RESOLUTION R2024-XX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NAPA, STATE OF CALIFORNIA, AUTHORIZING A LOAN OF AFFORDABLE HOUSING IMPACT FEE FUNDS IN THE AMOUNT OF $250,000 FOR THE STODDARD EAST APARTMENTS, WHICH INCLUDES 68 NEW CONSTRUCTION UNITS, LOCATED AT 345 GASSER DRIVE AT APN 046-190-053-000 AND APPROVING ASSOCIATED EXPENDITURE BUDGET INCREASE, AS DOCUMENTED IN BUDGET ADJUSTMENT NO. 12P06 WHEREAS, there is a significant need for both affordable housing and workforce housing in Napa; and WHEREAS, the City published a Notice of Funding Availability (NOFA) for up to $500,000 in Affordable Housing Impact Fee funds and up to $500,000 in 1% Transient Occupancy Tax (TOT) for Affordable and Workforce Housing funds in May 2024; and WHEREAS, the NOFA was for loans for qualified expenses for affordable housing projects in the predevelopment phase; and WHEREAS, the City received two applications under the (NOFA) totaling $500,000; and WHEREAS, scoring was completed on both applications and staff is recommending funding of both of the applications; and WHEREAS, the proposed Stoddard East Apartments project would include 67 new construction units which would provide deed-restricted affordable housing; and WHEREAS, the applicant for the Stoddard East Apartments project has requested $250,000 in Affordable Housing Impact Fee funds; 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 determines that the action approved by this resolution is not in-and-of-itself a “project” (pursuant to CEQA Guidelines Section 15378) since it does not result in a physical change in the environment. However, the Recommended Action is part of a larger “project” that will be subject to environmental review in accordance with CEQA at the “earliest feasible time” prior to “approval” consistent with CEQA Guidelines Sections 15004 and 15352. The larger “project” consists of new construction of approximately 67 affordable residential units. Staff anticipates completing all required CEQA analysis for the project prior to Final Funding Approval.
3. The City Council hereby authorizes the City Manager to negotiate and execute loan documents with Burbank Housing Development Corporation in the amount of up to $250,000 from the Affordable Housing Impact Fee funds for predevelopment costs of the Stoddard East Apartments project, subject to approval of the form of loan documents by the City Attorney, which incorporate the following terms and conditions:
A. The City’s funds shall be structured as a zero percent (0%) interest, deferred loan with a term of 3 years.
B. The loan shall be evidenced by a Promissory Note.
C. The City Manager shall have the authority to convert the predevelopment loan to a development loan within the 3-year term at the request and application of Burbank Housing Development Corporation, subject to the City’s adopted Underwriting Guidelines.
4. The City Council hereby determines the loan to come due on the third anniversary of the loan if the applicant fails to apply for conversion to a development loan.
5. The City Council hereby authorizes a budget adjustment of $250,000 to the Affordable Housing Impact Fee Fund for the loan reservation for the Stoddard East Apartments project (21212500-58608) as referenced in Budget Adjustment 12P06, incorporated herein as EXHIBIT A.
5. 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 17th day of December, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: ________________________
Tiffany Carranza
City Clerk
Approved as to form:
_________________________
Christopher Diaz
City Attorney
R2024-XX Page PAGE 2 of NUMPAGES 2 December 17, 2024
ATTACHMENT 2
R2024-XX Page PAGE 1 of NUMPAGES 2 December 17, 2024