Affordable
Housing
Fee
Reduction
Pilot Program
September 15, 2026
7.A.
Pilot Program Proposal
Adopt resolutions authorizing the
Community Resources and Development
Director to implement a pilot program that
reduces certain Impact and Building Permit
fees for qualifying, deed restricted
affordable housing units that can be
reported on the City of Napa’s Regional
Housing Needs Allocation Progress Report.
The Why
Income Level RHNA
Allocation
Completed Per
State Report
% Completed In Progress Awaiting
Financing
Very Low 770 15 2% 0
400-500
UnitsLow 444 94 21% 25
General Qualifications
Must be evidenced by a Deed Restriction (except some
ADUs) of no less than 55 years for rental housing and 45 years for for-sale housing.
Unless otherwise required by a State or Federal funding source, must utilize the State of California’s Housing and Community Development Annual Income Limits.
Must apply for or obtain a building permit between July 1, 2026, and December 31, 2028.
Must be eligible to report on the City’s Annual RHNA
Report.
Cannot be part of an Alternative Equivalent to payment of Affordable Housing Impact Fees.
Building Permit Fees
Eligible Fees for Reduction:
Residential and Multi-Family Uses (Fee Schedule 2.1.6-2.1.10) Single Family Dwellings (Fee Schedule 2.1.26 -2.1.30) Accessory Dwelling Units (Fee Schedule 2.1.36)
Eligible Reduction:
100% for Very Low Income Units (50% of AMI and Below) 75% for Low Income Units (80% of AMI and Below)
50% for Moderate Income Units (120% of AMI and Below)* 50% for ADUs that are 749 Square Feet or less*
*Already a program in the City
Building Permit Fees
Eligible Fees for Reduction:
Residential and Multi-Family Uses (Fee Schedule 2.1.6-2.1.10) Single Family Dwellings (Fee Schedule 2.1.26 -2.1.30) Accessory Dwelling Units (Fee Schedule 2.1.36)
Eligible Reduction:
100% for Very Low Income Units (50% of AMI and Below) 75% for Low Income Units (80% of AMI and Below)
50% for Moderate Income Units (120% of AMI and Below)* 50% for ADUs that are 749 Square Feet or less*
*Already a program in the City
Financial Impact
Building Permit Fees
Estimated between $500,000- $750,000 cumulative over
three fiscal years.
Impact Fee Reduction
Eligible Fees for Reduction:
Fire and Paramedic Development Impact Fee
Street Improvement Fee
Park Development Fee
Park Land Dedication Fee
Orchard Avenue Area Park Fee
North Jefferson Park and Street Improvement Fee
High Priority Improvement Payback Fee
Big Ranch Specific Plan Area Development Impact Fee
Lone Oak Drainage Fee
Impact Fee Reduction
Eligible Impact Fee Reduction:
100% of Impact Fees for Very Low Income (50% of AMI or Below) 75% of Impact Fees for Low Income (75% of AMI or Below) Note: State law currently prohibits charging certain impact fees for Accessory Dwelling Units that are 749 Square Feet or less Proposed Cap on the Number of Eligible Units
250 Very Low Income Units
250 Low Income Units
First come-first reduced with requirement to begin construction within one year of Building Permit issuance
Financial Impact-Impact Fees
Very Low Low Total
Pilot Units 250 250
100% Reduction 75% Reduction
Street Improvement $ 799,500.00 $ 599,625.00 $ 1,399,125.00 Park Dedication $ 1,049,000.00 $ 786,750.00 $ 1,835,750.00 Park Development $ 159,750.00 $ 71,887.50 $ 231,637.50 Paramedic $ 147,250.00 $ 110,437.50 $ 257,687.50 Total $ 2,155,500.00 $ 1,568,700.00
Per Unit Reduction $ 8,622.00 $ 6,274.80 Next Steps
Community Resources and Development Director will
develop an Administrative Regulation for review and
approval by the City Manager.
Launch an “application” process for eligible units.
Provide report to City Council upon request.
Pilot Program Proposal
Adopt resolutions authorizing the
Community Resources and Development
Director to implement a pilot program that
reduces certain Impact and Building Permit
fees for qualifying, deed restricted
affordable housing units that can be
reported on the City of Napa’s Regional
Housing Needs Allocation Progress Report.