TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Jennifer M. Palmer, Director of Housing & Community Services
SUBJECT: Approval of Updated Affordable Accessory Dwelling Unit Loan Program Underwriting Guidelines
RECOMMENDATION
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Approve and adopt the updated underwriting guidelines for the Napa County Affordable Accessory Dwelling Unit Forgivable Loan Program. (No Fiscal Impact)
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BACKGROUND
On February 8, 2022, the Board received a presentation on affordable housing program investment opportunities. The Board directed staff to return with recommendations supporting modification and further investments in the Proximity Workforce Housing Assistance Program and Accessory Dwelling Units (ADU's). On April 19, 2022, the Board received a second presentation which included possible actions and investments related to both programs. The Board directed staff to support increased ADU production by developing programs and forgivable loan underwriting guidelines that support market rate and affordable ADU production. On November 29, 2022 the Board adopted the first version of the Affordable Accessory Dwelling Unit Forgivable Loan Program underwriting guidelines. The Program provides forgivable construction loans for ADU development to homeowners in Napa County who occupy their home as their primary residence in exchange for the following commitments:
1. The construction of a new ADU at the primary residence; and,
2. The commitment to rent the unit to an individual or household earning at-or-below 80% Area Median Income (AMI); and,
3. The commitment to a maximum monthly affordable rent for 80% AMI households for a period of not less than five years or 60 months.
Loans are available to homeowners anywhere in Napa County who occupy their homes as their Primary Residence. All units assisted by the Program will be subject to an affordability covenant for the rental term of five years or 60 months. For each 12-month period in w...
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