Atwater City Council
August 10, 2026

City of Atwater
Housing Plan
2024-2032 Housing Element B7-17
in high resources areas, such as the Fluhr neighborhood. Include education regarding laws prohibiting source of income discrimination (Fair Employment and Housing Act).
▪ Starting in 2026, annually conduct one workshop for landlords on the HCV program, for a total of seven workshops during the planning period, targeting property owners/managers in High Resource Tracts. ▪ Promote the availability of PHLA funds by posting information to City website by July 2026, and include in informational
flyer/newsletter/etc., to be distributed at meetings and shared with non-profit organizations (See Program 13).
▪ Consistent with state law that mandates the provision of housing for ELI households, the City will prioritize processing and funding allocation for projects that include units for ELI households, especially farmworker housing.
▪ Consistent with state law that mandates the provision of housing for special needs households, the City will prioritize processing and funding allocation for projects that include units for special needs households.
▪ Beginning in 2026 and annually thereafter, pursue funding available at the state and federal levels for affordable housing development.

Specifically, pursue funding programs that target the needs of extremely low and very low income households.
▪ Provide letters of support to funding applications by developers if the proposed projects are consistent with the goals and objectives of this Housing Element, as requested.
▪ Consistent with state law that mandates the provision of housing for special needs households, the City will prioritize processing and funding allocation for projects that include units for farmworker households. By the end of 2026, the City will:
 Beginning in 2026 and annually thereafter, engage farmworker stakeholders, housing advocates, and nonprofit organizations to identify farmworker housing needs.
 Provide technical assistance to developers working on farmworker housing projects and conduct pre-application conferences and meet with farmworker housing developers at least annually and on an ongoing basis. Annually meet with farmworker housing developers to identify housing opportunities.
 Post information, including includes a site inventory and available land, housing resources and grant information, on the Community and Economic Development Department website by June 2027.  Contact farmworker housing developers to determine interest and identify constraints to farmworker housing development within the city by the end of 2026 and annually thereafter. Advocate for the development of intergenerational farmworker housing for multiple generations of farmworkers (retirees, working adults, and children) to create opportunities for mutual self-reliance, such as provision of childcare and elder care.
 Beginning in 2026, prioritize the review and processing of farmworker housing applications on an ongoing basis.
 Beginning in 2026, actively seek federal and state housing finance programs and support developers in securing funding for farmworker housing by providing letters of support to funding applications.
 Create and distribute informational materials by January 2027 to raise awareness about farmworker housing programs and
opportunities.

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-18
 As part of the Working Group described in Program 1, beginning in 2026, meet annually to discuss and identify efforts to address farmworker housing regionally.
▪ The City, County, and Merced regional collaboration partners will pursue a variety of strategies and funding to encourage the development, rehabilitation and conservation of housing for farmworkers such as such as funding development, integrating housing for farmworkers into development, developer identification, maintaining an inventory of suitable sites, site development, ensure zoning and development standards facilitate a variety of housing types for farmworker housing needs. The City and collaborative partners will make a specific and at least annual effort to assist in the development of housing for farmworkers and conserve and improve the existing housing stock for farmworkers, including but not limited to:
 Contacting nonprofit developers at least every other year to identify opportunities for the development or improvement of housing for farmworkers.
 Coordinating and participating with regional organizations, including non-profit, academic, and employers, to raise awareness, share and employ strategies, or target new resources.
 Coordinating annually with organizations that represent or serve farmworkers.
 Providing incentives and other strategies beyond state density bonus law to encourage housing for farmworkers, including setting aside housing for farmworkers within developments, supporting funding applications, prioritizing entitlements and establishing appropriate zoning and development standards.
 Targeting code enforcement and other resources to the existing housing stock with the most need for rehabilitation and sanitary conditions that could be more likely to house farmworkers and work with regional or other organizations to improve living conditions for farmworkers.
▪ Perform outreach to religious institutions to provide information and educate them regarding the availability of SB 4 provisions to construct affordable housing units and to connect them with potential affordable housing developers. Create an outreach and technical advisory program that includes the following actions:
 Conduct a workshop in 2027 and 2029 to explain recent legislation (SB 4 and AB 1851) and how it can apply to religious facility properties in Atwater.
 Invite religious facility owners and local nonprofit developers to participate.
 Provide informational materials to religious facility property owners on the development process.
 Provide technical assistance to religious facility property owners to assist with the project entitlements.
 Focus outreach in the Fluhr neighborhood.
▪ Partner with the Merced Gospel Mission Homes to provide transitional and permanent supportive housing to people and families experiencing homelessness. Facilitate the identification of an additional 30 units that can support the mission of providing transitional and permanent supportive housing.

Primary Responsible Departments Planning Department
Funding Sources HUD, Self-Help Enterprise funding sources

City of Atwater
Housing Plan
2024-2032 Housing Element B7-19
Relevant Policies 3.2, 5.1, 5.4, 5.5, 7.4
AFFH Themes ▪ Outreach and Education
▪ Housing Mobility
▪ New Housing Opportunities in Areas of High Resources
▪ Anti-Displacement and Tenant Protection
Geographic Targeting Citywide, targeting mobility to Highest Resource Tracts and higher income neighborhoods (Flurh, Buhach, and McSwain)
AFFH Outcomes ▪ Assist two Atwater households through HCVs. ▪ Promote with the goal of expanding the use of HCVs in the city by 10 percent by December 2030, using 2023 data as baseline.
▪ Assist eight households through the PHLA program, with at least six households that currently reside in the Fluhr and Downtown Atwater neighborhoods.
▪ Increase housing mobility options by facilitating the development of 100 housing units that serve low-income and special needs population through the planning period.
▪ Identify 30 units that can provide transitional and permanent supportive housing for people experiencing homelessness.

Program 11: Water and Sewer Service
The City’s Public Works Department is the provider of water, sewer, and sanitation services within city limits. The City confirms that adequate water and sewer services are available to fully accommodate the RHNA.

Pursuant to SB 1087, as the City’s water/sewer service provider, the City has not adopted a policy to prioritize the allocation of water/sewer services to affordable housing projects.

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-20
Specific Actions, Objectives and Timelines ▪ By the end of 2027, complete update to water and sewer master plans to ensure there is sufficient capacity to accommodate sites identified in the site inventory. As part of the updates to the plans:
▪ Include analysis of water and sewer services on sites identified in this Housing Element and identify strategies to address constraints to housing development on identified sites by February 2026. ▪ Conduct stakeholder outreach in 2026 to identify strategies to address infrastructure gaps.
▪ If water and sewer constraints are identified and would reduce the capacity or feasibility of development on inventory sites, identify alternative sites to ensure adequate capacity for development assumed in the site inventory by July 2026.
▪ By December 2026, draft a phased Infrastructure Improvement Strategy that identifies priority upgrades on RHNA sites that are aligned with available resources.
▪ Beginning in 2026, and annually thereafter, actively pursue state and federal funding required to complete wastewater system upgrades and other identified infrastructure improvements citywide. Financially assist at least one infrastructure project per year with awarded grant funding, prioritizing projects in moderate-resource areas (e.g., North and Downtown Atwater).
▪ Annually with the publication of the City’s Annual Progress Report, monitor the availability of water to serve future projects on identified sites to accommodate the City’s share of the RHNA.
▪ Annually, conduct outreach and education on water conservation measures through a social media campaign.
▪ Implement water conservation measures, such as landscape conservation incentives and residential plumbing retrofits by December 2027.
▪ By December 2026, apply for funding to implement bioswales, permeable pavements, and rain gardens on city-owned land to manage stormwater and reduce sewer load.
▪ Pursue/provide rehabilitation assistance that includes energy conservation and weatherization improvements as eligible activities. ▪ By the end of 2026, adopt a policy to prioritize the allocation of water and sewer services to affordable housing projects (SB 1087). ▪ Conduct a study to evaluate the infrastructure impact of single-family and multi-family homes and update the fee schedule by June 2026. ▪ Beginning in 2026, review the priority project list for infrastructure improvements after every project completion. In revising the list, give a scoring bonus consideration to moderate-resource areas with infrastructure need that can be met with available funding. ▪ Expedite permits for water and wastewater improvements that increase capacity in areas with housing sites.
▪ Coordinate with the Merced Subbasin Groundwater Sustainability Agency to align future affordable housing developments with the provisions of the groundwater sustainability plan, and track groundwater sustainability conditions, groundwater allocations, and implementation actions relevant to planned housing development areas and community plan boundaries.
▪ Support and participate in regional efforts to expand groundwater recharge, recycled water use, or other alternative supplies intended to improve long-term groundwater sustainability in areas planned for housing. Organize an annual focus group, then as-needed periodic meetings and workshops, involving water resource agencies,

City of Atwater
Housing Plan
2024-2032 Housing Element B7-21
developers, and stakeholders to discuss water management strategies for residential development. Hold at least one water and housing focus group annually.
▪ Assess the feasibility of Tax Increment Financing (TIF) Districts and/or Enhanced Infrastructure Financing Districts (EIFD) being used to fund infrastructure improvements to support housing development. ▪ Annually, beginning in 2026, apply for grant funding from agencies involved in the California Financing Coordinating Committee on an annual basis in accordance with the release of a Notice of Funding Availability. Pursue funding through the Infill Incentive Grant (IIG) Program, sponsored by HCD, to support infrastructure investments, including park creation; water, sewer, or other public infrastructure; transportation improvements; and traffic mitigation.

Primary Responsible Departments Planning Department
Funding Sources General Fund
Relevant Policies 3.1, 4.4
AFFH Themes N/A
Geographic Targeting Citywide
AFFH Outcomes Increased water and sewer capacity in moderate-resource areas, such as North and Downtown Atwater.

AFFH Outcomes N/A
Program 12: Community and Economic Development
Well-maintained infrastructure creates a safe and accessible urban environment, fostering a sense of community and belonging. Moreover, investing in such improvements attracts businesses and investments, contributing to economic growth and ensuring equal access to essential services. The City will implement the following actions to expand community and economic development citywide.

Specific Actions, Objectives and Timelines ▪ Starting in 2026, collaborate with Merced County Transit (the Bus) to determine location of bus stops to serve new developmentsin annexed neighborhoods by meeting at least annually.
▪ Starting in 2026, coordinate with the Public Works Department to review the City’s Capital Improvement Projects (CIP) annually to ensure public facilities and infrastructure are supportive of the needs of underserved communities, especially in Downtown Atwater. ▪ Starting in 2026, seek funding and complete projects to improve the conditions in Downtown Atwater, a neighborhood with
disproportionate needs and a concentration of minorities and poverty, including but not limited to:
▪ Pedestrian Improvements to Connect to Downtown Phase 2 - construction funded - to be completed 2024.
▪ Pedestrian Improvements to Connect to Downtown Phase 3 - only design funded - in progress.
▪ Pedestrian Improvements to Connect to Downtown Phase 4 - only design funded - in progress.
▪ Citywide Traffic Signals Synchronization - construction funded - design and construction target completion 2024.
▪ New Traffic Signal at Atwater Blvd & First St (ACE Train Station Support Project) - construction in progress to be completed 2024.

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-22
▪ Bloss Parking Lot (ACE Train Station Support Project) - design funded and in progress, construction not funded.
▪ Parking Lot at Atwater Blvd & First St (ACE Train Station Support Project) - environmental clean closure in progress - design target completion 2024, construction not funded.
▪ ACE Train Station - design partially funded.
▪ Apply for funding beyond CIP annually.
▪ Hold at least one community workshop in Fluhr and Sierra Vista by December 2026 to identify active transportation needs and apply for funding to implement projects outlined in the Regional Active Transportation Plan by December 2027. Implement at least one active transportation project in Fluhr and Sierra Vista by the end of the planning period.
▪ Concurrent with Housing Element adoption, at least every other year, identify funding sources and apply for funding to address additional community development issues such as neighborhood revitalization, parks, safe routes to school, community facilities, or addressing pollution burdens, with the goal of securing funding for two additional community revitalization projects during the planning period. ▪ Advance environmental justice through community engagement, TOD, and affordable housing in the General Plan Update currently underway (expected to be adopted by the end of 2026).
▪ Starting in 2025, apply for and utilize cap and trade program funds from the Greenhouse Gas Reduction Fund (GGRF) for efforts such as tree planting and restoration, home energy efficiency, zero emission and plug-in hybrid vehicles, and affordable housing.
▪ Ensure engagement strategies consider linguistic isolation and target lower income and special needs households.
▪ Host an Economic Development Summit in October 2025 and implement the policy to increase the number of locations where economic incentives are available within the Atwater Planning area. ▪ Starting in 2025, partner with the Merced County Economic Development Division to host at least one event annually in Atwater to inform local business owners of available business assistance programs. ▪ Starting in 2025, partner with the local employment organizations to Host at least one employment workshop annually to connect Atwater residents with job opportunities and workforce training program opportunitiesto expand awareness of available employment assistance and job training programs. Workshops should also spread general awareness of available employment, training, and job preparation resources through Worknet Merced County.
▪ Work with The Bus (Merced Transit Authority) to provide free bus passes to residents attending job fairs and interviews. ▪ Partner with the Chamber of Commerce, local business owners, and potential businesses to identify planning and infrastructure needs to support business development in Atwater.
▪ Starting in 2026 and bi-annually, coordinate with Merced County and the San Joaquin Valley Air Pollution Control District to develop and implement a plan to reduce pollution burden throughout the city, targeting air quality, water quality, and pesticide use. Assess pollution burden in the city and create an action plan to reduce pollution burden and addressing proper remediation plans for cleanup sites and hazardous waste sites.
▪
Primary Responsible Departments Planning Department

City of Atwater
Housing Plan
2024-2032 Housing Element B7-23
Funding Sources General Funds
Relevant Policies 3.1, 4.4
AFFH Themes Place-based Strategies for Neighborhood Improvement Geographic Targeting Downtown Atwater, North Annexation Area AFFH Outcomes ▪ Support the completion of one CIP project per year during the planning period, with a focus on projects in the Flurh and Downtown Atwater neighborhoods.
▪ Hold discussions with at least five potential business owners during the planning period.
▪ Apply for additional funding for community revitalization projects with the goal of securing funding for one project per year during the planning period.
▪ Improve CalEnviroScreen scores citywide by December 2031.

Program 13: Fair Housing Outreach and Enforcement
The City of Atwater works with the Merced County Housing Authority to provide fair housing information and resources to residents and housing providers. The Housing Authority contracts with Central California Legal Services (CCLS) to provide a local Fair Housing Information Program which includes distribution of educational materials to property owners, apartment managers, and tenants, and responding to complaints of discrimination (i.e., in-taking, investigation of complaints, and resolution) by referring the affected party to the appropriate agencies.

The City refers fair housing issues and complaints to Fair Housing Council of Central California (FHCCC) and the State Department of Fair Employment and Housing. The Department of Fair Employment and Housing (DFEH) maintains a record of housing discrimination complaints filed in local jurisdictions.

HATC refers fair housing issues and complaints to the U.S. Department of Housing and Urban Development (HUD). HUD’s Office of Fair Housing and Equal Opportunity (FHEO).

Specific Actions, Objectives and Timelines ▪ By July 2026, create a Housing Resources and Fair Housing Information Flyer in English and Spanish that includes:
 State and federal fair housing laws, specifically highlighting protected classes, including source of income protections  County and local rehabilitation and other housing resources (e.g., weatherization)
 Tenant/landlord/lender rights and responsibilities
 Fair Housing Complaint information and resources
 List of affordable housing units available
 State rent stabilization and state just cause eviction regulations ▪ Implement an information dissemination plan including:
 In collaboration with Merced County Housing Authority and/or CCLS or other fair housing organization, hold at least one annual fair housing workshops or pop-up events during the planning period for residents about housing rights and resources, materials in English and Spanish, starting in 2026.
 Starting in 2026:
− Biannually publish Fair Housing Flyer on housing rights and resources in the City Newsletter.

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-24
− At least once annually, publish fair housing information flyer in the City’s utility letter.
− At least once annually, publish fair housing information flyer on City’s social media.
 Update the City’s website to include information on fair housing flyer. Complete updates by July 2026.
 Starting in 2026, coordinate with non-profit organizations, local community groups, and service organizations to increase awareness of and access to housing resources and fair housing assistance by distributing fair housing flyers.
 Develop a Fair Housing factsheet to be included with the ADU application packet to inform property owners of their
responsibility with state and federal fair housing laws. Publish fair housing guide with ADU applications on or before July 2026.  Provide annual trainings for City staff on how to refer residents for fair housing complaints. Beginning in 2026, provide annual training to City staff on how to refer residents for fair housing complaints. ▪ Starting in 2026, participate in annual meetings with directors from other jurisdictions to discuss regional fair housing and housing resources for potential inclusion on the webpage or in the flyer. t Planning Department
Funding Sources General Fund
Relevant Policies 3.1, 4.4
AFFH Themes Enforcement and Outreach
Geographic Targeting Downtown Atwater
AFFH Outcomes ▪ Assist at least five residents and landlords with fair housing services annually, throughout planning period.

B7.3 AFFH Actions Summary
Government Code Section 8899.50 requires “meaningful actions” well beyond combating discrimination to overcome patterns of segregation and foster inclusive communities. Actions to affirmatively further fair housing include:
▪ Enhancing housing mobility strategies
▪ Encouraging development of new affordable housing in high resource areas ▪ Increasing fair housing enforcement and fair housing outreach capacity ▪ Improving place-based strategies to encourage community conservation and revitalization, including preservation of existing affordable housing
▪ Protecting existing residents from displacement
Actions to affirmatively furthering fair housing are summarized below.

City of Atwater
Housing Plan
2024-2032 Housing Element B7-25
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
Fair Housing Enforcement and Outreach
Program 13: Fair
Housing Outreach
and Enforcement
▪ Create a Housing Resources and Fair Housing Information Flyer in English and Spanish.
▪ Implement an information dissemination plan outlined in Program 13. ▪ Participate in annual meetings with directors from other jurisdictions to discuss regional fair housing and housing resources for potential inclusion on the webpage or in the flyer.

By July 2026
Annually
Citywide, with an
emphasis in
Downtown Atwater
Assist at least five residents
and landlords with fair housing
services annually, throughout
planning period.

Housing Mobility
Program 1:

Regional
Collaboration
▪ Starting 2026, at least annually participate in regional meetings related to housing and homeless issues to pursue funding and coordination opportunities. Annually pursue funding opportunities for regional housing issues.
▪ Starting 2026, at least annually partner with Upon HCD’s review of the City’s Updated ADU Ordinance the Merced County Human Services Agency and/or the Merced County Community Action Agency to proactively address shelter, housing and support services for people experiencing homelessness.
▪ Continue to be an active participant with MCAG and coordinate on regional planning and policy efforts to advance shared goals throughout Merced County.
▪ Participate in all Transit Joint Powers Meetings with MCAG and address all needs and concerns.
▪ Work with the Merced Continuum of Care to update and implement the 10-Year Plan to End Homelessness during the planning period. ▪ Starting in 2026, annually collaborate and coordinate regionally and with the California Department of Housing and Community Development to ensure the effective implementation of the Housing Element. This collaboration will include regular meetings (at least annually), and will include resource sharing, joint efforts with internal and external partners to address regional housing needs and achieve the goals outlined in the Housing Element, including affirmatively furthering fair housing and farmworker needs.

Annually,
beginning in 2026
Downtown Atwater Submit at least one project
from the Downtown Atwater
engagement workshop for
funding.

Establish a working group that
meets annually to identify
regional housing challenges,
funding opportunities, and
coordinate efforts to develop
affordable housing.

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-26
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
▪ Starting in 2026, participate in a regional collaboration with developers and affordable housing advocates to support the development of housing and implementation of the Housing Element.
▪ By 2026, establish a working group that meets annually to identify regional housing challenges, including but not limited to affirmatively furthering fair housing efforts and farmworker housing, funding opportunities, and consider input from the working group to coordinate efforts to develop affordable housing and implement the housing element, including making adjustments as appropriate to better achieve the goals and objectives of the housing element.

Program 5:

Accessory Dwelling
Units
▪ Beginning in July 2026, facilitate the production of ADUs through efforts including, but not limited to:
 Create an ADU Guidebook and Handout.
 Update ADU webpage to include available resources for ADU development, such as grants for pre-development costs available to lower-income homeowners through California Finance Agency (CalHFA) and PLHA loans.
 Offer expedited reviews for ADU applications.
 Develop a Fair Housing factsheet to be included with the ADU application packet to inform property owners of their responsibility with state and federal fair housing laws. Publish fair housing guide with ADU applications.
 Develop an ADU application checklist and publish the checklist on the City’s website.
 Add information on the ADU permitting process, as well as available resources and incentives, on the City’s website.
 Adopt pre-approved ADU plans and publish on the City’s website. ▪ During the planning period, conduct two educational workshops, campaigns, or outreach events to promote ADU development in the city to residents, with at least two events targeted to residents and developers in Highest-Resource census tracts and higher income neighborhoods (Fluhr, Buhach, and McSwain)..
▪ Participate in regional collaboration efforts to create pre-approved ADU plans.

By July 2026 Citywide with
emphasis on
Highest Resource
census tracts and
higher income
neighborhoods
(Flurh, Buhach, and
McSwain) .

Support the development of at
least 10 ADUs during the
planning period with at least
six ADUs in the HighestResource neighborhoods
identified in the Sites Inventory
as Flurh, Buchach, and
McSwain

City of Atwater
Housing Plan
2024-2032 Housing Element B7-27
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
▪ Upon HCD’s review of the City’s Updated ADU Ordinance, the City will amend its ADU ordinance if necessary to be consistent with ADU law by the end of 2026.
▪ Conduct a study and amend Zoning Code amendments to incentivize ADU production during the planning period, such as:
 Increasing the by-right ADU size to further incentivize ADU creation.  An allowance for an increase in the permitted height up to the height of the primary residence for ADUs built above a garage in single-family zones.
 Allowances for reduced setback requirements where privacy is not compromised
▪
Program 10: Lower
Income and Special
Needs Housing
▪ Over the 8-year planning period, subsequent to each Point-in-Time Count, conduct workshops for the Planning Commission and City Council to share the data from the count.
▪ Identify potential programs to aid homeownership opportunities and develop a list of resources by July 2026. Apply for feasible funding opportunities by December 2026.
▪ Develop an inventory of affordable housing, with contact information and the number of affordable units, and publish the inventory on the City’s website by July 2026.
▪ Connect low-income residents with housing assistance resources, including the HCV program.
 Add information on the HCV Program and other financial assistance programs to the City’s website by July 2026.
 Promote the availability of assistance programs through all City’s social media pages starting July 2026.
 Starting in 2026, attend at least one community events to spread awareness and distribute fact sheets on available financial assistance programs.
▪ Starting in 2026, in collaboration with the Housing Authority, provide education to property owners and managers to expand awareness of the HCV program to increase acceptance of tenant-based HCVs and to facilitate mobility and provide choices for lower-income households throughout the city. Include education regarding laws prohibiting source By July 2026 and
annually thereafter
Citywide with
emphasis on
Highest Resource
Tracts and higher
income
neighborhoods
(Flurh, Buhach, and
McSwain)
Expand the use of HCVs in the
city by 10 percent by
December 2030, using 2023
data as baseline.
▪ Assist two Atwater
households through HCVs.
▪ Assist eight households
through the PHLA program
Assist eight households
through the PHLA program,
with at least six households
that currently reside in the
Fluhr and Downtown
Atwater neighborhoods.
▪ Increase housing mobility
options by facilitating the
development of 30 housing
units that serve low-income
and special needs
population through the
planning period.
▪ Identify 30 units that can
provide transitional and
permanent supportive

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-28
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
of income discrimination (Fair Employment and Housing Act). Identify and address challenges that property owners/managers have with existing or prospective HCV holders. Target outreach to landlords in high resources areas, such as the Fluhr neighborhood. Include education regarding laws prohibiting source of income discrimination (Fair Employment and Housing Act).
▪ Starting in 2026, annually conduct one workshop for landlords on the HCV program, for a total of seven workshops during the planning period, targeting property owners/managers in High Resource Tracts. ▪ Promote the availability of PHLA funds by posting information to City website by July 2026, and include in informational flyer/newsletter/etc., to be distributed at meetings and shared with non-profit organizations (See Program 13).
▪ Consistent with state law that mandates the provision of housing for ELI households, the City will prioritize processing and funding allocation for projects that include units for ELI households, especially farmworker housing.
▪ Consistent with state law that mandates the provision of housing for special needs households, the City will prioritize processing and funding allocation for projects that include units for special needs households. ▪ Beginning in 2026 and annually thereafter, pursue funding available at the state and federal levels for affordable housing development. Specifically, pursue funding programs that target the needs of extremely low and very low income households.
▪ Provide letters of support to funding applications by developers if the proposed projects are consistent with the goals and objectives of this Housing Element, as requested.
▪ Consistent with state law that mandates the provision of housing for special needs households, the City will prioritize processing and funding allocation for projects that include units for farmworker households. By the end of 2026, the City will:
 Beginning in 2026 and annually thereafter, engage farmworker stakeholders, housing advocates, and nonprofit organizations to identify farmworker housing needs.
 Provide technical assistance to developers working on farmworker housing projects and conduct pre-application conferences and meet housing for people
experiencing homelessness.

City of Atwater
Housing Plan
2024-2032 Housing Element B7-29
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
with farmworker housing developers at least annually and on an ongoing basis. Annually meet with farmworker housing developers to identify housing opportunities.
 Post information, including includes a site inventory and available land, housing resources and grant information on the Community and Economic Development Department website by June 2027.
 Contact farmworker housing developers to determine interest and identify constraints to farmworker housing development within the city by the end of 2026 and annually thereafter. Advocate for the development of intergenerational farmworker housing for multiple generations of farmworkers (retirees, working adults, and children) to create opportunities for mutual self-reliance, such as provision of childcare and elder care.
 Beginning in 2026, prioritize the review and processing of farmworker housing applications on an ongoing basis.
 Beginning in 2026, actively seek federal and state housing finance programs and support developers in securing funding for farmworker housing by providing letters of support to funding applications.  Create and distribute informational materials by January 2027 to raise awareness about farmworker housing programs and opportunities.  As part of the Working Group described in Program 1, beginning in 2026, meet annually to discuss and identify efforts to address farmworker housing regionally.
▪ The City, County, and Merced regional collaboration partners will pursue a variety of strategies and funding to encourage the development, rehabilitation and conservation of housing for farmworkers such as such as funding development, integrating housing for farmworkers into development, developer identification, maintaining an inventory of suitable sites, site development, ensure zoning and development standards facilitate a variety of housing types for farmworker housing needs. The City and collaborative partners will make a specific and at least annual effort to assist in the development of housing for farmworkers and conserve and improve the existing housing stock for farmworkers, including but not limited to:

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-30
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
 Contacting nonprofit developers at least every other year to identify opportunities for the development or improvement of housing for farmworkers.
 Coordinating and participating with regional organizations, including non-profit, academic, and employers, to raise awareness, share and employ strategies, or target new resources.
 Coordinating annually with organizations that represent or serve farmworkers.
 Providing incentives and other strategies beyond state density bonus law to encourage housing for farmworkers, including setting aside housing for farmworkers within developments, supporting funding applications, prioritizing entitlements and establishing appropriate zoning and development standards.
 Targeting code enforcement and other resources to the existing housing stock with the most need for rehabilitation and sanitary conditions that could be more likely to house farmworkers and work with regional or other organizations to improve living conditions for farmworkers.
▪ Perform outreach to religious institutions to provide information and educate them regarding the availability of SB 4 provisions to construct affordable housing units and to connect them with potential affordable housing developers. Create an outreach and technical advisory program that includes the following actions:
 Conduct a workshop in 2027 and 2029 to explain recent legislation (SB 4 and AB 1851) and how it can apply to religious facility properties in Atwater.
 Invite religious facility owners and local nonprofit developers to participate.
 Provide informational materials to religious facility property owners on the development process.
 Provide technical assistance to religious facility property owners to assist with the project entitlements.
 Focus outreach in the Fluhr neighborhood.
▪ Partner with the Merced Gospel Mission Homes to provide transitional and permanent supportive housing to people and families experiencing

City of Atwater
Housing Plan
2024-2032 Housing Element B7-31
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
homelessness. Facilitate the identification of an additional 30 units that can support the mission of providing transitional and permanent supportive housing.

New Housing Opportunities in Higher Opportunity Areas
Program 2:

Adequate Sites for
RHNA
▪ Facilitate the development of 3,017 units over 8 years (768 very lowincome, 526 low-income, 508 moderate-income, and 1,215 above moderate-income units).
▪ Concurrent with the adoption of the Housing Element, rezone properties as outlined above and detailed in the Housing Resources section of this Housing Element to provide additional opportunities up to 1,989 units (1,165 lower income, 551 moderate, and 273 above moderate-income units). Specifically, at least 117 acres of properties will need to be rezoned to high-density, medium-density, and low-density residential to accommodate the 1,730-unit shortfall. As part of the rezoning, establish appropriate development standards (including parking, height, setback, lot coverage, etc.) to ensure maximum allowable densities at the respective zones can be achieved.
▪ Maintain an inventory of available vacant and prospective sites that can accommodate new housing and update annually. Make this inventory available to the public and interested developers on the City website. ▪ Annually meet with property owners and interested developers to pursue housing development in the city.
▪ Concurrent with the adoption of the Housing Element, develop a formal procedure to monitor no net loss in capacity pursuant to SB 166. ▪ By the end of 2026, establish objective development standards for development to facilitate large-site development in phases if appropriate.

Annually promote objective development standards to developers active in the city.
▪ By the end of 2027, if development of housing is not feasible on these large sites, within 6 months (by July 2027) the City will identify additional incentives and planning tools or alternative strategies if necessary to ensure adequate capacity for RHNA.
▪ Every other year, beginning in 2027, monitor the progress of pending projects counted towards the RHNA to ensure that development of housing units is occurring as projected. If development after consultation By July 2026, and
annually thereafter
Citywide Facilitate the development of
3,017 units over 8 years (768
very low-income, 526 lowincome, 508 moderate-income,
and 1,215 above moderateincome units).

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-32
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
with developers that projects are not proceeding as planned and would result in a shortfall of RHNA sites, the City will identify alternative sites and strategies (including potential rezoning) to satisfy the RHNA within six months
Program 3: By
Right Approval
▪ Concurrent with the Development Code update to provide adequate sites for the RHNA (see Program 2), update the Development Code to address the by-right approval requirements.

By July 2026 Citywide Facilitate the development of
3,017 units over 8 years (768
very low-income, 526 lowincome, 508 moderate-income,
and 1,215 above moderateincome units).

Program 5:

Accessory Dwelling
Units
▪ Beginning in July 2026, facilitate the production of ADUs through efforts including, but not limited to:
 Create an ADU Guidebook and Handout.
 Update ADU webpage to include available resources for ADU development, such as grants for pre-development costs available to lower-income homeowners through California Finance Agency (CalHFA) and PLHA loans.
 Offer expedited reviews for ADU applications.
 Develop a Fair Housing factsheet to be included with the ADU application packet to inform property owners of their responsibility with state and federal fair housing laws. Publish fair housing guide with ADU applications.
 Develop an ADU application checklist and publish the checklist on the City’s website.
 Add information on the ADU permitting process, as well as available resources and incentives, on the City’s website.
 Adopt pre-approved ADU plans and publish on the City’s website. ▪ During the planning period, conduct two educational workshops, campaigns, or outreach events to promote ADU development in the city to residents, with at least two events targeted to residents and developers in Highest-Resource census tracts (Fluhr, Buhach, and McSwain). ▪ Participate in regional collaboration.
▪ Participate in regional collaboration efforts to create pre-approved ADU plans.

By July 2026 Citywide with
emphasis on High
Resource tracts
Support the development of at
least 10 ADUs during the
planning period.

City of Atwater
Housing Plan
2024-2032 Housing Element B7-33
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
▪ Upon HCD’s review of the City’s Updated ADU Ordinance, the City will amend its ADU ordinance if necessary to be consistent with ADU law by the end of 2026.
▪ Conduct a study and amend Zoning Code to incentivize ADU production during the planning period, such as:
 Increasing the by-right ADU size to further incentivize ADU creation.  Consider allowance for an increase in the permitted height up to the height of the primary residence for ADUs built above a garage in single-family zones.
 Consider allowances for reduced setback requirements where privacy is not compromised.
▪
Program 6: Zoning
Code Amendments
Include the following Zoning Code Amendments by the first quarter of 2026 unless otherwise indicated:
▪ SB 35: Establish procedure for implementing SB 35 concurrent with adoption of the Housing Element.
▪ Development Standards Concurrent with Housing Element adoption, amend the Zoning Code to allow minor modifications to height restrictions developments with an affordability component. In order to facilitate the development of housing at maximum densities, allow heights of up to 48 feet (four stories) in the R-3-1.0 zone.
▪ Parking: Revise the Zoning Code to require no more than one space per unit for mobile homes, senior citizen housing, studios, and one-bedroom units.
▪ Mobile/Manufactured Housing: Revise the Zoning Code to allow for manufactured homes in all zones where single-family housing is permitted, subject only to the same requirements of conventional singlefamily housing. ▪ Group Homes/Residential Care Facilities: Amend the Zoning Code to allow community care facilities serving six or fewer residents as a singlefamily use in all residential zones and allow care facilities of seven or more residents in all zones that permit residential uses, with objectivity and certainty, and subject only to the requirements of residential uses of similar type and form.

By July 2026 Citywide Facilitate the development of
five units for special needs
populations during the
planning period.

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-34
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
▪ Emergency Shelters: Concurrent with Housing Element adoption, amend the Zoning Code to explicitly allow emergency shelters by-right, in residential and/or residential mixed-use zone(s). Specifically, allow emergency shelters without discretionary action in the R-3 zone. Amend the Zoning Code to define Low-Barrier Navigation Centers, consistent with state law and to explicitly allow by-right, in mixed-use and nonresidential districts permitting multifamily uses. The City will also:
 Ensure the definition of emergency shelters complies with AB 2339 to include interim housing options such as bridge housing, navigation centers, and respite and recuperative care;
 Remove maximum stay requirements;
 Ensure parking standards to only require parking for staff, and in no cases require more than similar uses in that district; and  Remove the requirement to have a minimum 300 separation from residential zones, parks, and schools.
▪ Transitional and Supportive Housing: Amend the Zoning Code to comply with AB 2162, such that supportive housing located within half-mile from transit may not be subjected to any minimum parking standard. ▪ Employee Housing: Revise the Zoning Code to allow employee housing for six or fewer as a single-family residential use to ensure compliance with the Employee Housing Act (Health & Safety Code Section 17021.5). ▪ Farmworker Housing: Revise the Zoning Code to allow farmworker housing with up to 36 beds in group quarters or up to 12 units or spaces designed for use by a single-family or household as an agricultural use and to allow a streamlined, ministerial approval process and not subject to a conditional use permit (CUP) to eligible agricultural employee housing developments to ensure compliance with the Employee Housing Act (Health & Safety Code Section 17021.6 and 17021.8).
▪ Single-Room Occupancy (SROs): Revise the Zoning Code to allow the development of SRO in zones allowing hotel or motel uses and establish a procedure to encourage and facilitate SRO development in the allowable zoning district(s), including development standards.
▪ Definition of Family: Revise the City’s definition of “family” to comply with fair housing laws.
▪ Site Plan Review and Permit Approvals: Site plan and permit approvals include subjective standards that require personal interpretation to

City of Atwater
Housing Plan
2024-2032 Housing Element B7-35
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
determine compliance with standards. Concurrent with Housing Element adoption, the City will revise the Zoning Code to remove subjective language.
▪ Reasonable Accommodation: Establish written procedures for reasonable accommodations requests, including approval findings and time parameters, and provide information regarding reasonable accommodations requests on the City website.

Program 7:

Facilitating
Affordable Housing
Development
▪ Starting in 2026, annually pursue funding at the local, regional, state, and federal levels such as CDBG, HOME, CalHome, PLHA, and Project Homekey funds to assist affordable housing production.
▪ Work with other jurisdictions in Merced County to create a regional list of affordable housing developers by July 2026. Annually conduct outreach to these developers with information on potential sites, available regulatory concessions and incentives, and potential funding opportunities to construct homes that are affordable to low- and moderate-income households.
▪ By the end of 2026, amend the Zoning Code establish density bonuses for housing developments that include housing units affordable to very low-, low-, and moderate-income households or housing units for seniors and the donation of land for housing, consistent with current state laws and requirements.
▪ Starting in 2026, facilitate the development of affordable housing by holding design review workshops, providing site location assistance, and assisting in the procurement of funding.
▪ Continue to facilitate the development of affordable housing for extremely low, very low- and low-income households and special needs households (e.g., elderly, homeless, farmworkers, persons with disabilities, female-headed households) through the provision of the following regulatory concessions and incentives:
 Density increases under the City’s Density Bonus Ordinance.  Expedited and streamlined project application review involving any of the following housing categories; low- and very low-income households; large families; persons with disabilities or developmental disabilities; and farmworkers.
 Potential fee waivers/reductions/deferrals.

Starting in 2026
and annually
thereafter
Citywide with an
emphasis on
Highest Resources
and higher income
neighborhoods
(Flurh, Buhach, and
McSwain).

Increase the percent of the
city’s housing stock that is
multifamily from 23.6 percent
to 27 percent by December
2030, using 2017-2021 ACS
data as a baseline. Approve
building permits for 20
alternative dwelling types
(duplexes, triplexes,
fourplexes, townhouses,
courtyard buildings).

Decrease disparity between
census tracts in Downtown
Atwater/Sierra Vista and
adjacent census tracts based
on median income level.

Structure the City’s regulations
to allow for the entitlement of
at least 100 subsidized housing
units affordable to extremely
low- very low-, and low-income
households in the city during
the planning period, including
at least 30 units in higher
income areas (Flurh, Buhach,
and McSwain neighborhoods)..

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-36
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
▪ Review the General Plan, applicable Specific Plans, Zoning Code, and Zoning Map to evaluate opportunities for removing barriers to housing production, adding housing capacity, and accommodating a greater mix of dwelling types and sizes households (e.g., duplexes, triplexes, fourplexes, townhouses, courtyard buildings), prioritizing opportunities and sites in Highest-Resource census tracts and higher income neighborhoods (Fluhr, Buhach, and McSwain). Review General Plan, Specific Plans, Zoning Code, and Zoning Map by January 2026 and implement any changes by January 2027 (see Program 6).
 Beginning in 2026, and annually thereafter, apply for state and federal funds to facilitate the development of affordable housing, including housing for extremely low-income households and those with special housing needs. Partner with nonprofit housing developers to support the entitlement of at least 100 subsidized housing units affordable to extremely low-, very low-, and low-income households in the city during the planning period, prioritizing sites near services.

City of Atwater
Housing Plan
2024-2032 Housing Element B7-37
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
Place-based Strategies for Neighborhood Revitalization
Program 9:

Housing
Preservation and
Rehabilitation
▪ Starting in 2026, coordinate with Self-Help Enterprises and Habitat for Humanity, and other state and regional nonprofits to expand in rehabilitation, weatherization, and preservation efforts in the City. ▪ Annually research funding opportunities and apply for funds when appropriate. Assist with eight rehabilitation projects over eight years, prioritizing areas with a concentration of substandard housing conditions and high displacement risk such as Downtown Atwater and Fluhr. ▪ Starting in 2026, advertise available rehabilitation grant programs on the City’s website. Ensure that Code Enforcement has the information when addressing enforcement cases.
▪ Beginning in January 2027, conduct outreach every other year to mobile home owners within the city to promote available rehabilitation, weatherization, and replacement programs, including through direct mailings and other communication methods. Publish resources on rehabilitation and weatherization assistance on the City’s website by July 2026.
▪ Consider rent stabilization policy for new developments of mobile home parks.
▪ City staff will conduct a workshop with elected officials and the public to describe benefits to rent stabilization by the end of 2026 ▪ Ensure tenants are properly noticed by the property owners should a Notice of Intent to opt out of low-income use is filed. Notices must be filed three years, one year, and six months in advance of conversion.

Additionally, the City shall provide tenants with information about available resources and their tenant rights during the Notice of Intent period.
▪ In the event of potential conversion, conduct outreach to nonprofit housing providers to acquire projects opting out of low-income use. As funding permits, assist in funding the acquisition and support funding applications by nonprofit providers.
▪ Annually apply for funding to support housing rehabilitation in areas with a concentration of substandard housing conditions and in disadvantaged communities to encourage place-based revitalization and reduce displacement risk by improving housing conditions. Utilize additional Starting in 2026
By end of 2026
Downtown Atwater
and Flurh
Assist with rehabilitation of 15
units during the planning
period, with at least eight units
in the neighborhoods of
Downtown Atwater and Flurh.

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-38
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
funding (when available) to expand this program to become increasingly proactive.
▪ Continue to implement the Repeat Housing Code Violators Program to penalize rental property owners who demonstrate a pattern of neglect, unresolved violations, or unsafe conditions for tenants to preserve rental housing supply.

Program 11: Water
and Sewer Service
▪ By the end of 2027, complete update to water and sewer master plans to ensure there is sufficient capacity to accommodate sites identified in the site inventory. As part of the updates to the plans:
▪ Include analysis of water and sewer services on sites identified in this Housing Element and identify strategies to address constraints to housing development on identified sites by February 2026.
▪ Conduct stakeholder outreach in 2026 to identify strategies to address infrastructure gaps.
▪ If water and sewer constraints are identified and would reduce the capacity or feasibility of development on inventory sites, identify alternative sites to ensure adequate capacity for development assumed in the site inventory by July 2026.
▪ By December 2026, draft a phased Infrastructure Improvement Strategy that identifies priority upgrades on RHNA sites that are aligned with available resources.
▪ Beginning in 2026, and annually thereafter, actively pursue state and federal funding required to complete wastewater system upgrades and other identified infrastructure improvements citywide. Financially assist at least one infrastructure project per year with awarded grant funding, prioritizing projects in moderate-resource areas (e.g., North and Downtown Atwater).
▪ Annually with the publication of the City’s Annual Progress Report, monitor the availability of water to serve future projects on identified sites to accommodate the City’s share of the RHNA.
▪ Annually, conduct outreach and education on water conservation measures through a social media campaign.
▪ Conduct a feasibility study to evaluate Implementing water conservation measures, such as landscape conservation incentives and residential plumbing retrofits by December 2027.

By 2026 Citywide Increased water and sewer
capacity in moderate-resource
areas, such as North and
Downtown Atwater.

City of Atwater
Housing Plan
2024-2032 Housing Element B7-39
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
▪ By December 2026, apply for funding to implement bioswales, permeable pavements, and rain gardens on city-owned land to manage stormwater and reduce sewer load.
▪ Pursue/provide rehabilitation assistance that includes energy conservation and weatherization improvements as eligible activities. ▪ By the end of 2026, adopt a policy to prioritize the allocation of water and sewer services to affordable housing projects (SB 1087). ▪ Conduct a study to evaluate the infrastructure impact of single-family and multi-family homes and update the fee schedule by June 2026. ▪ Beginning in 2026, review the priority project list for infrastructure improvements after every project completion. In revising the list, give a scoring bonus consideration to moderate-resource areas with infrastructure need that can be met with available funding. ▪ Expedite permits for water and wastewater improvements that increase capacity in areas with housing sites.
▪ Coordinate with the Merced Subbasin Groundwater Sustainability Agency to align future affordable housing developments with the provisions of the groundwater sustainability plan, and track groundwater sustainability conditions, groundwater allocations, and implementation actions relevant to planned housing development areas and community plan boundaries. ▪ Support and participate in regional efforts to expand groundwater recharge, recycled water use, or other alternative supplies intended to improve long-term groundwater sustainability in areas planned for housing. Organize an annual focus group, then as-needed periodic meetings and workshops, involving water resource agencies, developers, and stakeholders to discuss water management strategies for residential development. Hold at least one water and housing focus group annually. ▪ Assess the feasibility of Tax Increment Financing (TIF) Districts and/or Enhanced Infrastructure Financing Districts (EIFD) being used to fund infrastructure improvements to support housing development. ▪ Annually, beginning in 2026, apply for grant funding from agencies involved in the California Financing Coordinating Committee on an annual basis in accordance with the release of a Notice of Funding Availability.

Pursue funding through the Infill Incentive Grant (IIG) Program, sponsored by HCD, to support infrastructure investments, including park creation;

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-40
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
water, sewer, or other public infrastructure; transportation improvements; and traffic mitigation.

Program 12:

Community and
Economic
Development
▪ Starting in 2026, collaborate with Merced County Transit (the Bus) to determine location of bus stops to serve new developments in annexed neighborhoods by meeting at least annually.
▪ Starting in 2026, coordinate with the Public Works Department to review the City’s Capital Improvement Projects (CIP) annually to ensure public facilities and infrastructure are supportive of the needs of underserved communities, especially in Downtown Atwater.
▪ Starting in 2026, seek funding and complete projects to improve the conditions in Downtown Atwater, a neighborhood with disproportionate needs and a concentration of minorities and poverty, including but not limited to:
▪ Pedestrian Improvements to Connect to Downtown Phase 4 - only design funded - in progress.
▪ Bloss Parking Lot (ACE Train Station Support Project) - design funded and in progress, construction not funded.
▪ Parking Lot at Atwater Blvd & First St (ACE Train Station Support Project) - environmental clean closure in progress - design target completion 2024, construction not funded.
▪ ACE Train Station - design partially funded.
▪ Apply for funding beyond CIP annually.
▪ Hold at least one community workshop in Fluhr and Sierra Vista by December 2026 to identify active transportation needs and apply for funding to implement projects outlined in the Regional Active Transportation Plan by December 2027. Implement at least one active transportation project in Fluhr and Sierra Vista by the end of the planning period.
▪ Concurrent with Housing Element adoption, at least every other year, identify funding sources and apply for funding to address additional community development issues such as neighborhood revitalization, parks, safe routes to school, community facilities, or addressing pollution burdens, with the goal of securing funding for two additional community revitalization projects during the planning period.

Starting in 2025
and annually
thereafter
Downtown Atwater,
North Annexation
Area
Support the completion of one
CIP per year during the
planning period, with a focus
on projects in the Flurh and
Downtown Atwater
neighborhoods.

Hold discussions with at least
five potential business owners
during the planning period.

Apply for additional funding for
community revitalization
projects with the goal of
securing funding for one
projects per year during the
planning period.

Improve CalEnviroScreen
scores citywide by December
2031.

City of Atwater
Housing Plan
2024-2032 Housing Element B7-41
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
▪ Advance environmental justice through community engagement, TOD, and affordable housing in the General Plan Update currently underway (expected to be adopted by the end of 2026).
▪ Starting in 2025, apply for and utilize cap and trade program funds from the Greenhouse Gas Reduction Fund (GGRF) for efforts such as tree planting and restoration, home energy efficiency, zero emission and plugin hybrid vehicles, and affordable housing. ▪ Ensure engagement strategies consider linguistic isolation and target lower income and special needs households.
▪ Starting in 2026 and bi-annually, coordinate with Merced County and the San Joaquin Valley Air Pollution Control District to develop and implement a plan to reduce pollution burden throughout the city, targeting air quality, water quality, and pesticide use. Assess pollution burden in the city and create an action plan to reduce pollution burden and addressing proper remediation plans for cleanup sites and hazardous waste sites.

Tenant Protection and Anti-displacement
Program 1:

Regional
Collaboration
▪ Starting 2026, at least annually participate in regional meetings related to housing and homeless issues to pursue funding and coordination opportunities. Annually pursue funding opportunities for regional housing issues.
▪ Starting 2026, at least annually partner with the Merced County Human Services Agency and/or the Merced County Community Action Agency to proactively address shelter, housing and support services for people experiencing homelessness.
▪ Continue to be an active participant with the Merced County Association of Governments (MCAG) and coordinate on regional planning and policy efforts to advance shared goals throughout Merced County. ▪ Participate in all Transit Joint Powers Meetings with MCAG and address all needs and concerns.
▪ Work with the Merced Continuum of Care to update and implement the 10-Year Plan to End Homelessness during the planning period. ▪ Starting in 2026, annually collaborate and coordinate regionally and with the California Department of Housing and Community Development to ensure the effective implementation of the Housing Element. This collaboration will include regular meetings (at least annually), and will Annually Citywide Assist with the completion of
the 10-Year Plan to End
Homelessness during the
planning period

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-42
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
include resource sharing, joint efforts with internal and external partners to address regional housing needs and achieve the goals outlined in the Housing Element, including affirmatively furthering fair housing and farmworker needs.
▪ Starting in 2026, participate in a regional collaboration with developers and affordable housing advocates to support the development of housing and implementation of the Housing Element.
▪ By 2026, establish a working group that meets annually to identify regional housing challenges, including but not limited to affirmatively furthering fair housing efforts and farmworker housing, funding opportunities, and consider input from the working group to coordinate efforts to develop affordable housing and implement the housing element, including making adjustments as appropriate to better achieve the goals and objectives of the housing element.

Program 4:

Replacement
Housing
▪ Amend the Zoning Code to address the replacement housing requirements.

By July 2026, Citywide Replace all units as required
pursuant to AB 1397.

Program 8:

Preservation of atrisk Housing
▪ Monitor affordable units during the planning period.
▪ Maintain annual contact with property owners of affordable housing regarding any change in status/intent or need for assistance, such as rehabilitation assistance.
▪ Maintain the AB 987 database to include detailed information on all subsidized units, including those that have affordability covenants. Update annually. By March 2027, conduct a feasibility study to explore and identify displacement strategies which may include but is not limited to the development of regulations that establish a “first right of return” for tenants displaced by redevelopment, rehabilitation, of properties with existing occupied residential units and other displacement pressures. This study will assess legal, financial, administrative, and equity considerations involved in conserving the existing housing stock for lower-income households and guaranteeing displaced tenants the opportunity to return to newly constructed or rehabilitated replacement housing units. The study will be presented to the City Council in a public forum by July 2027. The City will establish an overall displacement strategy which may include firstright-of-return program by July 2028.

Annually Citywide, with a
focus on the Fluhr
and Downtown
Atwater
neighborhoods.

Preserve all 35 existing
affordable housing units in
Atwater

City of Atwater
Housing Plan
2024-2032 Housing Element B7-43
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
▪ In partnership with Merced County, create a community stabilization handbook where residents can find resources for lower-income families to prevent displacement. Resources include homelessness assistance, housing rehabilitation programs, legal services, rental assistance, utility assistance, homeownership programs, fair housing resources, and affordable housing. Identify governmental and private/nonprofit service providers and include their contact information. Make the handbook available on the City's website by July 2027.

Program 10:

Lower-Income and
Special needs
Housing
▪ Over the 8-year planning period, subsequent to each Point-in-Time Count, conduct workshops for the Planning Commission and City Council to share the data from the count.
▪ Identify potential programs to aid homeownership opportunities and develop a list of resources by July 2026. Apply for feasible funding opportunities by December 2026.
▪ Develop an inventory of affordable housing, with contact information and the number of affordable units, and publish the inventory on the City’s website by July 2026.
▪ Connect low-income residents with housing assistance resources, including the HCV program.
 Add information on the HCV Program and other financial assistance programs to the City’s website by July 2026.
 Promote the availability of assistance programs through all City’s social media pages starting July 2026.
 Starting in 2026, attend at least one community events to spread awareness and distribute fact sheets on available financial assistance programs.
▪ Starting in 2026, in collaboration with the Housing Authority, provide education to property owners and managers to expand awareness of the HCV program to increase acceptance of tenant-based HCVs and to facilitate mobility and provide choices for lower-income households throughout the city. Include education regarding laws prohibiting source of income discrimination (Fair Employment and Housing Act). Identify and address challenges that property owners/managers have with existing or prospective HCV holders. Target outreach to landlords in high resources areas, such as the Fluhr neighborhood. Include education regarding laws By July 2026
Annually
Citywide Assist two Atwater households
through HCVs annually
Promote with the goal of
expanding the use of HCVs in
the city by 10 percent by
December 2030, using 2023
data as baseline.

Assist eight households
through the PHLA program.

Increase housing mobility
options in Atwater through SB4
implementation.

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-44
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
prohibiting source of income discrimination (Fair Employment and Housing Act).
▪ Starting in 2026, annually conduct one workshop for landlords on the HCV program, for a total of seven workshops during the planning period, targeting property owners/managers in High Resource Tracts. ▪ Promote the availability of PHLA funds by posting information to City website by July 2026, and include in informational flyer/newsletter/etc., to be distributed at meetings and shared with non-profit organizations (See Program 13).
▪ Consistent with state law that mandates the provision of housing for ELI households, the City will prioritize processing and funding allocation for projects that include units for ELI households, especially farmworker housing.
▪ Consistent with state law that mandates the provision of housing for special needs households, the City will prioritize processing and funding allocation for projects that include units for special needs households. ▪ Beginning in 2026 and annually thereafter, pursue funding available at the state and federal levels for affordable housing development. Specifically, pursue funding programs that target the needs of extremely low and very low income households.
▪ Provide letters of support to funding applications by developers if the proposed projects are consistent with the goals and objectives of this Housing Element, as requested.
▪ Consistent with state law that mandates the provision of housing for special needs households, the City will prioritize processing and funding allocation for projects that include units for farmworker households. By the end of 2026, the City will:
 Engage farmworker stakeholders, housing advocates, and nonprofit organizations to identify farmworker housing needs.
 Provide technical assistance to developers working on farmworker housing projects and conduct pre-application conferences and meet with farmworker housing developers on an ongoing basis.  Post information on the Community and Economic Development Department website within one year of Housing Element adoption.

Information includes a site inventory and available land, housing resources and grant information.

City of Atwater
Housing Plan
2024-2032 Housing Element B7-45
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
 Contact farmworker housing developers to determine interest and identify constraints to farmworker housing development within the city by the end of 2026 and annually thereafter. Advocate for the development of intergenerational farmworker housing for multiple generations of farmworkers (retirees, working adults, and children) to create opportunities for mutual self-reliance, such as provision of childcare and elder care.
 Prioritize the review and processing of farmworker housing applications.
 Actively support developers in securing funding for farmworker housing by providing letters of support to funding applications.  Create and distribute informational materials to raise awareness about farmworker housing programs and opportunities.
 As part of the Working Group described in Program 1, meet annually to discuss and identify efforts to address farmworker housing regionally.
▪ The City, County, and Merced regional collaboration partners will pursue a variety of strategies and funding to encourage the development, rehabilitation and conservation of housing for farmworkers such as such as funding development, integrating housing for farmworkers into development, developer identification, maintaining an inventory of suitable sites, site development, ensure zoning and development standards facilitate a variety of housing types for farmworker housing needs. The City and collaborative partners will make a specific and at least annual effort to assist in the development of housing for farmworkers and conserve and improve the existing housing stock for farmworkers, including but not limited to:
 Contacting nonprofit developers at least every other year to identify opportunities for the development or improvement of housing for farmworkers.
 Coordinating and participating with regional organizations, including non-profit, academic, and employers, to raise awareness, share and employ strategies, or target new resources.
 Coordinating annually with organizations that represent or serve farmworkers.

Merced County Association of Governments
2024-2032 Multi-jurisdictional Housing Element Update
B7-46
Program Specific Commitment Timeline
Geographic
Targeting Eight-Year Metrics
 Providing incentives and other strategies beyond state density bonus law to encourage housing for farmworkers, including setting aside housing for farmworkers within developments, supporting funding applications, prioritizing entitlements and establishing appropriate zoning and development standards.
 Targeting code enforcement and other resources to the existing housing stock with the most need for rehabilitation and sanitary conditions that could be more likely to house farmworkers and work with regional or other organizations to improve living conditions for farmworkers.
▪ Perform outreach to religious institutions to provide information and educate them regarding the availability of SB 4 provisions to construct affordable housing units and to connect them with potential affordable housing developers. Create an outreach and technical advisory program that includes the following actions:
 Conduct a workshop in 2027 and 2029 to explain recent legislation (SB 4 and AB 1851) and how it can apply to religious facility properties in Atwater.
 Invite religious facility owners and local nonprofit developers to participate.
 Provide informational materials to religious facility property owners on the development process.
 Provide technical assistance to religious facility property owners to assist with the project entitlements.
▪ Focus outreach in the Fluhr neighborhood.

City of Atwater
Housing Plan
2024-2032 Housing Element B7-47
B7.4 Quantified Objectives
Atwater has established quantified objectives for housing production and rehabilitation for the Housing Element. These objectives are based upon expected availability of resources to address the City’s housing needs, expectations regarding future housing development, as well as prior objectives established in earlier housing plans. Table B7-1 below summarizes the City’s quantified objectives for implementing its various programs and actions outlined above.

Table B7-1 Quantified Objectives 2024-2032
Target Income and Affordability Level New Construction Rehabilitation Conservation Extremely Low 384 10 15
Very Low 384 10 15
Low 526 11 15
Moderate 508
Above Moderate 1,215
Total 3,017 32 45*
*Includes outcomes from Program 8 (preserve all 35 affordable housing units) and Program 10 (assist two Atwater households through HCVs; assist eight households through the PHLA program)

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B7-48
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Appendix B: City of Atwater
2024-2032 Merced County MultiJurisdictional Housing
Element
Update
Draft | May 2026

Table of Contents
2024-2032 Housing Element i
Table of Contents
B1 Review of Past Accomplishments............................................................................................. B1-1 B1.1 Effectiveness in Addressing Special Needs................................................................... B1-1 B1.2 Quantified Objectives ................................................................................................... B1-1 B1.3 Review of Past Accomplishments................................................................................. B1-2 B2 Public Participation..................................................................................................................... 2-1 B2.1 Pop-up Events............................................................................................................... B2-1 B2.2 Community Workshops ................................................................................................ B2-1 B2.3 Survey............................................................................................................................ B2-2 B2.4 Stakeholder Interviews................................................................................................. B2-2 B2.5 Additional Outreach...................................................................................................... B2-3 B2.6 Response to Community Input ..................................................................................... B2-4 B2.7 Public Review ................................................................................................................ B2-6 B2.7.1 May 2024 Public Review............................................................................... B2-6 B2.7.2 September 2024 Public Review.................................................................... B2-6 B2.7.3 February 2025 Public Review ....................................................................... B2-6 B2.7.4 Public Review Comment Matrix ................................................................... B2-6 B2.7.5 March/April 2026 Public Review .................................................................. B2-6 B3 Housing Needs Assessment...................................................................................................... B3-1 B3.1 Population Characteristics............................................................................................ B3-1 B3.2 Population Growth........................................................................................................ B3-1 B3.3 Age Characteristics........................................................................................................ B3-1 B3.4 Race and Ethnicity......................................................................................................... B3-2 B3.5 Economic Characteristics.............................................................................................. B3-3 B3.6 Household Characteristics ............................................................................................ B3-8 B3.7 Large Households.......................................................................................................... B3-9 B3.8 Overcrowding................................................................................................................ B3-9 B3.9 Special Needs Groups ................................................................................................. B3-10 B3.10 Housing Stock Characteristics..................................................................................... B3-23 B3.11 Distribution of Owner-Occupied Units ....................................................................... B3-30 B3.12 Housing Rents............................................................................................................. B3-31 B3.13 Housing Affordability .................................................................................................. B3-32 B3.14 Assisted Housing Units................................................................................................ B3-36 B4 Housing Constraints Analysis.................................................................................................... B4-1 B4.1 Summary of Local Housing Constraints........................................................................ B4-1 B4.2 Non-Governmental Constraints.................................................................................... B4-1 B4.2.1 Land Costs..................................................................................................... B4-2

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Merced County Multi-Jurisdictional Housing Element (2024-2032) ii
B4.2.2 Construction Costs........................................................................................ B4-3 B4.2.3 Availability of Financing................................................................................ B4-4 B4.2.4 Requests for Lower Development Densities ................................................ B4-6 B4.3 Governmental Constraints............................................................................................ B4-6 B4.3.1 Land Use Controls......................................................................................... B4-6 B4.3.2 Residential Development Standards ............................................................ B4-9 B4.3.3 Provision of a Variety of Housing Types..................................................... B4-14 B4.3.4 Planning and Development Fees................................................................ B4-27 B4.3.5 Permit Types............................................................................................... B4-29 B4.3.6 Permit Procedures and Processing Times .................................................. B4-33 B4.3.7 Transparency in the Development Review Process ................................... B4-36 B4.3.8 Short-Term Housing Rentals....................................................................... B4-36 B4.3.9 Code Enforcement...................................................................................... B4-36 B4.4 Environmental Constraints ......................................................................................... B4-37 B4.4.1 Agricultural Lands....................................................................................... B4-38 B4.4.2 Seismic Zones.............................................................................................. B4-38 B4.4.3 Flood ........................................................................................................... B4-38 B4.4.4 Climate Change........................................................................................... B4-38 B4.4.5 Site Contaminants....................................................................................... B4-39 B4.4.6 Wildland/Urban Fire Hazards..................................................................... B4-39 B5 Affirmatively Furthering Fair Housing (AFFH)........................................................................... B5-1 B5.1 Introduction .................................................................................................................. B5-1 B5.2 Data Sources ................................................................................................................. B5-1 B5.3 Methodology................................................................................................................. B5-1 B5.4 Local Setting.................................................................................................................. B5-4 B5.5 Summary of AFFH Analysis Findings ........................................................................... B5-12 B5.6 Fair Housing Resources............................................................................................... B5-12 B5.7 Ability to Address Complaints..................................................................................... B5-16 B5.8 Segregation and Integration Patterns and Trends...................................................... B5-16 B5.9 Disparities in Access to Opportunities........................................................................ B5-37 B5.10 Disproportionate Housing Needs................................................................................ B5-51 B5.11 Local Area Knowledge................................................................................................. B5-60 B5.12 Housing Site Inventory Analysis.................................................................................. B5-66 B5.13 Contributing Factors and Meaningful Actions............................................................ B5-80 B5.14 Meaningful Actions to Address Fair Housing Issues................................................... B5-82 B6 Housing Resources and Site Inventory Analysis....................................................................... B6-1 B6.1 Regional Housing Needs Allocation .............................................................................. B6-1 B6.2 Meeting the RHNA ........................................................................................................ B6-2 B6.2.1 RHNA Credits ................................................................................................ B6-2

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2024-2032 Housing Element iii
B6.3 Summary of RHNA Credits............................................................................................ B6-6 B6.4 Methodology................................................................................................................. B6-6 B6.4.1 Suitable Sites for Affordable Housing........................................................... B6-6 B6.5 Nonvacant Sites ............................................................................................................ B6-7 B6.5.1 Adequacy of Nonvacant Sites....................................................................... B6-7 B6.6 Development Trends................................................................................................... B6-13 B6.6.1 Realistic Development Capacity ................................................................. B6-13 B6.6.2 Likelihood of 100 percent Nonresidential Uses on Sites............................ B6-15 B6.7 Large Sites for Lower-Income Units............................................................................ B6-17 B6.7.1 Subdivision Process for Large Sites............................................................. B6-19 B6.8 Site Inventory.............................................................................................................. B6-20 B6.8.1 Rezone Sites................................................................................................ B6-34 B6.8.2 Sites used in Previous Planning Periods ..................................................... B6-40 B6.8.3 Adequacy of Residential Site Inventory in Meeting RHNA......................... B6-40 B6.9 Availability of Infrastructure and Services.................................................................. B6-41 B6.9.1 Wastewater System.................................................................................... B6-41 B6.9.2 Potable Water System................................................................................ B6-41 B6.9.3 Storm Water and Drainage......................................................................... B6-42 B6.9.4 Dry Utilities................................................................................................. B6-43 B6.10 Environmental Considerations.................................................................................... B6-43 B6.11 Opportunities for Energy Conservation...................................................................... B6-44 B7 Housing Plan ............................................................................................................................. B7-1 B7.1 Goals and Policies ......................................................................................................... B7-1 B7.2 Implementing Programs ............................................................................................... B7-3 B7.3 AFFH Actions Summary............................................................................................... B7-24 B7.4 Quantified Objectives ................................................................................................. B7-51 Tables
Table B1-1 Quantified Housing Objective and Achieved Accomplishments............................... B1-2 Table B1-2 Review of Past Accomplishments............................................................................. B1-2 Table B2-1 Summary of Comments and Responses ................................................................... B2-6 Table B3-1 Population Change (2000 - 2021) ............................................................................. B3-1 Table B3-2 Population by Age Group (2021)............................................................................... B3-2 Table B3-3 Population by Race.................................................................................................... B3-2 Table B3-4 Employment by Industry (2021) ............................................................................... B3-3 Table B3-5 Major Employers in Merced County (2024).............................................................. B3-4 Table B3-6 Occupational Employment and Wages by Major Occupational Group, Merced Metropolitan Area (2023)......................................................................................... B3-5 Table B3-7 HUD Income Limits by Person per Household.......................................................... B3-6

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Merced County Multi-Jurisdictional Housing Element (2024-2032) iv
Table B3-8 State of California Income Categories....................................................................... B3-6 Table B3-9 Median Household Income by Race/Ethnicity (dollars)............................................ B3-7 Table B3-10 Cost Burdened Households by Tenure...................................................................... B3-8 Table B3-11 Overpayment by Tenure (dollars)............................................................................. B3-8 Table B3-12 Households by Type.................................................................................................. B3-9 Table B3-13 Large Households by Tenure..................................................................................... B3-9 Table B3-14 Overcrowding Severity by Tenure........................................................................... B3-10 Table B3-15 Senior Households by Tenure ................................................................................. B3-10 Table B3-16 Overpayment by Tenure Among Senior Households, Atwater............................... B3-11 Table B3-17 Cost Burdened Senior Households.......................................................................... B3-12 Table B3-18 Population by Number of Disabilities ..................................................................... B3-12 Table B3-19 Disability by Age for the Total Population .............................................................. B3-13 Table B3-20 Developmental Disability by Age ............................................................................ B3-13 Table B3-21 Developmental Disability by Residence.................................................................. B3-13 Table B3-22 Large Households by Tenure................................................................................... B3-14 Table B3-23 Large Households and Units ................................................................................... B3-15 Table B3-24 Single Female-Headed Households with Own Children.......................................... B3-15 Table B3-25 Female-Headed Family Households by Tenure ...................................................... B3-16 Table B3-26 Extremely Low-Income Households by Tenure ...................................................... B3-17 Table B3-27 Extremely Low-Income Households Overpaying by Tenure................................... B3-17 Table B3-28 Inventory of Public Assisted Complexes, Atwater .................................................. B3-18 Table B3-29 Farmworker Population .......................................................................................... B3-19 Table B3-30 Farmworkers in Merced County by Days Worked (2017)....................................... B3-20 Table B3-31 Unhoused Individuals by Type (2023)..................................................................... B3-21 Table B3-32 Unhoused Individuals by Ethnicity, Merced County (2023).................................... B3-22 Table B3-33 Total Housing Units Over Time (1980 to 2020)....................................................... B3-23 Table B3-34 Total Housing Units by Type ................................................................................... B3-24 Table B3-35 Housing Units by Tenure......................................................................................... B3-25 Table B3-36 Vacancy Status by Type for Total Vacant Units....................................................... B3-26 Table B3-37 Housing Unit Size .................................................................................................... B3-27 Table B3-38 Total Occupied Housing Units by Year Built............................................................ B3-28 Table B3-39 Substandard Housing Units..................................................................................... B3-29 Table B3-40 Median Housing Value Over Time (1980 to 2020).................................................. B3-29 Table B3-41 Median Housing Value from 2017 to 2021............................................................. B3-30 Table B3-42 Owner Occupied Units by Race............................................................................... B3-31 Table B3-43 Median Gross Rent Over Time, Atwater................................................................. B3-32 Table B3-44 Median Rent by Number of Bedrooms................................................................... B3-32 Table B3-45 Housing Affordability Matrix – Atwater (2021) ...................................................... B3-33 Table B3-46 Cost Burdened Owner-Occupied Households Over Time....................................... B3-35

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2024-2032 Housing Element v
Table B3-47 Cost Burdened Renter-Occupied Households Over Time....................................... B3-35 Table B3-48 Cost Burden by Income and Tenure........................................................................ B3-35 Table B3-49 Inventory of Public Assisted Complexes – Atwater ................................................ B3-37 Table B4-1 Listed Land Prices – Atwater..................................................................................... B4-2 Table B4-2 Sold Land Prices – Atwater........................................................................................ B4-2 Table B6-3 Estimated Construction Cost – City of Atwater ........................................................ B4-3 Table B4-4 Site Area Per Dwelling Unit....................................................................................... B4-8 Table B4-5 Residential Development Standards......................................................................... B4-9 Table B4-6 Residential Parking Requirements.......................................................................... B4-11 Table B4-7 Residential Use Matrix ............................................................................................ B4-15 Table B4-8 Emergency Shelter Capacity Analysis...................................................................... B4-22 Table B4-9 Emergency Shelter Capacity Analysis in Commercial Thoroughfare Zone (C-T)..... B4-23 Table B4-10 Residential Development Planning Fees................................................................. B4-27 Table B4-11 Residential Development Fees................................................................................ B4-28 Table B4-12 Residential Development Fee Comparison............................................................. B4-29 Table B4-13 Timelines for Permit Procedures ............................................................................ B4-34 Table B4-14 Typical Processing Procedures by Project Type...................................................... B4-34 Table B5-1 Population by Racial Group (City of Atwater)......................................................... B5-16 Table B5-2 Employment Status by Disability Status (City of Atwater)...................................... B5-23 Table B5-3 Tenure by Household Type and Presence of Children (City of Atwater) ................ B5-25 Table B5-4 Demographics of RCAA ........................................................................................... B5-33 Table B5-5 Domains and List of Indicators for Opportunity Maps ........................................... B5-37 Table B5-6 Opportunity Map Scores and Categorization for Atwater...................................... B5-38 Table B5-7 Cost Burden by Income Category (2015-2019)....................................................... B5-52 Table B5-8 Large Households (City of Atwater)........................................................................ B5-53 Table B5-9 Race/Ethnicity of Homeless Population and Overall Population (City of Atwater)...................................................................................................... B5-57 Table B5-10 Proposed Housing Units by Resource Area............................................................. B5-67 Table B5-11 Site Inventory by Census Tract Characteristics....................................................... B5-78 Table B6-1 Atwater 2024-2032 RHNA......................................................................................... B6-1 Table B6-2 Pipeline Projects........................................................................................................ B6-4 Table B6-3 Remaining Share of RHNA......................................................................................... B6-6 Table B6-4 Nonvacant Sites......................................................................................................... B6-7 Table B6-5 Redevelopment Trends on Sites with Operational Agriculture .............................. B6-11 Table B6-6 Atwater Development Trends................................................................................. B6-13 Table B6-7 Realistic Capacity of Sites by Zoning District........................................................... B6-14 Table B6-8 Residential Projects in Zones that allow 100 percent Nonresidential Uses ........... B6-16 Table B6-9 Large Sites with Lower-Income Units...................................................................... B6-17 Table B6-10 Summary of Recent Developments on Large Sites in San Joaquin Valley .............. B6-18

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Merced County Multi-Jurisdictional Housing Element (2024-2032) vi
Table B6-11 Atwater Site Inventory – Opportunity Sites............................................................ B6-25 Table B6-12 Proposed Rezone Sites to Accommodate RHNA Shortfall...................................... B6-35 Table B6-13 Annexation Sites ..................................................................................................... B6-39 Table B6-14 Sites Used in Previous Planning Periods................................................................. B6-40 Table B6-15 Adequacy of Residential Site Inventory .................................................................. B6-40 Table B7-1 Quantified Objectives 2024-2032 ........................................................................... B7-51 Figures
Figure B3-1 Median Household Income....................................................................................... B3-7 Figure B3-2 Unhoused Households by Type Over Time, Merced County .................................. B3-21 Figure B3-3 Unhoused Individuals by Type by Race (2023) ....................................................... B3-22 Figure B3-4 Median Contract Rent............................................................................................. B3-31 Figure B5-1 Atwater Neighborhoods............................................................................................ B5-3 Figure B5-2 Atwater Zoning Map ................................................................................................. B5-6 Figure B5-3 Renter-Occupied Concentration ............................................................................... B5-7 Figure B5-4 Atwater Aerial View .................................................................................................. B5-8 Figure B5-5 Atwater Population Density...................................................................................... B5-9 Figure B5-6 Percentage of Housing Built Before 1990............................................................... B5-10 Figure B5-7 Median Gross Rents............................................................................................... B5-11 Figure B5-8 Percent of Total Non-White Population (City of Atwater)...................................... B5-18 Figure B5-9 Predominant Populations (City of Atwater)............................................................ B5-19 Figure B5-10 Racial Segregation and Integration (City of Atwater) ............................................. B5-20 Figure B5-11 Disability by Type (City of Atwater)......................................................................... B5-21 Figure B5-12 Percent of Population with a Disability (City of Atwater)....................................... B5-22 Figure B5-13 Percent of Population with a Disability and Residential Care Facilities (City of Atwater) .................................................................................................................. B5-24 Figure B5-14 Female-Headed Households with Children Present, No Spouse/Partner Present and Child Care Centers (City of Atwater)................................................................ B5-27 Figure B5-15 Female-Headed Households with Children Present, No Spouse/Partner Present (City of Atwater)...................................................................................................... B5-28 Figure B5-16 Married Couple Households with Children Present (City of Atwater).................... B5-29 Figure B5-17 Median Household Income (City of Atwater)......................................................... B5-30 Figure B5-18 Low- and Moderate-Income Population (City of Atwater)..................................... B5-31 Figure B5-19 Poverty Status (City of Atwater) ............................................................................. B5-34 Figure B5-20 Racially Concentrated Areas of Affluence (City of Atwater)................................... B5-35 Figure B5-21 Housing Choice Vouchers........................................................................................ B5-36 Figure B5-22 Atwater TCAC Opportunity Areas........................................................................... B5-39 Figure B5-23 TCAC Opportunity Areas – Education Outcomes (City of Atwater)........................ B5-43 Figure B5-24 TCAC Opportunity Areas - Economic (City of Atwater)........................................... B5-44 Figure B5-25 Existing Bus Transit Services ................................................................................... B5-45

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2024-2032 Housing Element vii
Figure B5-26 Walkability Index (City of Atwater)......................................................................... B5-46 Figure B5-27 CalEnviroScreen 4.0 Percentile Scores (City of Atwater)........................................ B5-48 Figure B5-28 TCAC Opportunity Areas - Environmental (City of Atwater)................................... B5-49 Figure B5-29 SB 535 Disadvantaged Communities (City of Atwater)........................................... B5-50 Figure B5-30 Overpayment by Home Owners (City of Atwater).................................................. B5-54 Figure B5-31 Overpayment by Renters (City of Atwater) ............................................................ B5-55 Figure B5-32 Overcrowded Households (City of Atwater)........................................................... B5-56 Figure B5-33 Displacement Risk (City of Atwater) ....................................................................... B5-59 Figure B5-34 City of Atwater Zoning Map.................................................................................... B5-65 Figure B5-35 Housing Opportunity Sites by TCAC Resource Area................................................ B5-68 Figure B5-36 Housing Opportunity Sites by Income Population.................................................. B5-70 Figure B5-37 Housing Opportunity Sites by Overcrowding.......................................................... B5-71 Figure B5-38 Housing Opportunity Sites by Overpayment by Renters........................................ B5-72 Figure B5-39 Housing Opportunity Sites by Total Non-White Population................................... B5-74 Figure B5-40 Housing Opportunity Sites by Displacement Risk................................................... B5-75 Figure B5-41 Housing Opportunity Sites by CalEnviroScreen Percentile Score ........................... B5-76 Figure B6-1 Pipeline Projects........................................................................................................ B6-5 Figure B6-2 Atwater Site Inventory (Current Zoning) ................................................................ B6-23 Figure B6-3 Atwater Site Inventory (Proposed Zoning) ............................................................. B6-24

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Merced County Multi-Jurisdictional Housing Element (2024-2032) viii
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City of Atwater
Review of Past Accomplishments
2024-2032 Housing Element B1-1
B1 Review of Past Accomplishments
To develop appropriate programs to address the housing issues identified in the 2024-2032 Housing Element (6th cycle), the City of Atwater has reviewed the housing programs adopted in the 2015- 2022 Housing Element (5th cycle) and evaluated the effectiveness of these programs in delivering housing services and assistance. Table B1-1 summarizes the City’s progress toward the previous Regional Housing Needs Allocation (RHNA) and Table B1-2 provides a detailed program level assessment of housing accomplishments over the 5th cycle planning period. Programs that are routine staff functions with no specific actions and no direct City involvement are not continued as housing programs in the 6th Cycle Housing Element.

B1.1 Effectiveness in Addressing Special Needs
The City was not successful in facilitating the development of housing for special needs groups during the 5th Cycle Housing Element. Programs developed for the 5th cycle identified specific solutions to housing for special needs groups such as seniors, homeless, low-income households, and/or persons with disabilities. Goal H-5 focuses on accommodating housing for special needs groups, including Program H-5a, which promotes senior housing, and Program H-5f, which implemented zoning for supportive and transitional housing. In addition, Program H-3f focuses on collaborating with nearby jurisdictions and housing assistance groups to implement special housing and homeless needs workshops. Program H-5c has also removed constraints for persons with disabilities to find accessible housing, as the City currently follows the California Building Code and its requirements for accessible living properties.

No housing units for special needs groups were developed during the 5th cycle, resulting from factors beyond the City’s control such as market conditions and financial barriers. Limited staffing and resources posed significant challenges to program implementation to support special housing needs. However, the City has taken several steps to address special needs housing. It participated in a regional workshop focused on housing and homelessness in collaboration with other jurisdictions and the Merced County Continuum of Care. The City adopted an ordinance allowing emergency shelters in its M-1 and M-2 zoning districts to comply with state legislation. Additionally, in 2019, Atwater amended its Zoning Code to permit supportive and transitional housing. These actions demonstrate the City's commitment to expanding housing options for individuals experiencing homelessness and other vulnerable populations.

Commutatively, these programs effectively addressed issues related to housing for persons with special needs. However, limited staffing and resources posed significant challenges to program implementation. Programs in the 6th Cycle Housing Element build on these past accomplishments to further encourage the development and accessibility of housing for special needs.

B1.2 Quantified Objectives
Table B1-1 summarizes the City’s progress toward meeting the previous 5th Cycle Housing Element RHNA, as well as objectives to rehabilitate and conserve/preserve existing housing stock. The City of Atwater did not reach its 5th cycle RHNA goals in the Extremely Low, Very Low-, Low-, and Moderate-Income categories.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B1-2
Table B1-1 Quantified Housing Objective and Achieved Accomplishments New Construction Rehabilitation Preservation (At-Risk Units) RHNA
(2016-2024) Actual Objectives Actual Objectives Actual
Extremely Low-Income - - - -
Very Low-Income 429 - - -
Low-Income 307 - - -
Moderate-Income 281 - - -
Above Moderate-Income 748 427 - -
Total 1,765 427 - -
B1.3 Review of Past Accomplishments
Table B1-2 provides a detailed program-level assessment of housing accomplishments during the 5th Cycle Housing Element planning period.

Table B1-2 Review of Past Accomplishments
Program Program Objectives Progress and Continued Appropriateness Goal H-1 – Provide suitable and adequate sites for residential development.

Program H-1a:

Vacant and NonVacant Underutilized
and Site Inventory
Program
The objective of this program is to assist
developers in finding suitable infill and
underutilized sites to meet a portion of
the City’s new housing construction
needs.

The City has been contacted by multiple interested
developers. The existing land use and zoning maps
are in the process of being re-evaluated for General
Plan amendment and zone change.

Effectiveness: Partially implemented
Continued Appropriateness: Program H-1a is
ongoing and will be incorporated into the 6th Cycle
Housing Element as Program 2.

Program H-1b:

Creation of Larger
Parcels through Site
Consolidation
The objective of this program is to
facilitate creation of larger parcels for
more efficient development of
multifamily housing and assist
developers in finding suitable vacant
infill and non-vacant underutilized sites
to meet a portion of the City's new
housing construction needs.

The City is re-evaluating program H-1b, as
developers are non-desiringreluctant to pursue of a
multi-parcel approach due to the complexities it
introduces infor segmented financing.

Effectiveness: Not implemented due to market
constraints
Continued Appropriateness: Program H-1b will be
discontinued in the 6th Cycle Housing Element, as
developers have not shown interest in this
development approach.

Program H-1c:

Creation of Larger
Parcels through
Right-of-way
Abandonment
The objective of this program is to make
additional land available adjacent to
existing developed or underutilized land
to facilitate more efficient development
of five high density residential units
(Low to Very Low Income).

The City is re-evaluating program H-1c, as
developers are reluctant to pursue the creation of
larger parcels through right-of-way abandonment. is
currently reviewing has an application for a mixeduse development and annexation, adding to the land available for development.

Effectiveness: Not implemented due to market
constraints Successfully implemented
Continued Appropriateness: Program H-1c will be
discontinued in the 6th Cycle Housing Element, as no
identified sites will be rezoned to accommodate
high-density residential housingdevelopers have not
shown interest in this development approach.

City of Atwater
Review of Past Accomplishments
2024-2032 Housing Element B1-3
Program Program Objectives Progress and Continued Appropriateness Program H-1d:

Ferrari Ranch
Annexation
The objective of this program is to bring
additional low and medium density
residential land into the City limits for
an estimated net gain of 82 total units,
including 80 low density units (Above
Moderate and Moderate Income) and
two medium density units (Low
Income).

The Ferrari Ranch annexation has been completed.,
and the project is currently undergoing an
amendment to the Parcel MapHhowever, no
development has occurred at the site. Additionally,
the area is not designated for future residential
development. However, other lands immediately
north of Ferrari Ranch, outside the city limits, are
proposed to be designated for residential
development in the General Plan update.

Effectiveness: Successfully implementedNot
implemented due to land use designations.

Continued Appropriateness: Program H-1d is
complete and will not be carried forward in the 6th
Cycle Housing Element.

Program H-1e:

Western Residential
Land Annexations
The objective of this program is to bring
additional residential land into the City
limits. At the planned densities, the two
identified annexation areas would
accommodate up to 1,813 additional
units, including 1,010 low density
(Above Moderate and Moderate
Income), 360 medium density (Low
Income), and 443 high density units
(Very Low Income).

The City’s sphere of influenceGeneral Plan land use
map is being re-evaluated and a recommended
boundary map adjustments will be proposed in
conjunction with the General Plan update that is
currently underway.

Effectiveness: Not implemented due to city
boundary changesthe upcoming General Plan
update.

Continued Appropriateness: Program H-1e will be
revised and incorporated into Program 2 to rezone
properties to accommodate high-density. residential
housing.

Program H-1f:

Residential Specific
Plans
The objective of this program is to
expedite residential development
opportunities on annexed lands, ensure
desired mix and arrangement of land
uses, and ensure provision and
financing of adequate infrastructure
and public services.

The City is researching legislative extensions on map
projects and creating an ordinance to amend Title
16is proposing a mix of high-, medium-, and low -
density residential land use designations in future
annexation areas in the General Plan update.

Effectiveness: Partially implemented
Continued Appropriateness: Program H-1f will be
revised and incorporated into Program 2 to rezone
properties to accommodate high-density. residential
housing. discontinued in the 6th Cycle Housing
Element, as no identified sites will be annexed
during the 6th Cycle.

Program H-1g:

Developer Resources
The objective of this program is to assist
developers in locating appropriate sites
for housing.

This program is ongoing and there has been
renewed developer interest in Atwater.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-1g ongoing
and will be incorporated into the 6th Cycle Housing
Element as Program 2.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B1-4
Program Program Objectives Progress and Continued Appropriateness Program H-1h:

General Plan
Amendment and
Rezone of Buhach
Road
The objective of this program is to
increase the supply of R-3 land in a
location with demonstrated demand.

The 10.1-acre parcel was not rezoned and is still
zoned Planned Development. However, Tthe City is
in discussions with developers about a future
project at the southwest corner of Buhach Road and
Juniper. The site has an approved Tentative Parcel
Map for 73 single-family units and is in the process
of submitting for approval for the Final Map. The
City plans to accomplish rezone efforts directly after
the Housing Element Update. A budget is currently
being established, and outreach with property
owners is ongoing. This program was not
implemented. The City reevaluated this program
and determined it was unnecessary as the RHNA can
be met through the Site Inventory.other areas in the
sites inventory suffice to reach the regional housing
needs assessment goal.

Effectiveness: Not implemented
Continued Appropriateness: While Program H-1h
was used to accommodate extremely low- and very
low-income units, the rezone is not needed to
accommodate the shortfall of appropriately zoned
sites for the 6th Cycle RHNA and is no longer
applicable. This program will not be incorporated
into the 6th Cycle Housing Element. However,
Program 2 ensures that the City will rezone
properties to provide additional opportunities up to
2,581 units, and Program 3 ensures the City will
amend the Zoning Ordinance to address by-right
approval requirements pursuant to Government
Code section 65583.2, subdivisions (h) and (i).This
program will not be incorporated into the 6th Cycle
Housing Element. Program 2 will replace Program H1h to ensure there is sufficient supply of sites to support additional housing development.

Goal H-2 – Accommodate a range of housing options by type, size, location, price, and tenure.

Program H-2a:

Designate Land for a
Mixture of Housing
Types
The objective of this program is to allow
and encourage a mix of housing types
and a range of housing densities
throughout the community.

The program is currently in practice. A General Plan
update to allow for a range of densities and housing
types is currently underway.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-2a will be
refined and incorporated into the 6th Cycle Housing
Element as Program 2.

Program H-2b:

Encourage
Innovative
Subdivision and
Housing Design
The objective of this program is to
increase local awareness and
acceptance of alternative housing
designs and increase the range of
housing choices available to low- and
moderate-income households.

The City has not yet initiated the program. However,
two new housing projects have been introduced to
the City. One has been approved and the other is in
process. Both have alternative design approaches.

Additionally, a mixed-use development located at
Redwood and Bellevue Road will add approximately
52 residential units above commercial retail.This
program was implemented during the planning and
successful approval process in August 2024 for
Sunset Apartments, a two-story, high -density
residential project that was approved in Summer
2024.

City of Atwater
Review of Past Accomplishments
2024-2032 Housing Element B1-5
Program Program Objectives Progress and Continued Appropriateness Effectiveness: Not yetSuccessfully implemented
Continued Appropriateness: Program H-2b will be
discontinued in the 6th Cycle Housing Element but
incorporated into policiesProgram 8 to
accommodate a greater mix of dwelling types..

Program H-2c:

Evaluate Residential
Uses and
Development
Standards
The objective of this program is to
ensure that innovative housing types
are accommodated within the City and
that alternative housing designs can be
achieved on appropriate residential lots
within the City, while protecting
community aesthetic values.

The City has adopted alternative housing design
guidelines. The City is now taking steps to amend
the Zoning Code to allow a variety of housing types,
and will begin comprehensive updates to the
residential design guidelines that have already been
adopted by the City. The City adopted Residential
Design Guidelines in 2011. Some of the language
included is subjective; however, the City only
enforces objective standards included in the
Residential Design Guidelines. Additional efforts to
accommodate alternative housing designs include
updating the City’s Accessory Dwelling Unit (ADU)
ordinance in 2024 to streamline the approval for
ADUs and amending development standards to
comply with state law.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-2c was
completed in 2018-2019 and will not be continued
into the 6th Cycle Housing Element. Program 7 will
update the Residential Design Guidelines to remove
subjective language and replace it with objective
standards.

Goal H-3 – Increase the supply of affordable housing in the city.

Program H-3a:

Promote
Homeownership for
Low- and ModerateIncome Households
The objective of this program is to
assist 15 moderate and 15 lowincome first-time homebuyers.

The City continues to partner with the Housing
Authority of Merced County and Self-Help
Enterprises to provide first-time homebuyer
assistance. The City has not yet implemented the
program.The City has published a flyer advertising
the First-Time Homebuyers Program on the City
website and posted flyers and advertisements about
the program. While residents have shown interest in
the program, the City has observed that residents
have difficulty meeting the program’s qualification
requirements. Therefore, the City has expanded the
eligibility requirements to make it easier for FirstTime Homebuyers to access the program.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-3a will be
refined to pursue additional homeownership
assistance opportunities and incorporated into the
6th Cycle Housing Element as Program 10.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B1-6
Program Program Objectives Progress and Continued Appropriateness Program H-3b:

Affordable Housing
Requirements and
First Tier Affordable
Housing Incentives
The objective of this program is to
establish affordable housing
requirements and incentives to be
applied citywide. Assuming 1,500 total
units constructed under this program,
the program would result in 30 low
income units and 30 moderate income
units.

A new project, currently in the application review
process, will use affordable housing incentives
established under this program. Under this program,
120 units affordable to low- to moderate-income
households are in development.The CityThis
program was not implemented due to insufficient
funds. does not have sufficient funds to establish an
affordable housing program that includes monetary
incentives.

Effectiveness: PartiallyNot implemented
Continued Appropriateness: Program H-3b will be
discontinued in the 6th Cycle Housing Element.

Program H-3c:

Density Bonus
Program
The objective of this program is to
incentivize development of affordable
housing by providing density bonuses to
developers meeting certain criteria for
housing projects, consistent with state
law.

The City has not yet implemented the program. Due
to limited staffing City has not adopted a density
bonus program and is not in compliance with state
density bonus law.

Effectiveness: Not yet implemented due to staffing
constraints
Continued Appropriateness: Program H-3c is
incomplete and will be refined and incorporated
into 6th Cycle Housing Element as Program 7.

Program H-3d:

Pursue State and
Federal Funding for
Affordable Housing
The objective of this program is to
accommodate housing for 3 extremely
low, 7 very low; and 10 low income
units.

The City has applied to the following grants to fund
affordable housing:
 HOME grant
 First-Time Homebuyer Grant
 PLHA Grant
Effectiveness: Successfully implemented
Continued Appropriateness: Program H-3d is in
progress and the City will continue to apply for
funding to support housing opportunities for
extremely low-, very low-, and low-income
households during the 6th cycle.

Program H-3e:

Rental Assistance
The objective of this program is for
the County City to assure that lower
income households find rental
housing assistance.

The Due to limited staffing and resources, the City
has not yet implemented the program.

Effectiveness: Not yet implemented due to staffing
constraints
Continued Appropriateness: Program H-3e is
incomplete and will be refined and incorporated
into 6th Cycle Housing Element as Program 710.

Program H-3f:

Collaborate with
Nearby Jurisdictions
and Housing
Assistance Groups
The City will participate in one special
housing and homeless needs
workshop on an annual basis.

The City has held the first meeting. The City is
currently collaborating with nearby jurisdictions on
housing needs for the 6th Cycle Housing Element.

Effectiveness: Partially implemented
Continued Appropriateness: Program H-3f will be
refined and incorporated into 6th Cycle Housing
Element as Program 1.

City of Atwater
Review of Past Accomplishments
2024-2032 Housing Element B1-7
Program Program Objectives Progress and Continued Appropriateness Program H-3g: SelfHelp Housing The objective of this program is to establish development of 40
additional ownership housing units: 5
extremely low, 10 very low-income
and 25 low-income.

The City has begun discussion with Habitat for
Humanity.

Effectiveness: Partially implemented
Continued Appropriateness: Program H-3g is
incomplete and will be refined and incorporated
into 6th Cycle Housing Element as Program 7 to
incentivize affordable housing development.

Program H-3h:

Water and Sewer
Service Priority
The objective of this program is to
establish policy prioritizing water and
sewer provision to lower income
housing developments.

The City has not yet implemented the program.

Effectiveness: Not yet implemented due to staffing
constraints
Continued Appropriateness: Program H-3h is
incomplete and will be refined and incorporated
into the 6th Cycle Housing Element as Program 11.

Program H-3i:

Mobile Home Park
Development
Incentives
The objective of this program is to
facilitate development of vacant land
zoned for mobile home park use and
maximize utilization of the land.

The City has not yet implemented this program due
to staffing constraintsis in negotiations with
property owners.

Effectiveness: Partially implemented
Continued Appropriateness: Program H-3h is
incomplete and will be refined and incorporated
into the 6th Cycle Housing Element as Program 6.

Goal H-4 – Maintain, conserve, and rehabilitate existing housing stock.

Program H-4a: Adopt
Updated Building
Codes
The objective of this program is to
ensure that newly constructed
housing is as safe and well-built as
possible.

The City’s building codes are in compliance with
state building codes and are updated every three
years.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-4a is
complete and will not be carried into the 6th Cycle
Housing Element.

Program H-4b:

Conduct Housing
Condition Survey
The objective of this program is to
establish baseline and maintain
updated information on housing
conditions to better target
rehabilitation efforts.

Implementation of this program will be
accomplished during the General Plan Update,
which has begun.

Effectiveness: Not yet implemented
Continued Appropriateness: Program H-4b is
incomplete and will not be carried forward in the
6th Cycle Housing Element as Program 9.

Program H-4c:

Housing
Rehabilitation Loan
Program
The objective of this program is to
pursue CDBG funds on an annual
basis to support the Housing
Rehabilitation Loan Program and
rehabilitate approximately 3 low and
2 very low income homes per year.

The City did not receive CDBG funds during the 5th
Cycle. However, as of 20232026, the City has
received both CDBG and HOME funds for owneroccupied rehabilitation programs.

Effectiveness: Partially implemented
Continued Appropriateness: Program H-4c is
incomplete and will be refined and incorporated
into the 6th Cycle Housing Element as Program 9.

Program H-4d: Home
Energy Renovation
Opportunity (HERO)
Program
The objective of this program is to
make the HERO Program available to
residents and rehabilitate
approximately 5 homes per year.

The City has not yet implemented the program due
to a lack of resources.

Effectiveness: Not yet implemented due to resource
constraints
Continued Appropriateness: Program H-4d is
incomplete and will be incorporated into the 6th
Cycle Housing Element as Program 9.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B1-8
Program Program Objectives Progress and Continued Appropriateness Program H-4e:

Manufactured Home
Preservation
The objective of this program is to
preserve the condition and
affordability of larger mobile home
parks containing approximately 400
spaces; provide relocation assistance
to residents of parks that are not
feasible to preserve.

The present conditions have been deemed
acceptable.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-4e is
complete and will not be incorporated into the 6th
Cycle Housing Element.

Program H-4f:

Improve the
Condition of Rental
Housing
The City’s objective in requiring longterm affordability is to ensure that substantially rehabilitated or
reconstructed housing units increase
the stock of affordable rental housing.

The City will also ensure that the
property owner provides relocation
assistance to current tenants and
allows these tenants a right of first
refusal to re-occupy their former
rental units, or another equivalent
unit, after the rehabilitation or
reconstruction has been completed.

Rehabilitate 25 very low and 25 lowincome rental housing units.

The City has not yet implemented the program due
to a lack of staff resources to audit rental properties and the ability, housing inventory that is available,
and ability to compete for available funding.

Effectiveness: Not yet implemented due to resource
constraints .

Continued Appropriateness: Program H-4f is
incomplete and will not be carried forward in the
6th Cycle Housing Element
Program H-4g:

Address Unsafe
Building Conditions
The objective of this program is to
improve substandard residential
buildings condition and rehabilitate or
upgrade two units per year.

While the City has an active Code Enforcement
program, the City has not yet implemented a
program to improve substandard residential
buildings due to a lack of staff resources.The City is
currently in discussions with Habitat for Humanity
to cooperatively lead effort.

Effectiveness: PartiallyNot yet implemented due to
staff constraints
Continued Appropriateness: Program H-4g is
ongoing and will be incorporated into the 6th Cycle
Housing Element as Program 9.

Goal H-5 – Accommodate housing for special needs groups.

Program H-5a:

Promote Senior
Housing
The objective of this program is to
identify funding sources for the
development of senior housing, and
facilitate senior housing development
through the density bonus program,
streamlined permit processing,
identification of suitable development
sites, and through other development
incentives such as reduced parking
requirements.

This program had limited community interest and
lack of resources.

Effectiveness: Not implemented due to resource
constraints and community interest
Continued Appropriateness: Program H-5 is
incomplete and will not be carried forward.

Program 10 is included in the 6th Cycle Housing
Element to incentivize senior housing.

Program H-5b:

Accommodate
Housing for Persons
with Disabilities
The objective of this program is to
improve housing accessibility for
persons with disabilities by providing
exceptions to building and zoning
standards when those exceptions will
facilitate accessibility.

The City currently does not have any City-owned
residential single family or multifamily homes. All
tenant improvements and new construction
projects are required to meet ADA requirements.

Effectiveness: Not implemented
Continued Appropriateness: Program H-5b will not
be carried forward. Program 10 Lower-Income and
Special Needs Housing will address housing needs
for persons with disabilities in 6th Cycle Housing
Element

City of Atwater
Review of Past Accomplishments
2024-2032 Housing Element B1-9
Program Program Objectives Progress and Continued Appropriateness Program H-5c:

Remove Constraints
to Persons with
Disabilities
The objective of this program is to
revise development standards and
community care provisions of the
Zoning Ordinance to better
accommodate persons with
disabilities and put procedures in
place to allow accommodation of
persons more easily with disabilities.

The City currently followshas adopted and enforces
the 20252 California Building Code and its
requirements for accessible living properties.

However, the City has not adopted written
procedures or guidelines for reasonable
accommodation requests in the Zoning
CodeOrdinance due to limited staffing. In 2023, the
City adopted the ADA Transition Plan to improve
accessibility standards in the City.

Effectiveness: Partially implemented
Continued Appropriateness: Program H-5c is
partially complete and will not be refined and
carried over into the 6th Cycle Housing Element as
Program 6. Under Program 6, the City will revise the
Zoning Code to establish reasonable
accommodation procedures for persons with
disabilities, consistent with fair housing law
Program H-5d:

Zoning for
Farmworker Housing
The objective of this program is to
remove zoning constraints that would
preclude provision of farmworker
housing at appropriate locations
within the City.

No such provisions currently exist and therefore the
program has not yet been implemented.

Effectiveness: Not yet implemented
Continued Appropriateness: Program H-5d is
incomplete and will not be carried forward.

Program 10 will incentivize farmworker housing in
the 6th Cycle Housing Element.

Program H-5e:

Promote the
Development of
Smaller and Larger
Rental Units
The objective of this program is to
promote the development of a more
diverse rental market within the City
by encouraging a variety of unit sizes.

In 2019, the City approved mixed-use buildings in
the C-G zone (Resolution No PC 0124-19).

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-5e is
ongoing but will not be carried into the 6th Cycle
Housing Element.

Program H-5f: Zoning
for Supportive
Housing and
Transitional Housing
The objective of this program is to
remove zoning constraints that would
preclude provision of supportive and
transitional housing at locations within
the City’s residential districts.

In 2019, the City adopted amendments to its Zoning
Code to allow supportive and transitional housing in
compliance with SB 2 (Resolution No. PC 106-19).

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-5f is
complete and will not be carried over into the 6th
Cycle Housing Element.

Program H-5g:

Zoning for
Emergency Shelters
The objective of this program is to
remove zoning constraints that would
preclude provision of homeless shelters
within the R-T district.

The City has adopted amendments to its Zoning
Code in compliance with SB 2. As a correction, SB 2
compliance was targeted for the M-1 and M-2
zones.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-5g is
complete and will not be carried over into the 6th
Cycle Housing Element.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B1-10
Program Program Objectives Progress and Continued Appropriateness Program H-5h:

Facilitate Shelters,
Supportive Housing,
and Transitional
Housing
The objective of this program is to
identify a site and funding for an
emergency shelter or transitional
housing facility to meet local needs.

The City has adopted an ordinance for the M-1 and
M-2 zones to allow emergency shelters in
accordance with SB-2.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-5h is
complete and will not be carried over into the 6th
Cycle Housing Element. .

Program H-5i: Zoning
for Community Care
Facilities
The objective of this program is to
remove zoning constraints that would
preclude provision of community care
facilities at appropriate locations within
the City.

The program has not yet been implemented.

Effectiveness: Not yet implemented
Continued Appropriateness: Program H-5i is
incomplete. This program will be refined and
incorporated as part of Program 6 to address
community care facilities, consistent with state law.

Program H-5j: Zoning
for Single Room
Occupancy
The objective of this program is to
provide affordable housing options by
removing zoning constraints that would
preclude provision of single resident
occupancy units at appropriate
locations within the City.

No such provisions currently exist and therefore the
program has not yet been implemented.

Effectiveness: Not yet implemented
Continued Appropriateness: Program H-5j is
incomplete and will be refined and incorporated
into 6th Cycle Housing Element as Program 7 which
directs the City to permit single-occupancy units in
zones allowing hotel and motel uses.

Goal H-6 – Minimize the impact of governmental constraints on housing construction.

Program H-6a:

Zoning ordinance
amendments
The objective of this program is to
remove zoning constraints that would
preclude provision of manufactured
housing, mobile home parks, and
secondary housing units at
appropriate locations within the City.

This program was completed, but recent changes in
state law require further modifications to the City’s
zoning ordinance to facilitate manufactured housing
and accessory dwelling units.

Effectiveness: Partially implemented
Continued Appropriateness: Program H-6a will be
updated and incorporated into 6th Cycle Housing
Element as Program 8.

Program H-6b:

Amendments to
Planned
Development District
The objective of this program is to
increase the use of the City’s planned
development option as a tool to
provide affordable housing.

The City will begin analysis of revising the P-D
definitions in Chapter 17.

Effectiveness: Not yet implemented
Continued Appropriateness: Program H-6bis
incomplete and will not be carried into the 6th Cycle
Housing Element.

Goal H-7 – Promote energy efficiency in housing development.

Program H-7a:

Energy Conservation
Regulation for New
Construction
The objective of this program is to
reduce residential energy
consumption and reduce energy
costs, especially for low-income
residents.

The City will continue to adopt and enforce state
energy efficiency requirements for new residential
construction.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-7a is
ongoing and will be revised and incorporated into
the 6th Cycle Housing Element as Program 9.

City of Atwater
Review of Past Accomplishments
2024-2032 Housing Element B1-11
Program Program Objectives Progress and Continued Appropriateness Program H-7b:

Energy code
awareness
promotion
The objective of this program is to
reduce residential energy
consumption and reduce energy
costs, especially for low-income
residents.

The City will continue to update its website and
Building division information materials. The City will
also work with alternative electrical energy
providers.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-7b is
ongoing and will be incorporated into the 6th Cycle
Housing Element as Program 13.

Program H-7c:

Weatherization and
energy conservation
for existing dwelling
units
The objective of this program is to
reduce residential energy
consumption and reduce energy
costs, especially for low-income
residents.

The City will continue to post and distribute
information on current available weatherization and
energy conservation programs.

Effectiveness: Successfully implemented
Continued Appropriateness: Program H-7c is
ongoing and will be incorporated into the 6th Cycle
Housing Element as Program 9.

Program H-7d:

Promotion of energy
efficient land use
planning
The objective of this program is to
reduce costs associated with
transportation, especially for lowincome residents, and make less costly transportation alternatives
available and feasible.

This program has not been implemented other than
to promote and encourage projects that are
pedestrian friendly to areas of convenience.

Effectiveness: Partially implemented
Continued Appropriateness: Program H-7d is
incomplete and will be revised and incorporated
into the 6th Cycle Housing Element as Program 1.

Program H-7e:

Promotion of water
conservation
The objective of this program is to
reduce costs associated with water
use, especially for low-income
residents.

The City has installed approximately 500 water
meters throughout the City to help prevent water
waste by residents and prevent overwatering.

Continued Appropriateness: Program H-7e will be
refined and incorporated into 6th Cycle Housing
Element as Program 9.

Goal H-8 – Ensure fair and equal housing opportunities for all.

Program H-8.1: Fair
Housing Services
The objective of this program is to
promote fair housing in Atwater and
reduce incidences of discrimination.

Due to limited staffing and resources this program
was not implemented. The City will continues to
ensure fair and equal housing opportunities for all.

Effectiveness: Not yet implemented due to resource
constraints
Continued Appropriateness: Program H-8.1 is
ongoing and will be refined and incorporated into
the 6th Cycle Housing Element as Program 13.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B1-12
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City of Atwater
Public Participation
2024-2032 Housing Element B2-1
B2 Public Participation
This section documents the efforts the City of Atwater made to engage the public and gather input to inform development of this Housing Element update. The Housing Element must reflect the values and preferences of the community. Government Code Section 65583(c)(8) states that the local government must make “a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element.” This process not only includes community members, but also participation from local stakeholder groups. Accordingly, there were various public engagement efforts conducted at a regional level, including a community survey and stakeholder interviews, in the development of the regional Housing Element. These efforts are described in Chapter 1, Introduction and Regional Collaboration. Feedback from the City of Atwater’s outreach events helped shape the priorities and objectives of the Housing Element Update and are summarized in this Appendix as follows.

B2.1 Pop-up Events
City staff set up a tabling event at the Atwater Town Hall at the Atwater Community Center on May 30, 2023. Additionally, City staff handed out flyers with links to project website and survey to increase community awareness of the Housing Element process and encourage participation.

B2.2 Community Workshops
Flyers advertising the workshops were posted on City of Atwater’s website in advance of the workshop series to encourage public attendance and participation. The flyers provided meeting details (dates, times, locations, zoom links), the Housing Element Update website and email list, and were bilingual (English and Spanish).

A workshop on the Housing Element was hosted in Atwater on August 28, 2023. The workshop consisted of an informative PowerPoint presentation on housing sites, a questionnaire about the proposed sites, and a Q&A and public discussion period. The workshop activities invited participants to share their opinions on what makes their neighborhood great and their experience finding housing, take part in a sticker activity to rank the most effective housing programs, and reasons it is difficult to find housing in their communities. Participants were also asked to weigh in on the selected housing opportunity sites. The PowerPoint presentation was available in Spanish via written translation. Live Spanish translation was available upon request.

Atwater’s participants voiced their concerns regarding housing affordability and lack of housing due to strict development regulations. Participants hope to see greater development near places of work and essential resources.

Key findings from the workshops are as follows:
 Off-site improvement requirements make housing development expensive.  High prices, lack of affordable housing, and cost of building housing make it difficult to find housing.
 Residents would like housing in proximity to schools, job opportunities, and parks.  Residents’ ability to maintain their home helps improve a neighborhood.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B2-2
 Rent-restricted affordable housing development, a variety of new housing, and fair housing services were the most voted programs for effectively addressing needs in Atwater with 3 votes each. This was followed by the development of rental housing for large households, housing for special needs housing development, and housing rehabilitation and repair with 2 votes each.

Renter protection and support and homelessness prevention and housing each received one vote.

B2.3 Survey
The City conducted a community survey to inform the 6th Cycle Housing Element update. The survey was advertised and made available online from March 27, 2023, through December 22, 2023. The survey was also made available during various community outreach events, including the Town Hall Pop-Up event on May 30, 2023, and the community workshop on August 28, 2023, in an effort to engage various groups and populations of the community. The survey consisted of 16 questions and used different formats for questions: checkbox, ranking, and open-ended questions. A total of 172 people responded to the survey. Of the responses, 18 participants, or roughly 10 percent of responders, either live, work, attend school, or own a business or property in Atwater.

The input provided by the participants included the following major themes:
 Affordability was the most important aspect when looking for new housing, followed by close to resources such as commercial, medical facilities, and work and school. Safe neighborhoods were also noted as important when searching for housing. Participants want housing near public transit stops, employment, and shopping centers.
 The largest barriers to affordable desirable housing are cost of housing and the limited supply of housing, particularly affordable housing. Respondents also noted the lack of good paying jobs to be able to afford housing.
 In addition to affordability and availability of housing, respondents noted that homelessness and housing quality were also urgent issues in the Merced Region.  Respondents would like to see programs related to housing vouchers, landlord/tenant mediation services and home rehabilitation assistance.
 Housing with three or more bedrooms, housing with one or two bedrooms, and efficiency homes are the most needed housing in the region.
 In Atwater, participants suggested areas for housing development on Main Street and on vacant lots throughout the city.

Full survey results can be found in Appendix 1 to the Regional Housing Element, Community Survey Results.

B2.4 Stakeholder Interviews
The City also participated in a series of stakeholder interviews with service providers, residents, and housing developers held between August 8, 2023, and August 23, 2023, as part of the greater regional public participation efforts. Housing groups and service providers that service the needs of Atwater residents included Project Sentinel, Faith in the Valley, United Way of Merced County, and Merced County Workforce Investment. Much of the discussion was focused on countywide needs and issues, including low-income residents, seniors, persons with disabilities, and renters. A

City of Atwater
Public Participation
2024-2032 Housing Element B2-3
complete summary of the stakeholder interviews can be found in Chapter 1, Introduction, to the Regional Housing Element. Key findings included:
 Service providers stated there is a need for affordable housing throughout the county with access to resources.
 Residents expressed that rental units need maintenance and repair.  Additional housing services are needed throughout communities in the county include transitional housing, rental assistance, first-time homebuyer assistance, and education on tenants’ rights.
 Residents expressed concern over the high cost of housing, particularly for renters.  Residents identified a need for more community engagement efforts that allow residents to participate in a meaningful way, including workshops and translation services during outreach events.

B2.5 Additional Outreach
The City held a virtual stakeholder interview on December 18, 2024, jointly with the cities of Dos Palos, Gustine, Livingston, and Los Banos.

The meeting consisted of a discussion on housing needs and fair housing issues, with specific emphasis on low-income and special needs households, to support the fair housing analysis and refine policies and programs within the Housing Plan. The questions asked to participants included:
 What are specific housing needs for lower-income and special needs households within the community?
 Are there special needs groups/populations within the jurisdiction that are lacking affordable housing/support services?
 What barriers do residents in low-income neighborhoods face when trying to access affordable housing?
 What services are most requested by renters? Homeowners?  What additional supportive services (e.g., job training, mental health support, childcare) are most needed in the jurisdiction to help residents maintain stable housing and improve their quality of life?
The City invited 15 participants from various fair housing services, agencies, and developers. Four participants attended, consisting of a property owner, pro-housing advocate from Visionary Home Builders, a representative from a nonprofit affordable housing company, and a representative from the Merced County Continuum of Care.

Participants stated that there are not enough resources to support developers and property owners to construct affordable housing in Atwater, despite help from the City and various funding sources.

To this point, similar issues of lack of rental subsidies or project vouchers to competitively apply for funding opportunities, such as Project HomeKey, are constraints to affordable housing development in the City.

The representative from the Continuum of Care noted that there are 47 persons experiencing homelessness in the city, which require more behavioral health and substance abuse resources than currently available. The aging population in Atwater (persons over the age of 60) has a projected growth of 11 percent during the 6th Housing Element cycle. This population relies of fixed income,

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B2-4
and needs further rental assistance and connections to City or County mental health services.

Childcare assistance was deemed to be another important request from the community during a regional homelessness summit.

B2.6 Response to Community Input
During community outreach, community members identified the following overarching themes regarding housing in Atwater. Below is a summary of how each theme is addressed in the Housing Element.

Need more affordable housing for both renters and buyers.

The City will accommodate at least 2,0733,088 units affordable to very low-, low-, and moderateincome households. The City will accommodate these units on sites that are currently vacant or underutilized, including 2936 sites that will be rezoned to allow higher residential densities.

At least 67 39 percent of units assumed to be affordable to moderate- and above moderatehouseholds will be on sites that support multi-family housing, encouraging the development of townhomes and condominiums for more affordable homeownership opportunities.

Housing Program 5 includes actions to encourage the development of at least 10 accessory dwelling units (ADUs) during the planning period by creating standard plans and streamlining the permit process. ADUs often provide relatively affordable rental options.

Through Housing Program 7, the City will expand opportunities for multi-family housing development by contacting non-profit and private developers to facilitate the production of affordable housing as well as pursue funding opportunities available at the local, regional, state and federal levels. Multi-family development provides affordable housing options to add into the City’s housing stock.

The City has 35 housing units that are deed-restricted as affordable housing for lower-income households. Although these are not at immediate risk of conversion to market-rate units, under Program 8, the City will work to preserve these units as affordable housing and will proactively monitor all other units to encourage continued affordability beyond existing covenants and work proactively with owners of affordable units to assist in rehabilitation needs.

Support for transit-oriented development and increasing density in areas with existing services.

Housing opportunity sites were prioritized by location, including proximity to transit, job centers, and community services. Site selection focused heavily on infill development of vacant and nonvacant sites along strategic corridors and in neighborhoods with existing services.

Housing Program 1 directs the City to collaborate with other jurisdictions on housing efforts, including funding opportunities, best practices, and other efforts to address housing, transit, economic development, and homeless issues in Merced County. This Program includes participation in the Merced County Association of Governments (MCAG) to manage and implement regional transit services, including an annual community workshop to identify transportation needs for Atwater residents.

City of Atwater
Public Participation
2024-2032 Housing Element B2-5
Housing Program 12 directs the City to create a well-maintained city infrastructure to provide a safe and accessible urban environment. The City will collaborate with Merced County Transit (the Bus) to determine locations of bus stops to serve new developments in annexed neighborhoods. The city will also partner with local employment organizations to connect Atwater residents with job opportunities such as collaborating with the Bus to provide free bus passes to residents attending job fairs and interviews.

Need for rental assistance for low-income families and rent-restricted housing.

Housing Program 10 directs the City to assist in the development of housing to meet the needs of extremely low, very low- and low-income households and special needs households. The City will continue to work with Housing Authority of the County of Merced to provide housing choice vouchers, public housing, project-based vouchers, and migrant housing centers. The City was allocated Permanent Local Housing Allocation funds and will promote the availability of these funds on the City’s website with the goal of assisting eight households through this program.

Need to increase the variety of available rental and for sale housing types, including apartments and townhomes, and more options for three-bedroom units.

In order to facilitate a variety of housing types, especially housing for lower-income households and those with special needs, the City will remove constraints to housing development by amending the Zoning Code through Housing Program 6.

Through Housing Program 7, the City will expand opportunities for multi-family housing development by contacting non-profit and private developers to facilitate the production of affordable housing and pursuing funding opportunities at the local, regional, state and federal levels. Multi-family housing will increase the variety of available rental and for-sale housing types.

Need for housing rehabilitation services homeowners with aging housing stock and those with flood damage.

Housing Program 9 directs the City to utilize various programs and community partnerships to encourage the rehabilitation of housing units, as well as maintaining the supply of affordable housing. The City will work with non-profits in their community to assist with rehabilitation, annually research funding opportunities, with a goal to assist with five rehabilitation projects over eight years.

Need increased education on housing rights and legal resources for tenants and landlords.

Under Housing Program 13 the City works with the Merced County Housing Authority to provide fair housing information and resources to residents and housing providers. Educational flyers and factsheets will be distributed and shared on the City’s website, and annual staff trainings will start in 20265 on how to refer residents for fair housing complaints.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B2-6
B2.7 Public Review
B2.7.1 May 2024 Public Review
The Draft Multi-Jurisdictional Housing Element was available for public review for the required 30 days, from May 13 to June 12, 2024. The City notified interested parties via email and the complete document was posted on the project website (https://mercedmjhe.com/) and it was printed and put out for review at the City’s Community Services Event on May 29, 2024. The City received one comment letter during the Public Review Period, summarized in Table B2-1, below.

B2.7.2 September 2024 Public Review
Following the formal submittal to HCD on July 1, 2024, the City received preliminary comments from HCD on the Draft Housing Element. The City revised the Draft Housing Element based on HCD’s preliminary comments and posted the revised Draft Housing Element from September 17 through September 24 on the project website, City’s website, and notified interested parties via email. The City received no comments.

B2.7.3 February 2025 Public Review
The City Revised the Draft Housing Element to address HCD’s formal comment letter. The 2nd Revised Draft Housing Element was available for public review from February 24, 2025 to March 3, 2025. The City notified interested parties via email and the complete document was posted on the project website (https://mercedmjhe.com/). The draft Housing Element was also published on the City’s website. The City received one comment letter during the Public Review Period, summarized in Table B2-1, below.

B2.7.4 Public Review Comment Matrix
A comment matrix with comments received and City responses is provided in Table B2-1 below.

Table B2-1 Summary of Comments and Responses
Comment Theme Comment Response
Affordability Comment regarding scarcity of affordable
housing at all income levels
This comment is acknowledged and programs
are intended to increase affordability
Resources Comment regarding resident education and
access of resources
This comment is acknowledged and programs
are intended to help residents find housing
resources
B2.7.5 March/April 2026 Public Review
The City Revised the Draft Housing Element to address HCD’s formal comment letter. The 3 rd
Revised Draft Housing Element was available for public review from March 31, 2026 to April 7, 2026.

The City notified interested parties via email and the complete document was posted on the project website (https://mercedmjhe.com/). The draft Housing Element was also published on the City’s website. The City did not receive any comments.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-1
B3 Housing Needs Assessment
This chapter provides an individual assessment of housing needs for the City of Atwater. This section summarizes demographic, employment, and housing characteristics. The main source of the information is the pre-approved data package for jurisdictions approved by the California Department of Housing and Community Development (HCD). This data is primarily sourced from the United States (U.S.) Census, the U.S. Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy (CHAS), and American Community Survey (ACS) 2017- 2021 five-year estimates. Tables and figures also include comparable data for Merced County and California where it is found most useful.

B3.1 Population Characteristics
Population characteristics, such as growth rate, age, and income levels, affect the type and amount of housing needed in a community. Residents’ age and income, employment trends, and other factors influence the type of housing needed and the community’s ability to afford housing. The following section analyzes the city of Atwater’s population characteristics and trends.

B3.2 Population Growth
Table B3-1 analyzes population change from 2000 to 2021. Atwater grew by 21.9 percent from 2000 to 2010, and 11.5 percent from 2010 to 2021. This was higher than both countywide and statewide population growth during both time periods.

Table B3-1 Population Change (2000 - 2021)
Jurisdiction 2000 2010 2021
Percent
Change
Percent
Change
2000-2010 2010-2021
Atwater 23,113 28,168 31,401 21.9% 11.5%
Merced County 210,554 255,793 279,150 21.5% 9.1%
California 33,971,648 37,253,956 39,455,353 9.7% 5.6%
Source: U.S. Census Bureau, Census 2000, 2010; Social Explorer tables for Census 2021.

B3.3 Age Characteristics
Table B3-2 shows population by age group and each group’s percentage of the total population. The age groups include preschool (under five years), school-age students (five to 17 years), college-age students (18 to 24 years), young adults (25 to 44), middle-aged adults (45 to 64), and seniors (65 and over). In Atwater, the largest age group is the young adult category, representing 27.5 percent of the total population, similar to the county (27.0 percent) and state (28.6 percent). The second largest group in Atwater is middle-aged adults at 22.8 percent. The smallest population by age are preschoolers at 6.0 percent, which is generally consistent with the county (7.5 percent) and slightly higher than the state (6.0 percent).

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-2
Table B3-2 Population by Age Group (2021)
Jurisdiction
Under 5
years
(Preschool)
5 to 17
years
(School-age
Students)
18 to 24
years
(College-age
Students)
25 to 44
(Young
Adults)
45 to 64
(Middleaged Adults)
65 years
and over
(Seniors)
Total
Population
Atwater 1,898 6,983 2,838 8,626 7,157 3,899 31,401
Percent 6.0% 22.2% 9.0% 27.5% 22.8% 12.4% -
Merced
County
20,969 61,609 31,111 75,342 59,131 30,988 279,150
Percent 7.5% 22.1% 11.1% 27.0% 21.2% 11.1% -
California 2,350,335 6,642,097 3,665,851 11,282,671 9,844,520 5,669,879 39,455,353 Percent 6.0% 16.8% 9.3% 28.6% 25.0% 14.4% -
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B01001.

B3.4 Race and Ethnicity
Table B3-3 shows race and ethnicity data for residents in Atwater, Merced County, and California. In Atwater, the majority of the population identifies as white at 51 percent, higher than the county (46.2 percent) and similar to the state (52.1 percent). The second largest population group is Some Other Race representing 30.2 percent of the total population in Atwater. This is similar to Merced County (33.7 percent), but much higher than the state (15.3 percent). In Atwater, 55.3 percent of the population identifies as Hispanic or Latino (of any race), which is lower than the county (61.2 percent) and higher than the state (39.5 percent).

Table B3-3 Population by Race
Jurisdiction
White
Alone
Black or
African
American
Alone
American
Indian and
Alaska
Native
Alone
Asian
Alone
Native
Hawaiian
and Other
Pacific
Islander
Alone
Some
Other Race
Alone1
Two or
More
Races2
Hispanic or
Latino, Any
Race Total
Atwater 16,026 1,252 250 1,611 257 9,475 2,530 17,360 31,401 Percent 51.0% 4.0% 0.8% 5.1% 0.8% 30.2% 8.1% 55.3% -
Merced
County
128,897 8,057 3,267 20,945 797 93,978 23,209 170,730 279,150 Percent 46.2% 2.9% 1.2% 7.5% 0.3% 33.7% 8.3% 61.2% -
California 20,553,732 2,233,258 360,607 5,887,396 148,278 6,036,865 4,235,217 15,593,787 39,455,353 Percent 52.1% 5.7% 0.9% 14.9% 0.4% 15.3% 10.7% 39.5% -
(1) Note: “Some other race alone” includes all other responses not included in the "white alone", "Black or African American alone", "American Indian and Alaska Native alone”, “Asian alone” and “Native Hawaiian and Other Pacific Islander alone” race categories (2) Note: “Two or more races” includes responses from all individuals who identify themselves as two or more of the aforementioned race groups. If an individual responded with both “two or more races” and “some other race,” their response was only included under “two or more races.”
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B02001; U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B03001.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-3
B3.5 Economic Characteristics
Employment
Understanding employment and occupation patterns can provide insight into present housing needs. Table B3-4 shows employment by industry. Educational Services, Health Care, and Social Assistance is the most common industry in Atwater, representing 25.4 percent of all industries. This is also the most common industry countywide (22 percent) and statewide (21.4 percent). The second largest industry in Atwater is Manufacturing with 11.5 percent, which is similar to the county and state. Of the major employers in Merced County, two are within Atwater. These include Western Marketing and Sales and Walmart Supercenter.1
Table B3-4 Employment by Industry (2021)
Industry Atwater Percent Merced County Percent California Percent Educational Services, and
Health Care and Social
Assistance
3,352 25.4% 23,797 22.0% 3,990,094 21.4%
Manufacturing 1,516 11.5% 11,778 10.9% 1,676,715 9.0%
Retail Trade 1,455 11.0% 11,804 10.9% 1,919,513 10.3%
Agriculture, Forestry, Fishing
and Hunting, And Mining
1,231 9.3% 12,326 11.4% 394,881 2.1%
Construction 1,064 8.1% 8,623 8.0% 1,235,586 6.6%
Transportation And
Warehousing, And Utilities
1,036 7.9% 7,626 7.1% 1,071,181 5.7%
Professional, Scientific, and
Management, and
Administrative, and Waste
Management Services
806 6.1% 7,146 6.6% 2,612,859 14.0%
Arts, Entertainment, and
Recreation, and
Accommodation and Food
Services
698 5.3% 7,682 7.1% 1,835,141 9.8%
Wholesale Trade 549 4.2% 4,036 3.7% 501,378 2.7%
Finance and Insurance, and Real
Estate, and Rental and Leasing
514 3.9% 3,075 2.8% 1,107,961 5.9%
Public Administration 502 3.8% 5,058 4.7% 864,476 4.6%
Other Services, Except Public
Administration
409 3.1% 4,275 4.0% 927,253 5.0%
Information 58 0.4% 968 0.9% 539,683 2.9%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table C24050.

According to the California Bureau of Labor Statistics, the unemployment rate in Atwater as of September 2024 is 7.7 percent, which is lower than the long-term average of 8.25 percent over the previous two years. Since 2020, Bureau of Labor Statistics Data indicates that unemployment rates 1 https://labormarketinfo.edd.ca.gov/majorer/countymajorer.asp?CountyCode=000047

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-4
have decreased significantly in Atwater and California. Atwater’s unemployment rate is lower than Merced County as a whole (9.1 percent) but is higher than the statewide average (5.3 percent).

Table B3-5 shows the major employers in Merced County, with the number of employees and type of industry. The majority of large employers are located in the City Merced, which is the county’s largest city and the County seat. The largest employers in Atwater include Walmart Supercenter (250-499 employees) and Western Marketing Sales (500-999 employees). Atwater does not anticipate any significant changes in employment trends and is not aware of any new large-scale employers coming to Atwater during the planning period.

Table B3-5 Major Employers in Merced County (2024)
Employer Name Number of Employees Location Industry
Costco Wholesale 100-249 Merced Wholesale Clubs
County-Merced-Behavioral Hlth 100-249 Merced Clinics
Dignity Health-Mercy Med Ctr 1,000-4,999 Merced Hospitals Foodmaxx 100-249 Merced Grocers-Retail
Foster Farms 1,000-4,999 Livingston Poultry Processing Plants (mfrs) Golden Valley Health Ctr 500-999 Merced Pharmacies
Golden Valley Health Ctr 100-249 Merced Clinics
Hilmar Cheese Co Inc 500-999 Hilmar Cheese Processors (mfrs) J Marchini & Son Inc 500-999 Le Grand Farming Service
Liberty Packing Co 250-499 Los Banos Packing & Crating Service Live Oak Farms 250-499 Le Grand Fruits & Vegetables-Growers & Shippers Livingston Union School District 250-499 Livingston School Districts Malibu Boats Inc 250-499 Merced Boats-Manufacturers
Memorial Hospital Los Banos 100-249 Los Banos Hospitals Mental Health Svc For Merced 250-49 Merced Mental Health Services Merced County Human Svc 500-999 Merced Government Offices-County Quad/Graphics Inc 500-999 Merced Printers (mfrs)
Scholle 100-249 Merced Packaging Materials-Manufacturers Sensient Natural Ingredients 250-499 Livingston Dehydrating Service (mfrs) University of CA Merced 500-999 Merced Schools-Universities & Colleges Academic Walmart 250-499 Merced Department Stores
Walmart Supercenter 250-499 Atwater Department Stores
Weaver Union School District 100-249 Merced School Districts Western Marketing & Sales 500-999 Atwater Farms
Yosemite Wholesale Warehouse 100-249 Merced Warehouses
Source: California Employment Development Department, Major Employers in Merced County. Accessed 2024 https://labormarketinfo.edd.ca.gov/majorer/countymajorer.asp?CountyCode=000047 Table B3-6 shows the employment estimates, average hourly wage and average annual wage for employment industries in the Merced Metropolitan Statistical Area (MSA), as of May 2023. The occupations offering the lowest wages are food preparation and serving related, healthcare support,

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-5
farming, fishing, and forestry. Occupations offering the highest wages include Management, Legal, and Healthcare Practitioners.

The largest percentage of employed civilians in Atwater are in health care, manufacturing/ production, and retail. While healthcare practitioners’ average higher annual salaries ($107,806) than Merced County’s Area Median Income (AMI), which was $69,106 in 2021, Healthcare Support salaries ($36,900) average approximately 53 percent of the AMI. Additionally, average salaries for Production ($45,760) and Sales and other related occupations ($45,261) fall short of the AMI as well. Compared to the annual income limits shown on Table B3-6, it can be assumed that the majority of healthcare practitioners fall in the Above Moderate-income category, Production and Sales workers fall into the Low-income category, and Healthcare Support workers fall into the Very Low-income category.

Table B3-6 Occupational Employment and Wages by Major Occupational Group, Merced Metropolitan Area (2023)
Major Occupational Group Mean Hourly Wage Mean Annual Wage Total, all occupations $27.45 $57,096
Management $58.77 $113,073
Business and financial operations $37.87 $78,770
Computer and mathematical $43.64 $90,771
Architecture and engineering $43.00 $89,440
Life, physical, and social science $36.22 $75,338
Community and social service $28.81 $59,925
Legal $54.16 $112,653
Educational instruction and library $36.71 $76,357
Arts, design, entertainment, sports, and media $28.59 $59,467 Healthcare practitioners and technical $51.83 $107,806
Healthcare support $17.74 $36,900
Protective service $29.50 $61,360
Food preparation and serving related $17.87 $37,170
Building and grounds cleaning and maintenance $20.78 $43,222 Personal care and service $19.05 $39,624
Sales and related $21.76 $45,261
Office and administrative support $23.71 $49,317
Farming, fishing, and forestry $17.98 $37,398
Construction and extraction $30.48 $63,398
Installation, maintenance, and repair $30.43 $63,294
Production $22.00 $45,760
Transportation and material moving $22.02 $45,802
Source: U.S. Bureau of Labor Statistics. Occupational Employment and Wages in Merced (May 2023) https://www.bls.gov/regions/west/news-release/occupationalemploymentandwages_merced.htm

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-6
Income Definitions and Income Limits
The state and federal governments classify household income into several categories based upon the relationship to the county area median income (AMI), adjusted for household size. The U.S.

Department of Housing and Urban Development (HUD) estimate of AMI is used to set income limits for eligibility in federal housing programs. The income categories include:
 Acutely low-income households, which earn up to 15 percent AMI;  Extremely low-income households, which earn up to 30 percent AMI;  Very low-income households, which earn between 31 and 50 percent AMI;  Low-income households, which earn between 51 and 80 percent AMI; and  Median-income households, which earn 100 percent AMI.

For all income categories, income limits are defined for various household sizes based on a fourperson household as a reference point. Income limits for larger or smaller households are calculated by HUD (see Table B3-7). According to HUD, the AMI for a four-person household in Merced County was $80,300 in 2022.

Table B3-7 HUD Income Limits by Person per Household
Household Size: 1 2 3 4 5 6 7 8
Acutely Low-Income $8,450 $9,650 $10,850 $12,050 $13,000 $14,000 $14,950 $15,900 Extremely Low-Income $16,350 $18,700 $23,030 $27,750 $32,470 $37,190 $41,910 $46,630 Very Low-Income $27,300 $31,200 $35,100 $38,950 $42,100 $45,200 $48,300 $51,450 Low-Income $43,650 $49,850 $56,100 $62,300 $67,300 $72,300 $77,300 $82,250 Median-Income $56,200 $64,250 $72,250 $80,300 $84,730 $93,150 $99,550 $106,000 Moderate-Income $67,450 $77,100 $89,700 $96,350 $104,050 $111,750 $119,450 $127,200 Source: U.S. Department of Housing and Urban Development (HUD), 2022.

The California Department of Housing and Community Development (HCD) uses the income categories shown in Table B3-8 to determine eligibility for state housing programs. HCD’s methodology for calculating AMI is slightly different from HUD’s methodology, and therefore the AMI and income limits vary.

Table B3-8 State of California Income Categories
Income Category Percent of County AMI
Extremely Low 0-30% AMI
Very Low 31%-50% AMI
Low 51%-80% AMI
Moderate 81%-120% AMI
Above Moderate 120% AMI or greater
Source: California, CA Health & Safety Code Section 50093.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-7
Figure B3-1 shows median household income in Atwater as reported by the 2017-2021 ACS. This median income is for all households, regardless of household size. The median household income in Atwater was $59,436 in 2021, which was slightly higher than in Merced County ($58,861) and significantly lower than in California ($84,097).

Figure B3-1 Median Household Income
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B19013.

Table B3-9 compares the median household income by race in 2021. In Atwater, Asian and Native Hawaiian/Other Pacific Islander households had the highest median incomes at $73,381, followed by Some Other Race households at $61,324. This is generally consistent with the county and state numbers, where Asian and Native Hawaiian/Other Pacific Islander households’ income are on the higher end. American Indian and Alaskan Native households had the lowest median income in Atwater, which is generally consistent with the county and state.

Table B3-9 Median Household Income by Race/Ethnicity (dollars) Jurisdiction
White,
alone
Black or
African
American,
alone
American
Indian
and
Alaskan
Native,
alone
Asian,
alone
Native
Hawaiian
and Other
Pacific
Islander,
alone
Some
Other
Race,
alone
Two or
More
Races,
alone
Hispanic
or Latino,
Any Race
Atwater 59,386 46,010 26,823 73,365 73,381 61,324 60,909 58,679 Merced
County
60,918 45,573 50,214 71,829 125,500 55,083 56,355 54,635 California 88,616 58,958 66,904 108,477 87,066 63,975 79,777 67,327 Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B19013.

Overpayment and Housing Cost Burdens
Table B3-10 lists the number of households overpaying for housing by tenure. Generally, renters are more affected by overpayment than owners. As shown, overpaying renter-occupied households account for 21.6 percent of households in Atwater, which is consistent with the county and state.

Overpaying renter occupied households comprise 11.3 percent of households in the city, which is comparable to the county (11.8 percent) but less than in California (14.4 percent). $59,436 $58,861
$84,097
$-
$20,000
$40,000
$60,000
$80,000
$100,000
Atwater Merced County California
Median Household Income

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-8
Table B3-10 Cost Burdened Households by Tenure
Jurisdiction Owner-Occupied Overpaying Renter-Occupied Overpaying Total Overpaying Atwater 1,162 2,231 3,393
Percent 11.3% 21.6% 32.9%
Merced County 9,611 17,470 27,081
Percent 11.8% 21.4% 33.2%
California 1,904,162 3,030,934 4,935,096
Percent 14.4% 22.9% 37.3%
Source: U.S. Census Bureau, ACS 2006-2010, 2011-15, 2017-2021 (5-year Estimates), Table B25091 and B25070 CHAS data provided by HUD provides information on cost burden based on the HUD Area Median Family Income (HAMFI). This data is included in Table B3-11 below. While the totals do not align exactly with 2021 ACS data presented above, the CHAS data identifies the level at which cost burdened households are overpaying for housing. As shown, 19.4 percent of cost burdened households are paying between 30 percent and 50 percent of their income on housing costs.

Further, 14.3 percent of households are spending more than 50 percent of their income on housing.

Based on CHAS data, Atwater has slightly higher rates of moderate and severe cost burden than Merced County, but a lower rate of moderate and severe cost burden than the state.

Table B3-11 Overpayment by Tenure (dollars)
Jurisdiction Moderate Cost Burden >30% to <=50% Severe Cost Burden >50% Total Households Atwater 1,780 1,314 9,160
Percent 19.4% 14.3% 100.0%
Merced County 14,710 12,285 80,010
Percent 18.4% 15.4% 100.0%
California 2,632,205 2,427,660 13,044,265
Percent 20.2% 18.6% 100.0%
Source: U.S. Department of Housing and Urban Development, CHAS 2015-2019 (5-Year Estimates), Table 7.

B3.6 Household Characteristics
Table B3-12 provides information on household types. Of the 10,309 households in Atwater, 5,096 are married-couple households with or without children, and 665 are cohabitating couple households with or without children. Approximately half the total households in Atwater, Merced County, and California are married-couple households.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-9
Table B3-12 Households by Type
Jurisdiction
Married-Couple Household Cohabitating Couple Household
Total
Total Children No Children Total Children Households
No
Children
Atwater 5,096 2,192 2,904 665 350 315 10,309
Percent 49.4% 21.3% 28.2% 6.5% 3.4% 3.1% -
Merced
County
39,912 18,171 21,741 6,862 3,910 2,952 81,618
Percent 48.9% 22.3% 26.6% 8.4% 4.8% 3.6% -
California 6,539,445 2,780,272 3,759,173 938,780 338,874 599,906 13,217,586 Percent 49.5% 21.0% 28.4% 7.1% 2.6% 4.5% -
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B11012.

B3.7 Large Households
Large family households are defined by U.S. Census Bureau as households containing five or more persons. Table B3-13 provides information on large households by tenure. As shown, 17.8 percent of households in Atwater consist of five or more people, which is lower than the county average and higher than the state. In Atwater, owner-occupied five-person households (6.4 percent of total households), renter-occupied five-person households (6.3 percent) and renter-occupied six-person households (1.6 percent) make up the largest percentages of large households, while owneroccupied six person households make up the smallest percentage of large households. Additionally, Atwater and Merced County have higher percentages of renter-occupied five- person households than in California.

Table B3-13 Large Households by Tenure
Jurisdiction
Total Large
Households
Owner-Occupied
Large Households
Renter-Occupied
Large Households
5-Person 6-Person
7-or-More
Person 5-Person 6-Person
7-or-More
Person
Atwater 1,835 658 107 141 651 169 109
Percent 17.8% 6.4% 1.0% 1.4% 6.3% 1.6% 1.1%
Merced County 17,710 4,737 1,952 1,649 5,380 2,184 1,808 Percent 21.7% 5.8% 2.4% 2.0% 6.6% 2.8% 2.2%
California 1,830,468 580,759 246,420 200,281 456,013 199,263 147,732 Percent 13.9% 4.4% 1.9% 1.5% 3.5% 1.5% 1.1%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B25009.

B3.8 Overcrowding
The U.S. Census defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens). Units with more than 1.5 persons per room are considered severely overcrowded. Table B3-14 provides information on overcrowding by tenure in Atwater.

There is a total of 715 overcrowded households in the city, of which 32.7 percent are owneroccupied households, and the remaining 67.3 percent are renter-occupied.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-10
Table B3-14 Overcrowding Severity by Tenure
Jurisdiction
Owner-Occupied Renter-Occupied
Total

1.0 to 1.5
Occupants per
Room
More than 1.5
Occupants per
Room Total

1.0 to 1.5
Occupants per
Room
More than 1.5
Occupants per
Room
Atwater 5,366 158 76 4,943 349 132
Percent 52.1% 1.5% 0.7% 47.9% 3.4% 1.3%
Merced County 42,146 1,766 551 39,472 3,090 1,362
Percent 51.6% 2.2% 0.7% 48.4% 3.8% 1.7%
California 7,335,247 229,637 82,236 5,882,339 453,625 321,169 Percent 55.5% 1.7% 0.6% 44.5% 3.4% 2.4%
Source: U.S. Census Bureau, ACS 2006-2010, 2011-2015, 2017-2021 (5-year Estimates), Table B25014.

B3.9 Special Needs Groups
Within the general population there are several groups of people who have special housing needs.

These needs can make it difficult for members of these groups to locate suitable housing. The following subsections identify and discuss these special housing needs groups.

Seniors
Table B3-15 identifies senior households in Atwater, Merced County, and California. The percentage row identifies the percent of the specified age range within all owner-occupied or renter-occupied household categories. There are far more owner-occupied senior households in Atwater (1,633 total), than renter-occupied senior households (816 total), which is like the county and state. As shown, seniors between the ages of 65 and 74 make up the largest percentages of owner and renter-occupied households (15.4 percent and 8.3 percent of total households, respectively), consistent with the county and state.

Table B3-15 Senior Households by Tenure
Jurisdiction
Owner-Occupied Renter-Occupied
65 to 74 75 to 84 85 and over 65 to 74 75 to 84 85 and over Atwater 826 545 262 409 302 105
Percent 15.4% 10.2% 4.9% 8.3% 6.1% 2.1%
Merced County 7,176 4,232 1,559 3,318 1,216 495
Percent 39.9% 23.5% 8.7% 18.4% 6.8% 2.8%
California 1,386,828 679,546 288,915 501,465 229,153 132,237 Percent 43.1% 21.1% 9.0% 15.6% 7.1% 4.1%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B25007.

Table B3-16 shows the housing cost burdens by elderly family type and tenure in Atwater based on data extracted through HUD’s CHAS (note that the CHAS data defines senior or elderly as age 62 and over, as opposed to the ACS that reports seniors as age 65 and older). Based on data in this table, of all elderly persons in lower-income categories (less than or equal to 80 percent HAMFI),

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-11
approximately 26.9 percent of all senior-owner households and 46.4 percent of all senior-renter households in Atwater had a housing cost burden of 30 percent or greater.

Table B3-16 Overpayment by Tenure Among Senior Households, Atwater Owners Renters
Total
Elderly
Family
Elderly
Non- family
Elderly
Family
Elderly
Non- family
Household Income <= 30% HAMFI Extremely Low-Income
TOTAL HOUSEHOLDS <= 30% HAMFI 45 135 25 105 310
Number w/ Cost Burden <= 30% 20 35 - 20 75
Number w/ Cost Burden > 30% to <= 50% 10 15 - 10 35
Number w/ Cost Burden > 50% 15 85 25 75 200
Percent with Cost Burden >30% HAMFI 56.0% 74.0% 100.0% 81.0% 76.0% Household Income > 30% to <= 50% HAMFI Very Low-Income
TOTAL HOUSEHOLDS > 30% to <= 50% HAMFI 30 150 40 45 265 Number w/ Cost Burden <= 30% 10 65 - 20 95
Number w/ Cost Burden > 30% to <= 50% 20 20 15 10 65
Number w/ Cost Burden > 50% - 65 25 15 105
Percent with Cost Burden >30% HAMFI 67.0% 57.0% 100.0% 56.0% 64.0% Household Income > 50% to <= 80% HAMFI Low-Income
TOTAL HOUSEHOLDS > 50% to <= 80% HAMFI 155 150 145 60 510 Number w/ Cost Burden <= 30% 90 90 60 15 255
Number w/ Cost Burden > 30% to <= 50% 55 60 85 45 245
Number w/ Cost Burden > 50% 10 - - - 10
Percent with Cost Burden >30% HAMFI 42.0% 40.0% 59.0% 75.0% 50.0% Household Income > 80% to <= 100% HAMFI
TOTAL HOUSEHOLDS > 80% to <= 100% HAMFI 55 10 50 44 159 Household Income > 100% HAMFI
TOTAL HOUSEHOLDS > 100% HAMFI 430 160 99 45 734
Total Income <80% HAMFI and Cost Burden > 30% 355 305 660 Percent Income <80% HAMFI and Cost Burden > 30% 26.9% 46.4% 33.4% GRAND TOTAL HOUSEHOLDS 715 605 359 299 1,978
Elderly family constitutes 2 persons with either or both age 62 and over.

HAMFI = HUD Area Median Family Income
Source: HUD Consolidated Planning / Comprehensive Housing Affordability Strategy (CHAS) database, 2015-2019 estimates, Table 7, accessed 2023. https://www.huduser.gov/portal/datasets/cp.html Table B3-17 summarizes cost burden data for units occupied by senior households. As shown,

63.7 percent of senior households in Atwater are cost burdened by less than or equal to 30 percent.

Further, 20.4 percent are cost burdened by greater than 30 percent and less than or equal to 50 percent, while 15.9 percent are cost burdened by more than 50 percent. There is a higher percentage of senior households cost burdened in Atwater than in Merced County by over 30 percent.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-12
Table B3-17 Cost Burdened Senior Households
Jurisdiction Cost Burden <= 30% Cost Burden >30% to <=50% Cost Burden >50% Total Senior
Households
Atwater 1,260 403 315 1,978
Percent 63.7% 20.4% 15.9% 100.0%
Merced County 12,080 3,220 2,880 18,180
Percent 66.4% 17.7% 15.8% 100.0%
California 1,963,195 620,335 736,510 3,320,040
Percent 59.1% 18.7% 22.2% 100.0%
Source: U.S. Department of Housing and Urban Development, CHAS 2015-2019 (5-Year Estimates), Table 7.

Resources for Senior-Headed Households
The Merced County Housing Authority manages six senior housing complexes, none of which are in Atwater. As shown in Table B3-16, there are a total of 658 senior rental-occupied households in Atwater, of which 420 are lower-income. Based on this data, there is a significant gap between lower-income senior rental-occupied households and available units.

Persons with Disabilities (including Developmental Disabilities) Individuals with disabilities, including developmental disabilities, may require special housing accommodations or assistance. Community members with ambulatory difficulties, self-care limitations, or cognitive conditions may require assisted living or financial assistance. Table B3-18 identifies the number of residents with one or more disabilities. In Atwater, 7.3 percent of the total population has one type of disability, while 6.9 percent report two or more disabilities, which is similar to the county (6.6 percent and 6.3 percent, respectively) but higher than the state (5.4 percent and 5.2 percent, respectively). Among those with a disability, 51.4 percent have one disability, while 48.6 percent have two or more types of disability.

Table B3-18 Population by Number of Disabilities
Jurisdiction Total
With One Type
of Disability
With two or More
types of Disability No Disability
Atwater 31,214 2,266 2,144 26,804
Percent - 7.3% 6.9% 85.9%
Merced County 276,304 18,099 17,266 240,939
Percent - 6.6% 6.3% 87.2%
California 38,946,377 2,108,406 2,037,095 348,000,876
Percent 5.4% 5.2% 89.4%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table C18108.

Table B3-19 summarizes the population with a disability by age. In Atwater, residents aged 18 to 64 years make up the largest proportion of disabled individuals at 6.4 percent of the total population.

This is consistent with the county (6.8 percent) and higher than the state (5.1 percent). The under 18 years age group accounts for the smallest percent of those with a disability at 1.7 percent.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-13
Table B3-19 Disability by Age for the Total Population
Jurisdiction Total Under 18 Years 18 to 64 Years 65 Years and Older Atwater 31,214 523 2,005 1,882
Percent - 1.7% 6.4% 6.0%
Merced County 276,304 3,666 18,311 13,388
Percent - 1.3% 6.6% 4.9%
California 38,946,377 315,849 1,964,845 1,864,807
Percent 0.8% 5.1% 4.8%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table C18108.

Table B3-20 identifies residents with a developmental disability by age. In Atwater, most residents with a developmental disability are 18 years old and older, while the majority in both the state and county are under 18 years.

Table B3-20 Developmental Disability by Age
Jurisdiction Under 18 Years 18 Years and Older Total Population with a Disability Atwater 232 246 478
Merced County 1,507 1,287 2,794
California 192,384 185,353 377,737
Source: California Department of Developmental Services, DDS Quarterly Consumer Report, December 2021.

Table B3-21 includes data summarizing the housing location of residents with developmental disabilities. A majority of residents with a developmental disability in Atwater live in the home of a parent, family member, or guardian (385). An additional 47 residents live in an independent/ supported living facility, 29 residents live in community care facilities, 11 residents live in intermediate care facilities, and less than 11 residents live in foster/family homes.

Table B3-21 Developmental Disability by Residence
Residence Type City of Atwater Merced County California Home of Parent/Family/Guardian 385 2,937 309,381
Independent/Supported Living 47 232 27,881
Community Care Facility 29 80 23,728
Intermediate Care Facility 11 60 6,188
Foster/Family Home <11 <11 8,288
Other <11 <11 4,792
Total >472 >3,309 380,258
Source: California Department of Developmental Services, DDS Quarterly Consumer Report, January 2022.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-14
The Supplemental Security Income (SSI) program, administered by the U.S. Social Security Administration, shows the number of persons with disabilities who may have housing needs because of their low incomes. As of December 2021, 10,190 SSI recipients in Merced County were receiving benefits because they were blind or disabled2 .

Resources for Persons with Disabilities
According to the 2016-2024 Atwater Housing Element, the California Department of Developmental Services currently provides community-based services to persons with developmental disabilities through a statewide system of 21 regional centers, four developmental centers, and two community‐based facilities. Regional centers provide “point of entry” services to those that are developmentally disabled. The closest center to Atwater is the Central Valley Regional Center field office in Merced, approximately nine miles away. The Central Valley Regional Center is a non‐profit community agency that contracts with local businesses to provide services to developmentally disabled persons and their families. While there are no specific public housing resources that are accessible to people with disabilities in Atwater, there are 35 total public housing units available to low and moderate-income families and individuals in the city. As shown in Table B3-19, there are more than 4,000 people with a disability in Atwater, illustrating a significant gap in housing resources for residents with a disability.

Large Households
Table B3-22 provides information on large households by tenure in Atwater, Merced County, and California. See section 6.2.7: Large Households, above, for more information. As shown, there are 906 owner-occupied large households and 929 renter-occupied large households. There is a smaller percentage of total large households in Atwater (17.8 percent) than the county (21.7 percent) and a larger percentage than the state (13.9 percent).

Table B3-22 Large Households by Tenure
Jurisdiction
Total
Households
Owner-Occupied
Large Households
Renter-Occupied
Large Households
5-Person 6-Person
7-or-More
Person 5-Person 6-Person
7-or-More
Person
Atwater 10,309 658 107 141 651 169 109
Percent 6.4% 1.0% 1.4% 6.3% 1.6% 1.1%
Merced County 81,618 4,737 1,952 1,649 5,380 2,184 1,808 Percent 5.8% 2.4% 2.0% 6.6% 2.7% 2.2%
California 13,217,586 580,759 246,420 200,281 456,013 199,263 147,732 Percent 4.4% 1.9% 1.5% 3.5% 1.5% 1.1%
Source: U.S. Census Bureau, ACS 2016-2020 (5-year Estimates), Table B25009. 2 Source: U.S. Social Security administration. SSI Recipients by State and County, 2021. https://www.ssa.gov/policy/docs/statcomps/ssi_sc/2021/ca.html Note: Although these figures can give a sense of the proportion of the population with different types of disabilities, a much smaller proportion of the population may actually require specially adapted housing to accommodate disabilities.)

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-15
Resources for Large Households
Units with four or more bedrooms are the primary housing resource for large households.

Table B3-23 compares the number of large households to the number of large units. Units with five or more rooms provide housing options for large households and work to lessen overcrowding. As shown, there are 360 units in Atwater with five or more bedrooms but 1,835 large households, leaving a resource gap of more than 1,475 units. When considering all large units with four or more bedrooms (1,651) there is still a resource gap of more than 184 units. To help mediate the issue of overcrowding and large households, the City will implement Program 7.

Table B3-23 Large Households and Units
Jurisdiction Total Households
Large Households
(5 or more persons) Total Units
Large Units
(4 bedrooms)
Large Units
(5 or more bedrooms)
Atwater 10,309 1,835 10,580 1,291 360
Percent 17.8% 12.5% 3.5%
Merced County 81,618 17,710 86,767 17,656 3,002
Percent 21.7% 21.6% 3.7%
California 13,217,586 1,830,468 14,328,539 2,373,268 596,588 Percent 13.8% 18.0% 4.5%
Source: U.S. Census Bureau, ACS 2017-2021 (Five-year Estimates), Tables DP04.

Female-Headed Households
Table B3-24 identifies single female-headed households with their own children under age 18. The table values do not include female-headed households with unrelated dependents. Atwater has a total of 1,050 single female-headed households with their own children under 18, representing 10.2 percent of total households. This is higher than the county (7.8 percent) and the state (4.7 percent).

Table B3-24 Single Female-Headed Households with Own Children Jurisdiction Total Households Single Female-Headed Households* Percent Atwater 10,309 1,050 10.2%
Merced County 81,618 6,365 7.8%
California 13,217,586 614,747 4.7%
Notes: Single Female-Headed Households with own children under age 18, does not include unrelated dependents.

Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B11012.

Table B3-25 compares female-headed households by tenure. As shown, there is a larger percentage of renter-occupied female-headed households (59.8 percent) than owner-occupied households (40.2 percent). Both the county and state follow a similar trend.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-16
Table B3-25 Female-Headed Family Households by Tenure
Jurisdiction Owner-Occupied Renter-Occupied Total
Atwater 806 1,201 2,007
Percent 40.2% 59.8%
Merced County 4,569 10,129 14,698
Percent 31.1% 68.9%
California 713,100 996,675 1,709,775
Percent 41.7% 58.3%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B17010.

Resources for Single-Parent and Female-Headed Households Resources for lower-income female-headed households include existing affordable housing units in the city as well as rental assistance provided through the County’s Housing Choice Voucher (HCV) program. Below is a list of local agencies dedicated to assisting parents:
 First 5 Merced County is dedicated to improving the lives of Merced County’s young children, including Atwater, and their families through a comprehensive system of education, health services, and other crucial programs. The Strong Families programs enable families to raise their children in a safe, stable, and nurturing home. These programs work with families, educators, health, and social services providers to support parents and guardians. Below is a list of local agencies dedicated to assisting parents:
 Ace Overcomers Program, committed to helping teens and adults overcome the effects of adverse childhood experiences (ACEs).
 Merced County Office of Education, providing educational services to children and families including childcare subsidies to offset the costs of care.  Sierra Vista Child and Family Services, committed to supporting the community by providing mental health services to children and youth ages 0 to 21.  Maternal, Child, and Adolescent Health (MCAH) Services, providing information and services to mothers and children.

Extremely Low-Income Residents
Extremely low-income (ELI) households are defined as households with incomes under 30 percent of the AMI. ELI households typically consist of minimum wage workers, seniors on fixed incomes, the disabled, and farmworkers. This income group is likely to live in overcrowded and substandard housing conditions. Many ELI households overlap with other special housing needs groups such as seniors and people with disabilities, putting the group at a disproportionate need for affordable housing options. ELI households have specific housing needs that require greater government subsidies and assistance, housing with supportive services, single room occupancy (SRO) and/or shared housing, and/or rental subsidies or vouchers. In recent years, rising rents, higher income and credit standards imposed by landlords, and insufficient government assistance has exacerbated the problem. Without adequate assistance this group has a high risk of homelessness.

Table B3-26 identifies extremely low-income (ELI) households by tenure in Atwater. ELI households are households whose income is less than or equal to 30 percent of the AMI. Renter-occupied extremely low-income households account for 10.5 percent of total households in Atwater, significantly higher than owner-occupied extremely low-income households (4.0 percent). The

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-17
percentage of renter-occupied extremely low-income households in the city is similar to the rate in the county (10.7 percent) and the state (10.8 percent). The percentage of owner-occupied extremely low-income households in Atwater (4.0 percent) is slightly higher than in Merced County (3.7 percent), but lower than in California (4.5 percent). There are 1,329 total extremely low-income households in Atwater, comprising approximately 14.5 percent of total households in the city. This is similar to the county (14.3 percent) and slightly lower than the state (15.3 percent).

Table B3-26 Extremely Low-Income Households by Tenure
Jurisdiction
Income <=30% HAMFI
Owner-Occupied Renter-Occupied Total ELI Households Total Households Atwater 364 965 1,329 9,160
Percent 4.0% 10.5% 14.5% 100.0%
Merced County 2,940 8,540 11,480 80,010
Percent 3.7% 10.7% 14.3% 100.0%
California 592,010 1,427,405 2,019,415 13,217,586
Percent 4.5% 10.8% 15.3% 100.0%
Source: U.S. Housing and Urban Development, CHAS 2015-2019 (5-Year Estimates), Table 7.

Table B3-27 summarizes cost burden among extremely low-income households. As shown, in Atwater 289 of 364 extremely low-income owner-occupied households (79.4 percent) are experiencing moderate or severe housing cost burden. This is similar to the county (79.1 percent) and the state (80.1 percent). In addition, 895 of the 965 extremely low-income renter-occupied households (2.73 percent) are experiencing a housing cost burden of over 30 percent of the household income. This is higher than in both the county (87.4 percent) and the state (87.9 percent). Among extremely low-income households in Atwater, 56.8 percent are renter-occupied households with a severe cost burden. This is higher than in the county (51.7 percent) and the state (51.4 percent). ELI households also generally experience more housing problems compared to other income categories. Approximately 75 percent of total ELI households experience any housing problem, while approximately 60 percent of low-income households and approximately 18 percent of moderate- and above moderate-income households experience any housing problem.

Table B3-27 Extremely Low-Income Households Overpaying by Tenure Jurisdiction
Owner-Occupied Renter-Occupied
Total ELI
Households
Cost
Burden
<30%
Moderate
Cost
Burden
30%-50%
Severe
Cost
Burden
>50%
Cost
Burden
<30%
Moderate
Cost
Burden
30%-50%
Severe
Cost
Burden
>50%
Atwater 75 95 194 70 140 755 1,329
Percent 5.6% 7.1% 14.6% 5.3% 10.5% 56.8% 100.0%
Merced County 615 595 1,730 1,075 1,530 5,935 11,480
Percent 5.4% 5.2% 15.1% 9.4% 13.3% 51.7% 100.0%
California 117,890 92,945 381,175 172,130 216,880 1,038,395 2,019,415 Percent 5.8% 4.6% 18.9% 8.5% 10.7% 51.4% 100.0%
Source: US Housing and Urban Development, CHAS 2015-2019 (5-Year Estimates).

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-18
Resources for Extremely Low-Income Households
The Housing Authority of the County of Merced currently administers the HCV Program, a federal rent subsidy program under the Department of Housing and Urban Development. The program provides rent subsidy to families in privately owned existing rental units in Merced County. The Housing Authority of the County of Merced currently administers 2,705 HCVs within the county. 3 In addition to the HCV program, the Housing Authority also administers Emergency Housing Vouchers (EHV). In order to be eligible for an EHV, an individual must meet one of the four eligibility criteria:

1. Homeless;

2. At risk of homelessness;

3. Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking;

4. Recently homeless and for whom providing rental assistance will prevent the family’s homelessness or having high risk of housing instability.4

Table B3-28 includes an inventory of affordable housing in Atwater. As shown, there are 35 affordable units in the city. These units serve households making less than 80 percent of the AMI.

Based on the identified need (965 ELI rental households) there is a significant need for additional units affordable to ELI households in the city.

Table B3-28 Inventory of Public Assisted Complexes, Atwater Name Address City Zip Affordable Units
Atwater Apartments - (Site A) 1191 Willow Street Atwater 95301 35 Note: All locally assisted or restricted developments may not be included in this list.

Source: California Housing Partnership, 2023.

Farmworkers
Farmworkers and day laborers are an essential component of California’s agriculture industry.

Farmers and farmworkers are the cornerstone of the larger food sector, which includes the industries that provide farmers with fertilizer and equipment; farms to produce crops and livestock; and industries that process, transport, and distribute food to consumers. Farmworker households are often compromised of extended family members or single male workers. Farmworkers make up the majority of the agricultural labor sector and include individuals whose primary income is earned through either seasonal or permanent agricultural labor.

Farmworkers are traditionally defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor. Migrant farmworkers as a group consist of individuals who travel not only across county lines but also from one major geographic region of California to another to find work. Travel for work prevents them from returning to their primary residence every evening. Many migrant farmworkers are single males, most of whom are married and migrate alone 3 Housing Authority of Merced County, Housing Choice Voucher, http://www.merced-pha.com/housing-choice-voucher/ accessed June 2023.
4 Housing Authority of Merced County, Emergency Housing Vouchers, http://www.merced-pha.com/emergency-housing-vouchers-ehvfrequently-asked-questions-faq/ accessed June 2023.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-19
to support their families who live at home base. However, there are many migrant families who have more than one employed member.

When workloads increase during harvest periods, the labor force is supplemented by seasonal labor, often supplied by a labor contractor. Non-migrant seasonal farmworkers consist of individuals who work only during a harvest season, and who are able to return to their primary residence every evening. This group, which includes cannery workers, is fairly significant, and includes more than half of all farmworkers in the state. Permanent farmworkers comprise the smallest group of individuals employed in agriculture. Permanent farmworkers are employed year-round, usually by one employer in the agricultural industry. This group generally lives in rural areas in permanent housing provided by the grower. Providing migratory or seasonal farmworkers with affordable shelter has long presented a problem. Traditionally, growers offered some level of shelter to workers, yet the availability of grower-offered housing has dramatically decreased over the last twenty years. While housing for farmworkers is most convenient when located on or adjacent to farms, housing affordable at very low-income levels tends to be more feasible in cities. Housing in cities, with services located nearby, may also be more suitable for seasonal farmworkers whose families live with them. Increasingly, farmworkers are living in cities on a year-round basis, especially in existing single family rental units in older neighborhoods that offer relatively low-cost housing and its central location in relation to farmland.

According to a study conducted by the University of California, Merced, farmworker households frequently experience high poverty rates, severe overcrowding, and poor housing conditions, with a majority renting and living in substandard environments due to their typically lower incomes and face a disproportionate need for more affordable housing. These housing issues, combined with the demanding and poorly compensated nature of farmwork, often lead to negative health outcomes and exacerbate respiratory and infectious diseases.
5 The U.S. Department of Agriculture provides countywide farmworker population data generated by the Census of Agriculture. The most recent Census of Agriculture data (2017) identified 15,566 farmworkers in the county.6
Table B3-29 provides 2017-2021 ACS data for the total population of residents working in the agriculture, forestry, fishing and hunting, and mining industries (including farmworkers) in Atwater and Merced County. Atwater had 1,231 workers in these categories in 2021, representing 10.0 percent of the total population of workers in these industries across the county. Please note that this number is not strictly farmworkers, as the ACS data does not identify numbers in subcategories.

Table B3-29 Farmworker Population
Jurisdiction
Population in Agriculture, Forestry, Fishing and Hunting, and Mining Industries (Including Farmworkers)
Atwater 1,231
Percent 10.0%
Total Merced County 12,326
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table C24050. 5 Farmworker Health in California. UC Merced. August 2022. https://clc.ucmerced.edu/sites/clc.ucmerced.edu/files/page/documents/fwhs_report_2.2.2383.pdf?_gl=1*1rg0e9w*_ga*MTU3Njc2MD MzNS4xNzA4OTk2Nzgx*_ga_TSE2LSBDQZ*MTcwODk5Njc4MC4xLjAuMTcwODk5Njc4MC42MC4wLjA. 6 U.S. Department of Agriculture, Census of Agriculture, https://www.nass.usda.gov/AgCensus/ accessed June 2023, accessed June 2023.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-20
The USDA Census of Agriculture reported 1,397 farms with a total of 15,945 workers in Merced County (see Table B3-30). The majority of the farmworkers were seasonal, working fewer than 150 days per year.

Table B3-30 Farmworkers in Merced County by Days Worked (2017) Farm Type Number of Farms Number of Workers
150 Days or More (Year-Round)
Small Farms (less than 10 workers per farm 512 1,535
Large Farms (10 or more workers per farm) 291 7,853
Subtotal 803 9,388
Fewer than 150 Days (Seasonal)
Small Farms (less than 10 workers per farm) 438 1,346
Large Farms (10 or more workers per farm) 156 5,211
Subtotal 594 6,557
Total 1,397 15,945
Source: USDA. 2022 Census of Agriculture - County Data. https://www.nass.usda.gov/Publications/AgCensus/2022/Full_Report/Volume_1,_Chapter_2_County_Level/California/st06_2_007_007.pdf Resources for Farmworkers
The Housing Authority of Merced County funds four migrant housing centers, one of which is in Atwater. It contains 59 units that offer temporary housing from April through November. To be eligible for migrant housing, households must earn a minimum of $5,752.50 annually from farm labor employment. The Atwater Migrant Center is located on W. Westside Boulevard, Atwater. As reported in Table B3-29 above, there were more than 1,231 farmworkers living in Atwater in 2021.

Despite the housing opportunities listed above, there is a significant gap in housing resources for farmworkers in the city.

Unhoused Households
Figure B3-2 shows unhoused households by type between 2005 to 2022. As shown, 2005 had the highest reported number of unhoused households (1,101) by the Merced County Continuum of Care (CoC), the majority of which were unsheltered. Data for 2020 indicates that there were 559 unhoused households, including 313 of those counted as unsheltered. These numbers increased from 2020 to 2022, at which point over 680 households were unhoused in the county.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-21
Figure B3-2 Unhoused Households by Type Over Time, Merced County Source: U.S. HUD, CoC Homeless Populations and Subpopulations Reports (2005, 2010, 2015, 2020, 2022).

Point in time count data is reported by the CoC for Merced County, including Atwater. Table B3-31 provides the most recent (2023) point-in-time count for individual unhoused residents in the county. In 2023, there were a total of 784 unhoused people in Merced County, with 4.6 percent (36 people) living in Atwater.

Table B3-31 Unhoused Individuals by Type (2023)
Jurisdiction Sheltered Unsheltered Total
Atwater 9 27 36
Percent 2.3% 6.9% 4.6%
Total Merced County 394 390 784
Source: Merced City and County Continuum of Care, Point-in-Time Count (2022) Figure B3-3 identifies unhoused individuals by type and race in Merced County for the year 2023. As shown, 53.2 percent of unhoused individuals countywide were reported as sheltered. In terms of race, 69 percent reported as white, 17 percent as Black or African American, one percent as Asian, three percent as American Indian or Alaska Native, less than one percent as Native Hawaiian or Other Pacific Islander, and 10 percent as multiple races. 115
9 95 107 209
40 1 38
139
115
946
38 743
313
363
0 200
400
600
800
1000
1200
2005 2010 2015 2020 2022
Emergency Shelter Transitional Housing Unsheltered

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-22
Figure B3-3 Unhoused Individuals by Type by Race (2023) Source: Merced City and County Continuum of Care, Point-in-Time Count (2023) The 2023 Merced County CoC point in time count data also considers ethnicity, as shown in Table B3-32. Among those counted, 332 of 784 individuals (42.3 percent) identified as Hispanic/Latino.

Table B3-32 Unhoused Individuals by Ethnicity, Merced County (2023) Jurisdiction Sheltered Unsheltered Total
Hispanic/Latino (any race) 186 146 332
Percent 23.7 18.6 42.3
Not Hispanic/Latino 208 244 452
Percent 26.5 31.1 57.7
Source: Merced City and County Continuum of Care, Point-in-Time Count (2022).

The 2023 point-in-time count only provides specific demographic data for unsheltered residents in the cities of Merced and Los Banos.

Resources for Persons Unhoused Individuals
The City of Atwater has a transitional housing facility offered in the city. Operated by Community Social Model Advocate, the Tranquility Village is a women’s program offering eight family units with 57 total beds. It also houses women with children, offering treatment and child services. While Atwater does not have transitional housing for men, Community Social Model Advocate does operate a male program in Merced called the Hobie House. The facility is approximately nine miles from Atwater and offers 25 individual beds for those recovering from substance abuse.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-23
There are no emergency shelters in the city. The lack of resources for the unhoused in Atwater indicates a need for more accessible housing for the unhoused population.

B3.10 Housing Stock Characteristics
A community’s housing stock is defined as the collection of all housing units located within the jurisdiction. The characteristics of the housing stock, including growth, type, age, condition, tenure, vacancy rates, housing costs, and affordability are important in determining the housing needs for the community. The following sections detail the housing stock characteristics of Atwater to identify how well the current housing stock meets the needs of current and future residents.

Housing Growth
Table B3-33 summarizes the growth in the housing stock in Atwater by providing the total number of units constructed each decade from 1980 and 2020. The largest growth rate occurred between 1980 and 1990 with a 30.3 percent increase during this 10-year period. Between 1990 and 2000 the housing stock grew at a slower pace of 9.3 percent. Between 2000 and 2010, the number of housing units in the city increased by 20.4 percent, however in the 10 years from 2010 and 2020, production slowed again, with the number of housing units increasing by just 6.9 percent.

Table B3-33 Total Housing Units Over Time (1980 to 2020) Jurisdiction 1980 1990 2000 2010 2020
Atwater 5,696 7,422 8,114 9,771 10,448
Percent Change 30.3% 9.3% 20.4% 6.9%
Source: U.S. Census Bureau, Census 1980 (STF1:T65), 1990 (STF1:H1), 2000 (SF1:H1); ACS 2016-2020 (5-year Estimates), Table B25001.

Housing Type and Tenure
Table B3-34 identifies the total housing units by type in Atwater, Merced County, and California. In Atwater, single detached homes make up most of the housing stock, with 66.3 percent of total units. This is a lower percentage than the county with 73.8 percent and but greater than the state with 57.6 percent. The second most common housing type are 2-unit complexes, providing 9.2 percent of the total units in the city. This is much higher than both the county (3.2 percent) and the state (2.4 percent). Other common housing types in Atwater are three-to-four-unit complexes, comprising 6.1 percent of the total units in the city. This is higher than in the county (4.8 percent) and the state (5.4 percent). In both Atwater and Merced County, 20 to 49 unit complexes account for less than one percent of the housing stock. This is significantly lower than in California where 20- to-49-unit complexes account for approximately five percent of the housing stock.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-24
Table B3-34 Total Housing Units by Type
Jurisdiction Total
1,
Detached
1,
Attached 2 3 or 4 5 to 9 10 to 19 20 to 49 50 or more
Mobile
Home
Boat, RV,
Van, etc.

Atwater 10,580 7,016 381 971 645 375 329 18 159 686 0
Percent 66.3% 3.6% 9.2% 6.1% 3.5% 3.1% 0.2% 1.5% 6.5% 0.0% Merced
County
86,767 64,045 1,908 2,785 4,172 3,876 1,634 801 1,649 5,775 122 Percent 73.8% 2.2% 3.2% 4.8% 4.5% 1.9% 0.9% 1.9% 6.7% 0.1% California 14,328,539 8,248,814 1,031,608 340,666 777,600 842,158 721,058 713,636 1,121,470 514,764 16,765 Percent 57.6% 7.2% 2.4% 5.4% 5.9% 5.0% 5.0% 7.8% 3.6% 0.1% Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table C24050.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-25
Table B3-35 indicates housing units by tenure. In Atwater, 52.1 percent of units are owner-occupied compared to 47.9 percent renter occupied. The percentage of owner-occupied households in the city is similar to the county (51.6 percent owner-occupied) and the state (55.5 percent).

Table B3-35 Housing Units by Tenure
Jurisdiction Total Owner-Occupied Renter-Occupied
Atwater 10,309 5,366 4,943
Percent 52.1% 47.9%
Merced County 81,618 42,146 39,472
Percent 51.6% 48.4%
California 13,217,586 7,335,247 5,882,339
Percent 55.5% 44.5%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B25042.

Vacancy Rate
Table B3-36 provides data on vacancy status by type for the total vacant units. Of the total vacant units in Atwater (271), units for rent make up the largest percentage of total vacant units. These units make up 29.5 percent of total vacant units in the city, greater than the county (25.2 percent) and the state (21.7 percent). In Atwater, 8.5 percent of vacant units are used for seasonal, recreational or occasional use. By comparison, 10.8 percent of vacant units countywide and 33.4 percent in California fall into this category. There are no units in the city categorized as rented but not occupied or housing for migrant workers, illustrating that rental and farmworker housing are in high demand.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-26
Table B3-36 Vacancy Status by Type for Total Vacant Units Jurisdiction
Total
Vacant Units For Rent
Rented, Not
Occupied For Sale Only
Sold, Not
Occupied
For Seasonal,
Recreational, or
Occasional Use
For Migrant
Workers Other Vacant
Atwater 271 80 0 40 58 23 0 70
Percent 2.6% 29.5% 0.0% 14.8% 21.4% 8.5% 0.0% 25.8%
Merced County 5,149 1,298 112 377 553 556 202 2,051
Percent 5.9% 25.2% 2.2% 7.3% 10.7% 10.8% 3.9% 39.8%
California 1,110,953 240,840 53,537 73,319 54,970 370,908 2,992 314,387 Percent 7.8% 21.7% 4.8% 6.6% 5.0% 33.4% 0.3% 28.3%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B25004.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-27
Housing Unit Size
Table B3-37 provides housing unit size data for Atwater, Merced County, and California. In Atwater, three-bedroom units (52.8 percent) are the most common housing type, followed by two-bedroom (22.6 percent) and four-bedroom units (12.5 percent). This is similar to the statewide housing unit size trend; however, there is a notably larger stock of three-bedroom units in Atwater and Merced County when compared to the state.

Table B3-37 Housing Unit Size
Jurisdiction Total Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 of More
Bedroom
Atwater 10,309 237 648 2,331 5,442 1,291 360
Percent 2.3% 6.3% 22.6% 52.8% 12.5% 3.5%
Merced County 81,618 1,883 4,320 16,306 38,451 17,656 3,002 Percent 2.3% 5.3% 20.0% 47.1% 21.6% 3.7%
California 13,217,586 564,387 1,691,491 3,539,857 4,451,995 2,373,268 596,588 Percent 4.3% 12.8% 26.8% 33.7% 18.0% 4.5%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B25042.

Age and Condition of Housing Stock
Table B3-38 provides data on the total occupied housing units by year built. The city experienced the most growth between 1970 and 1979. During this period, 2,531 units were constructed, representing 24.6 percent of the housing stock at the time. California indicated a similar result, with the largest percentage of units constructed in the 1970s, making up 17.4 percent of the total housing stock. In contrast, Merced County saw the biggest growth between 2000 to 2009 with 16,856 units. Notably, in Atwater, only 329 units have been constructed since 2010, which is the lowest increase in housing units in the city since 1939. Of the total 10,309 occupied units, 6,234 units are more than 40 years old. This accounts for over half (60.5 percent) of the total occupied housing units today.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-28
Table B3-38 Total Occupied Housing Units by Year Built
Jurisdiction Total
2020 or
later
2010 to
2019
2000 to
2009
1990 to
1999
1980 to
1989
1970 to
1979
1960 to
1969
1950 to
1959
1940 to
1949
1939 or
earlier
Atwater 10,309 0 329 1,464 752 1,530 2,531 1,129 1,537 819 218 Percent 0.0% 3.2% 14.2% 7.3% 14.8% 24.6% 11.0% 14.9% 7.9% 2.1% Merced
County
81,618 44 3,229 16,856 11,846 11,034 14,718 7,585 7,356 5,007 3,943 Percent 0.1% 4.0% 20.7% 14.5% 13.5% 18.0% 9.3% 9.0% 6.1% 4.8% California 13,217,586 15,877 634,508 1,451,946 1,438,264 1,980,874 2,295,943 1,728,569 1,755,123 753,750 1,162,732 Percent 0.1% 4.8% 11.0% 10.9% 15.0% 17.4% 13.1% 13.3% 5.7% 8.8% Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B25036.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-29
Table B3-39 provides information on substandard housing units. In Atwater 0.2 percent of units lack kitchen facilities (22 units). There are no units in the city that lack plumbing facilities. This is similar to both the state and county. By comparison, however, Atwater’s substandard housing units make up a lower percent of total units (0.2 percent) compared to Merced County (0.8 percent) and California (1.5 percent).

The City’s Code Enforcement Division estimates that approximately 50 units require major rehabilitation and fewer than 15 units citywide are beyond the point of repair. There are no concentrated areas of substandard housing in the city.

Table B3-39 Substandard Housing Units
Jurisdiction Total Lacking Plumbing Facilities Lacking Kitchen Facilities Atwater 10,309 0 22
Percent 0.0% 0.2%
Merced County 81,618 298 357
Percent 0.4% 0.4%
California 13,217,586 53,643 149,252
Percent 0.4% 1.1%
Source:

Housing Costs
Median Home Sale Price
Table B3-40 provides information on the median housing value in Atwater from 1980 to 2020. As shown, prices rose steadily from 1980 to 1990, but experienced a much smaller increase in value from 1990 to 2000. Median home values increased by 114.8 percent from 2000 to 2010. A similar trend was seen across other jurisdictions in the county, where the smallest growth generally occurred between 1990 and 2000 and the largest growth occurred between 2000 and 2010.

Increases in value have slowed since 2010, with growth between 2010 and 2020 at 14.5 percent.

According to Zillow, the average house prices in Atwater were $294,434 in 2020 and $407,428 in 2024.

Table B3-40 Median Housing Value Over Time (1980 to 2020) Jurisdiction 1980 1990 2000 2010 2020
Atwater 56,000 89,400 99,900 214,600 $251,100
Percent Change 59.6% 11.7% 114.8% 14.5%
Dos Palos 44,300 66,900 88,500 179,800 $232,700
Percent Change 51.0% 32.3% 103.2% 22.7%
Gustine 50,800 96,000 111,400 183,700 $273,500
Percent Change 89.0% 16.0% 64.9% 32.8%
Livingston 43,400 71,900 92,300 244,900 $231,100
Percent Change 65.7% 28.4% 165.3% -6.0%
Los Banos 49,000 110,100 138,200 248,900 $315,500
Percent Change 124.7% 25.5% 80.1% 21.1%

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-30
Jurisdiction 1980 1990 2000 2010 2020
Merced 57,700 90,300 103,200 223,500 $251,500
Percent Change 56.5% 14.3% 116.6% 11.1%
Unincorporated County 53,100 90,100 110,900 241,000 $268,800 Percent Change 69.7% 23.1% 117.3% 10.3%
Note: Data are not inflation-adjusted to 2022 dollars.

Source: U.S. Census Bureau, Census 1980(ORG STF1), 1990(STF3), 2000(SF3); ACS 06-10, 16-20 (5-year Estimates), Table B25077.

Table B3-41 provides information on the median housing value in Atwater over the past five years.

As shown, housing values have steadily increased over this time period, with the greatest increase in value occurring between 2017 and 2018 (15.8 percent). The lowest growth occurred between 2020 and 2021 (5.6 percent). Jurisdictions throughout the county experienced a similar trend, where the highest median housing value growth occurred between 2017 and 2018, followed by significantly smaller gains between 2019 and 2020.

Table B3-41 Median Housing Value from 2017 to 2021
Jurisdiction 2017 2018 2019 2020 2021
Atwater 179,400 207,800 229,400 251,100 265,200
Percent Change - 15.8 10.4 9.5 5.6
Dos Palos 134,000 183,500 194,500 232,700 252,800
Percent Change - 36.9 6.0 19.6 8.6
Gustine 157,600 195,000 222,700 273,500 322,300
Percent Change - 23.7 14.2 22.8 17.8
Livingston 187,500 222,400 229,900 231,100 242,400
Percent Change - 18.6 3.4 0.5 4.9
Los Banos 226,700 265,500 293,400 315,500 340,800
Percent Change - 17.1 10.5 7.5 8.0
Merced 185,700 212,100 237,500 251,500 268,600
Percent Change - 14.2 12.0 5.9 6.8
Merced County 196,200 229,500 252,700 268,800 288,400
Percent Change - 17.0 10.1 6.4 7.3
Note: Data are not inflation-adjusted to 2022 dollars.

Source: ACS 2017-2021 (5-year Estimates), Table B25077.

B3.11 Distribution of Owner-Occupied Units
Table B3-42 compares data on the number of owner-occupied housing units by race in Atwater, Merced County, and California. In Atwater, a majority of owner-occupied units are occupied by residents that identify as white (59.8 percent). This is similar to Merced County (59.4 percent) and slightly higher than in California (41.6 percent).

Considering ethnicity, 41.2 percent of all owner-occupied units are occupied by Hispanic/Latino residents of any race. This is lower than in Merced County (43.5 percent) but higher than in California (24.1 percent). Given that 55.4 percent of the entire population of Atwater identifies as Hispanic/Latino of any race, this group is underrepresented in the housing market.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-31
Table B3-42 Owner Occupied Units by Race
Jurisdiction White Black
American
Indian
and
Alaska
Native Asian
Native
Hawaiian
and Other
Pacific
Islander
Some
Other
Race
Two or
More
Races
Hispanic/
Latino of
any Race
Atwater 3,210 272 49 294 11 1,123 407 2,212
Percent 59.8% 5.1% 0.9% 5.5% 0.2% 20.9% 7.6% 41.2%
Merced
County
25,012 1,182 436 2,801 43 9,588 3,084 18,848
Percent 59.3% 2.8% 1.0% 6.6% 0.1% 22.7% 7.3% 43.5%
California 4,660,216 287,300 53643 1,150,895 18,216 633,875 531,102 1,807,053 Percent 62.1% 3.8% 0.7% 15.3% 0.2% 8.4% 7.1% 24.1%
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B25003.

B3.12 Housing Rents
According to the 2017-2021 ACS, the median contract rent in Atwater was $844 per month (Figure B3-4). This was lower than the median for the county at $923 and significantly lower than the state median of $1,547. Recent rental market trend data from Apartments.com shows that the average rent for a two-bedroom apartment in Atwater as of September 2024 was approximately $1,078.7 The median rental price for all property types listed on Zillow.com was $1,600.8 Figure B3-4 Median Contract Rent
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B25058. 7 Rental Market Trends. Apartments.com. Accessed September 2024. https://www.apartments.com/rent-market-trends/atwater-ca 8 Zillow Rental Manager: Atwater, CA Rental Market. Accessed September 2024. https://www.zillow.com/rental-manager/markettrends/atwater-ca $844 $923
$1,547
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Atwater Merced County California
Median Contract Rent

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-32
Table B3-43 below provides data on median gross rent from 1980 to 2020. Median gross rent has grown from $254 per month in 1980 to $1,044 in 2020. Between 2000 and 2010 rents in the city grew by 66.8 percent. From 2010 to 2020, rents grew at a slower rate of 20.1 percent.

Table B3-43 Median Gross Rent Over Time, Atwater
1980 1990 2000 2010 2020
Atwater $254 $446 $521 $869 $1,044
Percent Change 75.6% 16.8% 66.8% 20.1%
Source: Source: U.S. Census Bureau, Census 1980 (ORG STF3), 1990 (STF3), 2000 (SF3); ACS 2006-2010, 2016-2020 (5-year Estimates), Table B25064
Table B3-44 below provides an overview of median rent for rental housing by number of bedrooms based on 2017-2021 ACS data. As shown, median rent prices for all unit sizes were slightly lower in Atwater than in the county except for 3-bedroom units. Average rent prices in California are higher than in Atwater and throughout the county.

Table B3-44 Median Rent by Number of Bedrooms
Jurisdiction Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Atwater $692 $732 $962 $1,312 $1,460
Merced County $708 $795 $989 $1,234 $1,548
California $1,293 $1,450 $1,737 $1,938 $2,326
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B25031.

B3.13 Housing Affordability
Housing affordability levels are calculated using the median household income. Affordable monthly housing costs are calculated by taking 30 percent of the annual income and dividing it by 12 months.

The rental utility allowance is a fixed number provided for each household size by the Merced County Housing Authority. Taxes, insurance, and homeowners’ association fees are calculated as 20 percent of the monthly affordable rent. Affordable monthly rent is calculated by subtracting affordable monthly housing costs and the rental utility allowance. Affordable home prices assume a 30-year fixed mortgage with a seven percent interest rate and 10 percent down payment. Taxes, insurance, and homeowners’ association fees only apply to homeowners.

Table B3-45 shows the maximum amount that a household can pay for housing each month without incurring a cost burden (overpayment) for Atwater. A summary of each income category’s ability to pay for housing is provided below the table.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-33
Table B3-45 Housing Affordability Matrix – Atwater (2021) Annual
Income
Limits
Affordable
Monthly
Housing Costs
Rental Utility
Allowance
(2020)
Taxes, Insurance,
Homeowners
Association Fees
Affordable
Rent
Affordable
Home Price
Extremely Low-Income (0-30% AMI)
1-Person (Studio) $13,000 $325 $192 $27 $133 $43,422
2-Person (1 BR) $14,850 $371 $233 $28 $138 $49,601
3-Person (2 BR) $16,750 $419 $236 $37 $183 $55,948
4-Person (3 BR) $18,600 $465 $257 $42 $208 $62,127
5-Person (4 BR) $20,100 $503 $279 $45 $224 $67,137
Very Low-Income (30-50% AMI)
1-Person $21,700 $543 $192 $70 $351 $72,482
2-Person $24,800 $620 $233 $77 $387 $82,836
3-Person $27,900 $698 $236 $92 $462 $93,191
4-Person $31,000 $775 $257 $104 $518 $103,545
5-Person $33,450 $836 $279 $111 $557 $111,729
Low-Income (50-80% AMI)
1-Person $34,700 $868 $192 $135 $676 $115,904
2-Person $39,650 $991 $233 $152 $758 $132,438
3-Person $44,600 $1,115 $236 $176 $879 $148,972
4-Person $49,600 $1,240 $257 $197 $983 $165,672
5-Person $53,550 $1,339 $279 $212 $1,060 $178,866
Median-Income (80-100% AMI)
1-Person $43,400 $1,085 $192 $179 $893 $144,963
2-Person $49,600 $1,240 $233 $201 $1,007 $165,672
3-Person $55,800 $1,395 $236 $232 $1,159 $186,381
4-Person $61,950 $1,549 $257 $258 $1,292 $206,923
5-Person $66,950 $1,674 $279 $279 $1,395 $223,624
Moderate-Income (100-120% AMI)
1-Person $52,050 $1,301 $192 $222 $1,109 $202,832
2-Person $59,500 $1,488 $233 $251 $1,255 $231,863
3-Person $66,950 $1,674 $236 $288 $1,438 $260,895
4-Person $74,350 $1,859 $257 $320 $1,602 $289,732
5-Person $80,300 $2,008 $279 $346 $1,729 $312,918
Source: U.S. Census Bureau, ACS 2017-2021 (5-year Estimates), Table B19113.

Extremely Low-income Households
Extremely low-income households earn 30 percent or less of the county family median income.

Extremely low-income households have an annual income of $13,000 or below for a one-person household and $20,100 or below for a five-person household. A very low-income household can generally afford homes offered at prices between $43,422 and $67,137, adjusting for household size. After deductions for utilities, a very low-income household can afford to pay approximately

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-34
$133 to $224 in monthly rent, depending on household size. Extremely low-income households cannot afford market-rate rental or ownership housing in Atwater.

Very- Low-income Households
Very low-income households earn between 31 and 50 percent of the county median income – up to $21,700 for a one-person household and up to $33,450 for a five-person household in 2022. A very low-income household can generally afford homes offered at prices between $72,482 and $111,729, adjusting for household size. After deductions for utilities, a very low-income household can afford to pay approximately $351 to $557 in monthly rent, depending on household size. Given the cost of housing in Atwater, very low-income households could not afford to purchase a home or rent an adequately sized unit.

Low-income Households
Low-income households earn between 51 and 80 percent of the county median income – up to $34,700 for a one-person household and up to $53,550 for a five-person household in 2022. A lowincome household can generally afford homes offered at prices between $115,905 and $178,886, adjusting for household size. After deductions for utilities, a low-income household can afford to pay approximately $676 to $1,060 in monthly rent, depending on household size. Finding appropriately sized market-rate rental housing can be challenging to households in this income group.

Median-Income Households
Median-income households earn between 80 and 100 percent of the county’s median income – up to $43,400 for a one-person household and up to $66,950 for a five-person household in 2022. The affordable home price for a median-income household ranges from $144,963 to $223,624. After deductions for utilities, a one-person median-income household could afford to pay up to $893 in rent per month and a five-person low-income household could afford to pay as much as $1,395.

Finding appropriately sized market-rate rental housing can be challenging to households in this income group.

Moderate-Income Households
Moderate-income households earn between 100 and 120 percent of the county’s median income – up to $52,050 for a one-person household and up to $80,300 for a five-person household in 2022.

The maximum affordable home price for a moderate-income household is $202,832 for a oneperson household and $312,918 for a five-person family. Moderate-income households in Merced County could afford to purchase the median priced home; however, finding an affordable adequately sized home could present a challenge for households earning incomes at the lower end of the middle/upper category. The maximum affordable rent payment for moderate-income households is between $1,109 and $1,729 per month. Appropriately sized market-rate rental housing is generally affordable to households in this income group.

Workforce Housing
Federal guidelines define workforce housing as housing that is affordable to households earning incomes within the range of 60 to 120 percent of the median income (in Atwater, that range is $37,170 to $74,340 for a household of four). A broader definition of workforce housing is housing that is affordable to people who work in the county. A four-person household with an annual

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-35
income of $61,950 could afford monthly rent of $1,292 for a three-bedroom housing unit and a home purchase price of $206,923 without being burdened by housing costs. As noted in Table B3-44, the average monthly rental price for a three-bedroom unit is $1,312, just above the median income in Atwater.

Cost Burden
Table B3-46 and Table B3-47 identify cost-burdened households by tenure over time in Atwater.

There has been a decrease in the number of owner-occupied cost-burdened households from 1,446 households in 2010 to 1,104 in 2020. Cost-burdened renter-occupied households show different results, indicating noticeable increases from 1,415 in 2010 to 1,728 in 2020.

Table B3-46 Cost Burdened Owner-Occupied Households Over Time Jurisdiction 1980 1990 2000 2010 2020
Atwater 350 456 673 1,446 1,104
Percent Change 30.3% 47.6% 114.9% -23.7%
Note: Data are not inflation-adjusted to current 2022 dollars.

Source: U.S. Census Bureau, Census 1980 (ORG STF1), 1990 (STF3), 2000 (SF3); ACS 2006-2010, 2016-2020 (5-year Estimates), Table B25077.

Table B3-47 Cost Burdened Renter-Occupied Households Over Time Jurisdiction 1980 1990 2000 2010 2020
Atwater 533 968 895 1,415 1,728
Percent Change 81.6% -7.5% 58.1% 22.1%
Note: Data are not inflation-adjusted to current 2023 dollars.

Source: U.S. Census Bureau, Census 1980 (ORG STF1), 1990 (STF3), 2000 (SF3); ACS 2006-2010, 2016-2020 (5-year Estimates), Table B25077.

CHAS data provided by HUD provides information on cost burden by income category based on the HUD Area Median Family Income (HAMFI). This data is included in Table B3-48 below. While the totals do not align exactly with 2020 ACS data presented above, the CHAS data gives insight into which income categories are currently experiencing costs burdens in the city. As shown, extremely low- and very low-income households experience a high rate of cost burden greater than 30 percent, including 1,184 of 1,329 extremely low-income households and 870 of 1,198 very lowincome households.

Table B3-48 Cost Burden by Income and Tenure
Row Labels
Owner
occupied
Renter
occupied
Grand
Total
Household income is <= to 30% of HAMFI (extremely low-income) 364 965 1329 Housing cost burden is <= to 30% 75 70 145
Housing cost burden > 30% but <= to 50% 95 140 235
Housing cost burden is > 50% 194 755 949
Income is greater than 30% but <= to 50% of HAMFI (very low-income) 368 830 1198 Housing cost burden is <= to 30% 113 215 328
Housing cost burden is > 30% but <= to 50% 100 465 565
Housing cost burden is > 50% 155 150 305

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-36
Row Labels
Owner
occupied
Renter
occupied
Grand
Total
Income is > 50% but <= to 80% of HAMFI (low-income) 760 1089 1849 Housing cost burden is <= to 30% 495 670 1165
Housing cost burden is > 30% but <= to 50% 205 419 624
Housing cost burden is > 50% 60 - 60
Income is > 80% <= to 100% of HAMFI (median-income) 455 503 958 Housing cost burden is <= to 30% 300 445 745
Housing cost burden is > 30% but <= to 50% 155 58 213
Housing cost burden is > 50% - - 0
Income is greater than 100% of HAMFI (moderate-income) 2849 884 3733 Housing cost burden is <= to 30% 2,755 835 3590
Housing cost burden is > 30% but <= to 50% 94 49 143
Housing cost burden is > 50% - - 0
Grand Total 4796 4271 9067
Source: U.S. Department of Housing and Urban Development, Comprehensive Housing Affordability Strategy (CHAS) dataset, 2015- 2019 (5-Year Estimates), Table 6, Table 7.

B3.14 Assisted Housing Units
Assisted housing units are those that are restricted for use by occupants with limited household incomes. These units are assisted under federal, state, and/or local programs, including HUD programs, state and local bond programs, former redevelopment agency (RDA) programs, density bonus, or direct assistance programs.

At-Risk Housing Units
The California Housing Partnership maintains an affordable housing database to monitor changes in affordable housing and to identify units or housing developments that are at risk of converting to market-rate uses. Assisted units in the preservation data base are classified by the following risk categories:
 Low Risk: affordable housing units that are at-risk of converting to market rate in ten+ years and/or are owned by a large/stable non-profit, mission-driven developer.  Moderate Risk: affordable housing units that are at-risk of converting to market rate in the next five to 10 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.  High Risk: affordable housing units that are at-risk of converting to market rate in the next one to five years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.

Table B3-49 shows assisted units in Atwater by estimated affordability end date. As shown, there are 35 assisted units in the city, and none of which are at risk of conversion by 2033.

City of Atwater
Housing Needs Assessment
2024-2032 Housing Element B3-37
Table B3-49 Inventory of Public Assisted Complexes – Atwater Name Address City Zip Affordable Units Total Units Active Program(s) Estimated
Affordability End
Year/Date
Risk
Level
Atwater Apartments - (Site A) 1191 Willow Street Atwater 95301 35 36 LIHTC; HUD 2070 Low Note: All locally assisted or restricted developments may not be included in this list. *These developments are owned by the Merced County Housing Authority and are at low risk of conversion.

Source: California Housing Partnership, Publicly Assisted Housing Units, 2023.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B3-38
Funding Sources for Assisted Housing
Preservation of at-risk housing requires not only financial resources but also administrative capacity of nonprofit organizations. The following resources are available for assisted housing.

HUD Section 8 Program
Under the HUD Section 8 program, which is administered by the Housing Authority of the County of Merced, participating building owners are entitled to receive HUD Fair Market Rents (FMRs) for units with Section 8 contracts. For Section 8 units, HUD makes up the difference between 30 percent of a household’s monthly income and the FMRs.

Low-Income Housing Tax Credit (LIHTC)
Created in 1986 by the Federal government, the LIHTC program offers tax incentives to encourage the development of affordable housing. The LIHTC is jointly administered by the IRS and State Housing Credit Agencies (HCA) and has funded over eight billion annual tax credit units nationwide.

California’s HCA is the State Tax Credit Allocation Committee (TCAC).

California Housing Finance Agency (CalHFA)
CalHFA uses approved private lenders and purchases loans that meet CalHFA standards to support very low, low, and moderate-income assisted units. CalHFA partners with jurisdictions, developers, and other organizations to provide a variety of resources including loan assistance programs for homebuyers and renters aimed at increasing housing opportunities for low- and moderate-income residents.

Housing Rehabilitation Program
The Housing Rehabilitation Program provides financing to repair income-eligible and owneroccupied homes in need of essential health and/or safety repairs. The Housing Rehabilitation program is funded by the State Department of Housing and Community Development grant programs. Common home repairs include roofing, plumbing, electrical, heating, cooling, insulation, foundation, windows, and handicap assessable modifications. Participating property must be owner-occupied and located within city limits.

City of Atwater
Housing Constraints Analysis
2024-2032 Housing Element B4-1
B4 Housing Constraints Analysis
Constraints to the development of adequate and affordable housing include market, governmental, infrastructure, and environmental factors. These constraints may result in housing that is not affordable to low- and moderate-income households and may render residential construction economically infeasible for developers. Constraints to housing production significantly impact households with low and moderate-incomes and special needs.

According to Government Code Section 65583, local governments are required to analyze governmental and non-governmental constraints to the production, maintenance, and improvement of housing for persons of all income levels and those with special needs and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing as part of housing elements update. Where constraints to housing production are related to the City’s regulations or land use controls, the City must identify appropriate programs to mitigate these constraints, particularly ones that impact the production of affordable housing or housing for special needs populations.

The following chapter outlines non-governmental, governmental, environmental and infrastructure constraints and was used in the development of specific policies and actions included in the Housing Plan to remove barriers to housing and to incentivize housing production, specifically targeting housing production at all income levels and housing for persons with special needs.

B4.1 Summary of Local Housing Constraints
 The costs associated with developing housing have increased 30 percent over the last 12 months and are expected to continue to rise over the next fiscal year. There is a lack of federal, state, and local funding and the funding that is available is increasingly competitive. The time and effort needed to identify, compete for, and layer affordable housing funds is a major constraint to development of affordable housing in Atwater.  Although Atwater’s development regulations allow for a variety of densities throughout the city, development standards are not sufficiently flexible. Height restrictions for multi-family developments, residential parking requirements for smaller units, and strict limitations on manufactured housing development all potentially constrain the development of a variety of housing types.
 Use permit regulations for group homes and residential care facilities could pose a constraint to housing for individuals with special needs and use permit regulations for emergency shelters and single-room occupancy (SRO) units in certain zones could pose a constraint on housing access for unhoused individuals. Additionally, the City’s definition of “family” is a constraint.

Atwater’s development review and impact fees are much higher than in other small cities in the region, which may be a constraint to development.

B4.2 Non-Governmental Constraints
The availability of housing is affected by a complex set of interrelated market factors including but not limited to cost of land, cost of construction, and availability of financing. These factors contribute to determining a new home’s sale price or the rents required to make a project feasible.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B4-2
Non-governmental constraints include factors outside of direct governmental control that directly impact housing prices. The cost of construction and the availability of financing contribute to the cost of housing and can hinder the production of housing. The following analysis accounts for these non-governmental constraints.

B4.2.1 Land Costs
The cost of land can impede the production of housing. Land costs are influenced by many variables, including land scarcity and developable density (both of which are indirectly controlled through governmental land use regulations), location, site constraints, availability of infrastructure improvements, and the availability of public utilities.

Table B4-1 provides the average price per acre for land listed for sale throughout Atwater in July 2023. The average price per acre is significantly higher for smaller lots ($282,611.46), most of which are located in residential or commercial zones. The price per acre is less for larger lots, averaging $34,919.99 per acre. Most of these larger properties are located in agricultural zones. The average price per acre for all plots is $158,765.73.

Table B4-1 Listed Land Prices – Atwater
Lot Size Average Price per Acre (Listed)
Less than 10 acres $282,611.46
10 or more acres $34,919.99
Average $/acre $158,765.73
Source: Zillow, Inc., 2023.

Table B4-2 provides the average price per acre for land sold in 2022 in Atwater. The average price per acre for all land sales was $245,557.50), higher than the average list price shown above. The average sales price per acre for larger lots averaged $34,865.04, which is in line with the asking price for listed properties ($34,919.99 per acre).

Table B4-2 Sold Land Prices – Atwater
Lot Size Average Price per Acre (Listed)
Less than 10 acres $456,250.00
10 or more acres $34,865.04
Average $/acre $245,557.50
Source: Zillow, Inc., 2023.

Conclusion
The housing market (vacant and developed land) in Atwater can vary depending on location, allowable density, availability of improvements, and proposed land use of the site. In general, entitled single-family subdivisions with infrastructure extension plans command higher prices than raw undeveloped land.

While land costs increase over time, these raw costs are not necessarily a constraint to housing. In general, land costs in Merced County are lower compared to coastal counties, and comparable in price to other nearby counties such as Madera and Fresno counties. As a result, raw land costs are not considered a constraint to the development of housing in Atwater.

City of Atwater
Housing Constraints Analysis
2024-2032 Housing Element B4-3
Recommended Action
None required.

B4.2.2 Construction Costs
A major component of the cost of housing is the cost of building materials, including wood and wood-based products, cement, asphalt, roofing materials, and pipes. The availability and demand for such materials affects prices for these goods.

Another major cost component of new housing is labor. The cost of labor in Merced County is comparatively low because the area’s cost of living is relatively low compared to other areas in California. However, labor for government subsidized housing work is additionally costly for the Central Valley, as wages are rooted in the required State Labor Standards based on higher northern and southern California prevailing wages.

Based on recent affordable multi-family projects, the cost of construction in the county is estimated to be between $400,000 and $675,000 per unit.1 The estimate includes direct and indirect (e.g., insurance, permits, utilities, plans) construction costs, including material, labor, and equipment costs, the price of land, development impact fees, and administrative costs.

Table B6-3 shows the estimated typical development costs in Atwater for a single-family home, assumed to be 1,600 square feet, and a 10-unit multi-family development with 800 square foot units. This includes the price of land, site improvement costs, construction costs, and permit and development impact fees; however, this does not include financing or marketing costs by the developer. As shown in the table below, the typical cost of an individual single-family development is an estimated $772,779, while the development cost of an apartment unit is an estimated $367,556.

Table B6-3 Estimated Construction Cost – City of Atwater Cost Type Single-Family1 MultiFamily2
Home Price3 $480,000 $2,400,000
Site Improvement Cost $8,000 $20,000
Construction Cost $267,790 $1,198,400
Permit and Impact Fees $16,989 $57,160
Total Cost $772,779 $3,675,560
Cost per Unit $772,779 $367,556
1Assumed to be a 1,600 sq. ft. single-family home.
2Assumed to be a 10-unit multi-family complex of 800 sq. ft. units. 3Land price based on average price per square foot provided by the City at $300 per square foot The City of Atwater has conducted a polling of infrastructure related workers. The industry has experienced a 35 percent increase over the past 24 three yearsmonths. Construction work consisting of windows mill work and similar work has experienced a 40 percent increase over the past 24 months.
1 Central Valley Voice, City of Merced Affordable Housing Project Update, October 1, 2022, https://centralvalleyvoice.com/2023/02/22/city-of-merced-affordable-housing-project-update/ accessed June 2023.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B4-4
There is little that municipalities can do to mitigate the impacts of high construction costs, apart from reducing the number of local amendments to uniform building codes that unnecessarily increase construction costs without significantly adding to health, safety, or construction quality.

Conclusion
Although the cost of construction constrains housing development, construction costs are similar across jurisdictions in Merced County, illustrating that the constraints are market driven rather than an impact of local policy.

Recommended Action
None required.

B4.2.3 Availability of Financing
Mortgage interest rates have a large influence over housing affordability. Higher interest rates increase a homebuyer’s monthly payment and decrease the range of housing that a household can afford. Lower interest rates result in a lower cost and lower monthly payments for the homebuyer.

When interest rates rise, housing prices typically fall to compensate. Similarly, when interest rates decrease, housing prices begin to rise. There is often a lag in the market, causing housing prices to remain high when interest rates rise until the market catches up. Lower-income households often find it most difficult to purchase a home during this time period.

Where financing is available, construction capital seems to be directed at the best transactions – those with large, established, and well-capitalized sponsors. Given recent trends of increasing interest rates, the availability of financing is likely to be more of a constraint on new housing construction during this Housing Element planning period than it has been in the recent past.

Market-Rate Development Financing
As discussed in Land Costs and Construction Costs, above, market-rate development is generally financed by investors, and the cost to build a project must be recovered by revenue from sales or rents, which drives up the ultimate rent or sales prices of new housing as the component costs increase. A market in which housing supply is limited and demand is high can support higher housing prices, but lower-income segments of the community are priced out. Therefore, it is difficult for the private sector, for-profit developers, and market-rate housing to meet the housing needs of all community members.

Affordable Housing Financing
A description of available funding sources for affordable development is provided in Chapter 3, Regional Housing Needs Assessment.

Mortgage and Rehabilitation Financing
The availability of financing affects the ability of residents to purchase or improve a home. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. The primary purpose of reviewing the lending activity is to determine whether home financing is available to city residents. The data presented in this section includes the disposition of

City of Atwater
Housing Constraints Analysis
2024-2032 Housing Element B4-5
loan applications submitted to financial institutions for home mortgages, home improvement, and refinance loans.

Lending activity data provides information regarding home financing availability for city residents.

The most recent data set available for Merced County from 2022 shows that 10,760 households applied for a home financing loan which includes loans for home purchase, home improvement, and refinancing. As discussed in Chapter 3, Regional Housing Constraints, of the total applications received for home purchase 47.7 percent of the loans originated while 15.7 percent were denied.

Conventional loans are made by the private sector (banks, mortgage companies, etc.) and are not guaranteed or insured by the U.S. government. Conversely, government-backed loans, such as those issued by the Federal Housing Administration, Department of Veterans Affairs, and the Rural Housing Services/Farm Service Agency, are completely or partially insured by the U.S. government. Within the county, 8,028 of the applications received were for conventional loans and 2,732 were for government backed loans. As discussed in Chapter 3, Regional Housing Constraints, 37 percent of the conventional loans originated, and 12.6 percent of the applications were denied.

Additionally, 10.7 percent of the government backed loans originated and 3.1 percent of the applications were denied.

County data shows that of the loans originated, Hispanic/Latino applicants comprised approximately 50 percent of approvals, white, non-Hispanic/Latino comprised approximately 30 percent, Asian American represented 16 percent, Black/African American applications represented three percent, and American Indian/Alaskan Native comprised less than one percent of approved applications.

American Indian/Alaskan Native and Black/African American residents were the only racial populations that was representative for mortgage applications relative to proportion of population.

Hispanic/Latino residents were underrepresented for mortgage applications (50 percent of applications, 61 percent of population). White, Non-Hispanic residents were overrepresented for mortgage applications approvals relative to proportion of population (30 percent of approvals, 26 percent of population), as were Asian American residents (16 percent of approvals, eight percent of population). Of application denials, Black/African American residents were overrepresented in application denials (four percent of denials, three percent of the population).

Construction Financing Timing
The timing between project approval and requests for building permits affects project viability.

Project delays may result from developers’ inability to secure financing for construction. In Atwater, the average time between project approval and request for building permit is typically three to nine months, but varies by type of project. Some projects take years to pull building permits and secure financing. Single-family homes usually experience the least delay (three to nine months). Multifamily housing construction tends to be more complex and usually requires more time between entitlement and building permit issuance (six to nine months).

Conclusion
Although discrimination in mortgage lending is prohibited by the federal Fair Housing Act, other factors may contribute to a potential homebuyer’s ability to secure safe financing, such as credit history, savings, and education regarding the home-buying process. Federal Financial Institutions Examination Council (FFIEC) HMDA data, by itself, does not provide insight into these other factors.

Therefore, it is important that the City supports housing education and opportunities for all residents.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B4-6
Recommended Action
The City shall continue to implement goals and policies to support homeownership opportunities and home-buying education, particularly for racial and ethnic groups underrepresented in the homebuying market. This includes maintaining existing local programs such as the Homebuyer Assistance Program as well as state and federal program funding. The City will implement Program 10 to identify resources and funding to assist moderate and lower-income homebuyers. Through this program, Atwater will promote the availability of Permanent Local Housing Allocation (PLHA) funds provide assistance for qualifying applicants includes help to cover costs of mortgage, rent, rental deposit, and/or utility expenses, with the goal of assisting eight households through these funds.

B4.2.4 Requests for Lower Development Densities
Due to the use of Planned Development zones/districts identified in the City of Atwater’s Municipal Code, higher density yields are typical. The City has seen a demand for higher density housing in development applications and have not received any requests for lower densities than allowed.

B4.3 Governmental Constraints
Although local governments have little influence on market factors such as interest rates, local policies and regulations can still impact where, how much, and what type of residential development is built. Land use controls, site improvement requirements, fees and exactions, and permit processing procedures, among other policies and regulations, may constrain the maintenance, development, and improvement of housing.

B4.3.1 Land Use Controls
Land use controls provided in the General Plan and the Zoning Code influence housing production in various ways. Any permitted and conditionally permitted uses in each zone guide new development and provide both developers and the public with an understanding of how vacant land should be developed in the future. This includes the density of development that will occur within a particular zone, the compatibility of planned uses in each area, and the range and type of buildings and uses that will be located throughout Atwater.

B4.3.1.1 General Plan
The City of Atwater 2000 General Plan provides policies and programs to guide development in the city. The General Plan includes the provision of new residential neighborhoods, the development of policies that encourage mixed-use development in the downtown area and commercial areas, Zoning Code updates to accommodate residential and commercial areas, implementation of road safety measures, and the addition of an Environmental Justice element.

The Atwater General Plan contains the following residential land use designations:
 Very Low Density Residential: 0 to 3.0 units per acre.  Low Density Residential: 3.1 to 7.0 units per acre.
 Medium Density Residential: 7.1 to 15.0 units per acre.  High Density Residential: 15.1 to 35 units per acre

City of Atwater
Housing Constraints Analysis
2024-2032 Housing Element B4-7
 Downtown Residential Mixed Use: 0 to 25 units per acre.  Residential Transition: 0 to 21 units per acre.

Atwater is currently in the process of updating the General Plan, although it is unclear at this time if this update will change these residential land use designations.

Conclusion
The General Plan includes six residential land use designations with density ranges from 0 to 35 dwelling units per acre. These densities are sufficiently high to allow the development of affordable housing for all income levels. Minimum densities are included to maximize residential development on a limited supply of land as well as achieve a balance and variety of housing types.

Recommended Action
None required.

B4.3.1.2 Zoning Code
The City regulates the type, location, density, and scale of residential development primarily through the Zoning Code, as well as specific plan development codes. A zone is assigned to every parcel in the city and the Zoning Code identifies compatible uses. In general, the City’s zoning regulations are designed to encourage a more appropriate use of land, conserve and stabilize the value of property, provide adequate open space, facilitate provision of adequate community utilities, encourage building development of pleasant design, promote health and safety, and provide economic and social advantages resulting in planned use of land resources. Additionally, development standards such as setbacks, height limits, lot coverage, open space requirements, and parking are identified for each zone. Some zones may allow similar uses but have different development standards. Development standards in Atwater may be considered a constraint to the development of housing units if they are too restrictive or reduce the development potential on a specific parcel.

The City’s Zoning Code allows residential uses in the following zones:
 Agricultural Zones (A-P, A-R, R-R): The agricultural zones are intended to preserve lands best suited for agriculture from the encroachment of incompatible uses, as well as to protect lands designated for eventual urban development to ensure the orderly and beneficial conversion of these lands to nonagricultural use. The minimum site area is divided into three zones with varying minimum area requirements: Agricultural Preserve (A-P), Agricultural Residential (A-R), Rural Residential (R-R). The minimum site area is 10 acres for A-P, two acres for A-R, and one acre for R-R. All three zones permit single-family residences with a maximum of one unit per site.
 Residential Estate (R-E): The R-E zone is intended to provide living areas within the city limited to very low-density concentrations of single-family dwellings. The minimum site area is 16,000 square feet for permitted use. No more than one unit is allowed on each site in the R-E zone.  Single-Family Residential (R-1): The R-1 zone is intended primarily to provide living areas at locations designated by the general plan for medium low and medium density including singlefamily dwellings. In the R-1 zone, no more than one dwelling unit is allowed on each site, except as provided under Section 17.26.030. Table B4-4 shows the minimum site area per dwelling unit in R-1 zones.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B4-8
 Two-Family Residential (R-2): The R-2 zone is intended primarily for the development of twofamily residential structures at densities consistent with policies in the general plan. The minimum lot area is 6,000 square feet for permitted uses. The R-2 zone allows for two singlefamily dwellings or one duplex per lot on each site.  Multiple-Family Residential (R-3): The R-3 zone is intended to provide living areas within the city limited to medium and high-density concentrations of multi-family housing. This includes singlefamily dwellings, duplex, and multi-family structures, except as provided under Chapters 17.22 and 17.24 of Atwater’s municipal code.
 Mobile home Park (R-M): The R-M zone intends to set regulations regarding mobile home parks at locations designated by the general plan. The minimum lot area is five acres with a minimum of 20 mobile home spaces.
 Residential Transition (R-T): The R-T zone is established to create a transition between commercial areas and adjacent residential neighborhoods, as well as on land where mixed uses have been approved through re-zoning. It can be used for median density multi-family residential zones and commercial uses on the condition that the Planning Commission approves the commercial development after a public hearing.
 Light Industrial Zone, Industrial Zone (M-1, M-2, respectively): The M-1 and M-2 zone and the industrial zone are intended to provide sites to accommodate process-oriented industries with modern plant or retail facilities. This also includes emergency shelters for those experiencing homelessness.

In Atwater, minimum residential lot sizes are required in some zones. Table B4-4 provides the minimum lot area per dwelling unit standard by zone.

Table B4-4 Site Area Per Dwelling Unit
Zone Lot Area
A-P 10 acres (0.1 units/gross acre)
A-R 2 acres (0.5 units/gross acre)
R-R 1 acre (1.0 unit/gross acre)
R-E 16,000 square feet (2.7 units/gross acre)
R-1-10 10,000 square feet (4.4 units/gross acre)
R-1-8 8,000 square feet (5.5 units/gross acre)
R-1-6 6,000 square feet (7.3 units/gross acre)
R-1-5 5,000 square feet (8.7 units/gross acre)
R-1-4 4,000 square feet (10.9 units/gross acre)
R-1-3 3,000 square feet (14.5 units/gross acre)
R-2 6,000 square feet (14.5 units/gross acre)
R-1-M 5,000 square feet/ unit (8.7 units/gross acre)
R-3-2 2,000 square feet/ unit (21.8 units/gross acre)
R-3-2.5 2,500 square feet/ unit (17.4 units/gross acre) R-3-1 1,000 square feet/ unit (43.6 units/gross acre)
R-3-1.5 1,500 square feet/ unit (29.0 units/gross acre) R-M 3,108 square feet/ unit (14.0 units/gross acre) [avg]

City of Atwater
Housing Constraints Analysis
2024-2032 Housing Element B4-9
Zone Lot Area
R-T 2,000 square feet/ unit (21.0 units/gross acre)
M 0.5 acre
Source: Atwater Zoning Code, Adopted October 2023.

Conclusion
The City’s Zoning Code provides for a range of densities and is consistent with the General Plan land use designations.

Recommended Action
None required.

B4.3.2 Residential Development Standards
Table B4-5 shows the development standards for residential zones. The minimum parcel area for residential zones ranges from 3,000 square feet to five acres. Maximum site coverage is 70 to 75 percent of the lot area, depending on the zone.

The front setback requirement is 30 feet for all agricultural zones and five feet for all R zones, with the exceptions of R-E, R-1-10, R-1-8 zones, which have a 20-foot setback requirement. The side setback requirement is 10 feet for the agricultural, R-E, and R-1-10 zones, and five feet for the 11 remaining R zones and all RM zones. The rear setback requirement is 30 feet for agricultural zones; five feet for R-1-5, R-1-4, R-1-3; 15 feet for R-1-6, R-1-M, R-3-2.0, R-3-2.5; and 20 feet for the remaining six R zones. The setback requirements are shown in Table B4-5.

The maximum height requirements are 35 feet for all residential zones. Maximum height requirements for ADUs are between 16 to 25 feet in all zones, depending on if the unit is attached or detached from the primary residence. Maximum density ranges from 0.1 units per acre in the A-R zone to 43.6 units per gross acre in the R-3 zone.

Table B4-5 Residential Development Standards
Zone
Minimum
Parcel Area
Minimum Setback (in feet)
Maximum
Height
(feet)1
Maximum
Height
(Accessory
Structure)
Maximum
Site
Coverage
(percent
of lot)
Maximum
Density
(du/acre)
Front
(feet)
Side
(feet)
Rear
(feet)
A-P 10 acres 30 10 30 35 35 - 0.1
A-R 2 acres 30 10 30 35 35 - 0.5
R-R 1 acre 30 10 30 35 35 - 1
R-E 2 14,300 sq. ft. 20 10 20 35 16 70 2.7
R-1-10 2 10,000 sq. ft. 20 10 20 35 16 70 4.4
R-1-8 2 8,000 sq. ft. 20 5 20 35 16 70 5.4
R-1-6 6,000 sq. ft. 20 5 15 35 16 70 7.3
R-1-5 2 5,000 sq. ft. 10 5 5 35 16 75 8.7
R-1-4 2 4,000 sq. ft. 10 5 5 35 16 75 10.9
R-1-3 2 2,400 sq. ft. 10 5 5 35 16 75 14.5

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B4-10
Zone
Minimum
Parcel Area
Minimum Setback (in feet)
Maximum
Height
(feet)1
Maximum
Height
(Accessory
Structure)
Maximum
Site
Coverage
(percent
of lot)
Maximum
Density
(du/acre)
Front
(feet)
Side
(feet)
Rear
(feet)
R-2 6,000 sq. ft. 15 5 20 35 16 70 14.5
R-1-M 5,000 sq. ft. 15 5 15 35 16 70 8.7
R-3-2.0 10,000 sq. ft. 15 5 20 35 16 70 21.8
R-3-2.5 10,000 sq. ft. 15 5 20 35 16 70 17.4
R-3-1.0 10,000 sq. ft. 15 5 15 35 - 70 43.6
R-3-1.5 10,000 sq. ft. 15 5 15 35 - 70 29.0
R-M 5 acres 20 5 5 - - 70 14
R-T 10,000 sq. ft. 10 5 5 35 16 - 21
M-1 0.5 acres 15 - - 35 - 90 -
M-2 0.5 acres 15 - - 35 6 90 -
Source: Atwater Zoning Code, Adopted October November 20252023.

Conclusion
Development standards related to parcel area, setbacks, height of primary structures, site coverage, and density do not constrain residential development. Limiting maximum height to 35 feet in multifamily zones is a potential constraint to housing development, specifically in the high density residential zone R-3-1.0, where achieving maximum density with a maximum height of 35 feet might be difficult. The City should provide an opportunity for minor modifications to height restrictions for developments with an affordable component.

Recommended Action
Amend the Zoning Code to allow for increased height in the R-3-1.0 residential zone to four stories and at a maximum height of at least 40 feet in order to achieve maximum density. Amend the Zoning Code to allow minor modifications to height restrictions developments with an affordability component, this will be implemented through Program 6 which will amend the development standards in the city’s Zoning Code.

B4.3.2.1 Parking
According to the Terner Center for Housing Innovation at UC Berkeley, parking can cost $25,000 to $75,000 per space to construct. However, given the age of data and the increased cost of land and construction costs discussed above, the costs per parking space are likely much higher.2 Parking provided in underground or structured parking facilities, or if required to be covered or enclosed, can significantly increase the cost of housing and could affect the feasibility of various housing projects in the city. In addition, requirements for parking space locations and maximum distances from dwelling units may also increase the cost of housing and affect the feasibility of housing projects. Requiring less parking not only reduces the project budget but can allow for more space to build additional housing units.
2 Terner Center for Housing Innovation at UC Berkeley, 2016. Available at: http://ternercenter2.berkeley.edu/proforma/

City of Atwater
Housing Constraints Analysis
2024-2032 Housing Element B4-11
Atwater does not face any spatial constraints to parking provisions that would necessitate underground or structured parking facilities. However, covered or enclosed parking requirements contribute to increased housing costs in the city and potentially constrain affordable residential development.

Table B4-6 provides the residential parking requirements in Atwater.

Table B4-6 Residential Parking Requirements
Residential Use Required Parking Spaces
Single-family units Single-family units 2 per unit
Single-family units financed under
Farmers Home Administration
1 per unit
Multiple-family units 4 or less units 2 per unit
5 or more units 1.5 per unit
Studio apartments 2 per unit
Senior citizen housing 2 per unit
Mobile Home Park 2.2 per unit
Source: Atwater Zoning Code, Adopted October 2023.

Conclusion
Residential parking requirements for smaller units, including mobile homes, senior citizen housing, studios (2 parking spaces required per unit) pose a potential constraint to housing development.

Requiring more than one parking space for smaller units can be cost prohibitive for developers and may pose site design challenges.

Recommended Action
Revise the Zoning Code to require no more than one space per unit for mobile homes, senior citizen housing, studios, and one-bedroom units. Through Program 6, the Zoning Code will be updated to reduce parking requirements for the above housing types.

B4.3.2.2 Open Space and Park Requirements
Chapter 17.44.150.H of the Zoning Code outlines the City’s requirements for open space. Atwater names two main types of open space: private open space for reserved land for the exclusive use of residents, customers, and workers, and common open space set aside for the general public. Open space may be used for a variety of functions, such as noise buffers, aesthetics, active or passive recreation, wildlife conservation, flood control, groundwater recharge, and pedestrian and bicycle trails. The municipal code does not outline specific zones where open space and parks are required.

The City has few requirements regarding open space and parks in planned developments, although they state that the amount of open space provided should be based on the amount needed to effectively perform the function for which is intended. For example, small pockets of open space are not adequate as active recreational areas; an area large enough to support a sports court is more appropriate to perform that function. Open space buffers should also be large enough to achieve the desired goal of reducing noise. In addition, open space for recreation or social activities should be of minimum slope (less than 10 percent), take advantage of available sunlight, and be buffered from the noise and traffic of adjacent streets or other incompatible uses. Valuable natural resources

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) B4-12
such as waterways or trails and bike paths, that have been damaged or improperly used in the past, shall be restored.

In the Mobile Home Park Zone (R-M), all areas that are not occupied by mobile homes, accessory structures, and other buildings, paving or recreational facilities must be landscaped and maintained with lawn, ground cover, shrubbery or other ground materials approved by the Planning Commission. In addition, a minimum of 30 percent of the parcel must be landscaped or an open space recreation area, and each mobile home space must be provided with at least one tree with a preference towards shade trees. Open space recreation or common park areas should encompass at least eight percent of the total area of the mobile home park. For all zones in the medium density single-family zone, there is a minimum landscape and open space recreation requirement of 25 percent of the parcel. There are no other open space and park requirements for this zone.

Atwater’s Zoning Code has also designated the Open Space Combining Zone (O-S) to protect and maintain land to be used for outdoor recreation, the maintenance of public safety, and to encourage proper and orderly growth of the city of efficiently utilize public services, and to enhance the environment. Development in the O-S zone that does not require a building permit includes parks and recreational facilities and playgrounds including structures strictly related to recreation, flood plains, airport clear zones, public utilities, roads, trails, bikeways, information and directional signs, and temporary uses such as carnivals, fairs, exhibits and contests.

Conclusion
The open space and park requirements for planned developments, mobile home parks, and medium density single-family zones in Atwater do not constrain housing development.

Recommended Action
None required.

B4.3.2.3 Density Bonus
California law requires local jurisdictions to provide density bonuses (generally ranging from five to 80 percent) and development incentives or concessions for housing developments that include housing units that are affordable to lower- and moderate-income households or senior housing or the donation of land for housing within the local jurisdiction (Government Code Section 65915- 65918). Certain housing development projects may be granted unlimited density if they meet certain conditions, including projects where 100 percent of units are affordable units (including density bonus units) with no more than 20 percent of units for moderate-income households and the project is located within on-half mile of a major transit stop as defined by subdivision (b) of Section 21155 of the Public Resources Code. An unlimited density bonus means there is no cap on the total number of residential units per acre permitted on the site; however, there are other restrictions, such as height limits, that have a practical limiting effect on the number of units that can be built. Development incentives or concessions are reductions or modifications to site development standards or architectural design requirements that result in cost reductions, such as setbacks, parking requirements, and maximum building height.

Atwater’s 2017 Housing Element included programs directing the City to amend the Zoning Code to adopt a density bonus policy and other incentives or concessions for residential projects that include affordable or senior housing. While the necessary changes were detailed in the 2017 Housing Element, this density bonus program has not yet been codified into the City’s Zoning Code.

City of Atwater
Housing Constraints Analysis
2024-2032 Housing Element B4-13
Inclusionary housing ordinances are implemented by local jurisdictions that require developers to reserve a certain percentage of units to further increase lower-income housing stock; however, Atwater does not have an inclusionary housing ordinance.

Conclusion
The Zoning Code does not address current density bonus standards and is not in compliance with State Density Bonus Law.

Recommended Action
Amend the Zoning Code to establish density bonuses for housing developments that include housing units affordable to very low-, low-, and moderate-income households or housing units for seniors and the donation of land for housing, consistent with current state laws and requirements.

To facilitate the development of affordable housing, the City will implement Program 7 to establish density bonus standards and density increases by adopting a Density Bonus Ordinance. Under this program, the Zoning Code will be amended by January 31, 20265, to establish density bonuses for the housing types listed above.

B4.3.2.4 On- and Off-Site Improvement Standards
The typical improvements required by local jurisdictions for subdivision and development of property include reasonable off-site and on-site improvements for the parcels being created, including those that are necessary for public health and safety and/or a necessary prerequisite for the orderly development of the surrounding area. As stated in the Department of Housing and Urban Development’s (HUD) study of Subdivision Requirements as a Regulatory Barrier, such requirements can reasonably be considered regulatory barriers to affordable housing if Atwater determines that the requirements are greater (and hence, more costly) than those necessary to achieve health and safety requirements in the community.

Citywide Development Standards
The City’s Zoning Code requires underground utilities for new residential development. Where possible, and feasible, joint use of trenching is encouraged. The City does not have the authority to require joint use of trenching by independent utility companies. Redevelopment projects and building permits proposing changes equal to more than 25 percent of the assessed value of the home, are required to bring street improvements up to City standards. In areas of the city that have previously been developed, funds for rehabilitation of substandard units have included provisions for street improvements. Street sections are designed to accommodate storm water drainage and to facilitate safe automobile, pedestrian, and bicycle circulation. Street improvements that provide sidewalks increase accessibility for persons with mobility impairments.

The City provides and operates water, sanitary sewer, and stormwater drainage services. Electricity, gas, communications, and garbage services are provided by outside entities. Utility companies that provide service to the City may require that between six and 10 feet of the area outside of the right‐ of‐way be reserved as a utility easement for the placement of service lines.

Improvement Standards
The City requires curbs, gutters, and sidewalks on all residential streets, including access ramps at corners. The typical right‐of‐way for local streets is approximately 60 feet, 40 feet of which is for