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The original item was published from 12/9/2021 8:12:02 AM to 12/31/2021 12:00:00 AM.

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Posted on: December 9, 2021

[ARCHIVED] City Adopts Resolution Authorizing City Manager to Establish Affordable Housing Fee Reduction

Affordable Housing Fee Reduction

The City of Napa adopted a resolution authorizing the City Manager to establish a fee reduction program for residential permit applications that create affordable and workforce housing and for new accessory dwelling units (ADUs) under 500 feet.

“The Council is committed to creating opportunities that make Napa financially accessible, and affordable housing is a top priority,” said Napa Mayor Scott Sedgley. “We hope this resolution effectively builds on our existing programs to encourage homeowners to build and rent accessory dwelling units on their properties and promote the new development of affordable housing throughout the City.”

Developers of larger projects, as well as those building individual residential units or small projects, are required to obtain proper permits through the City’s building process. The City of Napa, through the Community Development Department, currently charges an average of approximately 50% of the total cost for building permit processing for most fee types.

Beginning in January 2022, however, these fees will be increased over a three-year period to align the fee rate with the actual cost of providing development-related services. This resolution reduces the impact that these fee increases may have on the creation of affordable and workforce housing, as well as Accessory Dwelling Units, by setting fees for these projects that meet City guidelines at 50% of the regular rate.

“Our staff regularly reviews the costs of providing these services and recommended that the City fees be based on a more equitable allocation of the costs to those who benefit from the services instead of pulling from our General Fund,” said Steve Potter, Napa’s City Manager. “This resolution balances the expenses of managing permit applications, inspections, and other costly services in a way that remains consistent with our dedication to the development of new affordable and workforce housing for the Napa community.”

The resolution goes into effect January 1, 2022, and establishes a 50% fee reduction on the building permit plan check and inspection fees for new residential projects in the fee categories of (1) Residential and Multifamily Uses, (2) Single Family Dwellings, and (3) Accessory Dwelling Units. To qualify for the waiver, an applicant will be required to demonstrate that their property is subject to a recorded affordability restriction of at least 45 years for ownership units and 55 years for rental units or whose project is less than 500 square feet total.

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