The multi-faceted Fancher Creek Town Center project in Southeast Fresno could soon get an apartment complex consisting of 180 affordable senior rental housing units.
City leaders have high hopes for Fancher Creek. Fancher Creek is to consist of residential and retail elements. It is to be a master-planned project with the latest in quality-of-life amenities. In short, Fancher Creek is to be further proof that people from all walks of life now want to live in parts of Fresno that aren’t located north of Herndon Avenue.
The key is getting Fancher Creek built.
Toward that end, the city’s Housing and Community Development Commission on Wednesday will consider a request from the Fancher Creek developer for a long-term loan of $1,420,500 in federal HOME funds. The developer would apply this money toward construction of a 180-unit affordable senior rental complex at Marion Avenue and Fancher Creek Drive.
The proposed loan agreement is between City Hall and FCTC Senior, LP. The staff report from Jennifer Clark, director of the Planning and Development Department, says Ed Kashian is among FCTC Senior’s partners. Kashian for decades has been one of Fresno’s most prominent commercial/retail/residential developers.
Clark writes of the Fancher Creek apartment project: “The Development team created River Park, Campus Pointe, Park View Plaza, Palm Cross, and is currently working on a master plan development at Fancher Creek in the central southeast area of Fresno. Once completed, the Fancher Creek Master Plan Development will consist of 90-plus acres and will be home to 970,000 square feet of commercial and retail businesses, a senior housing development, a multifamily housing development, a plaza, recreational space, and approximately 1.5 miles of trail along the canal.”
The project will have 144 one-bedroom units. Each will be about 493 square feet in size. There will be 36 two-bedroom units, each about 830 square feet in size. The 180-unit project will be located on a two-acre site.
Clark writes that in exchange for HOME funding, the city will receive 11 HOME-assisted units which shall remain affordable for 55 years. Qualifying senior tenants occupying the HOME assisted units will have an income of 50% to 80% of area median income and be age 62 or older. Completion of this senior apartment complex is scheduled for January 2022.
Clark writes: “Once the Project is complete, the units will assist the City in meeting its affordable housing goals as identified in the Housing Element of the 2035 General Plan, Consolidated Plan, and HOME Program funding priorities for new housing development. The Project is also expected to make a positive impact to the neighborhood by offering new, quality, durable, affordable senior housing.”
According to accompanying documents, the estimated cost of the Fancher Creek senior apartment complex is $31.05 million. The City Council has already awarded $2.26 million to the developer for property acquisition. Clark’s report says this award was made “in an effort to meet HUD’s CDBG timeliness test.”
The previous award of $2.26 million and the proposed HOME loan of $1.42 million means the senior apartment project would still require about $27.4 million in funding.
Clark writes: “Mr. Edward Kashian, as a general and limited partner of Kashian Enterprises, will continue to seek takeout financing to reduce or eliminate the $27,374,559 commitment of funds. As such, the sources and uses and cash flow statements will likely continue to change. Take out financing is proposed to consist of 4% California State tax credit equity, CalHFA loan, and a permanent construction loan.”
Among the documents on the City Clerk’s website is the “Personal Guaranty of Edward M. Kashian for Balance of Funds for Construction, and Occupancy of the Fancher Creek Senior Housing Project.”
The Housing and Community Development Commission is an advisory body.
The Brand Administration is asking the commissioners to recommend approval of the loan to the Fancher Creek affordable senior apartment project.