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
Approve a Local Housing Trust Fund Assignment and Assumption Agreement between the City of Fresno, Self-Help Enterprises, and La Hacienda Mobile, LLC, for the purchase of the La Hacienda Mobile Home Park located at 104 East Sierra Avenue, Fresno, California 93710 (Council District 6)
Body
RECOMMENDATION
Staff recommends the City Council approve a Local Housing Trust Fund Assignment and Assumption Agreement between the City of Fresno, Self-Help Enterprises, and La Hacienda Mobile, LLC, for the purchase of the La Hacienda Mobile Home Park located at 104 East Sierra Avenue, Fresno, California 93710.
EXECUTIVE SUMMARY
On March 13, 2025, the City Council approved a $3,700,000 Local Housing Trust Fund (LHTF) loan to Self-Help Enterprises (SHE) for the acquisition and preservation of the La Hacienda Mobile Home Park. The funds will allow SHE to develop 17 affordable rental units for Lower Income households, as defined by the LHTF program. Approving the Local Housing Trust Fund Assignment and Assumption Agreement will allow SHE to transfer ownership of the La Hacienda Mobile Home Park to La Hacienda Mobile, LLC, a sole-member LLC managed by SHE to own and operate La Hacienda Mobile Estates. This Agreement will result in the facilitation of the acquisition, 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 April 15, 2024, Self-Help Enterprises (SHE) responded to the Planning and Development Department’s Notice of Funding Availability (City NOFA), inviting Community Based Organizations to submit Statements of Qualifications for the acquisition and/or rehabilitation of a mobile home park. City staff convened an evaluation committee and following review of all bid applications, the committee recommended that SHE be awarded funding for the La Hacienda Mobile Estates project (Project).
The Project involves acquiring and preserving a 5.21-acre mobile home park located at 104 East Sierra Avenue, Fresno, California 93710 (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.
On March 13, 2025, City Council approved a Local Housing Trust Fund (LHTF) Loan Agreement in the amount of $3,700,000 with Self-Help Enterprises for the acquisition and preservation of the La Hacienda Mobile Home Park. 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 LHTF financing thereby ensuring 17 affordable rental units will be reserved 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.
Self-Help Enterprises acquired the Property on August 4, 2025. The Local Housing Trust Fund Assignment and Assumption Agreement will allow Self-Help Enterprises to assign their interest in the Property to La Hacienda Mobile, LLC, a sole-member LLC managed by SHE.
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.
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 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.
Attachment:
Local Housing Trust Fund Assignment and Assumption Agreement