Fresno Councilmembers propose housing programs to fight crisis. Here’s a sneak peek

Three Fresno City Councilmembers are proposing a number of initiatives to tackle the housing crisis in response to Mayor Jerry Dyer’s One Fresno Housing Strategy.

The No Place Like Home Initiative is on the Nov. 3 City Council meeting agenda and sponsored by Councilmembers Miguel Arias, Luis Chavez and Esmeralda Soria.

The initiative includes four proposals: a down payment assistance program; two tiny home villages; creating a community development partnership for southwest Fresno; and an overhaul of the city’s planning and permitting process to boost efficiency in developing housing, businesses and parks.

The initiative is on the same council agenda as three One Fresno Housing Strategy proposals negotiated between the mayor’s office and the city council. The city council earlier this month postponed voting on the proposals so they could negotiate changes with the mayor’s office. The proposals include a community land trust, a Section 8 housing voucher incentive program and a program to provide landlords grants in exchange for freezing rents for two years.

No Place Like Home Initiative

The first piece of the No Place Like Home Initiative would use $5 million in American Rescue Plan Act funding for down payment assistance programs for middle class families who are first-time home buyers and can prove they’ve lived in Fresno city limits for at least five years. The council is defining middle class as household incomes of $120,000 or less. Applicants would also have to complete a home buyer course.

These applicants would receive up to $15,000 if buying a home as a primary residence. At first the money would be a 0% interest loan. If the buyers live in the home for five years or longer, the loan would turn into a grant. If the home buyers sell the home or convert into a rental before five years, they’d have to repay the loan.

The initiative also would provide $5 million in ARPA funding to establish two tiny home villages, one in downtown and one in southeast Fresno. The tiny homes would be located on publicly owned land and would have a lease to purchase option for tenants.

Another piece of the initiative gives $1 million in ARPA money to establish the Southwest Fresno Development Corporation partnership. The money would go toward repurposing the Bank of America building in southwest Fresno into a community development center, in partnership with the Fresno Housing Authority, that provides multilingual first-time home ownership financial literacy to southwest Fresno residents.

The partnership also would provide home development in the southwest Fresno specific plan area so that southwest Fresno residents can become homeowners and avoid dislocation. The councilmembers also hope it will prevent gentrification.

The last piece of the initiative would create a committee consisting of Councilmembers Arias, Chavez and incoming District 1 Councilmember Annalisa Perea to asses and oversee reforms to improve efficiency in the city’s development process. The committee would also consider changes to the city’s municipal code and administrative regulations.

Developers, businesses and homeowners updating their homes for years have complained about the long and arduous permitting process with the city of Fresno. The committee would be charged with trying to address those complaints and streamlining the processes.

One Fresno Housing Strategy changes

The new proposal for the Section 8 housing voucher incentive program will use $1 million in state and federal pandemic relief funding to provide assistance for up to 500 existing, Section 8 voucher holders who are unable to find housing. The program will give signing incentives to attract new landlords and new affordable housing units, help tenants with deposits and credit checks, create a damage repair fund and offer vacancy loss payments.

For the land trust, the councilmembers and mayor’s office negotiated setting aside $225,000 to develop a community land trust plan that focuses on creating permanently affordable, community-controlled housing in Fresno neighborhoods. The plan will provide details on housing acquisition priorities, financial partners, capital plans and clarity on the stewardship and asset management model.

The third One Fresno Housing Strategy item would establish the Central Fresno Neighborhood Trust, a collaboration between the Lowell Community Development Corporation and Trust Neighborhoods. The group’s goal is to develop, own and operate mixed income and affordable properties throughout central Fresno neighborhoods.

The city will provide a grant to the neighborhood trust to act as a reimbursement for buying 50 existing rental properties, renovating them and leasing them as affordable rental units for 55 years. Renters whose income is 80% of the annual median income would qualify. The city will give the neighborhood trust $1 million up front and another $950,000 once certain benchmarks are met.

Council meeting

The Fresno City Council will hold its regular meeting on Thursday at Fresno City Hall. The meeting begins at 9 a.m. and is open to the public in person and accessible via Zoom.