REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning & Development Department
PHIL SKEI, Assistant Director
Planning & Development Department
BY: MAYRA MERINO, Senior Management Analyst
Planning & Development Department
SUBJECT
Title
Actions pertaining to the Ventura Family Apartments affordable rental housing development project, located at the southwest corner of South Eighth Street and Ventura Avenue (a portion of APN 470-052-02T and a portion of 470-05-03T) (City Council District 5)
1. Approve an Amended and restated Affordable Housing Agreement with Corporation for Better Housing to develop the Ventura Family Apartments affordable rental housing project
2. Approve a 55-year Amended and Restated Ground Lease, with two optional 10-year extensions, with 3720 E. Ventura Ave., L.P. to develop and operate the Ventura Family Apartments affordable rental housing project
3. Approve an Assignment and Assumption of the Amended and Restated Affordable Housing Agreement between the City of Fresno, Corporation for Better Housing, and 3720 E. Ventura Ave., L.P. for the Ventura Family Apartments
4. Approve a $5,000,000 Local Housing Trust Fund Agreement with 3720 E. Ventura Ave., L.P for the Ventura Family Apartments affordable rental housing development project located at 3720 Ventura Ave.
5. Approve a License and Right of Entry Agreement with 3720 E. Ventura Ave., L.P. for Use of the City-Owned Parcel at 717 S. Seventh Street (APN 470-052-02T)
Body
RECOMMENDATION
Staff recommends that the City Council take the following actions to support the development and long-term operation of the Ventura Family Apartments affordable rental housing project: (1) approve an Amended and Restated Affordable Housing Agreement with Corporation for Better Housing to facilitate the development of the Ventura Family Apartments affordable rental housing project including updates required to align with the project’s senior lender and to enable financial closing, (2) approve a 55-Year Amended and Restated Ground Lease Agreement with two optional 10 year extensions with Corporation for Better Housing, incorporating senior-lender-required revisions necessary for the project to secure financing, (3) approve the Assignment and Assumption of the Amended and Restated Affordable Housing Agreement between the City of Fresno, Corporation for Better Housing, and 3720 E. Ventura Ave., L.P., transferring all rights and obligations necessary for the development and operation of the Ventura Family Apartments to the Limited Partnership, (4) approve a Local Housing Trust Fund (LHTF) Agreement in an amount not to exceed $5,000,000 with 3720 E. Ventura Ave., L.P. to support the Ventura Family Apartments affordable rental housing project, and (5) Approve a License and Right of Entry Agreement with 3720 E. Ventura Ave., L.P. granting temporary access and use of the City-owned parcel at 717 S. Seventh Street (APN 470-052-02T) to support construction activities related to the Ventura Family Apartments project.
EXECUTIVE SUMMARY
The Ventura Family Apartments (Project) is a new affordable multifamily rental housing development that will provide 54 affordable housing units located at 3720 E. Ventura Avenue in Council District 5. The Project is being developed by Corporation for Better Housing and its affiliated limited partnership, 3720 E. Ventura Ave., L.P.
To facilitate development of the Project and satisfy senior lender and financing requirements, the City and developer have prepared an Amended and Restated Affordable Housing Agreement and an Amended and Restated Ground Lease. The updated Ground Lease includes a 55-year initial term with two optional 10-year extensions and incorporates revisions necessary to align with lender requirements and support the Project’s financial closing. As the total lease term may exceed 55 years, the Amended and Restated Ground Lease includes the periodic review provisions required for long term leases under Government Code section 37380(b)(1). The Amended and Restated Affordable Housing Agreement will also be assigned and assumed by 3720 E. Ventura Ave., L.P. to satisfy tax credit and other funding program requirements.
The Project is additionally supported by a Local Housing Trust Fund (LHTF) Agreement in an amount not to exceed $5,000,000, which was previously conditionally committed through Resolution No. 2025-102. To support construction activities, staff also recommends approval of a License and Right of Entry Agreement authorizing temporary use of the City-owned parcel located 717 S. Seventh Street (APN 470-052-02T) for construction staging and laydown activities.
Collectively, these actions will allow the Project to finalize financing, commence construction, and deliver much-needed affordable housing in southeast Fresno.
BACKGROUND
On January 19, 2023, the City Council adopted Resolution No. SA-51 and Resolution No. 2023-019, declaring APNs 470-052-02T and 470-052-03T as Exempt Surplus Land and directing staff to conduct an open and competitive Request for Proposals (RFP) process for a mixed-use, mixed-income affordable housing development. On May 31, 2023, the City’s Planning and Development Department and the Housing Successor to the Redevelopment Agency (Housing Successor Agency) issued an RFP seeking proposals for a residential mixed-use, mixed-income development consisting of up to 54 units of multifamily, workforce, and/or senior housing. Two proposals were received: one from Integrated Community Development, LLC (ICD) and one from The Pacific Companies.
Following a comprehensive evaluation conducted by staff from the Homeless Services, Housing Finance, and Housing Production divisions, the RFP review committee recommended selection of Corporation for Better Housing/Integrated Community Development, LLC based on the proposal’s financial feasibility, cost efficiency, and the development team’s demonstrated experience partnering with public agencies.
On April 24, 2025, the City Council adopted Resolution No. 2025-102, supporting a conditional commitment of up to $5,000,000 in City funds to Corporation for Better Housing, as well as the conditional contribution of the City-owned parcels and the Housing Successor Agency parcel (APN 470-052-01T) to support the development of the Ventura Family Apartments. On the same date, the City Council adopted Resolution No. 2025-101, authorizing the lease of the surplus real properties located at APN 470-052-01T, 470-052-02T and 470-052-03T, and approved both an Affordable Housing Agreement and a 55-year Ground Lease with Corporation for Better Housing. These actions collectively established the framework necessary for the developer to proceed with financing and development of the Ventura Family Apartments on City-owned land.
As the developer advanced its financing and project requirements, staff and the development team prepared an Amended and Restated Affordable Housing Agreement and an Amended and Restated Ground Lease to reflect the final project structure and satisfy lender requirements. The updated documents remove the Housing Successor Agency parcel (APN 470-052-01T), which was included in the April 24, 2025, approvals but is no longer necessary for this phase of the project.
This phase of the Project will now be developed exclusively on portions of the City-owned parcels identified as APN 470-052-02T and APN 470-052-03T. The updated Ground Lease provides for an initial 55-year term with two optional 10-year extensions. As the total lease term may exceed 55 years, the City must comply with Government Code section 37380(b)(1), which requires that a long-term lease be “subject to periodic review by the City and take into consideration the then current market conditions,” and further provides that “the local legislative body may, prior to the final execution of the lease, establish the lease provisions which will periodically be reviewed, and determine when those provisions are to be reviewed”. The Amended and Restated Ground Lease Incorporates provisions that satisfy these statutory requirements. Additionally, to satisfy tax credit, lender, and programmatic requirements, the Affordable Housing Agreement must be assigned and assumed by the Project’s limited partnership, 3720 E. Ventura Ave., L.P., which will serve as the long-term owner and operator of the Ventura Family Apartments.
The Project continues to be supported by a Local Housing Trust Fund (LHTF) Agreement in an amount not to exceed $5,000,000, which will fund eligible construction costs associated with development of the 54 affordable units. To accommodate construction activities, the developer has also requested temporary use of the unused portion of APN 470-052-02T, located at 717 S. Seventh Street, for construction staging and laydown activities, which requires approval of a License and Right of Entry Agreement.
Collectively, these actions will support the developer’s ability to finalize construction and permanent financing, commence construction, and further the City’s affordable housing production goals by increasing the supply of affordable housing in southeast Fresno.
ENVIRONMENTAL FINDINGS
On April 4, 2025, the City Council adopted a Categorical Exemption pursuant to Section 15332 (Class 32) of the California Environmental Quality Act (CEQA) Guidelines.
FISCAL IMPACT
There is no impact to the City’s General Fund as a result of this action. The Project will be funded through the City’s Local Housing Trust Fund.
Attachments:
Amended and Restated Affordable Housing Agreement
Amended and Restated Ground Lease
Assignment and Assumptions of the Affordable Housing Agreement
LHTF Loan Agreement
License Right of Entry Agreement