Actions pertaining to approx. 0.18 acres of property located at 33 East Atchison Street (APN 477-121-13T): 1. Adopt a finding of Categorical Exemption pursuant to Section 15303/Class 3 (New Construction or Conversion of Small Structures of the California Environmental Quality Act (CEQA) Guidelines. 2. ***RESOLUTION - Finding good cause and clear and convincing benefit to the public pursuant to Fresno Municipal Code Section 4-204 relating to the disposition of real property identified as assessor’s parcel number 477-121-13t (33 East Atchison Street) for the development of affordable housing. (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto) 3. Approve a Disposition and Development Agreement between the City of Fresno, in its capacity as Housing Successor to the Redevelopment Agency of the City of Fresno and Habitat for Humanity Fresno, Inc., a California Corporation for property located at 33 East Atchison Street.

JOINT MEETING OF THE FRESNO REVITALIZATION CORPORATION AND CITY OF FRESNO IN ITS CAPACITY AS HOUSING SUCCESSOR TO THE REDEVELOPMENT AGENCY   FROM: MARLENE MURPHEY, Executive Director Housing Successor Agency to the Redevelopment Agency SUBJECT ..Title Actions pertaining to approx. 0.18 acres of property located at 33 East Atchison Street (APN 477-121-13T):  Adopt a finding of Categorical Exemption pursuant to Section 15303/Class 3 (New Construction or Conversion of Small Structures of the California Environmental Quality Act (CEQA) Guidelines.   ***RESOLUTION – Finding good cause and clear and convincing benefit to the public pursuant to Fresno Municipal Code Section 4-204 relating to the disposition of real property identified as assessor’s parcel number 477-121-13t (33 East Atchison Street) for the development of affordable housing. (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto) Approve a Disposition and Development Agreement between the City of Fresno, in its capacity as Housing Successor to the Redevelopment Agency of the City of Fresno and Habitat for Humanity Fresno, Inc., a California Corporation for property located at 33 East Atchison Street.  ..Body RECOMMENDATION It is recommended that the City of Fresno, in its capacity as the Housing Successor to the Redevelopment Agency (HSA) approve a resolution finding clear and convincing benefit to the public relating to the disposition of property located at 33 E. Atchison Street in Southwest Fresno and thereafter approve a Disposition and Development Agreement with Habitat for Humanity Fresno, Inc. (Habitat) for the disposition of property and funding assistance for development of an affordable single-family home for sale to a qualified homebuyer. EXECUTIVE SUMMARY The HSA is recommending approval of a Disposition and Development Agreement with Habitat that will provide infill development of an affordable single-family home on a vacant HSA-owned lot and provide a home ownership opportunity for a very low-income household. Habitat will construct a single-family house affordable to households at or below 60% average medium income (AMI) with a 45-year affordability covenant (Project). The HSA is contributing land and funding assistance to achieve financial feasibility for the estimated $442,105.00 development. Other anticipated funding sources include HOME Community Housing Development Organization funds (CHDO), private conventional financing and Habitat equity contribution. The Project will leverage the momentum initiated by 51 recently developed single-family affordable homes in the area, meet HSA affordable housing requirements and further fulfill community goals for revitalization and homeownership. The attached Resolution finds good cause and clear and convincing benefit to convey the property for less that fair market value and to waive the requirement for a request for proposals. Among its recited findings, the HSA’s contribution of land supports community objectives for affordable single-family home ownership and facilitates construction on long vacant land by an experienced non-profit developer. BACKGROUND Developer - Habitat for Humanity Fresno, Inc. Habitat very recently constructed a home at 66 E Atchison across the street from the proposed Project that provided affordable homeownership to a very low-income family. Habitat has been a leading non-profit housing development organization in Fresno County since 1985 and continues to provide safe, decent and affordable housing for lower income residents. Habitat’s mission and home building strategy is to partner with low-income households to help ensure that homeownership is a life-long positive and successful experience for all members of the household. Site The HSA currently owns a vacant lot, APN 477-121-13T, located at 33 East Atchison Street in southwest Fresno. The lot is located on the north side of East Atchison Street between South Thorne Avenue and South Plumas Street. The HSA purchased the approximate 0.18-acre property to remove blight and build affordable housing. The property was independently appraised in May 2026 for an as-is value of $20,000 and is being contributed to the project for $1.00. An existing on-site block retaining wall has been evaluated and will require modifications during initial grading and site preparation to ensure the wall meets the requirements for the California building code. In accordance with the Surplus Land Act (California Government Code sections 54220 through 54236), the Council, on March 7, 2024, took formal action in a public meeting to declare this property as surplus land. A Notice of Availability was subsequently published on April 1, 2024. Three responses were received within the sixty-day availability period. However, acceptable sale terms could not be reached during the 90-day good faith negotiation period. One proposal was withdrawn, one incomplete and one proposal was financially infeasible. Proposal Habitat proposes to construct a 1,331 to 1,438 square feet single-family house consisting of 3 to 4 bedrooms, two baths and an attached two-car garage. Habitat will engage the buyers in “participation hours”, requiring the buyers to build their home alongside volunteers and licensed construction staff. This will require that each member of the homebuyer’s household contribute at least 500 hours of “sweat equity” to help build the house. Habitat will also provide training on homeownership, maintenance and improvement, household budgeting and consumer awareness. Habitat will incorporate the City of Fresno’s Universal Design elements into the house as required, and work with the city to process all necessary plans and permits. This includes all on-site and off-site improvements associated with the construction of the single-family home. Funding Predevelopment and Construction: Habitat is estimating a total development cost at $442,105 including all construction costs, permits, utility connections, construction management, school fees, selling costs, title, escrow and contingency. Anticipated funding sources for development include; HOME Community Housing Development Organization (CHDO) funds in the amount of $199,875, private conventional financing estimated at $132,230 and Habitat equity contribution of $10,000. The HSA will provide a forgivable loan of $100,000 for predevelopment and construction costs and up to an additional $50,000 if necessary to close a gap between the construction costs and appraised sale price of the completed home. Down Payment Assistance: To the extent necessary, HSA proposes to provide up to $125,000 in mortgage assistance to a qualified home buyer at or below 60% AMI (Borrower) and up to an additional $50,000 of any unexpended construction assistance initially available to Developer. The terms of homebuyer assistance provide for a 45-year zero percent interest loan. During the 45-year affordability period the Borrower (or approved transferee as defined in Exhibit G - Declaration of Restrictions) must maintain the house as a principal place of residence. The loan funds are subject to recapture if the home does not continue to be the homebuyer’s principal residence or if the property is sold, rented, conveyed, transferred or refinanced. At the end of the 45-year period of affordability, the Agreement will expire, and the Promissory Note and Deed of Trust will be released. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment and determined that it falls within the Categorical Exemption set forth in CEQA Guidelines section 15303 (New Construction or Conversion of Small Structures) as the project involves construction of one single-family residence as authorized under 15303(a). Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this project FISCAL IMPACT The HSA adopted FY 26/27 budget provides funds for the development of affordable housing units. Attachments: Resolution Disposition and Development Agreement Location Map