REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning & Development Department PHIL SKEI, Assistant Director Planning & Development Department BY: MAYRA MERINO, Senior Management Analyst Planning & Development Department SUBJECT ..Title Approve the First Amendment to Local Housing Trust Fund Avalon Commons Phase II Agreement with Avalon Commons Phase II, LP., a California Limited Partnership, to extend the project schedule beyond 180 cumulative days. (Council District 6) ..Body RECOMMENDATION Staff recommends that the City Council approve the First Amendment to the Avalon Commons Phase II Agreement with Avalon Commons Phase II, LP., a California Limited Partnership, to extend the project schedule beyond 180 cumulative days. EXECUTIVE SUMMARY The Avalon Commons Phase II project is comprised of the construction of 45 multifamily units, a mixture of one-, two-, and three-bedroom units for low-income households whose income ranges from 30 percent to 80 percent of the area median income for Fresno County, and one manager unit. The First Amendment to the Agreement proposes a 12-month extension to the project timeline, allowing the Developer additional time to secure full financing required for this project. This extension is necessary due to unforeseen delays in financing and will enable continued progress toward project completion. BACKGROUND On May 11, 2023, the City Council approved the Local Housing Trust Fund Agreement with Avalon Commons Phase II LP (Developer) for the construction of 45 multifamily housing units. Construction was initially scheduled to begin in July 2025; however, unforeseen delays in securing financing have affected the timeline. On November 14, 2024, the Developer informed staff that an extension was necessary to secure the full financing needed to move forward with the project. The requested 12-month extension will allow the Developer the time necessary to secure the required financing and ensure key milestones are met. If approved, construction is expected to commence in July 2026, with an estimated completion by December 2027. ENVIRONMENTAL FINDINGS On, or about, June 25, 2021, the applicant requested a Streamlined Ministerial Approval of the project pursuant to Government Code section 65913.4. As a ministerial approval, the Planning and Development Department determined that the project as described is exempt from the California Environmental Quality Act (CEQA) under Sections 15268 and 15300.1 of the CEQA Guidelines FISCAL IMPACT Approval of this amendment extends a commitment of funds previously obligated and appropriated through the Local Housing Trust Fund in Fiscal Year 2025. Attachment: First Amendment Avalon Commons Phase II Agreement