Housing remains a struggle for Merced residents. What has the city done to help this year?

With the scarcity and affordability of housing still a frequent concern among Merced residents, the city released an update Wednesday outlining recent efforts to build more units and support home buyers.

Those efforts include establishing a first-time mortgage assistance program, launching an owner-occupied rehabilitation assistance program and constructing more affordable housing projects. Affordable units have costs fixed so that lower-income occupants spend no more than 30% of their income on housing.

“Affordable housing projects are driven by the City Council’s 2022/23 goals and priorities,” Merced City Manager Stephanie Dietz said in the release.

“Through Council’s direction and collaborative relationships with local and state agencies and housing partners, the city continues to focus on a coordinated approach to support the construction of affordable housing, supportive services and evaluating alternative housing solutions.”

Housing developments wrapping this year

Construction is complete on the long-anticipated affordable housing project titled the Retreat Apartments, located at Childs Avenue and B Street.

The development is slated to house 30 extremely low-and 88 low-income individuals and families. The 119 total units are comprised of one to three-bedroom homes ranging from 573 to 1302 square feet. Rental rates range from $661 to $895 per month.

The project also includes a clubhouse, resident lounge with workstations, professional fitness center, laundry facilities and an onsite property manager, the release said.

Approximately 60% of units have already been leased with additional applicants in the rental process. The property manager expects to be at complete occupancy by October, according to the release.

Although still in the works, the CC915 R Street Housing project is on track to finish by the end of the year. The units, constructed from modular shipping containers, will provide housing for veterans experiencing chronic homelessness.

The plan is part of Project Homekey, a statewide effort to sustain and rapidly expand housing for people experiencing homelessness or at risk of homelessness, who are also inherently impacted by COVID-19 and other communicable diseases.

The project consists of 21-unit shipping containers that will serve as permanent supportive housing for local unhoused veterans.

Residents will have access to supportive services such as intensive case management, linkages to behavioral and physical health programs, assistance obtaining benefits and essential documentation, as well as educational and employment services, the release said.

Also set to wrap by the end of the year is the Twelve Thirteen V Street Housing Project, another Homekey grant project.

The plan will transform the former hotel at V Street into a 96-unit permanent supportive housing resource for homeless and chronically homeless individuals with incomes equal to or less than 30% of the area median income. Fifteen of those units will be accessible for individuals with mobility disabilities.

Each unit will include a kitchenette, refrigerator, stove or hot plate, and microwave and will be furnished with a bed, dresser, table, desk and chairs, the release said. The units will also have cable and internet access.

Residents will have access to supportive services similar to those available at the CC915 R Street Housing Project.

Rental and residential information will be available as the project’s completion nears.

Four parcels in the downtown Merced area are also slated to become four to five single family homes. The housing will be constructed via grants, donations and a low-income family willing to contribute sweat equity to build their home at cost and then purchase it at a rate they can afford, the release said.

The homes will be built one at a time and aren’t expected to kick off until November. The units will have covenants assuring their affordability for at least 45 years, should they be resold.

Programs for Merced home buyers

The city received $2.5 million in CalHome Program Funding this year to support first-time homebuyers and owner-occupied rehabilitation assistance programs.

The CalHome Program will provide $1.125 million in funding for first-time mortgage assistance, the release said. An additional $1.375 million will support owner-occupied rehabilitation assistance.

Funding will be leveraged to aid qualified first-time home buyers through deferred-payment loans for down payment assistance and home rehabilitation, including manufactured homes not on permanent foundations. It will also go toward home buyer counseling, self-help mortgage assistance, or technical assistance for self help home ownership.

All funds to individual homeowners will be in the form of loans.

Program guidelines and application development are in the final stages. The City Council is set to review and approve the program agreement during a November meeting, the release said.

More projects in development

Several housing projects are in earlier development stages, including a 54-unit permanent supportive housing development by Linc Housing. Currently in the pre-development phase, the housing site will be located at 18th and I Streets.

Another 65-unit mixed-use permanent supportive housing development is planned on Park Avenue. The project will be all one-bedroom apartments and include supportive services.

About half of the units will serve individuals that are experiencing or at-risk of experiencing homelessness, and who also have a serious mental illnesses.

The remaining units will be made affordable to special needs households. Mental and behavioral health services will be available to residents in partnership with the County of Merced Department of Behavioral Health and Recovery Services, the release said.

A 156-unit project on Loughborough Drive will include another 123 units for families and 31 units for special needs individuals and families. The project is titled Devonwood Village Apartments.

An additional 108 housing units are planned at 1808 Parsons Avenue. The development will provide one to four-bedroom homes available to individuals and families with incomes equal to or less than 60% of the area median income.