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Council transfers city‑owned motel to Fresno Mission Communities for 34 permanent supportive housing units
Summary
The council approved transfer of a city‑owned motel, purchased for $4.4 million, to Fresno Mission Communities for $2 as part of a Homekey Round 3 award; the property will be converted to 33 units plus a manager unit (34 total) for people experiencing or at risk of homelessness, with rents set at no more than 30% of tenant income.
The Fresno City Council approved the transfer of a city‑owned motel to Fresno Mission Communities for $2 so the nonprofit can convert the property to permanent supportive housing under a Homekey Round 3 grant.
Phil Skye, assistant director in the planning and development department, said the city purchased the motel for $4,400,000 and identified Fresno Mission Communities as the operator in the Homekey application. Under the agreement described to council, the nonprofit will operate 34 units (33 residential units plus one manager’s unit). Skye said 23 units are for people experiencing or at risk of homelessness and 10 units are reserved for youth who are homeless or at risk.
Skye and other staff explained the program rules and tenant selection process. The Homekey agreement requires the property to participate in the city’s coordinated entry system; tenants will be referred from that system and screened under standard rental screening and fair‑housing rules. Skye said there will be no religious requirement or mandatory religious participation for tenants despite the nonprofit’s faith affiliation.
Council members asked about rents and tenant protections. City staff provided initial monthly rent levels tied to the project’s affordability requirement of tenants paying no more than 30% of their income. Staff listed initial rent figures discussed during the hearing: studio $409, one‑bedroom $438, two‑bedroom $526 and three‑bedroom $607. Staff said these rents reflect income limits for units subsidized through the state program and that rents will be capped by applicable affordability terms.
Council members also asked whether tenants could be evicted for choices such as school enrollment for children. Staff said eviction would not be justified under fair‑housing law solely for school non‑attendance; eviction would be a matter between tenant and property manager under the lease and civil law, and the city’s agreement with the owner does not impose school attendance requirements.
Skye said applicants will be referred through the coordinated entry system and that Fresno Mission Communities will perform property management functions and tenant screening, as would any private operator. The project also can accept Housing Choice Vouchers if a tenant holds one, Skye added.
The council voted to approve the transfer and related actions. Council members described the conversion as consistent with the city’s Homekey commitments to create long‑term housing for people experiencing homelessness.
