City Hall: 955 School Street, Napa CA 94559 Mailing Address: P.O. Box 660, Napa CA 94559 (707) 257-9500 www.cityofnapa.org
DRAFT AMENDMENT
City of Napa Annual Plan
2025-2026
Submission to: U.S. Department of Housing and Urban Development July 2025
Prepared by: City of Napa Housing Division
EXHIBIT A
Annual Action Plan
2025
1 OMB Control No: 2506-0117 (exp. 09/30/2021)
The Program Year 1 Annual Action Plan represents the first year of implementation within a five-year Consolidated Plan cycle. Core narrative elements - including the Executive Summary, Needs Assessment, Market Analysis, and Strategic Plan priorities - are fully detailed in the Consolidated Plan and are therefore not repeated in this document.
Consistent with guidance from the U.S. Department of Housing and Urban Development (HUD), the first- year Annual Action Plan is intended to serve as the primary implementation component of the Consolidated Plan. Accordingly, this document begins with the Expected Resources section and focuses on the specific activities, funding allocations, and anticipated outcomes for the program year.
This amendment reflects updates to identified activities and funding allocations within the Annual Action Plan. It does not alter the overarching needs, priorities, or strategies previously established in the Consolidated Plan.
Expected Resources
AP-15 Expected Resources - 91.220(c)(1,2)
Introduction
During the five-year Consolidated Plan period (Fiscal Years 2025/26–2029/30), the City of Napa anticipates receiving approximately $3 million in Community Development Block Grant (CDBG) entitlement funds from the U.S. Department of Housing and Urban Development (HUD), averaging an annual allocation of approximately $600,000. These funds will be used to support a range of eligible housing, public services, and community development activities that benefit low- and moderate-income residents and neighborhoods. On October 14, 2025, Napa received an additional $868,421 in program income funds that are not related to the revolving loan fund.
In addition to CDBG, the City expects to leverage several other funding sources to address local housing and community development needs, including:
· Affordable Housing Impact Fee Fund – Generated from developer fees and dedicated to supporting affordable housing development and preservation.
· 1% Transient Occupancy Tax (TOT) for Affordable and Workforce Housing – A dedicated local revenue stream from lodging taxes used to support new affordable housing initiatives. · Permanent Local Housing Allocation (PLHA) – State funding to support housing-related activities
EXHIBIT A
Annual Action Plan
2025
2 OMB Control No: 2506-0117 (exp. 09/30/2021)
such as production, preservation, and supportive services. · HOME Investment Partnerships Program (HOME) – Administered by the City of Napa Housing Division, to support affordable housing development and rehabilitation. · Section 8 Housing Choice Vouchers (HCVs) – Administered by the Housing Authority of the City of Napa, providing rental assistance to extremely low-income households. · General Fund Contributions – Staff time and discretionary funds used to support housing, homelessness services, and public infrastructure improvements. · Other State and Federal Programs – Including potential grants from CalHFA, HCD, and other competitive sources, such as ESG, Homekey, or Low-Income Housing Tax Credits.
Despite this diverse range of funding mechanisms, insufficient funding levels remain a critical challenge.
The identified needs for increased affordable housing production, homelessness response, and infrastructure upgrades exceeds available funding. Local agencies and partners continue to collaborate on maximizing leverage and aligning investments, but funding shortages continue to be the most significant barrier to fully meeting the housing and community development goals outlined in this Consolidated Plan.
EXHIBIT A
Annual Action Plan
2025
3 OMB Control No: 2506-0117 (exp. 09/30/2021)
Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Reminder of
ConPlan
$
Narrative
Description Annual Allocation: $ Program Income:
$
Prior Year
Resources: $
Total:
$
CDBG public
-
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public
Services 591,772.00 986,109 0.00 1,577,881.00 2,576,764.00 Expected
allocation for
FY 25/26,
program
income and
estimate of
the remaining
amount for
the Con Plan
cycle.
EXHIBIT A
Annual Action Plan
2025
4 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Reminder of
ConPlan
$
Narrative
Description Annual Allocation: $ Program Income:
$
Prior Year
Resources: $
Total:
$
Other public
- state
Housing
Other
334,000.00 0.00 0.00 334,000.00 334,000.00
PLHA- This
funding
source was
created by
legislation
adopted by
the State of
California in
2017
providing
formula and
competitive
grants to help
cities and
counties
address
housing
needs.
Expected
amounts
shown reflect
the City's
projected
allocation
from formula
grants.
EXHIBIT A
Annual Action Plan
2025
5 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Reminder of
ConPlan
$
Narrative
Description Annual Allocation: $ Program Income:
$
Prior Year
Resources: $
Total:
$
Other public
- state
Other
1,385,618.00 0.00 0.00 1,385,618.00 1,385,618.00
HHAP funding
is a state
allocation to
support
jurisdictions
with homeless
strategies
focused on
prevention,
interim
housing, rapid
rehousing and
permanent
housing.
EXHIBIT A
Annual Action Plan
2025
6 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Reminder of
ConPlan
$
Narrative
Description Annual Allocation: $ Program Income:
$
Prior Year
Resources: $
Total:
$
Other Public-
local
Other
882,606.00 0.00 8,483,928.00 882,606.00 3,530,423.00
The City
currently
expects
approximately
$883k during
the 2025-2026
Fiscal Year.
The
Affordable
Housing
Impact Fee
fund balance
is $8.9M as of
April 22, 2026.
Approximately
$4.8M of this
funding is
reserved for
affordable
housing
projects
EXHIBIT A
Annual Action Plan
2025
7 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Reminder of
ConPlan
$
Narrative
Description Annual Allocation: $ Program Income:
$
Prior Year
Resources: $
Total:
$
Other public
- local
Acquisition
Admin and
Planning
Housing
Other
2,154,182.00 0.00 6,258,756.00 2,154,182.00 8,616,726.00 This fund was
created in FY
2018/19
based on a
voter
approved
measure that
which
assesses a one
percent
transient
occupancy tax
on lodging
revenues and
affordable
and workforce
housing.
Approximately
$7.9 M is
available as of
April 22nd
2026.
Approximately
$264kof this
funding is
reserved.
EXHIBIT A
Annual Action Plan
2025
8 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Reminder of
ConPlan
$
Narrative
Description Annual Allocation: $ Program Income:
$
Prior Year
Resources: $
Total:
$
Other public
- local
Admin and
Planning
120,238.00 0.00 0.00 120,238.00 480,952.00
This fund is
the primary
fund
responsible
for the City's
financial
operations
covering all
administrative
and operating
expenses.
Table 1 - Expected Resources – Priority Table
EXHIBIT A
Annual Action Plan
2025
9 OMB Control No: 2506-0117 (exp. 09/30/2021)
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Many of the activities that the City of Napa intends to fund through the Community Development Block Grant (CDBG) program require supplemental financing from other public and private sources. CDBG funds are allocated to leverage local, state, and federal resources to maximize the impact of investments in public infrastructure, affordable housing, housing rehabilitation, emergency shelter operations, and community services.
Over the five-year Consolidated Plan period, the City plans to use CDBG funds to fill funding gaps in projects that could also be supported by:
· Local sources- such as the City’s Affordable Housing Impact Fee Fund and 1% TOT (Transient Occupancy Tax) for Affordable and Workforce Housing, which support development and preservation of housing for low- and moderate-income households;
· State funds- including the Permanent Local Housing Allocation (PLHA), Affordable Housing and Sustainable Communities (AHSC), Homekey, Prohousing Incentive Program (PIP), Homeless Housing And Prevention (HHAP), and program income from CalHome, used for affordable housing, homeless housing and prevention, emergency shelter operation, housing rehabilitation and first-time homebuyer assistance;
· Federal sources- such as the HOME Investment Partnerships Program, administered by the City of Napa Housing Division which supports affordable housing construction and acquisition; · Private sector investments and nonprofit contributions- These funds are usually assembled by affordable housing developers for development projects with multiple funding layers.
For housing rehabilitation, the City operates a loan and grant program funded by both CDBG and CalHome program income. While these sources are not typically co-mingled at the project level, they are used concurrently to serve different households based on programmatic requirements. This allows the City to maximize the number of households served and reduce the long-term costs of housing maintenance and displacement.
Affordable housing development projects funded with CDBG often serve as a component of a larger funding mix, including federal Low-Income Housing Tax Credits (LIHTC), PLHA, HOME, and local gap financing from the Affordable Housing Impact Fee Fund. These projects frequently involve public-private partnerships, and CDBG funds are essential in acquisition, improving site readiness, infrastructure, or service access.
The 1% TOT is designed to support housing for households earning up to 120% of the Area Median
EXHIBIT A
Annual Action Plan
2025
10 OMB Control No: 2506-0117 (exp. 09/30/2021)
Income (AMI). While this funding extends beyond HUD’s CDBG income eligibility threshold, it is often used in mixed-income projects where CDBG can support low- and moderate-income units within a broader development.
The City does not currently receive federal grants with formal matching requirements under CDBG.
However, the City’s strategy emphasizes leveraging all available resources, and matching is met on a project-by-project basis through developer contributions, local funding, and layered financing when applicable.
EXHIBIT A
Annual Action Plan
2025
11 OMB Control No: 2506-0117 (exp. 09/30/2021)
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City of Napa is actively utilizing its publicly owned assets to address housing needs. An example is the 2.75-acre parcel at 3875 Jefferson Street, acquired using the 1% Transient Occupancy Tax dedicated to Affordable and Workforce Housing. Through a competitive RFP process, the City is inviting proposals for affordable housing developments where at least 75% of the units serve households earning at or below 80% of AMI aligning with the Surplus Lands Act exemption requirements.
Additionally, the City and County are monitoring statewide legislative opportunities that could expand development capacity on publicly or institutionally owned land. For instance, the Affordable Housing on Faith and Higher Education Lands Act (SB 4) streamlines permitting and promotes by-right development of affordable housing on land owned by faith-based or nonprofit educational institutions, potentially enabling future collaborations at such sites.
Discussion
EXHIBIT A
Annual Action Plan
2025
12 OMB Control No: 2506-0117 (exp. 09/30/2021)
Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.220(c)(3)&(e)
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Housing
Rehabilitation
2025 2029 Affordable
Housing
Non-Homeless
Special Needs
Affordable Housing CDBG:
$431,595.00
Homeowner Housing Rehabilitated: 12
Household Housing Unit
2 Emergency
shelter services
2025 2029 Homeless Homeless Services CDBG:
$61,792.00
Homeless Person Overnight Shelter: 294
Persons Assisted
3 Outreach/referral
for racial/ethnic
minority group
2025 2030 Affordable
Housing
Homeless
Non-Homeless
Special Needs
Homeless Services CDBG:
$25,443.00
Homeless Person Overnight Shelter: 47
Persons Assisted
4 Fair housing
activities
2025 2030 Non-Homeless
Special Needs
Non-Housing
Community
Development
Community Development CDBG:
$13,085.00
Public service activities for Low/Moderate
Income Housing Benefit: 60 Households
Assisted
5 Improvements to
City facilities &
parks
2025 2029 Non-Housing
Community
Development
Community Development CDBG:
$25,000.00
6 Construction of
New affordable
rental units
2025 2029 Affordable
Housing
Affordable Housing $868,421 Rental units constructed: 39 Household Housing Units
EXHIBIT A
Annual Action Plan
2025
13 OMB Control No: 2506-0117 (exp. 09/30/2021)
Goals Summary Information
Table 2 – Goals Summary
Goal Descriptions
1 Goal Name Housing Rehabilitation
Goal
Description
Provide housing rehabilitation assistance to low-income homeowners and renters for maintenance, rehabilitation, and accessibility modifications. This could include rehabilitation assistance for owners of mobile homes and other homeowners, assistance for rehabilitation and maintenance projects at non-profit affordable housing developments, and accessibility modifications for low-income homeowners and renters, among other activities. 2 Goal Name Emergency shelter services
Goal
Description
Provide financial support toward operation of emergency shelters. This goal is consistent with the City's recent use of CDBG funds to support the South Napa Shelter and Rainbow House. 3 Goal Name Outreach/referral for racial/ethnic minority group Goal
Description
Ensure comprehensive outreach to and referral for racial and ethnic minority groups, including the City's sizable Latino/Hispanic population with limited English proficiency, to ensure that service providers are aware of needs among residents belonging to various racial and ethnic minority groups and that all eligible residents are able to access housing and community development programs and resources.
4 Goal Name Fair housing activities
Goal
Description
Support outreach and training on fair housing issues, as well as counseling on tenant/landlord issues to resolve disputes and prevent displacement. The City of Napa has addressed this goal during prior Consolidated Plan planning periods by supporting Fair Housing Napa Valley and anticipates continuing this support during the 2020-2025 planning period.
EXHIBIT A
Annual Action Plan
2025
14 OMB Control No: 2506-0117 (exp. 09/30/2021)
5 Goal Name Improvements to City facilities & parks
Goal
Description
Undertake improvements to City of Napa facilities and City parks, including the senior center and City recreational facilities, to provide contemporary ADA accessibility and other improvements to meet community needs. 5 Goal Name Construction of New affordable rental units Goal
Description
Support the development of new rental units affordable to low- and moderate-income households. Expanding the supply of rental units that are affordable to low to moderate income households remains a high priority for the City of Napa. CBDG funding levels and federal restrictions on its use for new construction impacts the ability to meaningfully support this goal through the CDBG program.
EXHIBIT A
Annual Action Plan
2025
15 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-35 Projects - 91.220(d)
Introduction
The City of Napa has allocated CDBG funding to five projects during the 2025-2026 Fiscal Year, as summarized in Table 3 below. Funding allocated to CDBG administration will provide support to City staff to administer and monitor grants and to prepare CDBG reporting documents. The public services project included in the table below encompasses fair housing services, operational support for the Rainbow House Emergency Shelter, housing navigation services through On The Move’s housing stabilization program, a bilingual (Spanish/English) counselor at NEWS Domestic Violence and Sexual Abuse Services, and outreach for the Hispanic community. Housing Rehabilitation will provide low- and moderate-income households in Napa with funding for accessibility modifications and needed repairs to housing units. Non-Profit Capital improvements will be made at a transitional housing project owned by Mentis and to the new headquarters for Puertas Abiertas Community Resource Center. New Rental Units project will provide funding for land acquisition for development of new affordable rental units.
# Project Name
1 FHNV
2 Public Service
3 Housing Rehabilitation
4 Non-Profit Capital Improvement Projects
5 New Rental Units
Table 3 – Project Information
EXHIBIT A
Annual Action Plan
2025
16 OMB Control No: 2506-0117 (exp. 09/30/2021)
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City of Napa determined allocation priorities based on information presented in the Consolidated Plan along with insights staff learned regarding evolving community needs over the past year. In addition, the City considered the level of resources available from the CDBG program and the potential to leverage these funds to support a range of activities, along with the availability of additional funding sources to address various needs. The allocation priorities in the First Year Annual Action Plan are consistent with priorities outlined in the Consolidated Plan.
A shortage of funding is expected to constitute the primary obstacle to addressing underserved needs in Napa. As shown in the Strategic Plan portion of the Consolidated Plan, the City of Napa has identified 22 goals for the 2025-2030 Consolidated Plan planning period but does not anticipate having the funding necessary to allocate resources toward each of these goals. However, the City continues to search for additional funding sources to support housing and community development goals and apply for funding as appropriate.
EXHIBIT A
Annual Action Plan
2025
17 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-38 Project Summary
Project Summary Information
EXHIBIT A
Annual Action Plan
2025
18 OMB Control No: 2506-0117 (exp. 09/30/2021)
1 Project Name FHNV
Target Area
Goals Supported Outreach/referral for racial/ethnic minority group Fair housing activities
Needs Addressed Affordable Housing
Homeless Services
Funding CDBG: $120,237.00
Description This CDBG Planning and Administration project will fund fair housing services provided by Fair Housing Napa Valley, a qualified nonprofit fair housing agency. The project supports fair housing education, outreach, counseling, and complaint intake services that affirmatively further fair housing and address local fair housing priorities identified in the City's Consolidated Plan. Proposed accomplishments include fair housing outreach and education to residents, landlords, and housing providers; intake and counseling related to alleged housing discrimination; assistance and referral for individuals experiencing fair housing violations; and coordination with appropriate enforcement agencies as needed. Outreach efforts may include workshops, distribution of fair housing materials, and participation in community events. Services will be provided on a citywide basis to residents of the City and individuals seeking housing within the City's jurisdiction. The activity is expected to be carried out throughout the program year, with services provided on an ongoing basis through the end of the program year. The project addresses local priority needs related to fair housing choice, access to housing, and prevention of housing discrimination. The activity qualifies under the Low/Moderate Income Clientele (Presumed Benefit) national objective and benefits low- and moderate-income persons and members of protected classes by promoting equal access to housing opportunities within the City.
Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
Not Applicable.
Location Description Citywide.
EXHIBIT A
Annual Action Plan
2025
19 OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities 05J
• Fair housing education and outreach activities
• Workshops and distribution of fair housing materials
• Intake, counseling, and referral of fair housing complaints • Coordination with state and federal fair housing enforcement agencies
• Reporting and documentation of services provided
2 Project Name Public Service
Target Area
Goals Supported Emergency shelter services
Outreach/referral for racial/ethnic minority group
Needs Addressed Affordable Housing
Homeless Services
Community Development
Funding CDBG: $94,360.00
Description All Public Services approved for the 2025 Annual Action Plan including:
Catholic Charities, NEWS, On The Move and Puertas Abiertas Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
20 families experiencing homelessness served at the Catholic Charities Rainbow House Family Shelter.
40 survivors of domestic violence and their families served by a bilingual counselor at the NEWS domestic violence shelter.
40 individuals receive rental assistance and housing navigation support. 3,185 households with free referrals, educational programs, social services, immigration guidance, citizenship classes, senior support groups, and counseling survivors of domestic violence and their families through the Promotoras Program.
Location Description Citywide.
EXHIBIT A
Annual Action Plan
2025
20 OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities Provide operational support to Catholic Charities for the Rainbow House Family Shelter.
Provide funding for a bilingual counselor at the NEWS domestic violence shelter.
Provide funding for rental assistance through On The Move’s Housing Stabilization Program.
Provide funding for the Promotoras Program outreach through Puertas Abiertas Community Resource Center.
03T; 05Z; 05G
3 Project Name Housing Rehabilitation
Target Area
Goals Supported Housing Rehabilitation
Needs Addressed Affordable Housing
Funding CDBG: $293,015.00
Description Rehabilitation of housing. Funding includes entitlement funds and unreceived but expected revolving loan program income funds.
Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
It is estimated that this activity will benefit 12 households with incomes at or below 80 percent of AMI. Households that will benefit from this activity are expected to include seniors, households in need of accessibility improvements, and other households in need of necessary home repairs.
Location Description Citywide.
Planned Activities Housing rehabilitation for low-income households. 14A
4 Project Name Non-Profit Capital Improvement Projects
Target Area
Goals Supported Housing Rehabilitation
Needs Addressed Community Development
Funding CDBG: $93,576.00
Description Capital improvement projects for Non-Profit organizations approved in the 2025 Annual Action Plan including: Mentis and Puertas Abiertas.
Transitional Housing home repair for Mentis facility. Roof repairs, ADA improvements, and flooring improvements to Puertas Abiertas facility.
EXHIBIT A
Annual Action Plan
2025
21 OMB Control No: 2506-0117 (exp. 09/30/2021)
Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
It is estimated that 6 households will benefit at the transitional housing project.
It is estimated that 3,500 people will be served at this site upon completion of the improvements.
Location Description Mentis – Transitional Housing located on Yajome Street in Napa.
Puertas Abiertas – 305 Soscol Avenue
Planned Activities Transitional Housing home repair for Mentis facility.
Roof repairs, ADA improvements, and flooring improvements to Puertas Abiertas facility.
03B; 05Z
5 Project Name New Rental Units
Target Area
Goals Supported Construction of New affordable rental housing Needs Addressed Affordable Housing
Funding CDBG: $868,421
Description Land acquisition for new affordable rental housing Target Date 12/31/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
39 low-and moderate-income families
Location Description 515 Silverado Trail in Napa
Planned Activities Provide funding for land acquisition in support of new affordable rental unit development.
EXHIBIT A
Annual Action Plan
2025
22 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution - 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The City of Napa does not allocate CDBG funds based on geographic priority areas. To the extent that activities funded through CDBG serve a particular geographic area, these activities are located in lower- income Census Tracts, according to CDBG regulations (i.e. low/moderate income area benefit). In recent years, these types of activities have consisted of improvements to sidewalks and parks in low-income Census tracts. In addition, Napa allocates funds to organizations that provide housing and services to low- and moderate-income persons based on CDBG program regulations (low/moderate income limited clientele). This has included funding allocated to facilities and organizations providing services to homeless individuals and victims of domestic violence, child facilities, as well as to support fair housing activities.
Geographic Distribution
Target Area Percentage of Funds
Table 4 - Geographic Distribution
Rationale for the priorities for allocating investments geographically
Discussion
EXHIBIT A
Annual Action Plan
2025
23 OMB Control No: 2506-0117 (exp. 09/30/2021)
Affordable Housing
AP-55 Affordable Housing - 91.220(g)
Introduction
This section specifies goals for the number of households to be provided with affordable housing due to City of Napa CDBG expenditures within the Fiscal Year 2025-2026 by household type and type of activity.
Per HUD guidelines, this section does not include the provision of emergency shelter, transitional shelter or social services.
The First Year Action Plan allocates funding to provide households with affordable housing through housing rehabilitation, and land acquisition for a new affordable rental project, as discussed in sections AP-35 and AP-38. The City’s housing rehabilitation activities provide low- and moderate-income households with funding to complete needed home repairs and accessibility modifications, allowing these households to remain in their homes.
One Year Goals for the Number of Households to be Supported Homeless 39
Non-Homeless 12
Special-Needs 0
Total 51
Table 5 - One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 39
Rehab of Existing Units 12
Acquisition of Existing Units 0
Total 51
Table 6 - One Year Goals for Affordable Housing by Support Type
Discussion
EXHIBIT A
Annual Action Plan
2025
24 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-60 Public Housing - 91.220(h)
Introduction
This section is not applicable; the City of Napa does not own or operate any public housing units.
Actions planned during the next year to address the needs to public housing This section is not applicable; the City of Napa does not own or operate any public housing units.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
This section is not applicable; the City of Napa does not own or operate any public housing units.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
This section is not applicable; the City of Napa does not own or operate any public housing units.
Discussion
EXHIBIT A
Annual Action Plan
2025
25 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-65 Homeless and Other Special Needs Activities - 91.220(i) Introduction
Napa participates in the Napa County Continuum of Care, which coordinates housing and supportive services to assist homeless individuals and families in securing permanent housing. The City’s First Year Annual Action Plan supports the Continuum of Care’s activities to address homelessness.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City of Napa addresses homelessness on an ongoing basis in coordination with the Napa City-County Continuum of Care. As a part of these efforts, the City of Napa holds contracts for and seeks out funding to support a variety of street outreach, intervention, and prevention and diversion programs. Napa’s one-year goals and projects specified in the Fifth Year Annual Action Plan support these efforts by providing operational support to the Catholic Charities’ Rainbow House Family Shelter, which offers outreach, assessment, and referral to households experiencing homelessness. In addition, the Fifth Year Annual Action Plan includes funding for a Spanish-speaking counselor at the NEWS domestic violence shelter. The City continues to utilize General Fund money to leverage support for operational expenses of the South Napa Shelter and operates the North Napa Center as a secondary shelter through the Encampment Resolution Funding Grant.
Addressing the emergency shelter and transitional housing needs of homeless persons The First Year Annual Action Plan allocates funding to provide support to the Catholic Charities’ Rainbow House Family Shelter and NEWS domestic violence shelter, both of which support the City’s ongoing efforts to address emergency and transitional housing needs in Napa. The City of Napa also engages in ongoing activities to address the emergency shelter and transitional housing needs of homeless persons through participation in the Continuum of Care and by maintaining close networks with agencies that provide emergency and transitional housing to Napa residents. Additionally, the City ensures that local policies facilitate the development of emergency and transitional housing. Furthermore, the City, Housing Authority, and County have worked with outside consultants to redesign the community’s homeless system in order to implement national best practices including a housing-focused approach.
The changes to the system began implementation in Fiscal Year 2017-2018 and have continued to evolve into an operational model. The changes implemented to date include a new homeless shelter system operator, 24-hour services at the South Napa Shelter, a change of location for the family homeless shelter, enhanced case management, a new vision for the street outreach and intervention teams, the opening of a non-congregate homeless shelter, and consolidated and easier access to services.
EXHIBIT A
Annual Action Plan
2025
26 OMB Control No: 2506-0117 (exp. 09/30/2021)
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
Along with the City of Napa, there are a number of agencies in and near Napa that provide assistance to help homeless persons make the transition to permanent housing, as detailed in section MA-30 of the Consolidated Plan. The City engages in ongoing coordination with these agencies, in part through participation in the Napa County Continuum of Care.
This Annual Plan allocates funding to the Catholic Charities' Rainbow House Family Shelter, On The Move, and NEWS domestic violence shelter, all three agencies provide services to assist individuals and households transition from homelessness to permanent housing. The City’s ability to further support services for people transitioning from homelessness is somewhat limited by funding constraints, including the CDBG program’s 15 percent cap on public services spending. However, as described above, the City, Housing Authority, and County have redesigned the community’s housing and shelter system to shorten shelter stays, increase the number of homeless households leaving shelters for permanent housing, and increase households’ capacity to remain in their housing, focusing on prevention before homelessness occurs.
In addition to services that are tailored specifically for households transitioning from homelessness, access to affordable housing is critical in ensuring homeless individuals and families transition from homelessness. Although Napa’s First Year Annual Action Plan does not allocate CDBG funds to support the construction of new affordable units, the City uses its Affordable Housing Impact Fee Fund, One Percent TOT for Affordable and Workforce Housing, and other funding sources to provide financial support to affordable developments. In the Fiscal Year 2024-2025, the City completed one new permanent supportive housing project that provides 44 units to low-income households placed through the County’s Coordinated Entry System. In Fiscal Year 2023-2024, a 54-unit permanent supportive housing project assisting low-income households became available for occupancy. Both projects require precise coordination between the developer, City, Housing Authority, County, funders, and service providers. In Fiscal Year 2024-2025, the City completed an additional housing project that provides 90-units to households.
Napa also ensures that City ordinances and policies are designed to facilitate affordable housing production and remove constraints to the development of affordable housing. Programs to address the City’s affordable housing needs are discussed in greater detail elsewhere in the Consolidated Plan and in the City’s Housing Element.
EXHIBIT A
Annual Action Plan
2025
27 OMB Control No: 2506-0117 (exp. 09/30/2021)
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.
The City implements a number of policies and programs to provide access to affordable housing, which is essential to prevent homelessness among at-risk households, as detailed elsewhere in this document and in the City’s Housing Element. Ongoing actions that the City of Napa engages in to provide access to affordable housing include, but are not limited to:
• Operating the Section 8 HCV program through the HACN; • Providing rental assistance through the HACN Family Unification Program, which can be used by youth aging out of foster care and by families at-risk of losing their children due to lack of housing or risk of homelessness;
• Adopting land use and other regulations that support the development of affordable housing, emergency shelters, transitional housing, and permanent supportive housing; and • Providing financial support for affordable housing activities, including using available funding sources to provide financial support to assist in the development of new affordable housing and housing for at-risk populations or populations with special needs. • The City has launched a pilot diversion and prevention program to assist with stabilizing households to prevent homelessness and or reducing the amount of time a client experiences homelessness if they can be connected with stable housing resources.
Many extremely low-income and special needs households may require specific services to avoid becoming homeless. Sections MA-30 and MA-35 of the Consolidated Plan detail services available to households in Napa that are at risk of becoming homeless, many of which are supported in part through coordination between the City and other organizations. In addition, the First Year Annual Action Plan allocates funding to support fair housing activities, which can assist in preventing wrongful evictions and discriminatory housing practices that could result in homelessness. A shortage of funding constitutes the primary barrier to helping low-income individuals and families to avoid becoming homeless.
Discussion
EXHIBIT A
Annual Action Plan
2025
28 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Action Plan Barriers to Affordable Housing - 91.220(j) Introduction
The City of Napa engages in ongoing efforts to ensure that local policies generally support the production of both market-rate and affordable housing and remove constraints to residential investment. In accordance with State law, the City of Napa adopted a Housing Element Update in early 2023 that details how the jurisdiction will plan for affordable housing, including an analysis of public policies that serve as barriers to affordable housing and specific actions that the City will take to remove any barriers. The City’s Housing Element has been approved by the State of California Department of Housing and Community Development (see Section MA-40 of the Consolidated Plan). The Housing Element includes actions that the City will take to further support affordable housing through City policies, as discussed below.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City of Napa’s 2023-2031 Housing Element includes the following programs to remove barriers to the provision of new and rehabilitated affordable housing:
• Identification of 86 sites to meet Napa’s Regional Housing Need Allocation (RHNA) goal of 2,669 new units for the planning period (which includes 1,806 units for extremely low to moderate income households). The Housing Element indicates these 86 sites have a combined development capacity of over 3,500 housing units (32% over RHNA). • Adoption of the Napa 2040 General Plan, which designated numerous additional mixed-use sites that allow for multifamily housing.
• Increase in residential density allowances throughout the City to encourage residential development.
• Zoning and Municipal Code amendments to implement new mixed-use development standards outlined in the General Plan
Numerous additional policies and programs in the City of Napa’s Housing Element work together to reduce barriers to affordable housing.
During the planning period of this plan, the City will reassess potential barriers to affordable housing and strategies to address any barriers as part of the Housing Element Update for the 2032-2039 Housing Element planning period.
EXHIBIT A
Annual Action Plan
2025
29 OMB Control No: 2506-0117 (exp. 09/30/2021)
Discussion
EXHIBIT A
Annual Action Plan
2025
30 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions - 91.220(k)
Introduction
The City of Napa uses a number of strategies to address the affordable housing, homeless, and community development needs identified in the Consolidated Plan. This section provides an overview of the City’s ongoing activities and planned future actions to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, reduce the number of poverty-level families, develop institutional structure, and enhance coordination between housing providers and social service agencies.
Actions planned to address obstacles to meeting underserved needs As discussed in section AP-35 above, a shortage of funding for affordable housing, homeless services, and community development activities is the primary obstacle to meeting underserved needs in Napa.
The City of Napa actively pursues federal, state, local, and private funding sources to address underserved needs, and will continue to explore new and existing funding sources during the planning period and in subsequent years.
Actions planned to foster and maintain affordable housing The City of Napa has a number of policies already in place and additional planned actions to foster and maintain affordable housing during the 2025-2026 Fiscal Year as well as in subsequent years. Ongoing and planned future actions to support the development and preservation of affordable housing are detailed in the City’s 2023-2031 Housing Element and throughout the 2025-2035 Consolidated Plan.
These actions include, but are not limited to:
Identification of sites for affordable housing, including sites zoned to densities sufficient to make affordable housing development feasible;
Providing Section 8 HCVs to low-income households through the Housing Authority; Efforts to ensure that City zoning regulations and other policies support the development of affordable and special needs housing;
Collecting impact fees for market-rate residential and nonresidential development and a One Percent TOT for Affordable and Workforce Housing, which the City uses to support future affordable housing activities;
Monitoring properties with affordability restrictions to determine when restrictions are set to expire and working with property owners to maintain affordability; Implementation of the City’s Condominium Conversion Ordinance, which prevents the conversion of
EXHIBIT A
Annual Action Plan
2025
31 OMB Control No: 2506-0117 (exp. 09/30/2021)
rental units when there is a shortage of rental housing; and Providing financial assistance to support the development and preservation of affordable housing and housing for households with special needs.
The City plans to use CDBG funds to support the construction of new affordable rental units during the 2025-2026 Fiscal Year. The City also intends to use other available resources to support the development of affordable housing. The City has approximately $9 million in its Housing Impact Fee Fund as April 22, 2026, approximately $4.8 million of which is reserved for loans to support affordable housing in Napa. The City also has approximately $7.9 million available from its One Percent TOT for Affordable and Workforce Housing as of April 22, , 2026, with approximately $264,000 to support affordable and workforce housing in Napa. As additional revenues accrue to the City from these and other sources, the City will make these funds available to support affordable housing activities, including new construction and preservation, on an ongoing basis.
The City’s Housing Impact Fee revenues depend on Napa construction activity, while the One Percent TOT Fund funding from local hotels is affected by spending at local hotels, both of which are somewhat dependent on local economic activity. TOT funds were impacted by the COVID-19 pandemic and its economic effects on tourism and lodging. While construction may not be as affected in the near term, Napa can expect a decrease in construction activity due to ongoing economic volatility, reducing demand for new commercial space and market-rate residential units. Consequently, the City may collect less revenue than expected until economic conditions improve.
As shown throughout the Consolidated Plan, the City continues to apply CDBG funds to support housing rehabilitation for low- and moderate-income households during the 2025-2026 Fiscal Year and in future years. The City’s Housing Rehabilitation Program helps to preserve existing units and allows low- and moderate-income households to remain in their homes.
Actions planned to reduce lead-based paint hazards
As discussed in section SP-65 of the Consolidated Plan, Napa operates a Lead Based Paint Abatement Program as part of the City’s Rehabilitation Loan Program. The First Year Annual Action Plan will continue to implement housing rehabilitation activities, as discussed in sections AP-35 and AP-38 above, and the Lead Based Paint Abatement Program will continue to be incorporated into City-funded housing rehabilitation activities. All low- and moderate-income residents of Napa are eligible for the program and lead based paint testing.
Actions to address lead-based paint programs are integrated into housing policies and procedures due to the incorporation of testing and remediation of lead hazards in the City’s Housing Rehabilitation Program and the HACN’s Section 8 HCV program. The City’s Housing Rehabilitation Supervisor, who
EXHIBIT A
Annual Action Plan
2025
32 OMB Control No: 2506-0117 (exp. 09/30/2021)
oversees the Housing Rehabilitation Program, is certified as lead-based paint inspectors and risk assessors with the California Department of Public Health. The City also distributes information on lead- based paint to participants in the HACN’s Section 8 HCV program and Housing Rehabilitation Loan program. In addition, the City specifically prohibits contractors that participate in City housing programs from using lead-based paint in their work.
Actions planned to reduce the number of poverty-level families The Annual Plan allocates funding for the Catholic Charities' Rainbow House Family Shelter, On The Move, and the NEWS domestic violence shelter, all three agencies provide services to families in crisis.
Services provided at these facilities include counseling, assistance with finding employment, and other services to help families to exit from homelessness.
The City of Napa addresses poverty through affordable housing policies and economic development efforts, aiming to provide stable living environments and job opportunities for low-income households.
In addition to programs and policies that are implemented by City agencies, the City of Napa addresses poverty through close coordination with governmental and nonprofit service agencies that provide permanent supportive housing and services that address barriers to overcoming poverty. Relevant services available through other governmental or non-profit agencies include job training, assistance with finding employment, low-cost or subsidized childcare, life skills training, mental health services, and drug and alcohol counseling, as detailed in sections MA-30 and MA-35 of the Consolidated Plan. The City and other agencies that serve low-income households and homeless individuals and families provide cross-referrals to ensure that residents are aware of all available services and potential housing opportunities.
Actions planned to develop institutional structure
The City of Napa engages in ongoing internal coordination and coordination with other agencies to address affordable housing, homeless, and community development needs in the City, and will continue this coordination during Fiscal Year 2025-2026 and in subsequent years. The institutional structure that addresses these needs is described in detail in section SP-40 of the Consolidated Plan. Key agencies in the institutional structure include the City of Napa, the Housing Authority of the City of Napa, the Napa County Housing and Homeless Services Division, affordable housing providers, homeless service providers, agencies that offer housing and supportive services to formerly homeless individuals and families and those at risk of homelessness, and other health and social service agencies.
EXHIBIT A
Annual Action Plan
2025
33 OMB Control No: 2506-0117 (exp. 09/30/2021)
Actions planned to enhance coordination between public and private housing and social service agencies
The City of Napa continues to participate in the Napa County Continuum of Care, which serves a critical role in coordinating services between public agencies, affordable housing providers, and social service agencies. Representatives from the Napa Police Department and the Housing Authority of the City of Napa plan to continue to serve on the Continuum of Care Governing Board to further these efforts. In addition, on an ongoing basis the City of Napa works with affordable housing developers to construct and manage affordable housing in the City and with County agencies and nonprofit service providers to provide social services to residents. The City will continue to support these entities to address affordable housing, homeless services, and community development goals during the Fiscal Year 2025-2026.
Additionally, as described in AP-65, the City, County and Housing Authority continue to work to redesign the community’s homeless system to incorporate a housing focus and implement national best practices to shorten shelter stays and increase the number of households moving from homelessness into permanent housing.
Discussion
The City of Napa has standard procedures in place to monitor subrecipients. All subrecipients are required to maintain documentation of clients benefiting from activities funded through the CDBG program. Subrecipients remit Quarterly Performance reports to the City in which they certify that low- and moderate-income persons are being served. The Quarterly Performance Reports provide the number of persons served by income level, race and ethnicity. The City also requires that the subrecipients in public service set quantifiable goals for their unique service. The unique goals are also reported on the Quarterly Performance Report and staff works with subrecipients when the goals are not achieved. The reporting of the levels of achievement also assists the CDBG Citizens' Advisory Committee in making future funding decisions.In addition to self-reporting of programs funded by CDBG, City staff performs annual risk assessment and monitoring of subrecipients. Staff verifies that applicable laws and regulations are being followed in addition to monitoring for performance, internal controls, and compliance with eligibility requirements. Problems or weaknesses are noted, and City staff works with subrecipients to resolve any issues in a timely manner.
EXHIBIT A
Annual Action Plan
2025
34 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements - 91.220(l)(1,2,4)
Introduction
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0
5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 80.00%
EXHIBIT A
Annual Action Plan
2025
35 OMB Control No: 2506-0117 (exp. 09/30/2021)
Discussion
EXHIBIT A