The state has awarded the City of Fresno $13.4 million to rehabilitate the Parkway Inn into 62 living units for homeless. Image via Google Street View

The City of Fresno will receive new Project HomeKey funds to add 62 units of housing to shelter the homeless.

The California Department of Housing & Community Development awarded $13.4 million Tuesday to the City of Fresno to purchase and rehabilitate the Parkway Inn at 959 N. Parkway Dr. Of that amount, $9.94 million is earmarked for capital costs and another $3.47 million for operating costs.

This is the first award the City of Fresno has received from HomeKey 2.0 — the second round of funding from the state to refurbish older hotel properties.

Calls made to the City of Fresno were not immediately returned. An operator for the project was not announced. Fresno Housing as well as RH Community Builders — the owners of previous HomeKey properties — contracted with Turning Point of Central California to operate the former motels.

This would be the third property this year money to which money has been allocated to create housing for the homeless.

In January, the Fresno City Council approved $3.3 million for the 56-unit Ambassador Inn and $2.43 million for the 51-unit Villa Motel. That funding did not come from Project HomeKey.