REPORT TO THE CITY COUNCIL
FROM: JENNIFER K. CLARK, AICP, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY: JENNIFER DAVIS, Senior Management Analyst
Planning and Development Department
SUBJECT
Title
Actions pertaining to the La Hacienda Mobile Estates project located at 104 East Sierra Avenue, Fresno, California (Council District 6):
1. ***RESOLUTION - Authorizing acceptance of funding from the California Department of Housing and Community Development Homekey+ Program in the amount of $4,966,896 for the La Hacienda Mobile Estates Project with Self-Help Enterprises and La Hacienda Mobile, LLC, and authorizing the City Manager, or designee, to sign all required implementing documents to secure the Homekey+ Program funding and participate in the Homekey+ Program (Subject to Mayor’s Veto)
2. ***RESOLUTION - Adopt the 32nd Amendment to the Annual Appropriations Resolution (AAR) No. 2025-179 to appropriate $4,966,896 from the Homekey+ Program for Fiscal Year 2025-2026 (Requires Five Affirmative Votes) (Subject to Mayor’s Veto)
3. Approve a Regulatory Agreement and Declaration of Restrictive Covenants between the City of Fresno, Self-Help Enterprises, and La Hacienda Mobile, LLC, and for the benefit as a third-party beneficiary the State of California Department of Housing and Community Development for the Homekey+ La Hacienda Mobile Estates Project
4. Approve a Memorandum of Understanding between the City of Fresno, Self-Help Enterprises, and La Hacienda Mobile, LLC, establishing certain terms and conditions relating to the Homekey+ Program Award
Body
RECOMMENDATION
Staff recommends the City Council: 1) Adopt a Resolution authorizing acceptance of the Homekey+ Program Award from the State of California Department of Housing and Community Development in the amount of $4,966,896 for the La Hacienda Mobile Estates Project, and authorize the City Manager, or designee, to execute all necessary documents to secure funding and participation in the Homekey+ Program; 2) Adopt the 32nd Amendment to the Annual Appropriations Resolution (AAR) No. 2025-179 to appropriate $4,966,896 from the Homekey+ Program for Fiscal Year 2025-2026; 3) Approve a Regulatory Agreement and Declaration of Restrictive Covenants between the City of Fresno, Self-Help Enterprises, and La Hacienda Mobile, LLC, and for the benefit as a third-party beneficiary the State of California Department of Housing and Community Development for the Homekey+ La Hacienda Mobile Estates Project; and 4) Approve a Memorandum of Understanding between the City of Fresno, Self-Help Enterprises, and La Hacienda Mobile, LLC, establishing certain terms and conditions relating to the Homekey+ Program Award.
EXECUTIVE SUMMARY
On November 26, 2024, the California Department of Housing and Community Development (HCD) announced the availability of approximately $2.145 billion of Homekey+ Program funding through a Notice of Funding Availability (NOFA). On March 13, 2025, the City Council adopted Resolution No. 2025-70 authorizing the submission of the City of Fresno’s (City) Homekey+ joint application with Self-Help Enterprises for the La Hacienda Mobile Estates project, seeking Homekey+ Program funds to be used for the development of 17 units of Permanent Supportive Housing for Veterans at-risk of or experiencing homelessness, and one on-site manager’s unit, at the La Hacienda Mobile Home Park located at 104 East Sierra Avenue, Fresno, California 93710. On September 19, 2025, HCD provided the Project with an award letter for a Homekey+ Award of Program funds in the amount of $4,966,896; which consists of a Capital Award of $4,200,00; Operating Award of $256,896; and an Operating Match for Veterans Units of $510,000.
Adopting the Resolution authorizing acceptance of the Homekey+ Program Award from HCD in the amount of $4,966,896, adopting the AAR to appropriate the award funds, approving the Regulatory Agreement and Declaration of Restrictive Covenants between the City of Fresno, Self-Help Enterprises, and La Hacienda Mobile, LLC, and approving the Memorandum of Understanding between the City of Fresno, Self-Help Enterprises, and La Hacienda Mobile, LLC, will facilitate the preservation and development of the La Hacienda Mobile Estates project, while preventing the displacement of current residents, providing affordable housing for new residents, including Veterans, and restoring housing stability in this vulnerable community.
BACKGROUND
On November 26, 2024, the California Department of Housing and Community Development (HCD), in collaboration with the California Department of Veterans Affairs (CalVet), announced the availability of approximately $2.145 billion of Homekey+ Program funding through a Notice of Funding Availability (NOFA). The Homekey+ Program supports the development of Permanent Supportive Housing for Veterans and individuals with mental health or substance use disorder challenges who are at-risk of or experiencing homelessness. Building on the success of both Project Roomkey and approximately $3.572 billion awarded over three rounds of Homekey, the Homekey+ Program continues a statewide effort to sustain and rapidly expand Permanent Supportive Housing for persons experiencing homelessness.
On March 13, 2025, the City Council adopted Resolution No. 2025-70 authorizing the submission of the City of Fresno’s (City) Homekey+ joint application with Self-Help Enterprises and La Hacienda Mobile, LLC (Joint Co-Applicants) for the La Hacienda Mobile Estates project seeking Homekey+ Program funds to be used for the development of 17 units of Permanent Supportive Housing for Veterans at-risk of or experiencing homelessness, and one on-site manager’s unit, at the La Hacienda Mobile Home Park (Project). The Project site is owned by the City’s Co-Applicant and is located at 104 East Sierra Avenue, Fresno, California 93710, further identified as Assessor’s Parcel Numbers 408-050-04, 408-050-05, and 408-050-09 (Property).
The proposed Project sought to utilize Homekey+ Program funds to preserve affordable housing at a 5.21-acre mobile home park located on the Property. As the current owner of the Property, the Co-Applicants will purchase and install 18 newly constructed manufactured homes, which will provide Permanent Supportive Housing for Veterans with mental health or substance use disorder challenges who are at-risk of or experiencing homelessness, and a unit for one on-site property manager.
These units will consist of 12 one-bedroom homes and 6 two-bedroom homes. No relocation will be required, as all development activities will take place on vacant lots or within unoccupied and boarded-up units. Existing occupied units will remain undisturbed, ensuring that current residents are not displaced. For existing residents, the Co-Applicants will work alongside the City to rehabilitate their units over time as funding becomes available. The Co-Applicants will continue to seek additional funding throughout the life of the project to facilitate additional improvements.
On September 19, 2025, HCD provided the Project with an award letter for a Homekey+ Award of Program funds in the amount of $4,966,896; which consists of a Capital Award of $4,200,00; Operating Award of $256,896; and an Operating Match for Veterans Units of $510,000. On September 25, 2025, City Council approved Resolution Number 2025-271, which amended Resolution Number 2025-70 to include Co-Applicant La Hacienda Mobile, LLC, to the Project because the LLC is included in the project ownership structure. On December 10, 2025, HCD provided the Standard Agreement between HCD, the City of Fresno, Self-Help Enterprises, and La Hacienda Mobile, LLC for the La Hacienda Mobile Estates Project.
Once construction and placement of the new housing units at the Project is complete, the Co-Applicants will provide Veteran-focused supportive services to the Project that includes high quality and individualized case management with a housing focused lens. Case management services will be provided to all who agree to participate, and will include linkage to substance abuse services, school services, vocational services, mental health services, linkage to entitlement programs, health and disease education, 24/7 peer support, housing retention skills, legal assistance, physical health services, and medical services.
The Project will provide quality affordable housing, increase the City’s housing stock, and aligns with the City’s affordable housing goals and objectives as outlined in the “One Fresno Housing Strategy” and the Housing Element of the 2035 General Plan. The Project will make a positive and lasting impact on the neighborhood and surrounding areas by preventing the displacement of current residents, providing safe and affordable housing options to new residents, and restoring housing stability in this vulnerable community.
ENVIRONMENTAL FINDINGS
An environmental assessment was prepared for this project in accordance with the requirements of the California Environmental Quality Act (CEQA) Guidelines. On May 16, 2024, Environmental Assessment Application No. P24-01849 was approved by the Planning and Development Department. The findings of the assessment determined that the project is exempt from the California Environmental Quality Act (CEQA) under Section 15332/Class 32 (in-fill development) of the CEQA Guidelines. This exemption applies because the project meets the following conditions:
a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with the application zoning designation and regulations.
b) The proposed development occurs within the city limits on a project site of no more than five acres substantially surrounded by urban uses.
c) The project has no value as a habitat for endangered, rare, or threatened species.
d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.
e) The site can be adequately served by all required utilities and public services.
Further, no exceptions to the Categorical Exemptions under CEQA Guidelines, Section 15300.2, apply to this project and the project is not expected to have a significant environmental impact. A Categorical Exemption has been prepared, and the area is not environmentally sensitive.
On March 13, 2025, City Council adopted a finding of Categorical Exemption pursuant to Section 15332/Class 32 of the California Environmental Quality Act (CEQA) Guidelines.
LOCAL PREFERENCE
Local preference is not applicable because the resolution provides support for a state funding application.
FISCAL IMPACT
There is no impact to the City’s General Fund as a result of this action. The source of funding in this action will be appropriated from the California Department of Housing and Community Development’s Homekey+ Program Award to the City of Fresno for the La Hacienda Mobile Estates Project.
Attachments:
Resolution Authorizing Acceptance of the Homekey+ Program Award
Resolution Adopting the 32nd Amendment to the AAR No. 2025-179
Regulatory Agreement and Declaration of Restrictive Covenants
Memorandum of Understanding