TO: Board of Supervisors
FROM: Jennifer Palmer, Director of Housing & Community Services
REPORT BY: Jennifer Palmer, Director of Housing & Community Services
SUBJECT: Authorization to subordinate a County Deed of Trust on a 5-unit Affordable Housing Project in St. Helena to an Easement Agreement
RECOMMENDATION
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Approve and authorize an agreement subordinating a County Deed of Trust on a 5-unit Affordable Housing Project in St. Helena to an Easement Agreement.
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BACKGROUND
Napa County receives funds under its Affordable Housing and Incentives Ordinance (County Code Chapter 18.107) and implements resolutions to further the development of affordable housing throughout Napa County. Napa Valley Community Housing, a California Non-Profit Corporation, and Our Town St Helena, a California Non-Profit Corporation, have entered into a Memorandum of Understanding and related Options to Purchase Agreement with the intent to partner on the development of one (1) parcel of real property in Napa County, located at 963 Pope Street in St. Helena to develop 5 units of Low and Very Low Income Affordable Housing, known as The Pope Street Project (“Project”).
On January 28, 2025, Napa County approved an affordable housing fund loan of $200,000 for a 5-unit affordable housing project in St. Helena known as the “Pope Street Project” located at 963 Pope Street. This loan was made in connection with a loan from the City of St. Helena of $1,000,000, and smaller loans from California Housing and Community Development Department and other private donors.
Shortly after securing all funding for the Pope Street Project, the developers were able to secure the parcel next door (951 Pope Street) and build an additional 5 affordable units in conjunction with the construction of the original project. These two sites share a driveway, parking, utilities and water detention. Therefore the developers are executing a Reciprocal Easement Agreement to document these shared items, and are required to record the easement in order to obtain the Certificate of Occupancy for the 951 project.
Today’s action authorizes the Chair of the Board to sign the Reciprocal Easement Agreement, subordinating the County’s existing Deed of Trust to the Easement Agreement.
FISCAL IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
There is no mandate to agree to subordinate the County’s Deed of Trust for the 963 Pope Street development to the reciprocal easement agreement. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None |
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Consequences if not approved: |
Failure to approve prevents the issuance of a COO for the 951 Pope Street project, which provides much needed affordable housing in St. Helena at no additional cost to the County. |
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.