Dyer calls housing a “basic right” – State threatens city for blocking North Fresno project

Fresno Mayor Jerry Dyer on Friday called housing security a “fundamental right” and said the city needs tens of thousands of additional housing units.

Meanwhile, the City Council has rejected two high-profile housing projects in northern Fresno – both of which were supported by Dyer’s administration.

And the state warned the city this month that it may be violating its own housing plan.

Dyer spoke at Fresno Housing's first State of Affordable Housing opening dinner on Friday along with Tyrone Roderick Williams, County Supervisor Nathan Magsig, State Housing and Development Director Gustavo Velasquez and others.

Dyer emphasized the city's central role in financing housing – especially affordable housing.

“Local government must step up housing construction. Otherwise, our homeless population will increase dramatically,” Dyer said.

But the City Council may disagree. In the last eight months, council members have rejected multifamily housing projects twice.

A vote in July rejected a four-story market-rate apartment complex at Herndon and Prospect Avenues. In December 2023, the council rejected a previously approved affordable housing project at Bullard and Fresno Avenues.

Related story: City Council rejects luxury apartment project in northwest Fresno. What's next?

And on Aug. 7, the state Department of Housing sent Dyer's administration a letter obtained by GV Wire saying the decision jeopardizes the city's required housing goals.

“The denial of the Quality Inn Homekey project is in direct conflict with several of the City's draft policies and programs,” the letter states. “In addition, as outlined in the HCD's February 1, 2024 housing review, the City must continue to analyze and address fair housing concerns in the City.”

The Quality Inn Reversal

The redevelopment of the Quality Inn proposed by RH Community Builders and UPHoldings would have created 58 affordable housing units, 30 of which would have been for the chronically homeless.

In April 2023, the council unanimously voted to submit an application for HomeKey funding to convert the motel into a residential building.

In November, the state approved $16.5 million for the project. After some neighbors loudly protested the project, council members Miguel Arias, Garry Bredefeld, Mike Karbassi, Tyler Maxwell and Luis Chavez rejected the project on technicalities.

Council members Annalisa Perea and Nelson Esparza supported the project.

Opponents of the project spoke of homelessness, which endangers the lives of the residents. The project developers explained during the council meeting that the property management would ensure the safety of the residents.

Related story: City Council's rejection of Quality Inn housing project is a…

Phil Skei, the city's deputy director of planning and development, warned council members at the time that not only would the funding be lost, but the city would also lose points on future applications.

The state housing authority also reprimanded council members for pigeonholing people who live in social housing.

“The City Council's discussion of assumptions and stereotypes regarding the homeless raises further fair housing concerns,” the letter states. “The City Council advises that decision makers' consideration of the characteristics of potential residents of the affordable housing project, particularly with respect to protected groups such as people with disabilities (e.g., related to mental health), may violate fair housing laws.”

HCD director warns against concentration of affordable housing in poor areas

At Friday's event, HCD Director Velasquez noted that Fresno was declared a “prohousing” district by Governor Gavin Newsom in April 2023. Fresno received the award for building affordable housing.

Dyer noted that 800 housing units are coming to Fresno this year.

During the meeting, Velasquez warned against a concentration of affordable housing in poor areas.

Related story: Fresno City Council rejects affordable housing project in North Fresno

Supporters of the Quality Inn project pointed out the proximity to services such as shopping and job centers at city council meetings. The housing authority also pointed out the project's location.

The state designated the intersection of Bullard Avenue and Fresno Avenue as “a moderate resource area bordering high resource areas.”

Only one affordable housing project in Fresno is classified as a top resource area.

“By declining to fund this project, the city has chosen not to take action to truly overcome patterns of segregation and promote inclusive communities without barriers that limit access to opportunity,” the letter said.