REPORT TO THE CITY COUNCIL
FROM: GREGORY A. BARFIELD, M.A., Director
Transportation Department
SCOTT L. MOZIER, PE, Director
Public Works Department
JENNIFER CLARK, AICP, Director
Planning and Community Development Department
JILL M. GORMLEY, TE, Assistant Director
Public Works Department, Traffic & Engineering Services Division
PHILIP SKEI, Assistant Director
Planning and Community Development Director
BY: DREW WILSON, Planning Manager
Department of Transportation
SUBJECT
Title
Actions pertaining to UPholdings affordable housing development located at 3787 N. Blackstone, Fresno, California (District 4):
1. ***RESOLUTION - Adopt a Resolution authorizing acceptance of funding from the California Department of Housing and Community Development Round 7 Affordable Housing and Sustainable Communities (AHSC) Program Award in the amount of $15,581,049.00 for Transportation Related Amenities and Sustainable Transportation Improvements associated with the Dakota affordable housing project and authorizing the City Manager, or designee, to enter into and execute a standard agreement to secure the AHSC program funds and participate in the AHSC Program (Subject to Mayor’s veto).
Body
RECOMMENDATION
Staff recommends the City Council adopt the Resolution authorizing acceptance of funding from the California Department of Housing and Community Development (HCD) Round 7 Affordable Housing and Sustainable Communities (AHSC) Program Award in the amount of $15,581,049.00 for Transportation Related Amenities and Sustainable Transportation Improvements associated with the Dakota affordable housing project and authorizing the City Manager, or designee, to enter into and execute a standard agreement to secure the AHSC program funds and participate in the AHSC Program.
EXECUTIVE SUMMARY
On March 30, 2023, the City Council approved a Memorandum of Understanding between the City of Fresno and UPholdings, LLC (UPH) (Developer) for the City to carry out sustainable transportation infrastructure (STI) and transportation related amenities (TRA) to serve the development at 3787 N. Blackstone upon full funding of the Developer’s April 4, 2023, application for the Affordable Housing and Sustainable Communities (AHSC) Program.
The Developer applied for the Round 7 AHSC Program to obtain needed loans to support this affordable housing project. In order for the Developer to submit a complete AHSC application, the City was required to enter into a contractual agreement to develop the TRA and STI elements of the project, if the project was awarded.
On August 30, 2023, California’s Strategic Growth Council awarded $48,766,066 to UPH for the Dakota affordable housing project. The award included $10,366,020 for the City of Fresno’s Transportation and Public Works Departments to make TRA and STI improvements, such as improved sidewalks, dedicated bike paths, and improved bus stops, as well as improved service frequency along Route 39 connecting residents to major retail, social services, education, employment opportunities, and the airport. The award also included $5,215,029 for electric vans, operations for the electric vans, subsidized transit passes, and other services by CalVans, UPH Limited, and the Fresno Rescue Mission.
BACKGROUND
The Affordable Housing and Sustainable Communities Program (AHSC) was created by Senate Bill 862 (2014) to reduce greenhouse gas emissions through projects that implement land use, housing, transportation, and agricultural land preservation practices to support infill and compact development. The AHSC Program is funded by the Greenhouse Gas Reduction Fund (GGRF), otherwise known as the auction proceeds derived from California’s cap-and-trade program, or California Climate Investments. The AHSC Program funds projects that increase the supply of affordable places to live near jobs, stores, transit, and 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, transportation related amenities, and other related programs.
The Dakota project consists of a 114-unit affordable multi-family development (68 family units, 45 veteran units, and 1 manager’s unit) and Transportation Related Amenity (TRA) and Sustainable Transportation Infrastructure (STI) components such as improved walk paths, dedicated bike paths, improved bus stops, a zero emission bus, and improved service frequency along Route 39 connecting residents to major retail, social services, education, employment opportunities, and the airport; monthly transit passes for the Dakota residents; and the purchase and operations of electric vans via CalVans. The Developer applied for Round 7 of the California Strategic Growth Council’s Affordable Housing and Sustainable Communities (AHSC) Program to obtain needed funding to support this affordable housing project. In order for the Developer to submit a complete AHSC application, the City was required to enter into a contractual agreement to develop the TRA and STI elements of the project. Funding was included in the application for the City to make these improvements. The City Council approved the MOU on March 30, 2023.
This project addresses the city’s need for quality affordable housing by providing 113 units (plus 1 manager’s unit) for families and veterans who earn between 30% and 60% Area Median Income (AMI). The transportation-related grant component awarded to the City of Fresno will result in the purchase of one new hydrogen fuel cell electric bus for Route 39(Clinton Avenue); transit operation funds for 5 years to operate the zero emission bus on Route 39 to increase frequencies from 30 to 15 minutes; improvements to 16 bus stops, mostly within a one-mile radius of the housing project on Dakota and Blackstone; sidewalk installation on the west side of Blackstone from Shields to Dayton; sidewalk replacement (6-foot to 12-foot) on Blackstone between Shields and Dakota; 12-foot wide new sidewalk installation on Blackstone between Shields and Dakota; Class IV bike lanes on both sides of Blackstone; urban greening for the bike lane and sidewalk component; crosswalk improvements; ADA curb ramps; and a new HAWK beacon at the intersection of Dakota and Garland Avenue. Other improvements include the purchase and operation of forty (40) 15-passenger electric vans owned and operated by CalVans, subsidizing one free monthly transit pass per unit for three years, free internet for each unit, and legal fees. These improvements must be completed by 2028.
Per the terms of the agreement, the City of Fresno will receive $15,581,049 for TRA and STI funds for the Dakota project, including $10,366,020 for City-led improvements. FAX, as the lead department, will administer the distribution of the funds. Of the $10.3 million, FAX will receive $6,750,000 for the design and construction of bus stop improvements, the purchase of one zero emission bus, and operating funds for five years to operate the new bus. The Public Works Department will receive $3,616,020 for the design and construction of the grant’s complete streets components, to flow through FAX. FAX will also receive and disburse funds to the grant subrecipients, including $4,473,398 to CalVans for its electric van purchases and operating costs; $390,931 of administration services for monthly transit passes, free internet, and legal fees to the UPH Limited Partnership for grant administration services; and $350,700 to the Fresno Rescue Mission. The Subrecipient disbursement agreement is attached.
The City Attorney’s Office has reviewed and approved as to form the attached Resolution, the HCD standard agreement (STD 213), and the Subrecipient disbursement agreement.
ENVIRONMENTAL FINDINGS
This action is not subject to CEQA.
LOCAL PREFERENCE
Local preference is not applicable as this Resolution does not include a bid or award of a construction or services contract.
FISCAL IMPACT
Additional Measure C Bike Lane and Measure P Safe Walking & Biking Trails funding will be necessary in FY2026 to fully fund the cost of the project. The necessary appropriations will be included in the future fiscal year capital improvement program budgets for the Public Works Department.
Attachments:
Resolution
Standard Agreement, STD 213
Subrecipient Disbursement Agreement
Executed MOU between UP Holdings, LLC, and City of Fresno, 3/30/23