REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY: JENNIFER DAVIS, Senior Management Analyst
Housing Finance Division
SUBJECT
Title
Actions pertaining to the La Hacienda Mobile Home Park located at 104 East Sierra Avenue, Fresno, California (Council District 6):
1. Adopt a finding of Categorical Exemption pursuant to Section 15332/Class 32 of the California Environmental Quality Act (CEQA) Guidelines
2. Approve a Termination of Encampment Resolution Funding (ERF) Agreement between the City of Fresno and Self-Help Enterprises relating to the La Hacienda Mobile Home Park
3. Approve a Local Housing Trust Fund (LHTF) Loan Agreement between the City of Fresno and Self-Help Enterprises in the amount of $3,700,000.00 for the acquisition and preservation of the La Hacienda Mobile Home Park
4. ***RESOLUTION - Authorizing a joint application to and participation in the Homekey+ Program with Self-Help Enterprises for the La Hacienda project and authorizing the City Manager or designee to sign all required implementing documents (Subject to Mayors Veto)
Body
RECOMMENDATION
Staff recommends that the City Council: 1) adopt a finding of Categorical Exemption pursuant to Section 15332/Class 32 of the California Environmental Quality Act (CEQA) Guidelines; 2) adopt a Resolution authorizing a joint application to and participation in the California Department of Housing and Community Development (HCD) Homekey+ program with Self-Help Enterprises for the La Hacienda project; 3) approve a Local Housing Trust Fund (LHTF) Loan Agreement in the amount of $3,700,000.00 with Self-Help Enterprises for the acquisition and preservation of the La Hacienda Mobile Home Park; and 4) approve a Termination of Encampment Resolution Funding (ERF) Agreement between the City of Fresno and Self-Help Enterprises relating to the La Hacienda Mobile Home Park.
EXECUTIVE SUMMARY
On November 26, 2024, HCD announced the availability of approximately $2.145 billion of Homekey+ grant funding through a Notice of Funding Availability (NOFA). The City of Fresno (City) is proposing to submit a joint application to the Homekey+ program with Self-Help Enterprises (SHE) for the La Hacienda project. The funding application will seek up to $4,000,000.00 in Homekey+ grant funds to be used for the development of Permanent Supportive Housing for Veterans at the La Hacienda Mobile Home Park located at 104 East Sierra Avenue, Fresno, California 93710, and further identified as Assessor’s Parcel Numbers 408-050-04, 408-050-05, and 408-050-09 (Property).
The City also seeks to provide $3,700,000.00 in Local Housing Trust Fund (LHTF) financing to SHE for the acquisition and preservation of the La Hacienda Mobile Home Park. The funds will enable the development of 17 affordable rental units for Lower Income households, as defined by the LHTF program. The Property consists of 60 lots, and SHE aims to provide affordable housing options for tenants earning at or below 80% Area Median Income (AMI). Existing residents earning more than 80% AMI will be allowed to remain in their homes to avoid displacement.
Adopting the Categorical Exemption, adopting the Resolution authorizing a joint application with SHE to the Homekey+ program, approving the LHTF Loan Agreement and the ERF Termination Agreement will help facilitate the acquisition, preservation, and development of the La Hacienda project, preventing the displacement of current residents, providing affordable housing for new residents, including Veterans, and restoring housing stability in this vulnerable community.
BACKGROUND
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+ grant funding through a Notice of Funding Availability (NOFA) dated November 26, 2024. Homekey+ will support 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 Roomkey and approximately $3.572 billion awarded over three rounds of Homekey, Homekey+ continues a statewide effort to sustain and rapidly expand Permanent Supportive Housing for persons experiencing homelessness.
The City is proposing to submit a joint application to the Homekey+ program with Self-Help Enterprises (SHE) for the La Hacienda project. The funding application will seek up to $4,000,000.00 in Homekey+ grant funds to be used for the development of 17 units of Permanent Supportive Housing for Veterans at the La Hacienda Mobile Home Park (Project) located at 104 East Sierra Avenue, Fresno, California 93710, and further identified as Assessor’s Parcel Numbers 408-050-04, 408-050-05, and 408-050-09 (Property). As the eligible entity, the City will be the lead applicant, with the understanding the SHE will complete the application with the support of City staff.
The City also seeks to provide $3,700,000.00 in Local Housing Trust Fund (LHTF) financing to SHE for the acquisition and preservation of the La Hacienda Mobile Home Park. SHE responded to the Planning and Development Department’s Notice of Funding Availability (City NOFA), released on April 15, 2024, inviting Community Based Organizations to submit Statements of Qualifications for the acquisition and/or rehabilitation of a mobile home park. The evaluation committee recommended that SHE be awarded funding for the Project.
The Project involves acquiring and preserving a 4.93-acre mobile home park (Property), licensed for up to 60 manufactured homes. The park currently has 51 mobile homes, with a 45.9% occupancy rate, and nine vacant lots available for development. Of the 51 existing units, 37 require rehabilitation, while 10 need replacement. SHE intends to install up to 17 new rental units and leverage the City’s Mobile Home Repair Program to rehabilitate approximately 12 of the existing occupied units. The goal is to provide affordable housing for households earning up to 80% AMI. Existing residents earning more than 80% AMI will be allowed to remain in their homes to prevent displacement. SHE will also collaborate with the City to explore additional funding sources for home renovations, replacement units, and the preservation of existing units, ensuring the community remains affordable throughout the affordability period.
SHE’s objectives for the project include: 1) preventing further eviction of current residents, 2) ensuring housing stability through mobile home repair and replacement, 3) rebuilding opportunities for previously displaced residents to return to the Property, 4) facilitating homeownership opportunities through the sale of new manufactured units, and 5) providing affordable rental housing for Lower-Income households, including Veterans.
The City’s LHTF Program seeks to enhance the availability of affordable rental housing within Fresno by funding costs related to property acquisition, predevelopment, construction costs, and rehabilitation. The City seeks to assist SHE by providing an LHTF loan of $3,700,000.00 for the acquisition and preservation of the Property while ensuring 17 affordable rental units for Lower-Income households, including Veterans, earning up to 80% AMI. The loan will be structured as a 55-year, 0% simple interest loan for eligible acquisition and preservation costs, and the 17 LHTF-assisted units will remain affordable for 55 years through a recorded declaration of restrictions.
The Project 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 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.
LOCAL PREFERENCE
Local Preference does not apply due to the use of State Funds.
FISCAL IMPACT
There is no impact on the City’s General Fund as a result of this action. The funds will be drawn from the City’s Local Housing Trust Fund and have already been appropriated to the Planning and Development Department as part of its fiscal year 2023/2024 Budget.
Attachments:
CEQA Categorical Exemption for La Hacienda
ERF Termination Agreement with Self-Help Enterprises for La Hacienda
LHTF Loan Agreement with Self-Help Enterprises for La Hacienda
Resolution Authorizing Homekey+ Application for La Hacienda