Fresno secures $32 million state grant to convert Valley Inn motel into 84 permanent housing units

The City of Fresno received $32 million in California Homekey+ funding to convert the Valley Inn motel at 933 North Parkway Drive into 84 units of permanent supportive housing. The City Council approved the joint application with developer Fresno Prime LLC on March 13, 2025, on consent. Governor Gavin Newsom announced the award July 23.

The existing 106-unit interim shelter will be converted into 84 permanent apartments. The project includes upgraded laundry facilities, community space, case management offices, and kitchenettes in every unit. Nine apartments are reserved for veterans.

The site sits on a 2.42-acre parcel the city acquired in May 2021 using earlier Homekey funding to operate as an interim homeless shelter. The city received additional Homekey 2 grant funds in August 2022 for facility improvements.

Mayor Jerry Dyer said the project expands affordable housing while preventing displacement. “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,” Dyer said.

The February 11 staff report to council sought authorization to apply for up to $35 million. The actual award came in at $32 million.

The 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 for veterans. The city broke ground in June on Davu Village, a 62-unit project on Parkway Drive for individuals transitioning out of homelessness.

The Breakdown

• The city will convert the Valley Inn motel into 84 permanent supportive housing units for individuals experiencing homelessness, chronic homelessness, or at risk of homelessness who also face behavioral health or substance use challenges.
• The project includes a mix of studio and one-bedroom units, plus a manager’s unit, with accessibility improvements including ADA-compliant units and a modernized elevator.
• Nine apartments are reserved specifically for veterans.
• The city already owns the property, having purchased it in 2021 as an interim shelter using earlier state Homekey funding.

What This Means for You

The City Council’s March 13 consent-calendar approval authorized the city to pursue this $32 million grant. The $32 million state grant works out to approximately $381,000 per unit of permanent supportive housing for people dealing with behavioral health challenges.

Fresno voters deciding whether to re-elect Mayor Dyer or current council members now have a concrete record: 84 units of permanent supportive housing at one Parkway Drive site the city acquired in 2021 and improved with additional grant funds in 2022.