TO: Board of Supervisors
FROM: David Morrison, Interim County Executive Officer
REPORT BY: Jennifer Palmer, Director of Housing & Homeless Services
SUBJECT: Adoption of a Resolution approving a reservation of $3,000,000 for the first phase of affordable housing at Napa Pipe
RECOMMENDATION
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Director of Housing & Homeless Services requests adoption of a Resolution reserving $3,000,000 for the Joint Development Partnership for the Napa Pipe 85-unit affordable housing project known as "Sandpiper Place."
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EXECUTIVE SUMMARY
"Napa Pipe" refers to a development planned on four (4) parcels of real property in Napa County, located at 1025 Kaiser Road, which is comprised of 153 acres. The project includes development of 700 to 950 housing units, including 140 housing units affordable to low and very-low-income households, along with other facilities and amenities, office space, parks, and public open space. The owner of the Napa Pipe site, Napa Redevelopment Partners, LLC, a Delaware limited liability company, chose MidPen Housing Corporation (MPHC) to develop the affordable housing set out in the development agreement. MPHC and Napa Valley Community Housing (NVCH) have formed a Limited Partnership for the purposes of a Joint Development Partnership to develop 85 units of affordable housing on the first project of 85 units.
Affordable housing projects rely on early local funding commitments to show loan support for developments and successfully compete when applying for state and federal affordable housing funding. In addition, large projects incur significant expenses related to feasibility and pre-development design work over the course of project inception through to the start of construction represent a significant cost for developers to carry, making pre-development funding vital to long-term project success.
The financing plan for the Sandpiper Place project assumes a majority of permanent funding will come from both 4% Tax Credits and the Califo...
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