This comes after the city authorized a $6.2 million loan to help secure additional state housing tax credits.
"When people work together, they can get things done," said Fresno Mayor Jerry Dyer.
It was a celebratory moment for the Mayor during the groundbreaking ceremony.
The development, called "Sarah's Court", aims to house 120 families with affordable rent. Officials said it should be complete in a year and a half.
"The demand for housing is higher than it's ever been and unfortunately the supply of housing is not where it needs to be," said Mayor Dyer.
He says the goal is to secure over 6900 housing units over the next three years.
The city is working with developer Lance Kashian & Company on this project. Spokeswoman Tracy Kashian said it was important to offer housing for all income levels.
"You need to cover all people in all different economies," said Kashian.
She says a shopping center will also break ground in the coming months.
This evolving neighborhood is personal for Councilmember Luis Chavez, who grew up in this part of the city.
"I used to ride my bike when this was old fields and orchards and to see new development come to southeast Fresno to me is really a symbol and sign of the progress that we're making here," said Councilmember Chavez.
He said the housing development has been three years in the making and required money from state and federal grants, as well as the city.
Chavez says his vision was to build a neighborhood where people can live, work, and play.
We asked Councilmember Chavez what kind of shopping and restaurants will be coming to the area, he said the list includes retail stores like Target, restaurants like Chipotle, In-N-Out, Chick-Fil-A, just to name a few.
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