Council approves $3.727 million housing trust agreement for 174-unit downtown project

The Fresno City Council on Thursday approved a $3,727,000 local housing trust fund agreement to help finance a 174-unit, eight‑story multifamily project downtown.

City planning staff told the council the developers have secured roughly $69 million in bond financing and that the trust fund agreement before the council represented the “final dollar in” to reach construction financing. Phil (assistant director, Planning & Development) said the developers aim to pull grading permits by the end of August and tentatively scheduled a groundbreaking for mid‑August.

Mayor Jerry P. Dyer urged support, saying the parcels involved have been vacant for decades and that the state’s infrastructure investment requires accelerated housing development in the downtown core. “If we are truly in a housing crisis,” he said, “why would we not want to build 174 units that allow for mixed‑income housing in downtown Fresno?”

Two community speakers representing the advocacy group HEAT opposed the arrangement, saying district residents had insufficient notice and engagement. “Anything in district 3 that does not get the approval of the people of district 3 should not pass,” Diane Smith said during public comment.

Staff explained the financing package includes $69.62 million in private bond financing, $8 million allocated from a revolving loan fund, and the $3.727 million local housing trust fund contribution. Plan staff said no general‑fund dollars for city services are being used for the project; the funds are intended for housing construction only.

Council members asked for clarifications about legal exposure, timing and the sources of financing before the votes. After limited discussion the council approved the measure on the council and successor agency votes; the item passed on both votes.

What happens next: staff expects developers to close remaining financing and sign loan documents in the coming months; construction would follow and the earliest expected project completion is late 2027. The city said requirements tied to the state’s downtown infrastructure grants and specific project covenants will govern affordability and reporting.

Timeline/procedure: the trust fund agreement was presented at the 9:05 a.m. joint session of City Council and the successor agency; public comment included two speakers opposed. The council approved the funding on Thursday by recorded vote.

Funding and oversight: staff said the financing package relies on multiple streams (bond investors, revolving loan funds, and the local housing trust fund). Council members and the mayor said they would continue to monitor project milestones, including permit pull, grading, and lease‑up performance.