REAP Funding Preserves Affordable Homes in the Napa Valley

Adapted from story in the Bay Area Link

Residents of two apartment buildings in St. Helena will remain in their homes thanks to a regional housing preservation program supported by the Regional Early Action Planning Grant (REAP 2) program.

The project preserves two six-unit buildings known as the Monte Vista apartments, where longtime owners had rented units at below-market rates for decades. When the owners decided to retire from managing the properties, they wanted to ensure the homes would remain affordable and that existing tenants would not be displaced.

How The Money Worked

Through the Bay Area Housing Finance Authority's Housing Preservation Loan Pilot, the nonprofit Our Town St. Helena (OTSH) was able to acquire the buildings and convert them into permanently affordable housing.

The acquisition was financed through a combination of sources, including a $3 million, 55-year loan from BAHFA's preservation program, a $750,000 permanent loan from Poppy Bank, and a charitable below-market sale from the property owners. The sellers discounted the purchase price to ensure the apartments would remain affordable.

"Without the reduced sale price and financing from BAHFA, OTSH could not have justified the purchase because the lower rents could not support the ongoing property costs including management, maintenance and capital improvements," said OTSH Board Member Michael Collins. "The wellbeing of the residents was a driving factor for the sellers."

REAP 2 Funding Used to Create Preservation Program

The Housing Preservation Loan Pilot was created when the Metropolitan Transportation Commission allotted $17.8 million of its REAP 2 funds to the Bay Area Housing Finance Authority to support acquisition and preservation of existing housing.

The program provides low-interest loans to nonprofit developers and community land trusts to acquire and rehabilitate residential properties occupied by low- and moderate-income residents and convert them to permanently affordable housing.

Housing Costs in St Helena

St. Helena is a small town in northern Napa County whose economy is driven by agriculture, tourism, hospitality, and retail. The average rent in the city is approximately $2,582 per month. Many residents of the Monte Vista apartments work in the trades, retail, hospitality, winery and food service sectors that support the local economy. If the buildings had been sold to a market-rate buyer, many of the tenants would likely have been forced to leave the community.

"Preserving homes that are affordable for all Napa County residents is important to the continued health of the county and its industries," said Napa County Supervisor Belia Ramos, who also serves as president of the Association of Bay Area Governments and on the Board of the California Association of Councils of Governments. "The partnership between BAHFA, OTSH and the previous building owners demonstrates that with planning and coordination, keeping homes affordable and preventing tenant displacement is possible."

REAP Funding At Work

The project illustrates how regional agencies can use REAP funding to support housing strategies that prevent displacement and maintain workforce housing. By directing REAP resources toward preservation programs, the Bay Area region is demonstrating how state planning funds can help deliver real housing stability for residents and local economies.

And Not Just in St Helena

To date, the Pilot program funding has been distributed to preservation projects across the Bay Area, including in San Francisco, San Jose, Oakland, and Sonoma.

• San Francisco. A $4.25 million loan helped The San Francisco Community Land Trust purchase 320-324 14th St. in the Mission District to will preserve 16 affordable homes in a neighborhood greatly impacted by rising rents and displacement of longtime residents.
• San Jose. A with a $4.5 million loan to the South Bay Community Land Trust purchased The Virginian Apartments in the Mayfair neighborhood preserve 18 affordable homes. The City of San Jose is providing a $5 million loan to support rehabilitation costs.
• Oakland. A $1 million loan allowed Just Homes to acquire a four-unit property in the Highland Terrace neighborhood. The project also received a technical assistance grant from BAHFA to cover consulting support from MidPen Housing Corporation. The property will house formerly unhoused households and households at risk of homelessness through a referral partnership with Abode Services. The San Francisco Housing Accelerator fund provided a bridge loan for the acquisition, and the City of Oakland will provide permanent financing.
• Sonoma. Burbank Housing received a $4.5 million loan to acquire and rehabilitate two properties on First Street. The project will ensure housing stability for low-income seniors and families across 18 units. The project also received a $250,000 grant from the City of Sonoma and permanent loan from the San Francisco Housing Accelerator Fund.

More Information

• Regional Early Action Planning Grants (REAP): HCD's Website
• MTC Housing Preservation Pilot Program's General Information
• Metropolitan Transportation Commission Housing Initiatives' Website
• Bay Area Housing Finance Authority's Website
• Our Town St. Helena's Website
• Original MTC Story