REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, AICP, Director
Planning and Development Department
BY: PHILIP SKEI, Assistant Director
Planning and Development Department
SUBJECT
Title
***RESOLUTION - Repealing and replacing Resolution 2025-68 in its entirety and authorizing joint application to and participation in the Homekey+ program with co-applicant Parkway Prime, LLC for the Parkway Terrace project and authorizing the City Manager or designee to sign all required implementing documents (City Council District 3) (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends that the City Council adopt an updated Resolution authorizing a joint application to, and participation in, the California Department of Housing and Community Development (HCD) Homekey+ program with co-applicant Parkway Prime, LLC for the Parkway Terrace project.
EXECUTIVE SUMMARY
On November 26, 2024, HCD announced the availability of approximately $2.145 billion in Homekey+ grant funding through a Notice of Funding Availability (NOFA). On March 13, 2025 the City Council authorized staff to submit a joint application to the Homekey+ program with Fresno Prime LLC for the Valley Inn project, located at 933 North Parkway Drive, Fresno, CA 93728. On April 3, 2025 staff submitted the application to HCD and on February 10, 2026 the City of Fresno (City) received a letter from HCD requesting clarification on items related to the City’s application. Among the requested clarifications was a request to update the authorizing resolution to include the City’s co-applicant, “Parkway Prime, LLC” (previously “Fresno Prime, LLC) and the project name, “Parkway Terrace Project” (previously “Valley Inn Project”). These are technical updates requested by HCD and have no material impact on the scope of the project.
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 in Homekey+ grant funding via a NOFA dated November 26, 2024. Homekey+ will support the development of Permanent Supportive Housing for veterans and individuals facing mental health or substance use challenges who are at risk of or currently experiencing homelessness. Building on the success of Roomkey and the $3.572 billion awarded over three rounds of Homekey, Homekey+ continues the statewide effort to expand Permanent Supportive Housing for individuals experiencing homelessness.
On March 13, 2025 the City Council authorized staff to submit a joint application to the Homekey+ program with Fresno Prime LLC for the Valley Inn project, located at 933 North Parkway Drive, Fresno, CA 93728. On April 3, 2025 staff submitted the application to HCD and on February 10, 2026 the City of Fresno (City) received a letter from HCD requesting clarification on items related to the City’s application. Among the requested clarifications was a request to update the authorizing resolution to include the City’s co-applicant, “Parkway Prime, LLC” (previously “Fresno Prime, LLC) and the project name, “Parkway Terrace Project” (previously “Valley Inn Project”). These are technical updates requested by HCD and have no material impact on the scope of the project.
The Valley Inn, located at 933 North Parkway Drive, Fresno, CA 93728 (APN 449-335-32), consists of a 2.42-acre parcel. On May 7, 2021, City Council approved the City’s acquisition of the property for use as an interim low-barrier emergency homeless shelter as part of Project Homekey. The City was awarded Homekey 2 grant funds in August 2022, enabling significant improvements to the facility that enhanced the shelter experience for residents.
The project involves converting the existing motel into approximately 85 units of Permanent Supportive Housing, including a mix of studio and one-bedroom units, as well as a manager’s unit. The project aligns with the City’s affordable housing goals, as outlined in the “One Fresno Housing Strategy” and the Housing Element of the 2035 General Plan. It will have a positive and lasting impact on the neighborhood by providing supportive housing for individuals or households experiencing homelessness, chronic homelessness, or at risk of homelessness, and those living with behavioral health challenges. The project will also help restore housing stability in this vulnerable community.
ENVIRONMENTAL FINDINGS
On March 13, 2025 City Council adopted staff’s findings that this project qualifies for a Categorical Exemption under CEQA Guidelines Section 15301/Class 1 (Existing Facilities). This exemption applies to projects that involve negligible or no expansion of an existing facility.
LOCAL PREFERENCE
Local preference is not applicable in this case, as the resolution supports a state funding application.
FISCAL IMPACT
There is no impact to the City’s General Fund as a result of this action. If awarded, funding for the project will be provided through the California Department of Housing and Community Development’s Homekey+ Program award to the City of Fresno.
Attachments:
Resolution Authorizing Homekey+ Application for the Parkway Terrace Project