REPORT TO THE CITY COUNCIL FROM: LUIS CHAVEZ, Councilmember District 5 SUBJECT ..Title Actions pertaining to Sarah's Court Phase II Apartments, a 120-unit affordable multifamily housing project, to be located at 200 N. Salma Avenue in southeast Fresno as part of the Fancher Creek Master Plan Development (District 5): 1. Approve a Community Development Block Grant (CDBG) loan Agreement in the amount of $2.4 million with FCTC Family II, LP, for land acquisition; and 2. ***RESOLUTION - to support FCTC Family II, LP's Low-Income Housing Tax Credit Application for the development of Sarah's Court Phase II; and to provide a conditional commitment of HOME Investment Partnership Program (HOME) loan funds in an amount not to exceed $3 million to the Project (Subject to Mayor's veto) ..Body RECOMMENDATIONS EXECUTIVE SUMMARY BACKGROUND ENVIRONMENTAL FINDINGS Environmental Impact Report No. 10133, prepared for the Fancher Creek Project (EIR No. 10133) was certified by the Council of the City of Fresno on May 17, 2005, by Resolution No. 2005-183. EIR No. 10133 evaluated the construction of over 2,300 residential units in the entire 475-acre area for the Fancher Creek development, including 240 residential units in a mixed-use portion of the Town Center. On March 25, 2010, the Council adopted an Addendum to EIR No. 10133, dated June 29, 2009, which addressed a total of 740 residential units in the Town Center, which is an increase of 500 units. After adoption of the Addendum to EIR No. 10133, the Council approved a Development Agreement by and between the City of Fresno and Fancher Creek Properties, LLC which set forth the rights and responsibilities for development of the Fancher Creek Town Center, including the residential units within the Town Center Area. This approval is for a portion of the development of the Town Center as contemplated by the Development Agreement, EIR No. 10133, and the Addendum to EIR No. 10133. An analysis has been performed pursuant to California Environmental Quality Act (CEQA) Guidelines � 15162 to determine whether subsequent environmental review is required for this approval. Based upon this analysis the following findings are made to support the determination that no subsequent environmental review is required: 1. No substantial changes are proposed in the project which will require major revisions to EIR No. 10133 or the Addendum to EIR No. 10133 due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. 2. No substantial changes occurred with respect to the circumstances under which the Fancher Creek Project or the Development Agreement for the Fancher Creek Town Center were undertaken which will require major revisions to the EIR No. 10133 or the Addendum to EIR No. 10133 due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. 3. There is no new information, which was not known and could not have been known with the exercise of reasonable diligence at the time EIR No. 10133 was certified or the Addendum to EIR No. 10133 was adopted that shows any of the following: a. The project will have one or more significant effects not discussed in EIR No. 10133 or the Addendum to EIR No. 10133; b. Significant effects previously examined will be substantially more severe than shown in EIR No. 10133 or the Addendum to EIR No. 10133; c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or d. Mitigation measures or alternatives which are considerably different from those analyzed in the EIR No. 10133 or the Addendum to EIR No. 10133 would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. Based upon these findings, it has been determined that no further CEQA environmental documentation is required for this project. Furthermore, an environmental review of the Sarah's Court Phase II project activities was reviewed pursuant to the National Environmental Policy Act (NEPA) guidelines on February 7, 2022, and resulted in a Finding of No Significant Impact. On March 17, 2022, the U.S. Department of Housing and Urban Development issued authorization to use federal funds for the project. LOCAL PREFERENCE FISCAL IMPACT Attachments: Exhibit A - CDBG Agreement Exhibit B - HOME Resolution Exhibit C - Project Location Maps