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
Approve a Memorandum of Understanding between the City of Fresno and Self-Help Enterprises for the construction of Sustainable Transportation Infrastructure amenities for West Creek Village located at 571 East Jensen Avenue, Fresno, CA 93706 (Council District 3)
Body
RECOMMENDATION
Staff recommends the City Council approve the Memorandum of Understanding between the City of Fresno (City) and Self-Help Enterprises (Developer) for the construction of Sustainable Transportation Infrastructure (STI) amenities to serve the development known as West Creek Village located at 571 East Jensen Avenue, Fresno, CA 93706, contingent upon full funding of the Developer’s Affordable Housing and Sustainable Communities (AHSC) Program application, due May 4, 2026.
EXECUTIVE SUMMARY
Located at 571 East Jensen Avenue, West Creek Village is a $66,700,000 new construction affordable housing development that includes 121 deed-restricted rental units and certain Sustainable Transportation Infrastructure (STI) improvements. The STI components are intended to enhance safety, connectivity, and active transportation access for residents and the surrounding community. The Developer is applying for Round 10 of the California Strategic Growth Council’s Affordable Housing and Sustainable Communities (AHSC) Program to secure funding for the project. To submit a complete application, the City must enter into a contractual agreement with the Developer to construct the STI improvements, should the project be awarded. The application will include a complete list of the STI improvements and a request for up to $15,000,000 to reimburse the City for these infrastructure enhancements.
BACKGROUND
On March 4, 2026, the California Strategic Growth Council (SGC) and the California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability under the Affordable Housing and Sustainable Communities Program (AHSC NOFA), established to further the purposes of AB 32 (Chapter 488, Statutes of 2006), SB 375 (Chapter 728, Statutes of 2008), and SB 32 (Chapter 249, Statutes of 2016), with $750 million in funding received through Cap-and-Invest auction proceeds.
The AHSC Program focuses on reducing greenhouse gas emissions through projects that implement land use, housing, transportation, and agricultural land preservation practices to support infill and compact development. Funded through the Greenhouse Gas Reduction Fund (GGRF), otherwise known as the California Climate Investments, the AHSC Program funds projects that increase the supply of affordable housing, transportation, and access to other daily needs. The goal of the AHSC Program is to reduce personal vehicle use by funding affordable housing projects that make it easier for residents to get out of their cars and walk, bike, or take public transit. The AHSC Program explicitly funds projects through affordable housing loans, and capital grants for housing-related infrastructure, sustainable transportation infrastructure, transit-related amenities, and other related programs.
In August 2025, Self-Help Enterprises (Developer) submitted a comprehensive application to the City’s Affordable Housing Development Notice of Funding Availability (the City NOFA), proposing the Affordable Housing Development (AHD component) strategically located on 4.83 acres of vacant land at 571 East Jensen Avenue, Fresno, California 93706 (APN: 479-060-13) also known as West Creek Village (Project). The Project will be the first of three phases of a master-planned community in Southwest Fresno that includes a new community college, city park, and a community resilience center.
The Project will provide 121 new deed-restricted affordable residential units for households earning between 30% and 70% Area Median Income (AMI). The Project aims to foster a sense of community through thoughtfully integrated amenities such as a 5,000 sq ft community building and robust open spaces for residents. The Project features a diverse mix of housing sizes, including 31 one-bedroom units at 600 sq ft, 50 two-bedroom units at 930 sq ft, and 39 three-bedroom units at 1,120 sq ft, and one two-bedroom unit dedicated to an on-site property manager. The Project intends to address the pressing need for accessible housing for extremely low- and low-income households in our community while also being committed to implementing energy-efficiency design strategies that comply with the City of Fresno’s Green Building requirements, ensuring that the development minimizes its environmental impact while proving long-term savings for residents. Moreover, the project will adhere to the City’s Universal Design Ordinance (2008-53), making it accessible and welcoming for individuals of all abilities, thus promoting inclusive housing offerings.
The West Creek Village Project aims to reduce environmental impact and improve transportation access for residents by enhancing connectivity to major retail, social services, education, and employment opportunities. The Project site connects residents to various transit options, including Fresno Area Express (FAX), High-Speed Rail (HSR), bike paths, walking trails, and mobile transit services.
To enhance the infrastructure surrounding the Project, the proposed scope of construction includes both on-site and off-site improvements. Emphasis has been placed on creating a community-oriented environment while integrating social spaces that promote connection to the surrounding area. Off-site improvements will involve the construction of Park Loop Road, and the future phases of the master development will include an elementary school, new construction of single-family homes, medical facilities, and office spaces.
For this phase of the Project, the City will develop the Sustainable Transportation Infrastructure (STI) components such as improved walkways, dedicated bike paths, additional bus stops, and improved service frequency along existing bus routes connecting residents to major retail, social services, education, and employment opportunities.
The Developer is applying for Round 10 of the AHSC Program to obtain needed funding to support this affordable housing project and infrastructure improvements. The AHSC application seeks an award to the Developer in an aggregate amount not to exceed $50,000,000 in AHSC Funds consisting of up to $35,000,000 of AHSC affordable housing development loan funds for construction of the housing project; and up to $15,000,000 of AHSC grant funds for the purpose of reimbursing the City for the cost of the STI Improvements. For the Developer to submit a complete AHSC application, the City and Developer are required to enter into a contractual agreement to develop the STI elements of the Project, if awarded.
The Project’s total development cost is approximately $66,700,000 and should the Project receive full funding of the Developer’s Affordable Housing and Sustainable Communities (AHSC) Program application, expects to complete construction and begin leasing units in Summer 2028.
This Project represents a vital opportunity for new construction of residential units in an area that has long sought revitalization, while addressing the city’s need for quality affordable housing by providing 121 new deed-restricted rental units for extremely low- to low-income households. Investment in infrastructure such as improved walkways and dedicated bike paths will enhance this area of Southwest Fresno by increasing community safety, promoting social equity, and enhancing the area’s economic viability by creating a better transit area.
The completion of this project will assist in bringing the City closer to meeting the housing goals and objectives included in the City’s Housing Element and also outlined in the “One Fresno Housing Strategy” by addressing high-priority local housing needs, supporting economic development through the creation of new affordable housing units, and promoting infill development and infrastructure improvements within the City’s high opportunity zones.
ENVIRONMENTAL FINDINGS
Pursuant to Government Code Section 65583(b), the permit, processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts within the meaning of the California Environmental Quality Act (CEQA) (Division 13 (commencing with Section 21000) of the Public Resources Code) and thus, is not subject to CEQA. The project is approved under AB 2162 and determined to be statutorily exempt from the California Environmental Quality Act (CEQA) under Section 15268(a) (Ministerial Projects) of the CEQA Guidelines, which states that Statutory Exemption can be made for ministerial projects.
Under Section 15369 of CEQA Guidelines, “Ministerial” describes a governmental decision involving little or no personal judgment by the public agency as to the manner of carrying out the project. A ministerial decision involves only the use of fixed standards or objective measurements, and the public agency cannot use personal, subjective judgment in deciding whether or how the project should be carried out. The determination of what is "ministerial" can most appropriately be made by the public agency involved based upon its analysis of its own laws, and each public agency should make such determination either as a part of its implementing regulations or on a case-by-case basis which projects are considered exempt from CEQA.
As such, Ministerial projects approved by public agencies are not subject to CEQA (Pub. Res. Code Sec. 21080(b)(1)).
LOCAL PREFERENCE
Local preference is not applicable as this Memorandum of Understanding does not include a bid or award of a construction or services contract.
FISCAL IMPACT
If awarded, the City will receive up to $15,000,000 to pay for STI improvements which will be incorporated into the City of Fresno annual budget for the fiscal year(s) in which funds will be available and will have no impact on the General Fund.
Attachment: Memorandum of Understanding with Self-Help Enterprises for 571 East Jensen Avenue