REPORT TO THE CITY COUNCIL
FROM: JENNIFER 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
***RESOLUTION - In support of a contribution of City funds in the amount of $10,500,000 and a contribution of three City-owned parcels along the Parkway Drive Corridor to Cesar Chavez Foundation for the development of the Parkview Apartments affordable rental housing project (Subject to Mayor’s Veto) (Council District 3)
Body
RECOMMENDATION
Staff recommends the City Council adopt the Resolution In support of a contribution of City funds in the amount of $10,500,000 and a contribution of three City-owned parcels along the Parkway Drive Corridor to Cesar Chavez Foundation for the development of the Parkview Apartments affordable rental housing project.
EXECUTIVE SUMMARY
The Cesar Chavez Foundation (Developer) is proposing to develop Parkview Apartments, an affordable rental housing project that will include 98 units across two of three City-owned sites along the Parkway Drive Corridor. The project will consist of the rehabilitation of existing units and the construction of new units, thereby offering various permanent affordable housing options.
Adopting the Resolution will provide a conditional commitment of $10,500,000 in City funds and a contribution of three City-owned parcels to the Developer to support the development of the Parkview Apartments. This contribution of City-owned property, along with the conditional City funding, is contingent upon the full project financing and shall terminate on December 31, 2026, with an option for a one-year extension if progress toward securing funding is demonstrated.
BACKGROUND
The City of Fresno is the fee owner of three parcels located along the Parkway Drive Corridor and more particularly described as 1444 West White Avenue (APN 449-343-07T), 817 North Parkway Drive (APN 449-335-25), and a vacant lot at the northwest corner of North Parkway Drive and West Dennett Avenue (APN 449-321-18) (the Properties). On February 1, 2024, the three City parcels were declared Surplus by City Council through the adoption of Resolution No. 2024-023. In accordance with the Surplus Land Act (SLA), Gov. Code, Sections 54222 et seq., the City is required to make surplus land available for affordable housing prior to considering other uses. Following this, on February 14, 2024, the City released a Notice of Availability/Offer to Sell Surplus Property (NOA) which included the Properties. The Cesar Chavez Foundation (Developer) responded to the NOA on February 29, 2024, with a letter of interest to acquire the Properties for the development of affordable rental housing.
The proposed Parkview Apartments consists of the development of up to 98 units of affordable rental housing scattered across two of the City-owned Properties, reserved for households earning between 30% and 80% Annual Median Income (AMI), with a 55-year deed-restricted affordability covenant (Project). In addition, the Developer will provide supportive services for some of the units by incorporating SMI-designated units into the Project. The addition of SMI (Serious Mental Illness) units will enable service coordination with the County of Fresno Behavioral Health Services. SMI services are currently funded by the Mental Health Services Act (MHSA).
The Project’s affordable units will be developed as follows:
• 46 new units will be constructed at the site of the former Travel Inn Motel (1444 West White Avenue, APN 449-343-07) (Travel Inn Site), converting the 1.55-acre site into newly constructed affordable rental housing.
• 52 units of permanent supportive housing will be rehabilitated at the 0.83-acre site of the former Villa Motel located at 817 North Parkway Drive (APN 449-335-25) (Villa Motel Site), promoting the adaptive reuse of a former motel.
• The vacant 2.21-acre lot at the northwest corner of North Parkway Drive and West Dennett Avenue (APN 449-321-18) (Vacant Lot Site) will be developed at a future date.
Both the Travel Inn and Villa Motel sites are currently being utilized by the City to provide low-barrier emergency shelter and triage services for individuals experiencing homelessness. The City is deeply committed to assisting people who are exiting homelessness and recognizes the critical need for permanent affordable housing to address the ongoing homelessness and housing crises.
To fund the Project, the Developer has pursued a variety of traditional funding avenues. On June 20, 2024, City Council adopted Resolution 2024-133, which authorized the City’s conditional commitment of funds in the amount of $6,000,000 for the conversion of the Travel Inn Site to permanent affordable rental housing. This Resolution expired on December 31, 2024.
On August 29, 2024, City Council adopted Resolution 2024-202, which reiterated the City’s conditional commitment of $6,000,000 and included the conditional contribution of the Travel Inn Site. The purpose of this Resolution was to demonstrate the City’s commitment of funds and the Travel Inn Site for the Developer’s funding application to the California Tax Credit Allocation Committee’s 2024 Low-Income Housing Tax Credit Program. This Resolution expired on December 31, 2024.
On March 27, 2025, City Council adopted Resolution 2025-78 for the purpose of demonstrating the City’s conditional commitment of $6,000,000 in City-funds and three City-owned sites (including the Vacant Lot Site, Travel Inn Site, and Villa Motel Site) for the Developer’s funding application to the California Department of Housing and Community Development’s (HCD) Multifamily Super NOFA (MFSN) Program.
On August 28, 2025, City Council adopted Resolution 2025-235 for the purpose of demonstrating the City’s conditional commitment of $6,000,000 in City-funds and three City-owned sites (including the Vacant Lot Site, Travel Inn Site, and Villa Motel Site) for the Developer’s funding application to the California Tax Credit Allocation Committee (CTCAC) 4% Program for the September 2025 round seeking tax-exempt bonds and 4% tax credits for funding to support the Project.
At this time, the Developer intends to apply for funding from the California Tax Credit Allocation Committee (CTCAC) 4% Program for Round 1 of 2026 Awards seeking tax-exempt bonds and 4% tax credits for funding to support the Project. The City supports the Developer’s CTCAC funding application, which is due February 3, 2026. This Resolution is a necessary component of the Developer’s funding application to demonstrate the City’s commitment of funds in the form of an enforceable financing commitment, and to demonstrate site control of the City-owned Properties. Without this Resolution, the Developer’s application will not be considered.
In support of the Developer’s efforts to locate funding for the development, the City will provide a conditional commitment of funds in the amount of $10,500,000 to cover eligible construction costs for the Project; and its’ conditional contribution of the Properties to the Developer through a long-term ground lease, at a nominal fee of $1 per year for 55 years. The City’s conditional commitment of funds will consist of the following allocations: 1) $3,149,849 of HOME-ARP Funds; 2) $2,850,151 of Permanent Local Housing Allocation Funds; and 3) $4,500,000 of Encampment Resolution Funds - Fiscal Year 2026-27 (Round 7).
The City’s conditional commitment of funds and contribution of the Properties are contingent on the Developer securing full funding through the CTCAC Program and providing evidence of full financing for the Project, in addition to the City obtaining approval of the disposition terms by the Department of Housing and Community Development (HCD). Once these conditions are met, the City and Developer will formalize an enforceable financing commitment not to exceed $10,500,000 and will execute a 55-years ground lease at $1 per year. This conditional commitment of funds and contribution of the Properties will expire on December 31, 2026, with an option to extend the Resolution for one year, contingent upon the Developer securing full funding for the Project.
Approval of this Resolution will allow the Developer to complete the funding application process, continue to pursue additional funding sources, and provide the City with the necessary evidence that the Project is fully funded. In partnership with Cesar Chavez Foundation, the Parkview Apartments development offers the City an opportunity to repurpose existing sites into high-quality, permanent affordable rental housing, furthering the City’s efforts to reduce homelessness and increase its affordable housing stock.
ENVIRONMENTAL FINDINGS
This item is currently not subject to CEQA. Staff will bring forth an Environmental Determination at a later date.
LOCAL PREFERENCE
Local preference is not applicable as this action does not involve a bid or an award of a construction or services contract.
FISCAL IMPACT
This action represents the City’s conditional commitment of state funds to the Project. The City anticipates receiving nominal income from the ground lease of the land.
Attachment: Resolution for Parkview Apartments