On Thursday, the Fresno City Council will consider contributing $6 million toward affordable housing in a former Parkway Drive area motel. Google Street View image

The Fresno City Council threw its support Thursday behind a $10.5 million funding commitment and long-term lease of three city-owned parcels to push along the Parkview Apartments, an affordable housing project under development by the Cesar Chavez Foundation.

The development is planned as part of the Parkway Drive corridor and would include up to 53 units of permanent housing for households earning up to 30% of the area median income (AMI). There will also be 91 additional affordable rental units for households earning up to 80% of the AMI, according to the resolution. 

The former Travel Inn & Suites is located at 1444 W. White Ave.

Under the agreement, Fresno would provide a loan and grant adding up to $10.5 million for eligible construction and development costs. 

The city would also contribute the properties through a ground lease of $1 per year for a 55-year term, with a two-year right of entry to allow the developer to start construction before the lease starts. 

Fresno’s half-century ground lease is dependent on the development getting full project financing and receiving approval from the California Department of Housing and Community Development and the city council. If there is no evidence of full funding by Dec. 31, the resolution along with city support would be terminated. 

The loan would carry a 55-year term and accrue interest at 3% annually, with repayment from residual receipts.

Also along the same corridor at Parkway Drive, Fresno Housing recently secured nearly $25 million in federal and state Low-Income Housing Tax Credits to support Davu Village, a 63-unit permanent housing project at 1415 W. Olive Ave. Construction on that project is expected to begin in summer 2026.