REPORT TO THE CITY COUNCIL, THE CITY IN ITS CAPACITY AS HOUSING SUCCESSOR AND THE FRESNO REVITALIZATION CORPORATION
FROM: JENNIFER K. CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development Department
MARLENE MURPHEY, Executive Director
Housing Successor Agency to the Redevelopment Agency
BY: MAYRA MERINO, Senior Management Analyst
Planning and Development Department
SUBJECT
Title
Approve a Local Housing Trust Fund Agreement in an amount not to exceed $3,727,000, with the City of Fresno, the Housing Successor to the Redevelopment Agency of the City of Fresno, and The Park Partners LLC for the development of The Park at South Stadium, a 174-unit multifamily rental housing project located at 815, 829, and 835 Fulton Street (City Council District 3)
Body
RECOMMENDATION
Staff recommends that the City Council approve a Local Housing Trust Fund (LHTF) Agreement in an amount not to exceed $3,727,000, with the City of Fresno, the Housing Successor to the Redevelopment Agency of the City of Fresno, and The Park Partners LLC for the development of The Park at South Stadium, a 174-unit multifamily rental housing project located at 815, 829, and 835 Fulton Street in Downtown Fresno.
EXECUTIVE SUMMARY
The Park at South Stadium is a proposed eight-story, 174-unit multifamily rental housing development (Project) located in Downtown Fresno. The project will provide a mix of market-rate and affordable housing opportunities, including 70 income-restricted affordable units. Of these, 15 units will be assisted through the City’s Local Housing Trust Fund (LHTF) and reserved for very low- and low-income households for a minimum of 55 years, advancing the City’s long-term affordable housing, infill development, and equitable community investment goals.
The proposed LHTF loan in an amount not to exceed $3,727,000, includes $156,800 contributed by the Housing Successor to the Redevelopment Agency of the City of Fresno (Agency) and will provide critical gap financing necessary to complete the Project’s capital stack and facilitate the development of much-needed housing in Downtown Fresno. The loan will support eligible development costs, including hard and soft construction expenses, and will be structured as a residual receipts loan secured by a deed of trust and recorded affordability covenants. The total loan will accrue interest at three percent (3%) and mature in 55 years. Of the total amount, $3,570,200 will be loaned by the City and secured by a Deed of Trust recorded in no worse than third lien position, while the Agency’s $156,800 loan portion will be evidenced by a separate Promissory Note and secured by a separate Deed of Trust recorded in no worse than fourth position.
Approval of the Agreement will leverage substantial private and other financing sources, support the production of new housing units in a high-demand infill location, expand the City’s affordable housing inventory, and further ongoing efforts to revitalize Downtown Fresno and the Chinatown area. The Project is consistent with the City’s Housing Element objectives and broader strategic goals to increase housing projection, promote economic development, and create vibrant mixed-income neighborhoods.
BACKGROUND
On February 26, 2026, the City Council approved Resolution 2026-25 expressing support for a contribution of City Funds in an amount not to exceed $3,727,000 for the Project contingent upon the developer securing all necessary financing commitments for the Project development.
On April 24, 2026, the City of Fresno release a Notice of Funding Availability (NOFA) for Multi-Family New Construction Affordable Rental Housing. The NOFA was designed to encourage the development of high-density multifamily housing projects that increase housing supply, expand affordability opportunities, and support continued investment and revitalization within Downtown Fresno and Chinatown. The NOFA closed on May 25, 2026.
Following review and evaluation of the 11 submitted applications, the City is recommending an award of $3,727,000 in Local Housing Trust Fund financing for the Project. Of this amount, $156,800 will be provided by the Agency. A separate promissory note and deed of trust for the Agency’s $156,800 loan portion are included within the LHTF Agreement.
ENVIRONMENTAL FINDINGS
The project is subject to a Zone Clearance review under Chapter 15, Article 51 of the Fresno Municipal Code (FMC). Pursuant to FMC Section 15-4907, Zone Clearance is considered a ministerial action. Accordingly, the project is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15268 of the CEQA Guidelines.
FISCAL IMPACT
Approval of the proposed Agreement will not impact the City’s General Fund. Funding for the $3,727,000 loan is available through the City’s Local Housing Trust Fund and has been allocated for affordable housing development activities consistent with the Fund’s intended purpose. Of this amount, $156,800 will be provided by the Agency.
Attachment:
The Park at South Stadium LHTF Agreement