The sign of the former Days Inn is removed, with the property becoming the Sun Lodge as part of Project HomeKey in this 2021 photo. Photo by Fresno Housing

Co-developers for the Fresno Quality Inn Homekey project, UPholdings, and RH Community Builders, said abandoning the plan to convert the hotel into temporary housing for people experiencing homelessness is “financially reckless.”

The co-developers released a statement this week expressing disappointment with the Fresno City Council’s 5-4 vote last week against the Quality Inn Homekey project. In April of this year, the council approved the project unanimously, the developers pointed out.

Once the City of Fresno instructed development partner RH Community Builders to secure the location, all seven council members voted in favor of the project, which included City of Fresno financial contributions and California Homekey funds. After the unanimous resolution, the project went through due process to ensure its feasibility and was awarded $16.45 million in state funding for this project and location.

The plan would have converted the hotel near Highway 41 and Bullard Avenue into affordable housing through Project Homekey, a state grant given to help rapidly expand housing availability for individuals and families experiencing or at risk of homelessness.

The city council decided to decline the funding from the state after business owners in the area of the Homekey project spoke during the city council meeting last week. Many stated that having an apartment complex through Project Homekey would be a dangerous addition to the area. 

“Affordable housing advocates and developers are not new to fear-based opposition and NIMBYism before new developments, but this is the first time in our 20-year history that a city has meticulously selected a location and the council voted unanimously to approve the project, only to have some council members flip-flop on their support just months later based on false claims of inflated costs, inaccurate zoning excuses, and unjustified assumptions of the lifestyles of people who are exiting homelessness,” UPholdings and RH Community Builders said in the joint statement.

The co-developers added that the project was zoned appropriately, did not require any council action, and that the project scope remained unchanged from April to December.

“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,” UPHoldings and Community Builders said. “The federal and state mandates on Fresno to foster fair housing and create opportunities were aligned with this initiative, and co-developers UPholdings & RH Community Builders have a proven track record of developing other successful Homekey projects that have had positive ripple effects throughout the Central Valley.”