A $32 million grant from the state of California will fund the conversion of the Valley Inn motel in Fresno into 84 permanent affordable housing units.

The project will transform the motel on Parkway Drive, across from Roeding Park, into affordable housing, with nine units reserved for veterans, according to a city news release.

The motel currently provides 106 emergency shelter units. The project cost translates into roughly $400,000 a unit.

“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,” Fresno 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.”

Upgrades Include On-Site Laundry, Kitchenettes

The funding will allow the city to expand the motel’s footprint and add amenities, including an on-site laundry facility, community space and meeting rooms for case management services.

The units also will receive kitchenettes, new flooring, lighting and bathroom fixtures. The reduction from 106 to 84 units is due to the additional square footage required for each unit.

The funding comes from the state’s Homekey+ program. The city is partnering with Encino-based Parkway Prime LLC on the development. The company is associated with Benjamin Dreicer, a San Diego-based real estate broker.