Fresno Mayor Jerry Dyer called housing security a “fundamental right” on Friday and said the city needed tens of thousands more units.

Meanwhile, the city council has turned down two notable housing projects in north Fresno — both supported by Dyer’s administration.

And, the state this month warned the city it may be violating its own housing plan.

Dyer spoke Friday at Fresno Housing’s first inaugural State of Affordable Housing luncheon, alongside Fresno Housing CEO Tyrone Roderick Williams, county supervisor Nathan Magsig, state housing and development director Gustavo Velasquez, and others.

Dyer emphasized the essential role the city plays in securing funding for housing — especially affordable housing.

“Local government must drive housing. If not, our unhoused population will increase dramatically,” Dyer said.

But the city council may not be on the same page. Councilmembers have twice in the past eight months denied multi-family housing projects.

One vote in July rejected a four-story market-rate apartment complex at Herndon and Prospect avenues. In December 2023, the council turned down an affordable housing project at Bullard and Fresno avenues it had previously approved.

Related Story: Council Rejects Luxury NW Fresno Apartment Project. What’s Next?

And, on Aug. 7, the state’s housing department sent a letter acquired by GV Wire to Dyer’s administration saying the decision threatens the city’s required housing goals.

“The denial of the Quality Inn Homekey project is in direct opposition to several of the City’s draft policies and programs,” the letter stated. “Additionally, as outlined in HCD’s February 1, 2024 housing element review, the City must still analyze and address fair housing concerns in the City.”

The Quality Inn Reversal

The Quality Inn conversion proposed by RH Community Builders and UPHoldings would have provided 58 units of affordable housing, with 30 dedicated to the chronically homeless.

In April 2023, the council unanimously agreed to submit an application to request HomeKey funding to convert the motel into housing.

In November, the state granted the project $16.5 million. After vocal opposition by some neighbors to the project, Councilmembers Miguel Arias, Garry Bredefeld, Mike Karbassi, Tyler Maxwell, and Luis Chavez denied the project on a technicality.

Councilmembers Annalisa Perea and Nelson Esparza supported the project.

Opponents of the project talked about the blight brought by homeless. Project developers during the council meeting said property management ensures safety among residents.

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Phil Skei, assistant director of planning and development for the city, warned councilmembers then that not only would the funding be lost, but the city would be docked points for future applications.

The state housing department also chastised councilmembers for stereotyping people living in affordable housing.

“City Council’s discussion of assumptions and stereotypes regarding homeless individuals raises further fair housing concerns,” the letter stated. “HCD notes that decisionmakers’ consideration of characteristics of prospective residents of the affordable housing development, particularly with respect to protected groups such as people with disabilities (e.g. related to mental health), may run afoul of fair housing laws.”

HCD Director Warns About Concentrating Affordable Housing in Poor Areas

At Friday’s event, HCD Director Velasquez noted Fresno’s “Prohousing” designation by Gov. Gavin Newsom in April 2023. Fresno received the distinction for its construction of affordable housing.

Dyer noted that there are 800 units of housing coming to Fresno this year.

Velasquez during the meeting warned about concentrating affordable housing in areas of poverty.

Related Story: Fresno Council Votes Down Affordable Housing Project in North Fresno

Advocates of the Quality Inn project during city council meetings noted its proximity to services, such as shopping and job centers. The housing department similarly noted the project’s location.

The state called the Bullard and Fresno avenues intersection a “moderate resource area that is bound by high resource areas.”

Only one affordable housing project in Fresno is considered in the “highest resource area.”

“In rejecting funding for this project, the City chose not to take action to affirmatively overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity,” the letter stated.