Fresno Council Commits $3 Million in Public Funds to 67-Unit Manufactured Housing Project

The Fresno City Council approved $3 million in public funding for a 67-unit manufactured rental housing development at 3572 N. Blythe Avenue in west central Fresno’s District 1. The May 2, 2024 vote authorized $400,000 in Community Development Block Grant funds for site acquisition, $1.8 million in HOME Investment Partnerships Program funds for construction, and up to $800,000 in additional city housing funds — subject to a future agreement — for developer Blythe Village, LP.

Total project cost is estimated at $14.5 million. Beyond the city’s $3 million public contribution, the developer is financing the balance through a $9.4 million construction loan, $726,634 in deferred equity, and $1.4 million in general partnership capital. Per-unit cost works out to roughly $216,905; construction cost per square foot is pegged at $143.77.

In return for the public investment, the city receives deed restrictions on 18 units: seven tied to the CDBG funds, 11 to the HOME funds. All 67 units — each a 3-bed/2-bath manufactured home ranging from 933 to 1,120 square feet — will be rental units on a 4.8-acre gated site at the northeast corner of N. Blythe Avenue and W. Saginaw Way. The development includes 142 parking spaces (80 covered), bicycle storage, and landscaping.

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The CDBG loan is structured as a third-position residual receipts note at 2% interest, due in 55 years. The HOME loan sits in fourth position at 3% interest, also with a 55-year maturity. The developer, which recently completed The Villas on Fancher Creek — a 39-unit market-rate manufactured housing project — was selected from a 2023-2024 funding competition as one of the most shovel-ready applicants.

The Breakdown

• City Council approved three funding agreements on May 2, 2024: $400,000 CDBG for land acquisition, $1.8 million HOME for construction, and a resolution committing up to $800,000 in city housing funds (final agreement to be presented in fiscal 2025).
• Total project cost: $14.5 million. Public contribution: $3 million. Developer financing: $11.5 million (construction loan, deferred equity, partnership capital).
• 67 rental units, all 3-bed/2-bath manufactured homes. 18 units will carry affordability restrictions tied to the public funds; the material does not specify income limits or rents for those units, nor the status of the remaining 49.
• Site: 4.8 acres at 3572 N. Blythe Avenue, vacant land at the northeast corner of Blythe and W. Saginaw Way, District 1.
• Residual receipts loans mean repayment depends on project cash flow after operating expenses. Both loans mature in 55 years, in third and fourth lien positions, meaning other creditors get paid first.

What This Means for You

This Council vote ties $3 million in public dollars — federal grant funds the city controls, plus direct city housing funds — to a single privately-developed manufactured housing project. Eighteen units out of 67 will carry affordability restrictions as a condition of that investment; the material does not state what happens to the other 49, nor whether the restricted units serve extremely low-income households or moderate-income renters closer to market rates.

The separate $800,000 city commitment has no final agreement yet; a second Council vote will define those terms in fiscal 2025.

Your ability to evaluate this decision depends on knowing what affordability the $3 million actually bought. The city’s housing goals — cited in the staff report as justification — don’t determine whether this particular deal delivers value; the Council’s vote does, and the material provided for that vote leaves key details unstated.

What to Watch

Start with the core question: $3 million in public funds for 18 affordability commitments out of 67 total units. What are the other 49 units, and what income levels do the 18 restricted units serve? The material does not answer either question.

The developer’s recent comparable project — The Villas on Fancher Creek, 39 market-rate manufactured homes — shows the developer’s track record is in market-rate development, not affordable housing.

The loan structure places the city’s funds in third and fourth lien positions with 55-year maturities. The material justifies the project by citing the city’s housing goals; it does not explain why this project, at this cost, advances those goals better than available alternatives.

Track the fiscal 2025 agreement for the remaining $800,000 — terms, lien position, and whether it buys additional affordability commitments or simply fills a funding gap.

And ask what the 18 restricted units’ actual rents and income limits are, information the staff report does not provide. Without that, you can’t evaluate whether the $3 million bought deep affordability for very-low-income households or modest discounts for moderate-income renters who could nearly afford market rates anyway.