The master link in a funding chain was put in place last week, opening the way for the long-awaited Palisades Apartments in Calistoga -- affordable workforce housing that was part of the Solage Resort development agreement.

The California Department of Housing and Community Development wrote that Calistoga will receive $3,247,184 in funding -- 41 percent of the total project cost -- from its HOME Investment Partnership Program to help build workforce housing at Calistoga's newest high-end resort.

The 24-unit project was put on hold in early spring when the original nonprofit housing developer couldn't secure the funding to build the project.

The Calistoga-based Calistoga Affordable Housing, a nonprofit housing developer and the Palisades-Calistoga Resort LP formed a partnership for the construction and operation of the affordable housing apartments with Burbank Housing Development Corp. of Santa Rosa.

"Burbank partnered with CAH in the development of Saratoga Manor II," said Bob Fiddaman, CAH president. "We are especially pleased that they agreed to join us in developing the Palisades Apartments. Burbank is one of the most respected and qualified affordable housing developers in the state, and it is their construction expertise and financial muscle that is needed to make this project a reality."

As proposed, the Palisades Apartments will consist of a mix of one- and two-bedroom units at 40 and 42 Brannan St., adjacent to the resort.

In an eleventh-hour move in mid June, the City Council deferred the completion and occupancy of the apartment complex until April 1, 2009, in order for the CAH-Burbank partnership to obtain required financing and ensure the apartments' long term affordability.

Solage would not be able to open under its conditional use permit if it could not produce the housing, thus the two year extension. Since then, Solage has opened under a temporary occupancy permit. The high-end resort will be given its official occupancy permit once the apartments open.

In early August, CAH asked for the city's help in submitting an application for grant funding that became available from the state Department of Housing and Community Development for rental projects and first-time homebuyer projects.

Other sources of funding include a $3,156,457 conventional loan, a land and infrastructure improvement contribution of $750,000, a tax credit, a private local grant and a Federal Home Loan Grant.

The new HOME loan is secured by the housing project, with payments and interest on the loan repaid from the rents charged to the tenants. Calistoga will not be responsible for the repayment of the HOME and other loans associated with the project. City staff time afforded the project will also be paid by CAH or HOME program funds, not by local taxpayers.