Napa, CA – Napa officials are making a high-stakes push to transform two downtown apartment buildings into long-term supportive housing for individuals exiting homelessness. However, before this ambitious plan can become a reality, they need $10 million from the state.
On Tuesday, the Napa City Council unanimously approved a formal application for funding through California’s Homekey+ program, a key extension of the state’s Project Homekey initiative. This program is designed to help cities and counties convert existing buildings into affordable housing, with a specific focus on veterans and individuals with behavioral health needs.
The proposed supportive housing project centers on two properties located at 1415 Fourth St. and 1443 Division St., which are estimated to cost between $3.6 million and $4 million each. Napa’s goal is to provide permanent housing for people transitioning out of homelessness, ensuring they receive essential services in a stable environment.
To strengthen the city’s funding application, Napa has committed $2.5 million in local funds, a financial risk that will only be refunded if the application is successful. The state’s decision on whether Napa will receive the $10 million is expected by May or June, according to Molly Rattigan, Napa’s deputy city manager and head of homelessness response efforts.
Council member Bernie Narvaez called the opportunity a game-changer for the city. “It’s having that key in the door for somebody to be able to have their own space, with the supportive services,” he said.
A key concern for officials is the potential displacement of current tenants, many of whom are already low-income renters. While city leaders believe that displacement can be avoided, the details are still being worked out. The buildings’ current owner has a history of working with Section 8 housing and homeless service programs, but the city is still in the process of verifying whether any residents will need to relocate.
In addition to securing the funding, Napa is actively searching for a qualified affordable housing developer to take ownership and manage the future complex. Rattigan emphasized that the city does not want to own or operate the units itself. “We want to find the right partner,” she stated.
However, securing the $10 million is far from guaranteed. With California’s homelessness crisis worsening and the competition for funding fierce, Napa’s request is one of many vying for attention from the state.
If Napa succeeds in its bid, it would significantly expand the city’s stock of permanent supportive housing, offering long-term solutions for individuals experiencing homelessness. But if the application is rejected, it could delay the project indefinitely, forcing the city to search for alternative funding sources as it continues to grapple with the growing issue of housing affordability.
As the clock ticks down to the decision, all eyes are on Sacramento, where the future of Napa’s vision for supportive housing hangs in the balance.