These Fresno motels will be converted to homeless housing with millions from the state

Gov. Gavin Newsom announced Thursday the Fresno Housing Authority, in partnership with the city of Fresno, will receive nearly $16.5 million to purchase and rehabilitate three more motels to house people experiencing homelessness.

The city and the county of Fresno have already been awarded funding through the same project for two other motels, bringing the total to five motels to $39.4 million. Except for 25 rooms in Huron, the motels are all located along Motel Drive, which City Council President Miguel Arias said has “become a magnet for drug trafficking and human trafficking.”

“The purchase and renovation of multiple motels in that corridor is going to change lives for generations to come,” Arias said during a city council meeting Thursday morning.

The grants are part of Project Homekey, an $835 million state initiative Newsom introduced in July to turn underutilized hotels and motels across the state into interim and permanent housing for people experiencing homelessness impacted by the pandemic.

“Today, we make the final round of awards creating 982 units across the state at a cost well below the average of what it typically takes to build new units. This program is an example of what’s possible when we think outside of the box, work together across government and put the needs of those most vulnerable among us first,” Newsom said in a news release Thursday afternoon.

The motels include Parkside Inn, at 1415 W. Olive Ave.; Days Inn at 1101 N Parkway Drive; Welcome Inn, at 777 N Parkway Drive; and Motel 99, at 1240 & 1280 N. Crystal Ave., according to city council documents.

Fresno Housing Authority Assistant Director Kelli Furtado said the four motels operated by her organization would make available 325 motel rooms for people experiencing homelessness in the coming months.

Those will later be renovated into a range of permanent housing units, ranging from studios to multiple bedroom apartments.

Interim housing will offer low-barrier access to “housing placement, connection to community resources, and stabilization of health issues,” according to the news release.

H Spees, director of strategic initiatives for the mayor’s office, told The Bee the total number of units would be reduced by roughly half in the conversion from motel rooms to apartments. He added that the motel renovations held the potential to bring new life to the Motel Drive area, which has been devastated by years of neglect.

“It gives us the opportunity to transform the Addams Elementary School neighborhood,” he said.

Fresno County, alongside developers RH Community Builders and Upholdings, was previously awarded funds to renovate Hotel Fresno, formerly known as the Smuggler’s Inn. Those 204 hotel rooms will eventually be converted to 160 units of permanent housing.

An additional $4.5 million for motels

On Thursday morning, the Fresno City Council approved multiple motions to shelter people experiencing homelessness during the pandemic. The motions were approved unanimously.

First, they approved $4.5 million in CARES Act funding from the $92 million pot the city received from the federal government for more motel conversions. These motels have not yet been identified, nor do they form part of Project Homekey, but they will function similarly.

The council also approved spending up to $6.8 million for operations and support services in the four motels over five years. Getting the Homekey money was contingent on this commitment, Spees explained.

“What the state was looking for in terms of additional potential grants is, is there a plan for funding them as shelters?”

Finally, the council approved $2.1 million to fund approximately 400 beds and accompanying wraparound services in existing homeless shelters, which are being run in partnership between the county, city, and Fresno-Madera Continuum of Care through Spring 2021. Those beds have been at capacity since the start of the pandemic.

Mayor Lee Brand described the funding as a “huge win for all of Fresno.”

“This is a once-in-a-generation opportunity to improve the quality of life in our community,” Brand said.