Calistoga Council reviews $400K loan for affordable housing conversion at Cedar Street

In the heart of Calistoga's city hall, council members gathered on December 11, 2024, to discuss pressing issues that could shape the future of affordable housing in the community. Among the most significant topics was a proposal for a $400,000 loan from the city’s affordable housing fund to the Napa Valley Community Foundation. This funding aims to assist in the purchase and conversion of a four-unit apartment complex at 1405 Cedar Street into deed-restricted affordable housing.

The proposal, presented by the planning department director, highlighted the foundation's intent to transform market-rate rentals into affordable units, addressing the pressing need for housing that meets the community's diverse income levels. The foundation acquired the property in 2021 and has since invested in its upkeep, with current rents at $1,450 per month. The council was informed that the total purchase price for the property is approximately $1.1 million, and the loan would be repaid over ten years, ensuring the funds could be recycled for future housing initiatives.

Council members expressed strong support for the loan, emphasizing its alignment with the city’s housing goals. Councilmember Eisenberg noted that the funds would be used exclusively for housing, reinforcing the importance of maintaining affordable options in Calistoga. Other council members echoed this sentiment, acknowledging the foundation's track record and the necessity of securing housing for essential workers, such as teachers and firefighters.

In addition to the housing loan discussion, the council also reviewed an impact fee study, which had not been updated since 2014. The study aims to reassess development impact fees that fund city services and infrastructure necessitated by new developments. The proposed fees, which would be charged on a per-square-foot basis, are designed to cover the costs associated with anticipated growth, including an estimated 1,000 new residents and 800 new employees.

The council deliberated on the implications of these fees, particularly concerning affordable housing. Some members raised concerns that increased fees could deter developers from building affordable units. Suggestions were made to explore potential exemptions for deed-restricted housing or to subsidize fees using the affordable housing fund, ensuring that the city remains attractive for developers while still promoting affordable housing initiatives.

As the meeting concluded, the council's commitment to addressing housing needs in Calistoga was clear. The discussions not only highlighted the immediate actions being taken to secure affordable housing but also set the stage for future considerations on how to balance development costs with the community's pressing need for accessible living options. The council's decisions in the coming months will be crucial in shaping the landscape of housing in Calistoga, ensuring it remains a welcoming place for all residents.