Napa will spend $3.77 million to secure downtown apartments for affordable housing, moving ahead even before a $10 million state grant decision is made.
The city of Napa is pressing forward with its plan to turn two downtown apartment buildings into permanent supportive housing, even before state funding is secured.
On Tuesday, the Napa City Council unanimously approved spending $3.77 million to purchase a 12-unit property at 1415 Fourth St. The move signals the city’s commitment to expand housing options for people exiting homelessness, regardless of the outcome of its $10 million request to California’s Homekey+ program.
Deputy City Manager Molly Rattigan said staff remain confident Napa’s application will be funded — she estimated the likelihood at “about 90%” — but noted that purchasing the Fourth Street property now will prevent the city from losing access while the grant is under review.
The Fourth Street purchase will be covered by $700,000 from the city’s affordable housing impact fee fund and $3.1 million previously earmarked as matching funds for Homekey+.
That state program — an extension of Project Homekey — provides money for local governments to convert existing properties into affordable housing. Napa’s $10 million application, submitted in May, is still being evaluated. State officials extended the deadline this summer after fewer cities than expected applied, and funding announcements are now being released monthly. Rattigan said Napa’s application has cleared all eligibility and scoring thresholds, making staff optimistic the award could come as soon as August.
If Napa receives the grant, the city plans to purchase both the Fourth Street property and another at 1443 Division St. for $3.95 million. Together, the two buildings would add 23 supportive housing units and a manager’s unit downtown.
Ownership and operations would be transferred to Burbank Housing, a longtime affordable housing nonprofit, while the city would return the $700,000 to its affordable housing fund.
If the grant does not come through, the city would still buy the Fourth Street property, though its use would shift. Instead of housing designated for formerly homeless residents, the apartments would be deed-restricted to households earning 80% or less of the area’s median income — currently $89,750 for a single person or $128,150 for a family of four.
Burbank Housing would still take ownership and manage the property.
Council members acknowledged that the fallback scenario would not provide the same level of affordability or supportive services but stressed the purchase still represents progress in Napa’s tight housing market.
Council member Bernie Narvaez said the city’s willingness to commit local money ensures Napa makes gains either way.
“The level of affordability really is the risk here, but either way we’re able to add more,” Narvaez said.
The city’s original purchase and sale agreement with property owner Robert Orr anticipated the sale would close in August, contingent on the Homekey+ award. But when the state delayed its grant announcements, an amended agreement was required to keep the deal alive.
By approving Tuesday’s purchase, the council effectively doubled down on its strategy: secure the properties now, then let the state process play out.
You can reach Staff Writer Edward Booth at 707-521-5281 or edward.booth@pressdemocrat.com.
