Fresno City Council Approved $3.2 Million to Buy Parkway Inn for Homekey Housing Project

The Fresno City Council approved spending $3,234,000 in taxpayer money to acquire the Parkway Inn at 959 N. Parkway Drive in December 2021. The purchase was tied to a Homekey 2.0 funding application.

The Council took over a purchase agreement originally entered by the Fresno Housing Authority. The Housing Authority had negotiated the deal in February 2021. The city paid the Housing Authority $1,000 for an option agreement to complete the transaction.

Staff recommended the purchase to meet a site-control requirement for the Homekey 2.0 application process run by the California Department of Housing and Community Development. The material does not state whether the Homekey application was approved, how much state funding the city received, or what happened to the property after the purchase.

The Council voted to adopt the purchase on December 9, 2021. The vote passed. District 3 includes the property location.

The Breakdown

• The Fresno Housing Authority entered a purchase agreement for the Parkway Inn in February 2021 for $3,234,000.
• The City Council approved taking over that agreement in December 2021, paying $3,234,000 in taxpayer money for the property.
• The city paid the Housing Authority $1,000 for an option agreement to complete the deal.
• The purchase was required to apply for Homekey 2.0 funding from the California Department of Housing and Community Development.
• The material does not state how much Homekey funding the city sought, whether the application succeeded, or what the property’s current status is.

What This Means for You

The City Council approved spending $3.2 million of taxpayer money on this property. The material does not say how much state money arrived, if any, or whether the project moved forward after the purchase.

What to Watch

The city spent $3.2 million in taxpayer money in December 2021. The material does not state where that money came from — a federal grant, the general fund, reserves, or borrowing. It does not state how much Homekey 2.0 funding the city applied for or received. It does not state what happened to the property after the purchase — whether it was converted, how many units it holds, who lives there now, or what it cost to operate.

The Fresno Housing Authority negotiated the original deal, then assigned it to the city for a $1,000 option fee. The material does not explain why the Housing Authority did not complete the purchase itself, or what role it played after the assignment.