***RESOLUCIÓN - En apoyo de una contribución de fondos de la Ciudad en la cantidad de $4,300,000 y contribución de una parcela de propiedad de la Ciudad a lo largo del Corredor de la Avenida Blackstone a Samuelian Group LLC para el desarrollo del Proyecto de Vivienda Modular Asequible para Personas Mayores, Construida en Fábrica (Sujeto al Veto del Alcalde) (Distrito del Consejo 4)

REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, AICP, Director Planning and Development Department PHILIP SKEI, Assistant Director Planning and Development Department BY: SARAH J. LAMBETH, Project Manager Planning and Development Department SUBJECT ..Title ***RESOLUTION – In support of a contribution of City funds in the amount of $4,300,000 and contribution of a City-owned parcel along the Blackstone Avenue Corridor to Samuelian Group LLC for the development of the Senior Affordable, Modular, Factory-Built Housing Project (Subject to Mayor’s Veto) (Council District 4) ..Body RECOMMENDATION Staff recommends that the City Council adopt the Resolution in support of a contribution of City funds in the amount of $4,300,000 and a City-owned 1.21-acre parcel located at 4323-4333 North Blackstone Avenue to Samuelian Group LLC for the development of the Senior Affordable, Modular, Factory-Built Housing Development Project. EXECUTIVE SUMMARY Samuelian Group LLC (Developer) is proposing to develop Vantage Blackstone, a senior affordable, modular, factory-built, rental housing project that will include 100 units directly adjacent to the new Senior Activity Center near Blackstone Avenue and Swift Avenue (Project). The Project will utilize a modular, factory-built construction method to enhance efficiency and cost effectiveness. Adopting the Resolution will provide a conditional commitment of $4,300,000 in City funds and contribution of a City-owned 1.21-acre parcel to the Developer to support the development of Vantage Blackstone. Both this conditional commitment of funding and City-owned property, which will occur through a long-term ground lease, is contingent upon the full project financing and shall terminate on September 30, 2027, with an option for a one-year extension if progress toward securing funding is demonstrated. BACKGROUND In July 2022, the City Council authorized the appropriation of $4,993,300 in Community Development Block Grant (CDBG) funds for the acquisition of two parcels totaling approximately 5.51 acres at 4343 and 4323-4333 North Blackstone Avenue, with the stated purpose of supporting the development of the Senior Activity Center and affordable housing for seniors. The acquisition was completed in accordance with CDBG program requirements, which mandate that properties acquired with federal funds be used for eligible public benefit purposes, including affordable housing development. On March 30, 2023, the City Council formally declared the 1.21-acre parcel at 4323-4333 North Blackstone Avenue (APN 426-253-19) (Property), to be “exempt surplus land” under Government Code Section 54221(f)(1)(A), based on its intended use for affordable housing in accordance with Government Code Section 37364, which requires that: Minimum of 80% of the area of any parcel shall be used for development of housing (remaining 20% could be ancillary commercial or park/open space use); Not less than 40% of the total number of housing units developed on any parcel pursuant to this section shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households (80% of Area Median Income [AMI]), and at least half of which (20% of the units) shall be affordable to very low-income households (50% of AMI). Dwelling units shall be restricted by regulatory agreement to remain continually affordable to those persons and families for the longest feasible time, but not less than 30 years and shall be recorded against the property. The exempt surplus status enabled the City to proceed directly to an open and competitive Request for Proposals process for the selection of a qualified affordable housing developer, as stipulated by both the Surplus Land Act and Fresno Municipal Code Section 4-204. On April 15, 2026, the City released a Request for Proposals, inviting qualified affordable housing developers to submit proposals for the development of senior affordable housing on the site, which remained open until June 15, 2026. A total of six (6) proposals were received and a competitive evaluation process was conducted in accordance with Fresno Municipal Code Section 4204. The proposals were reviewed based on development experience, financial capacity, project design, affordability levels, and alignment with the Surplus Land Act and federal CDBG requirements. Following the conclusion of the evaluation process, Samuelian Group LLC, Inc. was identified as the highestranking and most qualified respondent. The proposed Project will consist of the development of 100 modular, factory-built, affordable units for Fresno’s senior community including 10 units for households earning up to 30% AMI, 20 units for households earning up to 50% AMI, 19 units for households earning up to 60% AMI, 50 units for households earning up to 70% AMI and 1 manager’s unit. The project will also include a 55-year deed-restricted affordability covenant. The City’s conditional commitment of funds and Property is contingent on the Developer securing full funding through the CTCAC Program and providing evidence of full financing for the Project. Once these conditions are met, the City and Developer will formalize an enforceable financing commitment not to exceed $4,300,000 and will execute a 55-year ground lease at $1 per year. This conditional commitment of funds and contribution of Property will expire on September 30, 2027, with an option to extend the Resolution for one year, contingent upon the Developer demonstrating progress in securing full funding for the Project. Staff now recommends City Council adopt the Resolution supporting the contribution of City funds in the amount of $4,300,000 and contribution of a City-owned, 1.21-acre parcel located at 4323-4333 North Blackstone Avenue to Samuelian Group LLC for the development of the Senior Affordable, Modular, Factory-Built Housing Project. Approval of this Resolution will allow the Developer to complete the funding application process, continue to pursue additional funding sources, and provide the City with the necessary evidence that the Project is fully funded. The Project will bring high-quality, permanent affordable rental housing to the site, furthering the City’s efforts to reduce homelessness and increase its affordable housing stock. The City's Better Business Act (BBA) does not apply because the contemplated direct assistance resulted from a City-initiated Request for Proposals. Under California Assembly Bill 686 (AB 686), public agencies have a legal obligation to take meaningful, deliberate actions to overcome patterns of segregation, eliminate disparities in access to opportunity, and foster inclusive communities free from discrimination. To fulfill this obligation, the City has committed to prioritize projects that support integration, expand access to opportunity, and reduce racial and economic disparities and that promote inclusive community engagement and equitable development practices across the City. The proposed project is located in an area designated as low resource by the State Department of Housing and Community Development’s 2026 Affirmatively Furthering Fair Housing (AFFH) Mapping Tool. The project proposes 100 units of lower income housing. The project is consistent with AB 686 because the Project is located within ½ mile of the following City of Fresno infrastructure investments, which are contributing to improving resources, amenities, and opportunities in the area: PC00240 Senior Activity Center – Design and construction of a new 30,000 SF Senior Activity Center for PARCS Department located at 4343 N Blackstone. PW01067 Senior Activity Center TOD Housing Street Improvements – Includes new pedestrian crosswalks, asphalt, signing, striping, sidewalks, curb and gutter, ADA-compliant curb ramps, streetlights with pedestrian scale lighting, and street trees enhancing accessibility for the public. PW00898 Ashlan Avenue ITS – Implement Intelligent Transportation System technology along the Ashlan Avenue corridor traffic signals between Cornelia and Blackstone. The City Attorney's Office has reviewed and approved the Resolution as to form. ENVIRONMENTAL FINDINGS A Mitigated Negative Declaration for this Project, pursuant to the California Environmental Quality Act was previously adopted by City Council on June 20, 2022. LOCAL PREFERENCE Local preference is not applicable as this action does not involve a bid or an award of a construction or services contract. FISCAL IMPACT There is no impact to the City’s General Fund. This action represents the City’s conditional commitment of non-general fund housing resources to the Project. Attachment: Resolution Committing Funds and Land