UPDATE: Fresno OKs spending $9.5 million to address homeless and affordable housing crises
UPDATE – May 11: Fresno City Council members approved four separate agreements related to the operation of homeless shelters and development of new affordable housing at their meeting Thursday:
- A $2.8 million agreement with Poverello House to operate the former Clarion Pointe motel on North Blackstone Avenue as a homeless shelter for a 12-month period was approved on a 6-0 vote; City Councilmember Luis Chavez was absent for the vote. There is an option for the agreement to be extended for a second year.
- An agreement with the Fresno Housing Authority to continue operating the Journey Home shelter, formerly the Welcome Inn motel on Parkway Drive, received a 7-0 vote from the council.
- Councilmember Garry Bredefeld was the lone vote against approving a $3 million agreement with Avalon Commons Phase II LLP, which is developing a 44-unit complex of affordable apartments in his northeast Fresno district. The agreement was approved on a 6-1 vote.
- A $1.5 million agreement with Broadway Plaza Family Apartments LP, which is renovating the old Hotel Fresno building for use as affordable apartments, was approved on a 6-0 vote with Chavez absent.
ORIGINAL STORY:
More than $9.5 million in money for homeless shelters and affordable rental units will be considered Thursday by the Fresno City Council as the city continues to grapple with its persistent shortage of low-cost housing.
Four separate agreements are on the council’s agenda — two for the operation of homeless shelters in central and southwest Fresno and two to aid the development of affordable apartments in downtown and in the northeast part of the city.
The proposed homeless shelter agreements are with Poverello House to operate the former Clarion Pointe motel on Blackstone Avenue near Ashlan Avenue and Fresno Housing Authority to run the Journey Home emergency shelter — formerly the Welcome Inn motel on Parkway Drive between Olive and Belmont avenues.
If approved by the City Council, the Poverello House would receive about $2.8 million to manage the 115-unit Clarion Pointe site for one year, with an option for a 12-month extension, as an emergency homeless shelter. In April, the city approved the purchase of the former motel for $11.8 million..
The proposed awards come after the city council approved about $8.9 million in contracts with service agencies to run four other homeless shelters in former motels along Parkway Drive.
The city’s senior management analyst for its homeless services division, Jillian Gaytan, states in a staff report to the city council that Poverello House — long noted for its history of food and shelter services for the street people of downtown Fresno — was one of three organizations that responded to the city’s call for proposals in February to provide shelter services at the Clarion Pointe location.
The Clarion Pointe agreement calls for Poverello House to provide mental health and support services, 24-hour security, three daily meals and linen service for clients.
Also up for approval Thursday is a $2.2 million agreement with the Fresno Housing Authority to continue providing homeless services at the Journey Home Triage Center. The city’s current deal with the Housing Authority, which dates to the start of 2021, is due to expire at the end of this year. The new agreement would be in effect through June 2024 with an option for a 12-month extension.
The Housing Authority owns the 78-room former motel; the agreement is for continued triage and support services for homeless people on behalf of the city. Turning Point of Central California manages the facility for the Housing Authority.
Low-rent apartment projects
Two other agreements to be decided Thursday by the city council include a contribution of $3 million in Local Housing Trust Funds to the Fresno Housing Authority’s Avalon Commons Phase II apartment project at the northwest corner of Chestnut and Alluvial avenues in northeast Fresno.
The $32.6 million project, which is in the pre-development stages, will eventually provide 44 new apartments. The city’s contribution of its local housing trust money will guarantee that 11 of the apartments will be reserved as affordable for 55 years.
Eight different development projects submitted applications to the city for potential awards of housing funds and were reviewed by a screening committee. “The Avalon Commons Phase II project was determined to be the most shovel-ready and is therefore being recommended for funding, …” wrote Jennifer Davis, a senior analyst in the city’s housing finance division, in a staff report to the city council.
Of the 44 units to be built, 12 will be one-bedroom apartments, 17 two-bedroom units and 15 three-bedroom units. One unit will be for an on-site manager. The project is anticipated to be completed in late 2025.
In downtown Fresno, a contribution by the city of $1.5 million is proposed to make up a shortfall in the construction costs for the ongoing renovation of the Hotel Fresno building on Broadway Street north of Fresno Street.
APEC International LLC, the developer, began construction in mid-2019 and the work is about 90% complete, said Corrina Nunez, a project manager with the city’s Housing & Community Development Division. APEC “has made its best effort to mitigate some of the unforeseen cost increases through securing additional tax credits,” Nunez wrote in a staff report to the city council. “Despite the delays and cost overruns, the developer has avoided cessation of construction and has made significant progress toward completion of the project.”
The renovation project has an estimated price tag of about $32.5 million. When complete, it will offer 43 one-bedroom apartments, 26 two-bedroom units including one unit for an on-site manager, and 12 three-bedroom apartments, Nunez reported.
This story was originally published May 10, 2023 at 2:18 PM.
