Fresno Gets $32 Million State Grant to Convert Valley Inn Into 84 Permanent Housing Units

The City of Fresno received $32 million in California Homekey+ funding to convert the Valley Inn motel on Parkway Drive into 84 units of permanent supportive housing, Governor Gavin Newsom announced July 23.

The city will partner with Parkway Prime LLC to convert the existing 106-unit interim housing site into 84 permanent apartments. Plans include upgraded laundry facilities, community space, case management offices, and kitchenettes in every unit. Nine apartments will be reserved for veterans.

The Fresno City Council authorized the joint application in a March 13 consent-calendar vote. The city had sought up to $35 million; the award came in at $32 million.

The Valley Inn sits on a 2.42-acre parcel at 933 North Parkway Drive. The city acquired it in May 2021 under the state’s first Homekey program and used Homekey 2 funds to improve the facility as an interim shelter in August 2022.

This award is the third recent Homekey+ investment in Fresno County. Fresno County received $28 million in May for Sendero Commons, an 88-unit development in Sanger with 45 units reserved for veterans. The city broke ground in June on Davu Village, a 62-unit project on Parkway Drive for individuals transitioning out of homelessness or at risk of it.

“Projects like this one are helping expand affordable housing in our city, but more importantly are preventing displacement by giving people an opportunity to prosper in their own community,” Mayor Jerry Dyer said. “By investing in this part of our city, we are continuing to change the trajectory of that area and giving people the services they need for a new beginning.”

The Breakdown

• The city will convert 106 interim shelter units into 84 permanent supportive apartments, reducing the total unit count but adding full kitchenettes, upgraded facilities, and case-management offices.
• Accessibility improvements include a modernized elevator and ADA-compliant units and common areas.
• Nine apartments are reserved for veterans.
• The project is part of a broader redevelopment effort along Parkway Drive, an area the city describes as “long affected by blight, crime and homelessness.”
• Combined with the Sanger and Davu Village awards, Fresno County has received more than $60 million in recent Homekey+ funding.

What This Means for You

This project is the result of a March 13 City Council vote authorizing the Homekey+ application. The $32 million is state money, not local tax dollars, but it commits Fresno to housing built around case management and wraparound services for individuals experiencing homelessness or behavioral-health challenges.

What to Watch

The $32 million is the state grant to the city; the material does not state whether Parkway Prime LLC or other sources are contributing additional funds toward the project’s total cost, or what that total is. The city sought $35 million and received $32 million — whether the difference will be made up elsewhere or the project scope adjusted is not stated.

The conversion reduces the unit count from 106 to 84 while adding kitchenettes and accessibility upgrades. That means fewer people housed at this site than under the interim model, in exchange for permanent rather than emergency shelter.

The same Parkway Drive corridor has already been the site of Davu Village, another recent supportive-housing project.

Nine units are reserved for veterans out of 84 total. The county’s Sendero Commons project in Sanger reserved 45 units for veterans out of 88 total — more than half. The material does not explain the difference in prioritization.