ਸ਼ਹਿਰ ਫ਼ਰੈਸਨੋ ਅਤੇ ਸੈਂਟ੍ਰਲ ਫ਼ਰੈਸਨੋ ਨੇਬਰਹੁੱਡ ਟ੍ਰਸਟ, LLC ਦੇ ਵਿਚਕਾਰ ਸਟੇਟ ਅਤੇ ਲੋਕਲ ਫਿਸਕਲ ਰਿਕਵਰੀ ਫੰਡਜ ਗ੍ਰਾਂਟ ਐਗਰੀਮੈਂਟ ਨੂੰ ਪਹਿਲੀ ਸੋਧ (ਫਰਸਟ ਅਮੈਂਡਮੈਂਟ) ਨੂੰ ਮਨਜੂਰ ਕਰੋ ਤਾਂ ਕਿ ਪ੍ਰੋਜੈਕਟ ਦੀ ਸ਼ਿਡਿਊਲ ਨੂੰ 31 ਦਸੰਬਰ, 2027 ਤੱਕ ਵਿਸਤਾਰ ਕੀਤਾ ਜਾ ਸਕੇ, ਗ੍ਰਾਂਟ ਦੀ ਰਕਮ ਵਿੱਚ ਕੋਈ ਤਬਦੀਲੀ ਨਹੀਂ ਹੈ, 50 ਭਾੜੇ-ਪ੍ਰਤਿਬੰਧਿਤ ਸਸਤੇ ਮਕਾਨ ਯੂਨਿਟਾਂ ਨੂੰ ਪ੍ਰਾਪਤ ਕਰਨ ਅਤੇ ਪੁਨਰ-ਸੰਘਟਿਤ ਕਰਨ ਲਈ

REPORT TO THE CITY COUNCIL FROM: JENNIFER K. CLARK, AICP, Director Planning and Development Department PHILIP SKEI, Assistant Director Planning and Development Department BY: JENNIFER DAVIS, Senior Management Analyst Housing Finance Division, Planning and Development Department SUBJECT ..Title Approve a First Amendment to the State and Local Fiscal Recovery Funds Grant Agreement between the City of Fresno and Central Fresno Neighborhood Trust, LLC to extend the project’s schedule to December 31, 2027, with no change in grant amount, to acquire and rehabilitate 50 rent-restricted affordable housing units ..Body RECOMMENDATION Staff recommends the City Council approve a First Amendment to the State and Local Fiscal Recovery Funds Grant Agreement with Central Fresno Neighborhood Trust, LLC, granting a one-year extension to December 31, 2027, to acquire and rehabilitate 50 rent-restricted affordable housing units in Central Fresno. EXECUTIVE SUMMARY On November 3, 2022, the City Council approved a State and Local Fiscal Recovery Funds (SLFRF) Grant Agreement in the amount of $1,950,000 with Central Fresno Neighborhood Trust, LLC (CFNT) for the acquisition and rehabilitation of 50 housing units to be preserved as affordable rental housing in Central Fresno, with an affordability period of 55 years. Approving a First Amendment to the SLFRF Grant Agreement between the City of Fresno and CFNT will provide CFNT a one-year extension of time to acquire and rehabilitate the balance of the 50 affordable rental units. The First Amendment will extend the project schedule to December 31, 2027, for acquisition and rehabilitation only. There is no change in the grant amount. BACKGROUND The City received State and Local Fiscal Recovery Funds (SLFRF) from the U.S. Department of the Treasury under the American Rescue Plan Act (Pub. L. 117-2) (the Act). The City elected to use a portion of this allocation to support the COVID-19 Public Health and Economic Response by addressing impacts on households and communities. This fund utilization aligns with the One Fresno Housing Strategy, which includes approaches aimed at reducing homelessness through the creation and preservation of affordable rental housing – an eligible use of SLFRF funds under the Act. As part of the execution of this strategy, on November 3, 2022, City Council approved a State and Local Fiscal Recovery Funds (SLFRF) Grant Agreement with Central Fresno Neighborhood Trust, LLC (CFNT) in the amount of $1,950,000 to be used for the creation of the Mixed Income Neighborhood Trust (MINT) to facilitate the acquisition and rehabilitation of 50 housing units to be preserved as Low- to Moderate-Income rental housing (Project). CFNT is a mixed-income neighborhood trust launched in partnership with Lowell CDC and Trust Neighborhoods, the national nonprofit that developed the mixed-income neighborhood trust model. A MINT develops, owns, and operates mixed-income rental housing throughout a neighborhood with a simple mission: preserve affordable rents in perpetuity, deliver quality housing, and build community accountability directly into ownership and governance. MINT launched in 2022 with assistance from the City’s SLFRF grant of $1,950,000 to CFNT. Central Fresno has been identified as a good fit for MINT given the high percentage of households who are renters and the centrally located nature of the neighborhoods. Due to a period of disinvestment, long-time residents of Central Fresno are at risk of being priced out of the walkable, centrally located neighborhoods they've sustained, providing MINT the opportunity to protect against displacement. CFNT is governed by a board of community partners and neighborhood leaders from local and statewide organizations, including San Joaquin Valley Housing Collaborative, Santa Clara Housing Authority, Hidalgo CDC, UPholdings, Lowell CDC, and Trust Neighborhoods, alongside a Trust Stewardship Committee of Central Fresno residents and advocates. Lowell CDC manages day-to-day operations, bringing 15 years of experience in equitable housing development and community engagement. CFNT works with several local partners to support acquisitions, renovations, property management, and accounting. On June 30, 2026, CFNT provided the City with a comprehensive update on MINT, which included the current portfolio and a clear path to reaching the agreement’s performance requirement of creating 50 affordable units. CFNT has adequate resources to meet the obligations of the SLFRF agreement but has requested additional time. CFNT is requesting to extend the deadline to December 31, 2027 as a result of prior acquisition efforts not materializing. The SLFRF Agreement provides that an extension of time in the performance of the agreement is permitted by written approval of all parties in the form of an amendment. In order to comply with the SLFRF expenditure deadline, CFNT utilized the City’s SLFRF investment of $1,950,000 to acquire 23 units over four property sites in City Council Districts 3 and 7. The rehabilitation and occupancy of two of the four properties are complete and plans to repair and lease the remaining units are underway. To fulfill the obligations of the SLFRF agreement CFNT is in active negotiations regarding a 22-unit scattered site development, and a 48-unit portfolio, among others. The SLFRF Agreement provides that upon the acquisition of each of the 50 SLFRF-assisted units CFNT will record at the close of escrow a Declaration of Restrictions, which contains the affordability covenants and income level restrictions of the SLFRF Agreement, and will run with the land. Each of the four properties acquired to date are encumbered by the Declaration of Restrictions, ensuring that each of the SLFRF-assisted units will be preserved as Affordable Housing Units for households earning up to 80% Area Median Income (AMI) for the duration of the 55-year Affordability Period. CFNT’s goal aligns with the City’s affordable housing goals to create long-term, quality affordable rental housing by acquiring properties, rehabilitating the rental units, and then leasing them to income eligible households at an affordable rent while holding title to the portfolio properties. This owner/operator structure will provide Central Fresno communities with more control over how rental properties are operated, maintained, and preserved as affordable housing. ENVIRONMENTAL FINDINGS On October 25, 2022, the Planning and Development Department performed an environmental assessment of this Project and determined it falls within the Categorical Exemption set forth in California Environmental Quality Act (CEQA) Guidelines Section 15301/Class 1 (Existing Facilities) which exempts projects involving a negligible or no expansion of an existing facility. This exemption applies because this project involves the purchase and rehabilitation of existing multifamily housing units without expansion of the facilities. Furthermore, staff determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. Additionally, pursuant to the Coronavirus State and Local Fiscal Recovery Funds Final Rule, NEPA does not apply to the Treasury’s administration of the funds. On November 3, 2022, the City Council adopted a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of CEQA Guidelines. LOCAL PREFERENCE Local preference was not considered based upon conditions of federal funding, and because this action does not include a bid or award of a construction or services contract. FISCAL IMPACT There is no impact to the City’s General Fund. The $1,950,000 grant was funded through the State and Local Fiscal Recovery Funds appropriated to the Planning and Development Department as part of its FY23/24 Budget. Attachments: First Amendment to the SLFRF Grant Agreement with CFNT Original SLFRF Grant Agreement with CFNT