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, Laing Companies, LLC, and Community HousingWorks for the construction of Sustainable Transportation Infrastructure amenities for 3374 East Shields, Fresno, CA 93726 (Council District 4)
Body
RECOMMENDATION
Staff recommends the City Council approve the Memorandum of Understanding between the City of Fresno (City), and Laing Companies, LLC and Community HousingWorks (Developer) for the construction of Sustainable Transportation Infrastructure (STI) amenities to serve the development known as 3374 East Shields - Phase I, located at 3374 East Shields Avenue, Fresno, CA 93726, contingent upon full funding of the Developer’s Affordable Housing and Sustainable Communities (AHSC) Program application, due May 4, 2026.
EXECUTIVE SUMMARY
Located at 3374 East Shields Avenue, the project is a $48,400,000 new construction affordable housing development that includes 84 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, Laing Companies, LLC and Community HousingWorks (Developer) submitted a comprehensive application to the City’s Affordable Housing Development Notice of Funding Availability (City NOFA), proposing the Affordable Housing Development (AHD component) strategically located on 2.79 acres of surplus State-owned land at 3374 East Shields Avenue, Fresno, California 93726 (APN: 445-020-13T) (Project). The Project is the first phase of a two-phase redevelopment of excess State-owned land in the Mayfair neighborhood of Central Fresno.
The Project will provide 84 newly constructed deed-restricted affordable residential units for households earning between 30% and 80% Area Median Income (AMI). The Project aims to foster a sense of community through thoughtfully integrated amenities such as 2,500 sq ft of community space, a trail on the southern boundary of the Project, and a 104-space parking garage for residents. The Project features a diverse mix of housing sizes, including 21 one-bedroom units at 560 sq ft, 42 two-bedroom units at 750 sq ft, and 21 three-bedroom units at 950 sq ft, which includes a two-bedroom unit dedicated to an on-site property manager.
The multi-family residential 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 Project aims to reduce environmental impact and improve transportation access for residents by enhancing connectivity to major retail, social services, education, and employment opportunities.
To enhance the infrastructure surrounding the Project, the Shields Street frontage portion of the Project site will be designed to enhance the appearance of the neighborhood by providing attractive architecture, as well as appropriate landscaping, street trees, and bicycle amenities. In addition, the proposed scope of construction includes both on-site and off-site improvements with emphasis placed on creating a community-oriented environment while integrating social spaces that promote connection to the surrounding area. 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 $48,400,000 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 January 2029.
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 84 new deed-restricted rental units for extremely low-, low-, and moderate-income households. Investment in infrastructure such as improved walkways and dedicated bike paths will enhance this area of Central 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
The Project is being developed on State-owned surplus property and has been declared exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to PRC Section 1080.40, which establishes a statutory exemption for affordable housing projects that meet specified criteria. The Project has been analyzed according to these criteria and will consist of multi-family residential uses only, be dedicated to lower-income households, be within the city boundaries of the City of Fresno and be surrounded by urban uses. It will be subject to a recorded California TCAC regulatory
agreement, can be adequately served by existing utilities, does not contain tribal cultural resources, and has determined that there is no potential of future occupants to significant health hazards (Phase I Environmental Assessment), is not located within 500 feet of a freeway or within 3,200 feet of a facility that actively extracts or refines oil or natural gas, and is not within a high-fire hazard severity zone.
The project was evaluated under Public Resources Code Section 21080.40, and the Lead Agency has determined that the project qualifies for a Statutory Exemption.
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 Laing Companies, LLC and Community HousingWorks for 3374 East Shields Avenue