for the Napa HHS Project has requested an additional $1,995,000 in 1% TOT Funds to convert an additional eight units to moderate income, for a total of 16 moderate income for sale units; 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 approves an increase in the reservation of 1% TOT funds by $1,995,000 for a new total loan reservation of $3,761,224 in 1% TOT Funds for the Napa HHS Project.
3. The City Council hereby authorizes the City Manager to establish and document the terms by which the City will reserve funds for the Napa HHS Project with the primary goal of providing an opportunity for the applicant to negotiate loan documents with the City that will be approved by Council at a future date and shall be consistent with the City’s Affordable Housing Trust Fund Policies and Procedures adopted on July 6, 2010 and amended on January 21, 2020.
4. The City Council hereby determines that the loan reservation will expire on the third anniversary of the date of this Resolution if the applicant fails to execute loan documents by such date.
5. The City Council hereby authorizes a budget adjustment of $1,995,000 as referenced in Budget Adjustment No. 234, attached hereto and incorporated herein as EXHIBIT A, to increase the total loan reservation to $3,761,224 in the 1% TOT for Affordable and Workforce Housing Fund for the Napa HHS Project in the FY2022-2023 budget.
6. 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 4th day of October, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: ________________________
Tiffany Carranza
City Clerk
Approved as to form:
_________________________
Michael W. Barrett
City Attorney
R2022-__ Page PAGE 2 of NUMPAGES 2 October 4, 2022
ATTACHMENT 1
R2022-__ Page PAGE 1 of NUMPAGES 2 October 4, 2022