City Council accepts $15.6M state grant for Blackstone upgrades tied to affordable housing project — but local taxes will cover the shortfall

The Fresno City Council voted July 25 to accept $15.6 million in state funding for transit and street improvements tied to a 114-unit affordable housing development at 3787 N. Blackstone Avenue. The grant comes from California’s Affordable Housing and Sustainable Communities Program, funded by cap-and-trade auction proceeds.

The grant pays for bus upgrades, sidewalks, bike lanes, and bus stop improvements around the Dakota affordable housing project, which UPholdings LLC is building for families and veterans earning 30% to 60% of area median income. The city’s own staff report says the $15.6 million won’t cover the full cost — additional Measure C and Measure P tax revenue will be needed in fiscal year 2026 to close the gap, though the exact shortfall amount isn’t stated.

Of the $15.6 million total, $10.4 million goes to city-led improvements — FAX gets $6.75 million for one new hydrogen fuel cell bus on Route 39, operating funds to cut wait times from 30 minutes to 15 minutes for five years, and upgrades to 16 bus stops. Public Works gets $3.6 million for sidewalks and bike lanes on Blackstone between Shields and Dakota. The remaining $5.2 million goes to outside entities: $4.5 million to CalVans for 40 electric vans, $391,000 to the developer for transit passes and internet, and $351,000 to Fresno Rescue Mission for unspecified services.

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The improvements must be finished by 2028. The council approved a memorandum of understanding with the developer in March 2023 — the state required that agreement before the developer could apply for the grant.

The Breakdown

• $6.75 million for FAX: one hydrogen fuel cell bus for Route 39, five years of operating funds to cut wait times in half (30 minutes down to 15), and upgrades to 16 bus stops near the project
• $3.6 million for Public Works: new and wider sidewalks on Blackstone from Shields to Dakota, Class IV bike lanes on both sides of Blackstone, crosswalk improvements, ADA curb ramps, and a new pedestrian beacon at Dakota and Garland
• $4.5 million to CalVans for 40 electric vans and operating costs
• $391,000 to UPholdings for three years of free monthly transit passes (one per unit), free internet, and legal fees
• $351,000 to Fresno Rescue Mission (purpose not stated)
• The city will need to tap Measure C (bike lane funding) and Measure P (safe walking and biking trails) to cover costs beyond the $15.6 million — the shortfall amount and timeline aren’t specified

What This Means for You

This vote commits the city to matching state dollars with local tax revenue you already approved for bike and pedestrian projects — Measure C and Measure P. The council didn’t vote on whether to spend that local money; staff plans to include it in a future budget without a separate approval listed here.

The developer needed the city’s agreement to apply for the grant in the first place — the council gave that in March 2023, before knowing whether the state would actually award the money. Now that the award came through, the vote locks in the city’s end of the deal.

What to Watch

The staff report confirms the $15.6 million state grant won’t cover the full cost, but it doesn’t say how much Measure C and Measure P money the city will actually have to add — that number will show up in the fiscal year 2026 capital budget, not this resolution. You won’t know the real public cost until then.

The material gives no detail on what the Fresno Rescue Mission’s $351,000 is actually for. The city has until 2028 to finish the work.