The lumberyard is currently home to the Visalia Arts Consortium.
But they won't be going anywhere.
The city says Self-Help Enterprises will develop 81 affordable housing units along with artist loft spaces and space for the consortium.
"Self-Help Enterprises is excited to create affordable housing opportunities in Visalia, while adding a robust partnership with the arts community to provide living, working, teaching, and gallery space downtown," said Self-Help Enterprises CEO Tom Collishaw.