HousingWireHousingWire
In a move seen as a blow to the city’s plans to develop affordable housing, the mayor of Fresno, California, announced during a city council meeting that the city has lost a pro-housing designation from the state due to perceived failures in expanding its affordable housing stock.
In April 2023, Fresno was announced as one of 11 California communities that achieved the state-level status. These cities demonstrated a commitment to housing construction and became “eligible for funding incentives and additional resources through state grant programs to speed the production of housing,” according to the announcement from Gov. Gavin Newsom’s office.
But Fresno Mayor Jerry Dyer announced the state’s revocation of the status, which could’ve given the city leeway to potentially apply for millions of dollars in housing assistance funds. The development was reported by local outlet GV Wire.
“We’ve not done enough, in their eyes, to accelerate housing within our city,” the mayor said at the May 22 city council meeting. “In fact, we’re the only city awarded the designation that missed the deadline. I’m ashamed of that as the mayor of this city.”
Dyer told the outlet that it appears Fresno lost its status as the result of a city council vote in December 2023, which denied the conversion of a hotel into an affordable housing complex on the north side of the city. The city can regain the status, he added, but the council will need to be more proactive in approving affordable housing projects.
“If we want this designation, we’re going to have to do some things from the dais, the council will, that they may not be all that comfortable with,” Dyer told GV Wire. “Any time you grant ministerial authority, meaning that projects for affordable housing are going to be able to not necessarily be rubber stamped, but approved in a more expedient fashion.”
The revocation of the status comes as federal housing funds are being pulled back or challenged. The Trump administration’s stated desire to reduce funding for Housing Choice Vouchers (HCVs) — commonly referred to as “Section 8” vouchers — has already thrown the affordable housing landscape in multiple localities into chaos. That includes Fresno.
Two weeks ago, officials with Fresno’s housing authority warned of “a potential mass displacement event” stemming from the president’s budget recommendation, according to reporting at Fresnoland.
If enacted, the budget proposal would implement nearly $33 billion in cuts to the U.S. Department of Housing and Urban Development (HUD), with much of that funding tied to rental assistance programs.
The largest proposed cut to HUD by far would target the State Rental Assistance Block Grant program. It would trim $26.7 billion across a variety of programs — including tenant-based rental assistance, public housing, project-based rental assistance, housing for the elderly and housing for people with disabilities.
