REPORT TO THE CITY COUNCIL, THE CITY IN ITS CAPACITY AS HOUSING SUCCESSOR AND THE FRESNO REVITALIZATION CORPORATION FROM: JENNIFER CLARK, Director Planning & Development Department PHIL SKEI, Assistant Director Planning & Development Department MARLENE MURPHEY, Executive Director Housing Successor Agency to the Redevelopment Agency BY: MAYRA MERINO, Senior Management Analyst Planning & Development Department SUBJECT ..Title Actions pertaining to the Ventura Family Apartments affordable housing development project, located South of E. Cesar Chavez Blvd between S. Seventh Street and S. Eighth streets (District 5): 1. Adopt a finding of Categorical Exemption pursuant to Section 15332/ Class 32 of the California Environmental Quality Act (CEQA) Guidelines; and 2. ***RESOLUTION - Repealing Resolution Number 2024-125 and replacing it with language in support of a contribution of City and Housing Successor Agency land and a contribution of City funds in an amount not to exceed $5,000,000 toward the Ventura Family Apartments project located South of E. Cesar Chavez Blvd between S. Seventh and S. Eighth streets (Subject to Mayor's Veto); and 3. Approve an Affordable Housing Agreement with Corporation for Better Housing to develop the Ventura Family Apartments affordable rental housing development project located South of E. Cesar Chavez Blvd between S. Seventh and S. Eighth streets. ..Body RECOMMENDATION Staff recommends the City Council (1) adopt the Categorical Exemption pursuant to Section 15332/ Class 32 of the California Environmental Quality Act (CEQA) Guidelines, (2) approve repealing Resolution Number 2024-125 and replacing it with language in support of a conditional contribution of City funds in an amount not to exceed $5,000,000 as well as City and Agency land towards the Ventura Family Apartments project, and (3) approve an Affordable Housing Agreement with Corporation for Better Housing for the Ventura Family Apartments project. EXECUTIVE SUMMARY The City Council adopted Resolution Number 2024-125 on June 20, 2024, in support of the Ventura Family Apartments (Project), a new mixed-use, mixed-income affordable housing development comprised of 54 units. The Resolution conditionally contributes City funds, City-owned property (APN 470-052-02T and APN 470-05203T), and Housing Successor to the Redevelopment Agency (Agency)-owned property (APN 470-052-01T). The Resolution and the conditional contributions terminated December 31, 2024. Repealing Resolution Number 2024-125 will allow the City to execute funding agreements due to funding obligations and performance deadlines. Adopting the proposed resolution will continue to conditionally contribute City funding in an amount not to exceed $5,000,000 as well as City and Agency owned land, subject to the Developer's demonstration of sufficient evidence that the Project is fully funded. City and Agency's conditional disposition of the Property and this resolution shall terminate on December 31, 2025. Approval of the Affordable Housing Agreement is required to demonstrate site control to support Corporation for Better Housing's funding application to the California Tax Credit Allocation Committee. BACKGROUND On May 31, 2023, the City of Fresno's Planning and Development Department and the Agency issued a Request for Proposal (RFP) for the mixed-use, mixed-income development encompassing residential and commercial retail space, targeting multi-family housing, workforce housing, and/or senior housing. On June 20, 2024, the City Council adopted Resolution No. 2024-125, which provided a conditional commitment of City funds in an amount not to exceed $5,000,000 and the conditional contribution of City-owned parcels (APN 470-052-02T and APN 470-052-03T) and Agency-owned parcel (APN 470-052-01T).The commitments and Resolution are set to expire December 31, 2024. The Developer has made significant progress in securing funding and has expressed the need for an Affordable Housing Agreement (AHA) and Ground Lease to establish site control of the parcels, a requirement for the 9% Tax Credit Allocation Committee (TCAC) application due by March 18, 2025. Repealing Resolution 2024-125 and adopting a revised resolution will fulfill the City's conditional commitment of up to $5,000,000 in funds, as well as the land contributions from both the City and the Agency. This revised resolution will remain in effect until December 31, 2025, provided the Developer can demonstrate that the Project is fully funded. ENVIRONMENTAL FINDINGS Staff has determined that this project qualifies as infill development consistent with the general plan designation and is exempt from the California Environmental Quality Act(CEQA) under Section 15332/Class 32 of the CEQA Guidelines. LOCAL PREFERENCE Local preference is not applicable, as this action does not involve a bid or award for construction or services contracts. FISCAL IMPACT There is no impact on the City's General Fund as a result of this action. State and/or Federal funding will be utilized. Attachments: CEQA Categorical Exemption Resolution Ventura Family Apartments Affordable Housing Agreement