TO: Board of Supervisors
FROM: Ryan J. Alsop, County Executive Officer
REPORT BY: Jennifer Palmer, Director of Housing & Homeless Services
SUBJECT: Resolution re: Our Town St. Helena Project
RECOMMENDATION
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Adopt a Resolution authorizing an amendment to loan documents with Our Town St. Helena, waiving the application fee and loan modification fee and allow funds from an existing predevelopment loan to Our Town St. Helena to remain with the Project, remove obligation of the developer regarding the revised loan balance, and terminate the loan balance promissory note. (Fiscal Impact $68,828 Expense; Affordable Housing Fund; Budgeted; Discretionary.)
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BACKGROUND
Napa County receives funds under its Affordable Housing and Incentives ordinance (County Cod Chapter 18.107) and implements resolutions to further the development of affordable housing. On March 16, 2016, Our Town St. Helena, a nonprofit public benefit corporation ("Developer") applied for $280,000 in predevelopment funding for an affordable housing project of 8 units, located at 684 McCorkle Avenue in St. Helena ("Project"). The Project assisted eight families of low and very low income to build and own their homes utilizing a "sweat equity" model of construction, which requires a significant commitment by the engaged prospective homeowners.
By Resolution 2016-44, the Board of Supervisors approved a predevelopment loan for the project and authorized preparation of loan documents memorializing the transaction. The Developer then closed on the mortgages with the selected families and initiated construction. Due to favorable interest rates on the individual mortgages from USDA, the applicants needed less assistance than anticipated to qualify for their final mortgages. Once construction of the units was complete and financing had been provided to the eligible purchasers, the final accounting from the Developer showed that Fifty-Nine Thousand Eight Hundred Fifty ($59,850) dollars of the origi...
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