TO: Board of Supervisors
FROM: Jennifer Palmer, Director of Housing and Homeless Services
REPORT BY: Alex Carrasco, Staff Service Analyst
SUBJECT: Department of Housing and Community Development (HCD) and Calistoga Farmworker Center Junior Lienholder Agreement.
RECOMMENDATION
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Director of Housing and Homeless Services requests approval of and authorization for the Chair to sign an amendment to the Calistoga Farmworker Center Junior Lienholder Agreement with the Department of Housing and Community Development to extend the term to December 31, 2044.
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EXECUTIVE SUMMARY
The Junior Lienholder Agreement relates to a loan that Napa County gave to the Housing Authority to help fund the farmworker centers. The Housing Authority also received Housing and Community Development (HCD) funding via the Joe Serna Grant, which was secured by the properties. HCD required the County to subordinate the lien, to ensure that HCD is paid back first if there is a default and/or foreclosure on the properties. HCD is now requiring an extension to the Regulatory Agreements, which impacts the Junior Lienholder's expectation of return on their loan, and thus an amendment to the Lienholder Agreement is required.
In 2019, HCD awarded the Napa County Housing Authority (NCHA) Joe Serna Grant funding of $250,000 annually for a term not to exceed ten (10) years. The purpose of the funds is to assist the financing, maintenance, and operation of the three county owned migrant farmworker centers (Centers). In exchange, NCHA agreed to continue to demonstrate the capability to effectively serve the needs of farmworkers in Napa County for twenty-five (25) years from the first year of disbursement.
The Regulatory Agreements were required as a condition of receiving Joe Serna Grant to ensure that the grant money is used for the purposes for which it was received and that the use continued for the life of the grant. The conditions in the Regulatory Agreements are designed to ensure that...
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