Developers blast Fresno lawmakers for axing homeless housing project

Fresno had been set to use over $16 million in state funds to convert a hotel to affordable housing for the homeless.

The decision by the City of Fresno to not move forward with a Project Homekey housing development has been called “financially reckless” by the developer. 

Nearly 60 units of permanent supportive housing would have been added to the city’s arsenal had the city council moved ahead with it. 


The backstory: A couple weeks ago the Fresno City Council voted 5-2 to reject the Quality Inn Homekey project. 

  • Project Homekey is a statewide program that provides funding to expand housing for the homeless, often converting hotels and motels into permanent or interim housing units. 
  • The Quality Inn project would have converted the Quality Inn near Highway 41 and Bullard Ave. into affordable housing. 
  • The council unanimously supported the project in April before being awarded $16.45 million in state funding. 

The big picture: UPHoldings and RH Community Builders released a statement last week blasting the decision by the council, saying it places future state funding in jeopardy and has a direct, negative impact on the community. 

  • Concerns on the project revolved around inflated costs, zoning and potential crime in the area. 

What they’re saying: “The project scope remained exactly the same from April to December, yet the council decided to renege on their own resolution,” the developers said. “This sudden reversal of a council resolution is not just legally problematic and poor governance, it’s a breach of trust in a public-private partnership and a breach between the State of California and the City of Fresno.” 

  • The developers said they remain committed to advocating for the local homeless population and fighting for solutions “despite the city council’s regrettable decision.” 
  • “We look forward to hearing how the City of Fresno and its council members plan to pivot quickly and reallocate the time-sensitive funding that was earmarked for this project – particularly the council members who voted against it who remain in dire need of affordable housing in their own districts,” the developers said. 
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