TO: Napa County Housing Commission
FROM: Jennifer Palmer, Executive Director
REPORT BY: Emma Moyer, Staff Services Manager
SUBJECT: Presentation from PEP Housing and Collective Operations on the Imola Affordable Apartments Housing Project

RECOMMENDATION
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Presentation from PEP Housing and Collective Operations on a new proposed housing development for the State Hospital Imola Avenue site. For discussion only, no action needed.
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BACKGROUND
Under the Governor’s Executive Order N-06-19, California’s Department of General Services and Department of Housing & Community Development developed the Excess Sites Program to dispose of State-owned land to support affordable housing development. In March 2025, affordable housing developer, PEP Housing and Collective Operations (“PEP Housing and CO”) applied for a 5-acre site owned by the State Hospital in unincorporated Napa County. In late 2025 PEP Housing and CO’s proposal was selected by the state and a lease option agreement with the State was executed.
The development proposes 185 units of large family housing for the site. 50% of the units will be 1-bedroom units, 25% of the units will be 2-bedroom units and 25% of the units will be 3-bedroom units. All units will be restricted to families earning less than 60% Area Median Income (AMI), with some units restricted to families earning less than 50% AMI and some units restricted to families earning less than 30% AMI. The development team anticipate applying for Joe Serna Farmworker Housing Grant funding that if awarded would create deed-restricted farmworker units for the County. The project will also compete for Affordable Housing Sustainable Communities Program through the state, but will require local support.
Today, PEP Housing and CO will present the Housing Commission with an overview of the project, and share predevelopment updates including funding, design, and cultivating community partners. Construction is expected to begin in October of 2027.
PROCEDURAL REQUIREMENTS
1. Staff Report
2. Presentation
3. Public Comment
4. Discussion
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.