Affordable Housing Development

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Notice of Funding Availability (NOFA)

The City of Napa is pleased to offer a Notice of Funding Availability (NOFA) for affordable housing development. Up to $2M in Affordable Housing Impact Fee funding and up to $2M in 1% TOT for Workforce and Affordable Housing funding is being made available through this NOFA. Funding from the Affordable Housing Impact Fee Fund must be used to develop affordable housing for households with incomes of up to 80% of area median income, and funding from the 1% TOT Workforce and Affordable Housing Fund must be used for affordable housing for households with incomes of up to 120% of area median income, adjusted for family size. Click here for full NOFA and here for the online application.

Providing Assistance

The City of Napa staff will assist in promoting the development of affordable housing by working with housing developers interested in providing affordable housing within the City of Napa. Staff is available to discuss project proposals with developers in the early planning stages of a development in order to assist the developer in creating viable and innovative solutions to providing affordable housing.

Additionally, the Housing Division will assist both non-profit housing developers and for-profit developers with obtaining necessary funding for affordable housing developments.

The City of Napa has two primary sources of funding to create affordable housing:

(1) Affordable Housing Impact Fee Funds: this funding comes from impact fees paid by residential and non-residential developers. Affordable Housing Impact Fee funds must be used to create affordable housing for households earning up to 80% of area median income, and projects using this funding source must comply with the 2020 joint City/County of Napa Underwriting Guidelines- see 2020 Napa City/County UW Guidelines (PDF). 

(2) 1% TOT for Affordable and Workforce Housing: this funding comes from a 1% transient occupancy tax paid by visitors staying in hotels and other short term lodging. This funding must be used for affordable housing for households earning up to 120% of area median income. 

City of Napa Impact Fee Ordinance

In 1999, the City of Napa adopted an Inclusionary Housing ordinance, requiring that affordable housing be included in new housing development. The ordinance also required payment of an impact fee on most non-residential or commercial development. In 2012 this was converted to an affordable housing impact fee.

Both residential and commercial developments now pay a fee. Fees collected are placed in the City of Napa’s Affordable Housing Trust Fund. Trust Funds are then used to further the goal of providing affordable housing by leveraging other local, State and Federal funds. View the affordable housing impact fee rates (PDF).

Concessions & Incentives

The City of Napa also offers various concessions and incentives to developers willing to provide affordable housing units within their developments. Concessions and incentives are listed under Section 15.94.050F of the Napa Municipal Code. 

For more information regarding the requirements of the Affordable Housing Impact Fee Ordinance, contact the Affordable Housing Programs section at 707-257-9628. Our Housing Manager, Stephanie Gaul, can also be reached by email.

Affordable Housing Income, Rent and Purchase Price Limits

2022 Affordable Income Limits and Rental Rates (PDF)

2022 Income Limits and Affordable Purchase Prices (PDF)

Assembly Bill 987 (AB 987)

Pursuant to Assembly Bill 987 (AB987) enacted by the California State Legislature, California Redevelopment Agencies were required to publish and annually update a database of affordable housing units funded through the Low and Moderate Income Housing Fund.

View the City of Napa’s database (XLS) which lists the ownership and rental housings units that the Redevelopment Agency of the City of Napa acquired, developed or rehabilitated through this funding source.