City Council/Public Finance and Economic Development Authority/Parking Authority
March 21, 2022

CITY OF MERCED

GENERAL PLAN ANNUAL PROGRESS REPORT
(January 1, 2021, to December 31, 2021)

.

INTRODUCTION
Government Code Section 65400 and 65700 requires that all cities and counties submit an annual report on the status of the General Plan and progress on its implementation to their legislative bodies, known as a General Plan Annual Progress Report (APR) .

The State does not have a standardized form or format /content guidance for General Plan APR’s.

State law also requires that all cities and counties create an annual progress report that describes the community’s progress toward implementing their Housing Element. This Housing Element Annual Progress Report (H PR) has detailed data requirements and the State has developed a standardized spreadsheet format for submitting the required data. The HPR also fulfills certain statutory requirements to report other housing information, such as the City’s progress toward meeting its share of regional housing needs, certain rezoning activities, actions taken towards completion of Housing Element programs, and local efforts to remove governmental constraints to the development of housing per Government Code Sections 65584.3(c) and 65584.5(b)(5).

Both reports are to be provided to the California Office of Planning Research (OPR) and the Department of Housing and Community Development (HCD) by April 1 of each year.

This General Plan Annual Progress Report has been prepared to summarize the status of the Merced Vision 2030 General Plan, adopted in January 2012, and steps that have been taken to implement General Plan policies and implementing actions. This report also includes a summary of General Plan and Specific/Community Plan Amendments that were approved from January 1, 2021, through December 31, 2021. Highlights of the HPR are also provided at Section II of this report.

The APR and HPR were presented to the Merced City Council at its regularly scheduled meeting of March 21, 2022. After City Council review, both reports will be forwarded to the State by the April 1
st deadline.

ATTACHMENT 1
CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

I. STATUS OF GENERAL PLAN AND IMPLEMENTATION PROGRESS
A) General Plan Elements and Implementation Progress
Each of the seven mandatory general plan elements were prepared and/or updated in full compliance with the General Plan Guidelines established by the Office of Planning and Research, which were in effect at the time of the most recent update.

This section contains a summary of actions taken to implement each of the General Plan elements. The table below indicates the date that each of the required elements were last updated along with the same information for the four optional elements included in the Merced Vision 2030 General Plan:

General Plan Element Last Update
Mandatory Elements:

Land Use 2015
Circulation 2015
Open Space 2016
Conservation 2016
Housing 2016
Noise 2012
Safety 2016
Air Quality (included in Sustainable Development) 2012
Optional Elements:

Urban Expansion 2015
Public Facilities & Services 2017
Urban Design 2012
Sustainable Development 2012

General Plan Updates: The City is currently working on some interim updates to the General Plan using LEAP Grant funds to address implementing Pro-Housing Strategies and other updates for consistency with State law. This update would bridge the gap between updates needed in the near term and a more comprehensive update of the General Plan. A Request for Proposals (RFP) is anticipated to be released in July 2022 to initiate work on the more comprehensive update.

The City’s current Housing Element is an 8-year plan covering 2015 through 2023, and must be updated by April 1, 2024, per the deadlines established by the State .

Under a REAP grant awarded to the Merced County Association of Governments (MCAG), the City of Merced and other local jurisdictions are working on a county- wide Housing Element Update. This regional approach is becoming more common with neighboring counties having completed them or currently undertaking them.

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Land Use Element: The Land Use Element was comprehensively updated and adopted in January 2012 as part of the Merced Vision 2030 General Plan. Since that time, one (1) amendment to the Land Use Element text has been approved involving the adoption of the Bellevue Community Plan in 2015, and 23 amendments to the Land Use Diagram involving a total of approximately 195 acres (out of the 28,575 acres within the Sphere of Influence ) have been approved (see Appendix A for details). After annexing over 2,200 acres of residential, commercial, and industrial land to the City’s inventory from 2000-2009, due to the economic downturn, only one annexation has been completed since then, 15 acres of commercial/industrial land in 2019. Staff is working on the annexation of the UC Merced campus to the City of Merced per the Annexation Agreement and the provisions of AB 3312 as directed by the City Council in February 2021 as well as the annexation of 390 acres adjacent to the City’s Wastewater Treatment Plant. In addition, Staff is currently working on four annexation requests from private developers totaling 504 acres in North Merced, including the 290-acre University Vista Annexation adjacent to the UC campus per the provisions of AB3312. Staff is also working with the Virginia Smith Trust (VST) and Merced County on processing a Specific Plan for 654 acres in anticipation of a future annexation request. In 2021, the City established a new Annexation Pre-application process which allows early City Council review. The City has received six such pre-applications and two have been presented to Council and received support for moving forward (University Vista and VST) and four more are pending. Since 2012, the City has approved several new commercial developments which will add over 1.2 million square feet of new commercial facilities when completed. In addition, the City has approved several large multi - family projects, which will add over 1, 200 new apartment units when completed.

Several affordable housing projects are also pending. On a continuing basis, City staff applies the General Plan land use policies regarding the promotion of a variety of housing types, the appropriate locations of new commercial and industrial land uses, and the protection of residential neighborhoods through code enforcement, interface overlay, and other tools.

Circulation Element: The Transportation and Circulation Element was comprehensively updated and adopted in January 2012 as part of the Merced Vision 2030 General Plan. The Element was amended in 2013 to reflect the changes required for the 2013 Bicycle Transportation Plan and in 2015 to reflect the changes required for the Bellevue Community Plan. Since 2012, three (3) other amendments to the Circulation Element have been approved, two involving the spacing of curb cuts on arterials and the other regarding abandonment of a short segment of Mission Avenue adjacent to Highway 99. The City’s Public Facilities Impact Fee program (recently revised in early 2022) will help fund needed transportation improvements CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

throughout the Merced Area. In 2019, the City ado pted the Alternative Transportation Plan/Safe Routes to School Plan, which replaced the 2013 Bicycle Transportation Plan. In 2020, the City’s Bicycle Advisory Commission was expanded to include pedestrian issues and is now known as the Bicycle and Pedestrian Advisory Commission. City staff continues to work with MCAG, the County, and Caltrans staff on Regional Transportation Plan and Measure V projects.

City staff also continues to implement policies relating to circulation/access and bicycle/pedestrian facilities to all new development projects.

Open Space/Conservation Elements: The Open Space and Conservation Elements were combined into one element, which was comprehensively updated and adopted in January 2012 as part of the Merced Vision 2030 General Plan and was amended in 2016 to address changes required by the adoption of the Local Hazard Mitigation Plan. Unfortunately, since 2012, due to funding issues and the slowdown in residential construction until 2017, no new City parks have been built although the City has been actively applying for grants. The City Parks and Open Sp ace Master Plan was last updated in 2004 and needs to be updated to reflect the current Sphere of Influence . The City continues to implement policies regarding the preservation/conservation of the creeks, wildlife habitat, Scenic Corridors, agricultural land adjacent to the Sphere of Influence , soil, and water resources as they apply to individual development projects.

Housing Element: The City’s Housing Element was adopted in 2016, per the deadline established under state law, and found to be in compli ance with State law by the Department of Housing and Community Development (HCD). The Housing Element includes a discussion of Disadvantaged Urban Communities. The federal government requires that each jurisdiction also have a "Consolidated Plan" in order to receive Community Development Block Grant (CDBG) funds. Housing Elements and Consolidated Plans have many similar requirements and features. The City of Merced adopted Consolidated Plans in 2010, 2015, and 2020. Since 2012, the City of Merced has issued permits for 3,170 new single-family homes and 670 multi- family units with many pending in 202 2. Several housing related issues were addressed in the 2016 adoption of the Zoning Ordinance Update, including updates to conform to State law regarding density bonuses, by-right housing, homeless shelters, and transitional/supportive housing. Amendments to the Zoning Ordinance regarding Accessory Dwelling Units were adopted in 2019 and 2021. In September 2021, the City Council authorized a series of actions to promote more housing (affordable and market rate) production in the City and staff has begun work on implementing this Pro-Housing Strategy . A separate Housing Element Annual Progress Report (HPR) has been prepared and will be submitted to the State by April CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

1, 2022. Highlights of the HPR are discussed in Section II of this report. The next update of the City’s Housing Element must be completed by April 1, 2024, and the City is working to coordinate the Housing Element update with the County and MCAG to provide a more regional and comprehensive approach to the Housing Element.

Noise Element: The Noise Element was comprehensively updated and adopted in January 2012 as part of the Merced Vision 2030 General Plan. Noise policies are enforced on an ongoing basis by City staff for individual development projects.

Safety Element: The Safety Element was comprehensively updated and adopted in January 2012 as part of the Merced Vision 2030 General Plan and amended in 2016 to reflect changes required by the adoption of the Local Hazard Mitigation Plan. Since 2012, City staff has applied policies regarding disaster pr eparedness, seismic safety, flooding, fires, airport safety, crime, and hazardous waste to various development projects as they undergo City review. City programs continue to implement the policies that relate to fire prevention (weed abatement, etc.), community policing, building and fire codes, flood prevention, and annual review and "dress rehearsals" of the City's Emergency Plan.

Urban Expansion Element: The Urban Expansion Element was comprehensively updated and adopted in January 2012 as part of the Merced Vision 2030 General Plan. In 2014, the Local Agency Formation Commission (LAFCO) adopted the City's revised Sphere of Influence as outlined in the General Plan. After annexing over 2,200 acres of residential, commercial, and industrial land to the City’s inventory from 2000- 2009, due to the economic downturn, only one annexation has been completed since then, 15 acres of commercial/industrial land in 2019. Staff is working on the annexation of the UC Merced campus to the City of Merced per the Annexation Agreement and the provisions of AB 3312 as directed by the City Council in February 2021 as well as the annexation of 390 acres adjacent to the City’s Wastewater Treatment Plant. In addition, Staff is currently working on four annexation requ ests from private developers totaling 504 acres in North Merced, including the 290-acre University Vista Annexation adjacent to the UC campus per the provisions of AB3312. Staff is also working with the Virginia Smith Trust (VST) and Merced County on proc essing a Specific Plan for 654 acres in anticipation of a future annexation request. In 2021, the City established a new Annexation Pre-application process which allows early City Council review. The City has received six such pre-applications and two have been presented to Council and received support for moving forward (University Vista and VST) and four more are pending.

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Public Facilities & Services Element: The Public Facilities and Services Element was comprehensively updated and adopted in Januar y 2012 as part of the Merced Vision 2030 General Plan and was amended in 2017 to reflect the change in location for a new Central Police Station. In 2012 , the City adopted a revised Public Facilities Financing Plan along with the Public Facilities Impact Fee program to help fund the over $ 300 million in transportation, public safety, and open space/parks projects needed to implement the Merced Vision 2030 General Plan over the next 20 years. (The fee program itself will raise approximately $84 million with developer construction, grants, Measure V, and other sources funding the other portions.) An update of the Public Facilities Financing Plan and impact fee program began in 2019 and was completed in early 2022. Several master planning efforts for meeting the City's infrastructure needs associated with growth have been completed or are in progress, including working with the County and neighboring jurisdictions on Sustainable Groundwater Management Act (SGMA) plans and implementation, updates to the Wastewater Master Plan for collection (expected to be completed in 2022), preparations for future expansion of the Wastewater Treatment Plant , and others. The City continues to work with the local school districts on the location of future schools.

Urban Design Element: The Urban Design Element was comprehensively updated and adopted in January 2012 as part of the Merced Vision 2030 General Plan. Since 2012, several implementing actions of the Urban Design Element were completed, including the comprehensive Zoning Ordinance Update in 2016, the first comprehensive update to the Zoning Code since its adoption in the early 1960’s.

The Zoning Ordinance Update completely updated, reorganized, and modernized the Code to be more user friendly and included the addition of several new zoning districts to match General Plan land use designations. From 2017 through 20 21, further Zoning Code revisions were completed to add commercial cannabis business permits (also amended in 2019) , to add several land uses to the Commercial Shopping Center zone, to update the provisions for accessory dwelling units (ADU’s) per State law, to expand various commercial uses in the Downtown area and other commercial zones, to clarify Planning Commission procedures, and to modify procedures for tobacco uses near schools. Several more amendments are anticipated to implement the City Council’s Pro-Housing Strategy in 2022 and 2023.

In 2019, City staff completed a minor revision to the sign ordinance to address some pressing issues regarding shopping center signs and hired a consultant to begin the long-awaited comprehensive update of the City’s Sign Ordinance, which should be completed in 2022. Aesthetic policies involving the undergrounding of new utilities, minimum landscape standards for new developments, and design review within CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Planned Developments and the Downtown area are also carried out on an ongoing basis.

Sustainable Development Element: The Sustainable Development Element was comprehensively updated and adopted in January 2012 as part of the Merced Vision 2030 General Plan. In 2012, the City adopted the Climate Action Plan in response to one of the implementing actions in this element. This chapter includes the City’s policies on air quality which are mandatory for jurisdictions within the San Joaquin Valley Air Pollution Control D istrict. City staff applies its policies regarding air quality, cultural resources, historic preservation, health, and energy conservation on new developments within the City of Merced on an ongoing basis. Mitigation measures for air quality impacts are now routinely adopted for many large development projects.

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

B) Summary of General Plan and Specific Plan Amendments General Plan Amendments (Approved—January 1, 2021 to December 31, 2021) Three (3) General Plan Amendment(s) were approved for the period of January 1, 2021, to December 31, 2021 (see table below). No general plan amendments were denied in 2021, but one was tabled for future consideration. Four (4) general plan amendments are currently pending that will likely be considered in 2022.

Reference
No. APN# and Parcel Size Location
General Plan
Amendment Approved
City Council
Approval Date
& Resolution #
GPA
#20-02
58-030-037
(3.38 acres)
Northeast corner
of West Olive
Avenue and
Highway 59
Professional/Commercial
Office (CO) and Industrial
(IND) to Business Park
(BP)
May 3, 2021
(CC Res.
#2021-32)
GPA
#21-01
32-183-039 through -
042
(0.88 acres)
565, 575, 601, &
609 Q Street
(South of W. 6th
Street)
Low Density Residential
(LD) to High Medium
Density Residential (HMD)
July 19, 2021
(CC Res.
#2021-70)
GPA
#20-01
58-470-001 thru -033,-
035,-036; 58-480-001
thru -017; 58-480-034
thru -044
(6.39 acres)
South Side of
Devonwood Drive
between
Loughborough and
Austin Avenues
Low Medium Density
Residential (LMD) to High
Medium Density
Residential (HMD)
Aug. 16, 2021
(CC Res.
#2021-77)

A total of 30 General Plan Amendments have been approved since the 2012 adoption of the General Plan ( 10 years ago). Three (3) such amendments were approved in 2012, 5 in 2013, 3 in 2014, 5 in 2015, 2 in 2016, 3 in 2017, 2 in 2018, 3 in 2019 , 1 in 2020, and 3 in 2021. Please refer to Appendix A of the Merced Vision 2030 General Plan for information on all general plan amendments approved since adoption of the General Plan in January 2012 (Appendix A of this report).

Specific and Community Plan Amendments (2021)
No amendments were approved within the City’s seven adopted Specific or Community Plans in 2021. The seven adopted Specific or Community Plans include the Campus North Specific Plan (originally adopted in 1985 and amended in 1990, 1997, and 2000 ), the North east Yosemite Specific Plan ( adopted in 1989 and amended in 1993, 1994, 1997, 1998, 1999, 2002, 2004, 2006, 2009, 2013 , 2016, 2017, and 2020), the Fahrens Creek Specific Plan (adopted in 2001 and amended in 2006, 2015, and 2019 ), the Fahrens Park Specific Plan (adopted in 1978 and amended in 1984, 1990, 1999, and 2013), the Bellevue Ranch Master Development Plan (adopted in 1995 and amended in 2008, 2012, and 2018), the South Merced Community Plan (adopted in 2008), and the Bellevue Community Plan (adopted in 2015).

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

C) Other Development Applications Considered
In 202 1, the Planning Commission and City Council also considered other development applications which did not involve any amendments to the General Plan. In 20 21, the Planning staff considered administrative applications and the Planning Commission and/or City Council held public hearings and considered many applications as shown in the Table below.

DEVELOPMENT APPLICATION STATISTICS (2021)
Development Applications #
Processed
#
Approved
# Denied or
Withdrawn
#
Pending
Abandonments (Streets or Easements) 5 3 0 2
Administrative Conditional Use Permits (Signs) 1 1 0 0
Annexations/Pre-Zoning 4 0 0 4
City-Owned Real Property Requests 10 9 1 0
Commercial Cannabis Business Permits (NEW) 7 4 0 4
Comm. Cannabis Permits (Renewals) 12 10 0 2
Conditional Use Permits (CUP) 11 8 0 3
Design Review (Planning Commission & Staff) 1 1 0 0
Environmental Reviews (i.e. Cat Ex, Neg. Dec.,
Mit. Neg. Dec.) 46 40 0 6
Final Subdivision Maps 15 12 0 13
Land Use Determinations (Public Convenience &
Necessity) 5 6 0 0
Minor Subdivisions (Lot Splits, Mergers, Lot Line
Adjustments) 14 6 0 8
Minor Use Permits & Minor Modifications 11 11 0 0
Preliminary Applications 21 n/a n/a n/a
Restaurant Encroachment Permits 1 1 0 0
Sewer/Water Requests 2 1 0 1
Site Plan Review 20 17 0 3
Street Closures (City Council & Staff) 13 11 0 2
Tentative Subdivision Maps 4 4 0 1
Zone Changes 2 1 0 1
Zoning Ordinance Amendments 3 5 0 0
CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

II. HOUSING ELEMENT ANNUAL PROGRESS REPORT
As noted previously, a separate Housing Element Annual Progress Report (HPR) has been prepared will be submitted to the State by April 1, 20 22. The HPR is submitted to the State in a series of tables in spreadsheet format as per State guidelines. Highlights of the 2021 HPR are presented below.

A) Housing Development Applications and Annual Building Activity Table A of the 2021 HPR contains all the housing development applications (434 applications for a total of 1030 units) submitted to the City in 2021, including applications for entitlements (i.e. conditional use permits and tentative maps) as well as applications for building permits for all housing units. Table A2 is somewhat duplicative of Table A in that it lists all the building permits issued and certificates of occupancy. This included permits issued for a total of 1,110 dwelling units - 729 building permits issued for single-family dwellings, 3 permits issued for ADU’s, and 1 permit issued for a duplex as we ll as certificates of occupancy for 746 single - family dwellings and 162 multi-family dwellings. Since the entitlement, permit, and construction process of housing units often spans multiple years, many units are reported in several HPR’s as they move through the entitlement process in one year, building permits in the next year, and perhaps construction and certificate of occupancy in the next year. Due to the length of and amount of detail in these Tables, a summary only of the data in Tables A and A2 is shown below.

Table A: Housing Applications Summary
Total Housing Applications Submitted: 434
Number of Proposed Units in All Applications Received: 1,030 Total Housing Units Approved: 794
Total Housing Units Disapproved: 0
Total Housing Units Pending Approval 236

Table A2: Building Permits Issued by Affordability Summary Income Level 2021
Very Low and
Extremely Low
Deed Restricted
Non-Deed Restricted
Low Deed Restricted
Non-Deed Restricted
Moderate Deed Restricted
Non-Deed Restricted 78
Above Moderate 656
Total Units 734

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Table A reported 7 housing entitlements (Conditional Use Permit #1255, Site Plan Review Permits #473, #479, and #487, and Tentative Subdivision Maps #1316, #1317, and #1318), which involved a total of 387 multi-family units and 216 single- family subdivision lots.

B) Regional Housing Needs (2016-2024)
As part of the Housing Element process, the City of Merced’s share of the regional housing needs for an 8 -year period, as defined by the State and then distributed at the regional level by the Merced County Association of Governments (MCAG), is established. Table B of the 2020 reflects the City of Merced’s Share of the Regional Housing Needs (RHNA) from 2016 to 2024 as well as the progress in meeting those needs.

Table B: Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
Income Level
RHNA
Allocati
on by
Income
Level
2016 2017 2018 2019 2020 2021
Total
Units to
Date (all
years)
Total
Remaining
RHNA by
Income
Level
Very Low
Deed
Restricted 1351
58 58 1,293 Non-Deed
Restricted
Low
Deed
Restricted 966
61 61 905 Non-Deed
Restricted
Moderate
Deed
Restricted 886

733 153 Non-Deed
Restricted 145 18 492 78
Above
Moderate 2348 n/a 82 629 650 499 656 2,490 0
Total RHNA 5551
Total Units n/a 227 629 668 1,110 734 3,342 2,351
Note: Units serving extremely low-income households are included in the very low-income totals

C) Sites Identified or Rezoned to Meet Housing Shortfall Table C of the HPR shows any sites that have been identified or rezoned in order to meet any shortfall of housing sites to meet the City’s share of regional housing needs.

The City’s Housing Element identified adequate si tes to meet the City’s share of regional housing needs, but additional sites have been identified recently. Table C identifies 2 additional parcels that would be appropriate to provide housing to meet CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

the very low and low-income obligation of the RHNA. These sites could realistically provide an additional 574 units. Although one of the parcels is larger than 10 acres, the City’s Housing Element includes a Policy 1.1.h which encourages the use of the City’s Lot Split Process to subdivide large parcels into smaller parcels to accommodate affordable housing development. The following sites were identified in Table C.

Units by Income Level
APN Very Low
Income Low Income Parcel
Size
General
Plan Zoning Realistic
Capacity Use
031-323-002 143 144 21.3 HMD P-D 42 287 Vacant
060-030-044 70 71 9.41 VR P-D 53 141 Vacant
058-470-001
through -033; -
035; -036; 058-
480-01 through -
017; and 058-
480-034 through
-044
78 78 6.39 HD P-D 16 156 Vacant
007-350-018 32 33 1.5 HMD P-D 4 66 Vacant

In addition to the sites identified above, the City has approved the Mercy Village project at 3015 Park Avenue which would construct 65 very low and low- income apartments. No zone change was needed, but a Density Bonus was approved. Once constructed, these units would count towards the City’s RHNA obligation for very low and low-income housing units.

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

D) Housing Element Programs Implementation
Table D of the HPR describes progress of all Housing Element programs, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the Housing Element.

Table D: Housing Element Program Implementation Status Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.1.a - Evaluate for
Multi-Family Housing
Development

The City will complete
evaluation of vacant and
underutilized parcels
throughout the City to
determine suitability and
feasibility for potential
multi-family
development,
considering at least, but
not limited to, location,
size, circulation, and
available infrastructure.

Staff will monitor and
evaluate whether the
higher density sites are
providing realistic
development
opportunities for low-
income households
through the general plan
annual review process
(Government Code
65400). In addition,
staff will work to educate
the public and decision-
makers about affordable
housing, especially
multi-family
developments, to help
alleviate “NIMBYism”
when developments are
proposed and to ensure
decisions regarding
developments are made
based on adopted plans
and policies. The City
will encourage
developments devoted
exclusively to Senior
housing.

Ongoing
The City maintains a listing of vacant
sites for residential development. The
City strives to update the list on an
annual basis. The City recently
reviewed Table 9.4.4 and 9.4.8 of the
Housing Element and concluded that
the City still has sufficient land
designated for multi-family development
to meet the RHNA requirement for
Extremely-Low, Very -Low, and Low -
income households. However, if any
of the sites are developed at market
rate, the City would need to look to zone
additional land for multi -family
development in the near future to
ensure the City could meet its RHNA
allocation. The City advises developers
of multi -family projects to host
neighborhood meetings to help educate
the neighborhood on their project. The
City participates in these meetings by
answering questions and helping to
provide education about multi -family
projects. In 202 1, City staff attended
two such meetings . The Planning
Department provides information at the
front counter and on our website to
educate the public about NIMBYism.

The City also provides a Tentative
Subdivision Activity List and
Development Activity List on the
Planning Department website.

Additionally, the City has streamlined
the approval process for many projects
requiring a discretionary review; rather
than requiring a Conditional Use Permit
before the Planning Commission or a
Site Plan Review Permit, a staff level
approval, is required.

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.1.b - Promote the
use of Residential
Planned
Development Zoning

Expedite processing of
Residential Planned
Development (RPD)
permits to encourage
innovative site planning,
multi-level
developments, clustered
housing design and
planned open space.

Evaluate the use of
incentives, such as
allowing higher
densities, or other
incentives determined to
be appropriate, to
developers providing
childcare centers within
their development.

Provide more education
to the public and
decision-makers
regarding the benefits of
small lot developments.

Ongoing
The City's building permit review
process has been streamlined to allow
for master plan reviews. This allows the
developer to submit specific house
plans or in the case of multi -family
development, specific building plans for
review, then pull subsequent building
permits with only a site plan and any
other required document s for an
expedited review. This process is used
within all zones in the City. The City
encourages higher density
developments and the inclusion of
childcare centers within multi -family
developments, but has not yet
developed an incentive program for
such. The City is receptive to small lot
developments and has included a
section in the Zoning Ordinance
(updated in 2016) to address small lot
single-family homes.

(Continued on next page)
CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.1.c - Encourage
Mixed Use
Development

Expand the use of
mixed-use
residential/office/retail
developments in the
City’s core downtown
and other appropriate
commercial centers to
support both affordable
housing and economic
development goals
through priority permit
processing. Proposed
amendments to the
City’s Zoning Ordinance
would allow residential
uses as a principally
permitted use in Central
Commercial (C -C) zone
which encompasses
most of the downtown
area and would be
consistent with the City’s
Downtown Strategy.

The City will promote
development consistent
with the “Downtown
Strategy.” In addition,
proposed changes in the
Zoning Ordinance
update would reduce the
parking requirements for
residential
developments near
approved transit stops.

The use of other
incentives will be
reviewed.

Adoption of
Zoning
Ordinance
update in
2016 /
Development
consistent
with the
"Downtown
Strategy" -
Ongoing

In 2016, the City adopted a
comprehensive update to the City's
Zoning Ordinance. This update
included allowing multi -family
development as a perm itted use in the
Central Commercial Zone (most of the
downtown area). The update also
included parking reductions for mixed-
use developments and developments
near transit stops. The City continues to
promote development in the downtown
area to include mo re housing and
mixed-use developments. In 2020, the
former Tioga Hotel, Tioga Apartments,
opened its doors as an apartment
complex in the downtown area providing
approximately 79 units. Also, in 2020, a
mixed-use development (The Hub) that
included 200 m arket rate units was
approved in the northeast section of the
City. This development will begin
construction in 2022.

(Continued on next page)
CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

(Continued on next page)

Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.1.d - Review and
Update the City's
Zoning Ordinance to
Assure Compliance
with State Law

Review Zoning
Ordinance at least
annually to assure
compliance with state
law. Complete
comprehensive Zoning
Ordinance update.

Completion
of Zoning
Ordinance
Update by
2016 and
annually
thereafter.

The City completed the comprehensive
Zoning Ordinance Update and the new
Zoning Ordinance became effective
October 19, 2016. The City does an
annual review to ensure compliance
with state laws and would make any
amendments necessary to im plement
any new laws. In 2019, the City updated
the ADU Ordinance and made updates
in 2020 and 2021 to comply with
changes to state law. The City was
awarded SB2 Grant Funds which will be
used to update the Zoning Ordinance to
provide provisions for tiny home
development, expand the development
of duplexes in single- family zones as a
"by-right" development, streamline
small-lot development, and update the
tentative subdivision map process. The
City has also implemented a procedure
for reviewing SB 35 ap plications in
2020, but will be reviewing those
procedures in 2022.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.1.e - Encourage
Alternate Housing
Types

Through priority permit
processing, encourage
the development of
alternate housing
designs that can be built
on smaller footprints.

The Planning Division
will inform potential
developers of the
benefits/cost savings of
alternate housing
designs and smaller
footprints fostering a
larger return on
investment (ROI) with
more units per acre,
thus providing more
affordable housing.

Priority processing
saves developers time
and money to help keep
development affordable
and is also important for
them to meet State and
Federal tax credit
deadlines. The City’s
“Small Lot Design
Guidelines” have been
incorporated in the
comprehensive Zoning
Ordinance update and
setback requirements
have been increased
providing more open
space to encourage the
public to be more
accepting of the small lot
design concept.

Additionally, staff will
encourage
developments to build 2
and 3-story houses to
provide more floor area
on a smaller lot.

Priority
Processing
- ongoing /
Adoption of
Zoning
Ordinance
2016
Ongoing
The updated Zoning Ordinance included
a s ection on small lots to make the
development of these lots easier for
developers. This section provides
development standards and guidelines
for small lot developments. Small lot
developments require Conditional Use
Permit approval which can typically be
obtained within 60 to 90 days, as
opposed to a zone change process which
could take up to 4 to 6 months. The City
has also added a section to the Zoning
Ordinance for Accessory Dwelling Units
(ADU's) in compliance with state
requirements. The City contin ues to
update this ordinance in compliance with
state law.

(Continued on next page)
CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
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H1.1.f - Encourage
the Use of the
Density Bonus
Provision to allow a
50% increase in the
number of units
allowed in medium
and high density
zones dedicated
exclusively for Senior
Housing, if at least
50% of the units are
affordable to very
low-income
households.

Complete the adoption
of the Draft Zoning
Ordinance which
includes a provision to
allow a reduction in the
number of parking
spaces for “low demand”
uses. Senior housing
could be considered
“low demand,” and be
eligible for such a
reduction.

Adoption of
Zoning
Ordinance
update in
2016
The updated Zoning Ordinance brought
the City's Density Bonus requirements
into compliance with state law. The City
continues to monitor changes to the
Density Bonus law and make updates as
needed. The updated Zoning Ordinance
also has provisions for parking reductions
when there is a low-demand use such as
senior housing or when located near a
transit stop.

H1.1.g - Work with
UC Merced to
Develop a Student
Housing Plan

Encourage developers
of affordable housing to
consider subdividing
large lots into smaller
lots more suitable for
affordable housing. This
process is done through
a staff-level approval
with no public hearings
before the City Council
or Planning
Commission. The
process takes
approximately 3 weeks.

Ongoing

The City has not initiated talks with the
UC specifically related to housing .

However, there have been several
private developers who have been
working with the UC to help provide
student housing. The City supports the
efforts of developers to provide multi -
family student housing developments.

The City will work to make contact with
the UC to discuss the issues related to
student housing in residential
neighborhoods. In 2021, the City Council
directed staff to begin the pro cess to
annex the UC Merced Campus using the
provisions of AB 3312, which should lead
to more coordination between the City
and UC on many issues.

H1.1.h - Encourage
the use of the City's
Lot Split Process
(Parcel Map) to
subdivide large
parcels into smaller
parcels that would be
more likely to be
developed for
affordable housing.

Encourage developers
of affordable housing to
consider subdividing
large lots into smaller
lots more suitable for
affordable housing. This
process is done through
a staff-level approval
with no public hearings
before the City Council
or Planning
Commission. The
process takes
approximately 3 weeks.

Ongoing
The City's Lot Split process continues to
be available to all property owners to
create smaller parcels for developm ent.

Lot Split applications are reviewed by the
Minor Subdivision Committee, a staff
level committee, which helps to expedite
the process.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.2.a - Review
Design Standards,
Update for
Affordability
Deviations to
improvement standards
contained in the
Subdivision Ordinance
may currently be granted
by the Planning
Commission through the
Tentative Subdivision
Map process. To reduce
the need for multiple
case-by-case
considerations, continue
periodic review of
infrastructure and road
requirements. Identify
potential revisions to
reduce
construction/improvement
costs for new
development without
negative impact to quality
or capacity.

Annually
The City’s Engineering Department does
an annual review of the City Standards.

The City is currently working on a
comprehensive update of all the City
Standards. It is anticipated that the
revised City Standards would be
adopted in 2022.
(Continued on next page)
CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
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H1.2.b - Continue
City Housing
Program
Provide incentives to
encourage affordable
housing development
through the use of grant
funds such as CDBG and
HOME funds.

Ongoing
The City continues to receive CDBG and
HOME funds to be used to help develop
new affordable housing and maintain
existing affordable housing units. The
Housing Program works with Habitat for
Humanity, Stanislaus County to perform
rehabilitation projects on owner -
occupied single-family homes and works
with developers to provide new
affordable housing projects (both single-
family and multi -family). Currently, the
City is working with the Central Valley
Coalition for Affordable Housing to
construct a new 68- unit affordable
housing apartment complex (Gateway
Terrace II). It was expected that this
project would begin construction prior to
the end of 2020 . However, due to an
issue with the Environmental Review for
the project, the project has been
delayed. Construction is expected to
begin in mid-2022. The City also works
with the Merced Rescue Mission, Habitat
for Humanity, Merced, and Sierra Saving
Grace to provide housing assistance.

The City has used HOME & CDBG funds
and a HUD 108 Loan to help fund one
119-unit affordable apartment complex
at Childs & B Street and is working to
help fund the Mercy Village project on
Park Avenue. The City is working with a
developer on a Home Key projec t to
provide 93 transitional housing units.
(Continued on next page)

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.2.c - Conduct
studies to identify the
needs of
disadvantaged
communities per
Senate Bill 244
As annexations occur,
conduct studies to
determine the needs of
disadvantaged
communities within the
City Sphere of Influence
in proximity to the
proposed annexation.

Identify the areas
lacking sewer and/or
water availability and
those areas in need of
other revitalization
efforts and other
infrastructure upgrades
(sidewalks, fire
hydrants, etc.).Ensure
that land annexed into
the City for development
can be supplied by the
City’s sewer and water
facilities.

As funds
are
available
and as
annexations
occur
The City is currently working on five
active annexations, and has preliminary
applications for 5 additional annexations.

As part of the annexation process, the
City will evaluate each area for
disadvantaged communities. As part of
the annexation process, an evaluation is
conducted to ensure the City can supply
adequate sewer and water to the
annexation area.

H1.2.d - Pursue
funding strategies to
assist disadvantaged
communities
Apply for funding such
as the Community
Revitalization and
Investment Authority
(AB 2) that focus on
addressing distressed
Annually
The City has not applied for any funds to
date, but staff continues to monitor all
available funding and will apply when
appropriate to do so.
(Continued on next page.)

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.3.a - Participate
in Joint Development
Agreements
Continue City staff
exploration and pursuit
of feasible development
agreements for joint
public/private
development of
affordable rental and
ownership housing,
including senior
housing, “special needs”
housing, farmworkers,
supportive and
transitional housing, or
emergency shelters for
the homeless within the
City. Said development
agreements shall ensure
affordable housing mix,
appropriate covenants
of affordability terms,
and conditional
recapture provisions.

Specifically, the City will
invite developers of
affordable housing to
participate in Joint
Development
Agreements. Special
focus will be placed on
agreements for the
development of housing
for extremely-low
income households.

The City’s goal is to
execute one agreement
annually to achieve 50
units of low-mod
housing.

Use development
agreements to
encourage the
construction of childcare
centers within affordable
housing developments.

Ongoing
The City continues to work with the
Central Valley Coalition for Affordable
Housing and enter into joint development
agreements to provide affordable
housing. Such agreements are being
used for the Development of the 119-unit
affordable apartment project at Childs &
B Street. This development will provide
units for extremely -low and very -low
income households a s well as
permanent supportive housing units.

The City recently went out for an RFP to
find qualified affordable housing
developers. A number of developers
responded and the City is beginning
work with them to bring forth
developments for affordable housing.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe in
H.E Status of Program Implementation
H1.3.b - Encourage
the construction of
childcare centers
within new housing
developments
through the use of
Joint Development
Agreements.

The City recognizes the
need for quality
childcare. In addition,
the City recognizes the
large amount of traffic
and emissions
produced by the
numerous trips families
make throughout the
City in going to and
from childcare centers.

The City also
recognizes that many
families who need
affordable housing,
especially female-
headed households,
need childcare on-site
(within apartment
complexes) or within
close proximity to their
home or transit
services.

December
2019/Ongoing
The City encourages development of
child care centers within all housing
developments. However, an incentive
program has not been developed.

H1.4 - One-Stop
Permit Center Fast
Tracked Processing
Continue the City's
current procedures for
processing
development proposals
and approving permits;
accelerating the
approval process for
affordable and senior
housing developments.

Every 2 years
Procedures remain in place to expedite
the approval process for affordable and
senior housing. City staff reviews these
procedures every 2 years to determine
if changes or updates to the current
procedures need to be made. The City
has implemented a review proc ess in
compliance with SB 35. In addition, the
City submitted an application for SB 2
funding and was awarded funding for
various projects to promote housing.

An application for LEAP funding was
submitted and received in 2021. The
City committed to deve loping an "off -
the-shelf" plan for ADU's and pre-
designed duplex units to help expedite
the development process and reduce
development costs.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.5.a - Encourage
Homeowners to
Construct Second
Units
Continue to publicize the
Second Unit Ordinance
and the income benefits
of second unit
construction to
homeowners in the City.

Link this promotion with
information on the
availability of low-
interest rehabilitation
loans and other funding
programs to support
second unit
development and
provide technical
support as necessary to
interested homeowners.

Provide information on
second units and their
benefits via the City’s
website, monthly
newsletter, and
brochures at the front
counter.

Ongoing
The City provides information to
customers when they inquire about
building second units , now known as
Accessory Dwelling Units (ADUs) . The
City's Zoning Ordinance which includes
the regulations for ADUs is available on
the City's w ebsite. The City adopted an
updated ADU ordinance in 2019 and
continues to update the ordinance to be
in compliance with state law. The most
recent update being in 2021.

H1.6.a - Apply for
Funding to Support
New Housing
Construction
Continue to seek
potential funding
sources and actively
pursue funding for
affordable housing.

Ongoing
The City continues to actively seek
different funding opportunities to help
support the development of affordable
housing. The City currently receives
CDBG and HOME Funds, as well as Cal-
Home First Time Home Buyer funds. The
City received funds from the Affordable
Housing Sustainable Communities
(AHSC) program through HCD for the
Childs & B Street project. The City has
also received ARPA funds of which a
portion has bee n designated for
affordable housing development.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.6.b - Provide
Assistance for
Private and Nonprofit
Applicants to State
and Federal
Programs
Assist private individuals
and nonprofit
organizations in applying
for State and Federal
funds at least once each
year. Assistance may
take the form of
information referral,
consultation regarding
program applications,
and/or lobbying by local
officials on behalf of the
applicant. Special focus
will be given to
applicants applying for
funding to assist in the
development of
extremely-low income
housing.

Annually
The City has assisted in assembling the
funding for the Childs and B Street
project. The City has also consulted
other developers on possible funding
opportunities and assists with completing
form needed for developers to received
Federal and State tax credits.

H1.7.a - Continue
Continuum of Care
Development and
Participation
The City will continue to
work with Merced
County and the Merced
County Association of
Governments to
implement the
Continuum of Care to
address the homeless
issues in Merced. The
City will continue to
research funding
opportunities for
homeless and
transitional shelters and
will work with other
agencies to ensure the
needs of the homeless
community are met.

FY 2015-
2016,
annually
thereafter
as funds
become
available
The City continues to participate in the
Continuum of Care through the Housing
Department. Typically, City employees
have participated in the annual Homeless
Count, but due to COVID -19, that count
was not performed in 2020 or 2021.

(Continued on next page.)

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.7.b - Promote and
Develop Housing to
Meet Special Needs
Assist private and
nonprofit developers,
such as the Central
Valley Coalition for
Affordable Housing, by
identifying potential sites
and financial resources
for the construction of
housing to meet special
needs. Such projects
might include, but are
not limited to: senior
housing, including
congregate care
facilities; housing for
people with physical and
mental disabilities;
transitional housing for
the homeless; an
emergency shelter for
the homeless; and
housing for large
families, extremely-low-
income families, and
farmworkers. The City
will provide further
assistance to the
identified need of
additional emergency
shelter facilities by
applying for Proposition
46 funding to provide for
such facilities or by
supporting other agency
applications.

Annually
The Housing Program works with the
City’s Community Housing Development
Organization (CHDO) to complete at
least one project annually to provide
housing to those with special needs. The
City will continue to work with the CHDO
and any other agencies in an effort to
provide more affordable housing for
extremely-low, very-low, low-income and
special needs households. The City has
been working to help develop the Childs
& B Street Project in conjunction with a
private developer and the Central Valley
Coalition for Affordable Housing. This
project would provide 119 units for
affordable housing, including 30
permanent supportive housing units.

Additionally, the City has been working
with UP Holdings to develop a Home-Key
project for 93 transitional housing uni ts
and 66 permanent supportive housing
units.

H1.7.c - Assist in
Obtaining Funding for
Farmworker Housing
The City shall apply for
or support applications
for funding for farm
worker housing. The
City shall periodically
review available funding
programs to identify
additional funding
sources for farmworker
housing.

Annually
The City has not identified any funding
specifically available for farmworkers.

The City will continue to monitor funding
opportunities and will apply when
appropriate.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
in H.E Status of Program Implementation
H1.7.d - Assess the
need for Farmworker
Housing
Work with farm owners
and central labor
providers to determine
the number of
farmworkers who may
need housing. The
resulting report should
address: permanent
workers, seasonal
resident works, and
migrant workers.

December
2019
The City has not met with f arm owners
and central labor providers to date. This
is still a goal, but the City has focused its
efforts on addressing the homeless issue
within the City and providing additional
housing through the development of the
Childs & B Street project.

H1.7.e - Provide
incentives for the
development of
farmworker housing
Provide fast-track permit
processing: offer a
reduction in the number
of parking spaces
required based on the
number of vehicles used
for transportation;
Explore the use of
modified site
development standards,
e.g. - street widths,
paving, curbs/gutters,
placement of public
works improvements, or
landscaping.

Ongoing
The City has not received any
applications for farmworker housing to
apply any of these processes.

H1.7.f - Consider
amending the Zoning
Ordinance to allow a
reduction in parking
requirements for
persons with
disabilities.

Complete the adoption
of the Draft Zoning
Ordinance which
includes a section to
allow the reduction in
required parking spaces
for uses considered to
be “low demand.” This
could include parking
requirements for
developments for
persons with disabilities.

December
2016
Completed with the adoption of the
Zoning Ordinance Update in 2016.

H1.8.a - In-fill and
Multi-family Lot
Inventory
Develop an inventory of
available infill and multi-
family lots. The
inventory will include
location, parcel sizes,
amenities, and available
infrastructure. The City
will keep said inventory
current and information
will be made available to
developers.

Ongoing This inventory is updated as needed and
is made available to the public.

CITY OF MERCED January 1, 2021, to
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H1.8.b-Prioritize City
efforts to encourage
residential
development by
focusing on in-fill
development and
densification within
the existing City
Limits.

City staff will encourage
development within the
existing City Limits and
especially within the
City’s Core Area. Staff
will analyze vacant and
underutilized land to
identify constraints to in-
fill development. Using
the information found in
the analysis, staff will
develop an “In-fill
Strategy.” Staff will work
with neighborhood and
business groups, as well
as with other interested
organizations, to identify
and address their
concerns and
preferences related to
in-fill development. In
addition, staff shall
consider providing
incentives such as
reduced fees or priority
permitting for in-fill
developments,
especially within the
City’s Core Area.

Ongoing
Staff continues to work with developers to
develop in- fill sites. The City has
approved entitlements for two apartment
projects in 2021 totaling 160 units.

Although the study described in this
policy has not been completed, the City
is making good progress with the
implementation of this policy . The City
provides a Tentative Subdivision Map
Activity list and a Development Activity
list on the Planning Department website
to provide information on current
developments and future subdivisions.

H1.8.c - Provide
Ample Land Through
Planned Annexations
The City will continue to
monitor residential land
availability and
encourage and pursue
annexations as
necessary to maintain a
10-year supply of zoned
vacant residential
property.

Ongoing
The City is currently working on an
annexation that would incl ude 540
apartment units, plus an additional 30
units as part of a mixed- use
development. The City is also working on
another small annexation that includes

13.5 acres of land designated for multi -
family development. The City has
implemented a preliminary application
process to allow the City Council to
review preliminary annexation
applications and provide direction on the
applications. The City is currently
processing 6 preliminary applications, all
of which would include land for housing.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
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H2.1.a - Continue the
Housing
Rehabilitation Loan
Program
Continue to allocate
monies from the City's
Affordable Housing
Program and expand the
City's Housing
Rehabilitation Grant
Program.

Ongoing
The City continues to receive CDBG and
HOME funds to be used to help develop
new affordable housing and maintain
existing affordable housing units. The
Housing Program works with Habitat for
Humanity, Stanislaus County to perform
rehabilitation projects on owner-occupied
single-family homes and works with
developers to provide new affordable
housing projects (both single- family and
multi-family). Currently, the City is
working with the Central Valley Coalition
for Affordable Housing to construct a new
68-
unit affordable housing apartment
complex (Gateway Terrace II). It was
expected that this project would begin
construction prior to the end of 2020 .

However, due to an issue with the
Environmental Review for the project, the
project has been delayed. Construction
is expected to begin in mid- 2022. The
City also works with Sierra Saving Grace
and the Merced Rescue Mission to
provide funding for housing assistance.

H2.1.b - Identify and
Notify Owners of
Substandard Units
Notify property owners
regarding available
rehabilitation programs
to remedy code
violations.

Continuous
The City's Code Enforcement Officers
work with the Inspection Services
Department to identify substandard
housing. Property owners are given an
opportunity to correct violations and may
be eligible for funding through the
Housing Department. The City's Building
and Housing Board of Appeals hears
appeals regarding citations issued by the
Code Enforcement officers related to
substandard housing.

H2.1.c - Provide
Public Information on
Preventative
Maintenance and
Energy Conservation
Utilize information
dissemination programs
such as the City's
website and monthly
newsletter to educate
the public on low-cost
preventative
maintenance, as well as
energy conservation
measures they can take
to prolong the life and
quality of their home and
reduce their long-term
utility and maintenance
costs.

Ongoing
The City continues to provide information
on homeowner maintenance through the
dissemination of brochures and
information on the City's website.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
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H2.1.d -
Conservation of At-
Risk Units
The City will continue to
contact owners and
operators of such units
at least annually to
monitor when/if the units
are being considered for
conversion. The City
will, as needed, assist
potential non-profit
buyers to apply for
California Housing
Finance Agency funding
to purchase and operate
“At-Risk” facilities for
continued affordability.

The City will investigate
possible incentive
programs to encourage
property owners to keep
their properties
affordable. Staff will
work with the Housing
Authority to determine if
they offer programs that
will assist property
owners in maintaining
their property as
affordable units.

Annually
The City continues to monitor units that
have a covenant for affordability and
make contact with property owners as
needed when units are considered to be
"at-risk" of losing their affordability. An
annual review is done to ensure existing
affordable units are maintained as
affordable.

H2.1.e - Energy
Conservation
The City shall continue
to assist low-income
homeowners and
renters in securing
energy audits through
local utility companies.

Informational flyers
should be provided at
City offices and other
public buildings to
advertise funding
sources for making any
necessary changes such
as energy conservation
fixtures and devices. All
projects funded through
the Housing Program
shall be designed to
meet all state energy
efficiency standards.

The City will also
continue to promote its
participation in the
HERO program.

Ongoing
The City Housing Department continues
to provide
information on energy
efficiency and to ensure that all projects
undertaken through the Housing
Department meet the minimum energy
standards required by the California
Energy Code.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
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H2.1.f - Encourage
Energy Conservation
and Weatherization
The City will continue to
assist low/moderate
income families in
obtaining information
and participating in the
Community Action
Agency's weatherization
program.

Ongoing
The City Housing Program continues to
refer homeowners to the Community
Action Agency for assistance with energy
conservation and weatherization.

Additionally, any new projects
constructed through the Housing
Program are constructed to meet current
energy conservation standards.

H2.2 - Apply for State
and Federal Funds to
Support Housing
Conservation and
Rehabilitation
Identify and apply for
funding at the State and
Federal levels to help
finance housing
conservation and
rehabilitation in the City.

Annually
The City Housing Program Supervisor
and Development Services Director
review funding opportunities and apply
for those funds when appropriate. The
City currently received CDBG & HOME
funds to assist in the rehabilitation and
conservation of existing housing units for
income eligible households.
(Continued on next page.

CITY OF MERCED January 1, 2021, to
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Name of Program Objective Timeframe
in H.E Status of Program Implementation
H3.1.a - Pursue State
and Federal Funds
for Down Payment
Assistance
Continue the City’s
revolving loan fund and
grant fund programs to
provide low-interest
loans to first-time low
and moderate-income
homebuyers. Expand
utilization of the loan
program to provide an
“affordability gap”
between housing prices
and household incomes
to sustain a live/work
environment. The loan
program is funded
through state, CDBG,
and HOME funds.

There are established
guidelines setting forth
terms and conditions for
loans. Annually review
loan amount caps, need
for requirement
changes, etc., to meet
changing housing
markets. The City will
continue to apply
annually, or as available,
for CalHOME and
BEGIN, and NSP funds.

The City will explore and
pursue all other
available funding as it
becomes available. The
City will strive to assist
at least one developer
annually to apply for
state and/or federal tax
credits. Funding
assistance is identified
at the beginning of each
fiscal year through the
Housing Program’s
Annual Action Plan.

FY 2015-
2016,
annually
thereafter
In 2021, the City applied for $2.5 Million
in CalHome funds for down payment
assistance, owner occupied
rehabilitation, ADUs and JADUs, and
mobile home owner occupied
rehabilitation. In 2021, the City
completed its Permanent Local Housing
Allocation Plan, which included two years
of funding in the amount of $1.3 million in
support of 67 supportive units on Park
Avenue. The City received Cares Act
Money through the Federal COVID Relief
Funding. These funds were distributed to
Sierra Saving Grace and Salvation Army
to provide mor tgage, rental, and utility
assistance.

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Name of Program Objective Timeframe
in H.E Status of Program Implementation
H3.1.b - Coordinate
with Local Agencies
to Provide Housing
Assistance to
Extremely-Low, Very-
Low, and Low
Income Households
Work with other
agencies to assist in
identifying and procuring
funding for extremely-
low, very-low, and low-
income rental programs.

Examples of other
agencies include, but
are not limited to,
Housing Authority
(Housing Choice/Section
8), Community Action
and Salvation Army
(displaced person’s
temporary assistance
and limited financial
grants), and Continuum
of Care partners
(transitional housing and
homeless shelters).

Ongoing
The City continues to work with the
Merced County Housing Authority, the
Community Action Agency, the Salvation
Army, and other Continuum of Care
partners to provide funding for income-
eligible households. Rec
ently the City
implemented a program in conjunction
with the Merced Rescue Mission and
Sierra Saving Grace to provide deposit
assistance for income- eligible
households to obtain permanent rental
house.

H3.1.c - Minimize
Governmental
Constraints on
Housing
Development,
Improvements, and
Maintenance
Review governmental
processes and
regulations to identify
any potential constraints
to the development,
improvement, or
maintenance to housing.
2016,
annually
thereafter
The City continues to review our
development processes and regulations
to identify any potential constraints. The
adoption of the new Zoning Ordinance in
October 2016, eliminated some of the
previous constraints by bringing the City's
Zoning Ordinance into compliance with
state requirements. The Housing
Department completed an update of the
City's Analysis to Impediments to
Housing in 2020. The City is reviewing
that document and working on
addressing any areas that may need to
be improved as a result of the analysis.
(Continued on next page.)

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Name of Program Objective Timeframe
in H.E Status of Program Implementation
H4.1.a - Provide
Ongoing Public
Information on
Affordable Housing
Issues and Programs
Establish a community
notification list including,
but not limited to,
Housing Authority,
Chamber of Commerce,
schools, grocery and
drug stores, PSAs,
Community Resource
Counsel, civic and
service organizations,
and community centers.

Distribute information
flyers and give public
presentations on
affordable housing
issues and programs in
the City of Merced to
such groups, in addition
to City residents,
developers, and local
lenders, by placing
program brochures,
copies of City
documents, and other
pertinent information in
the City libraries and at
the Merced Civic Center.

In addition, make this
information available to
community-based
groups serving lower
income residents, such
as the Lao Family
Community Center, and
add information to the
City website. Consider
a program for builders’
and developers’
informational meetings
to explain available
programs and
designations, as well as
a program to educate
first time homebuyers on
the process of
purchasing a home.

Ongoing
The Housing Department provides
information on their website regarding
available programs, current plans, and
other information for tenant s, landlords,
and property owners. During the COVID-
19 Pandemic, outreach has been limited,
but Housing staff utilized several online
survey tools and virtual meetings , as
COVID-19 restrictions are reduced
additional outreach can be
accomplished. All required public notices
are also available on the Housing
Department website. All notices required
under the HUD Community Outreach
Guidelines are provided in English,
Spanish, and Hmong. The notices are
published in two local newspapers as
well as on the City’s website.

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Name of Program Objective Timeframe
in H.E Status of Program Implementation
H4.1.b - Establish a
Tenant and Landlord
Education Program
Continue work with the
County Housing
Authority, the Merced
County Rental Housing
Association, and other
relevant organizations.

Provide sponsorship of
Fair Housing and
Tenant/Landlord
relationships and rights
workshops to educate
tenants and landlords on
their rights and
responsibilities.

Ongoing
Fair Housing matters are referred to
Project Sentinel who is the outside
agency contracted to handle fair housing
issues. Additionally, contact information
is provided to the Central California legal
services for tenant/landlord disputes, and
issues of substandard housing within the
City of M erced are referred to the City's
Code Enforcement Department.

H6.1.a - Use CDBG
funds for fair housing
enforcement,
education, and
technical assistance
activities.

Continue to contract with
an outside agency to
provide Fair Housing
information to the City's
residents.

Ongoing
The City continues to contract with an
outside agency (Project Sentinel) for fair
housing enforcement.

H6.1.b. - Prepare a
HUD Consolidated
Plan every 5 years
Prepare a Consolidated
Plan every 5 years to
include certification that
the City will affirmatively
further fair housing,
conduct an analysis to
identify impediments to
fair housing choice, and
take actions to
overcome the effects of
any impediments
identified.

Every 5
years
The City Council approved the
Consolidated Plan covering 2020 to 2024
on November 16, 2020, and it was
approved by HUD in 2021.

H6.1.c - Prepare an
Analysis of
Impediments to Fair
Housing every 5 to 7
years
Prepare an Analysis of
Impediments (AI) every
5 to 7 years and take
steps to address all
barriers to affordable
housing identified in the
report.

Every 5 to
7 years to
prepare
the report.

Actions to
address
barriers to
affordable
housing
are an
ongoing
task.

The City Council approved the most
recent Analysis of Impediments on
November 16, 2020. The City continues
to review the impediments identified and
work on ways to remove or reduce those
impediments.

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Name of Program Objective Timeframe
in H.E Status of Program Implementation
H6.2 - Ensure all
new, multifamily
construction meets
the accessibility
requirements of the
federal and State fair
housing acts through
local permitting and
approval processes.

Review all applications
for multifamily
construction to ensure
all federal and State fair
housing acts are being
complied with. This
shall be done through
building permit review or
other review as required
(i.e., CUP, etc.).

Ongoing
All multi- family housing projects are
reviewed during the entitlement process
and building permit process to ensure
compliance with all federal and state fair
housing acts are being complied with.

H6.3 - Encourage a
range of housing
types to be
constructed in
subdivisions and
large developments
Promote Neighborhoods
that contain a variety of
housing types, as
allowed by the R-1, R-2,
R-3, R-4, and P-D zones
of the Merced Zoning
Ordinance.

Ongoing
The City's Zoning Ordinance allows a
wide range of housing types. In 2021,
734 single- family homes and 160 multi -
family units were entitled.

E) Commercial Development Bonus
Table E of the HPR shows any affordable housing units approved within a commercial development per Government Code Section 65915.7. The City has not utilized this program and thus had nothing to report in 2021.

F) Units Rehabilitated, Preserved, or Acquired
Table F of the HPR is an op tional table where jurisdictions may list (for informational purposes only) units that do not count toward RHNA, but were substantially rehabilitated, acquired or preserved. Units may only be credited to the RHNA when a jurisdiction has included a program in its housing element to rehabilitate, preserve or acquire units to accommodate a portion of its RHNA which meet the specific criteria as outlined in Government Code Section 65583.1(c)(2).

The City has no such program that meets that criteria, but repor ted the information below to show units that were rehabilitated through the City’s Housing Program for which there are programs identified in the Housing Element.

CITY OF MERCED January 1, 2021, to
General Plan Annual Progress Report December 31, 2021

Activity
Type
Units that Do Not Count Towards
RHNA+
Listed for Informational Purposes Only
TABLE F:

Units Rehabilitated, Preserved, or
Acquired
Extremely
Low-
Income+
Very
Low-
Income+
Low-
Income+
TOTAL
UNITS+
City of Merced Housing Element
Program
Rehabilitation
Activity

Preservation
of Units At-
Risk

Acquisition of
Units 3 1 4
HE Policy 2.2 - CDBG fund used to
acquire 4 dwelling units for permanent
supportive housing
Mobile Home
Park
Preservation

Total Units
by Income
3 1 4

G) Locally Owned Land That Has Been Sold
Table G of the HPR is an optional table which identifies any sites, that were owned by the local jurisdiction that were identified in the Housing Element as required to meet the regional housing needs, that were sold or disposed of in the reporting year.

The City of Merced has no such sites.

Appendix
A) General Plan Amendments (2012-Present)

[ref: KE\2021 GP\AnnualRpt\2021\2021 Gen Plan AnnRpt.doc] APPENDIX A 2021 General Plan Annual Progress Report

Page A-1

Appendix A
General Plan Amendments

(Approved Since January 3, 2012 Adoption of General Plan; unless otherwise noted, all of the below are changes to the Land Use Diagram, Figure 2.3.)

Reference
No.

APN# and
Parcel Size

Location

General Plan
Amendment Approved
City Council
Approval Date
& Resolution #
GPA
#11-04
170-010-001
to -039;
170-030-001
to -028;
170-022-001
to -003;
170-041-001
to -0113; &
170-044-001
(8.5 acres)
Northeast Corner of
Bellevue Road &
Barclay Drive
Low Medium Density
Residential (LMD) to
Neighborhood
Commercial (CN)
January 17,
2012
(CC Res
#2012-08)
GPA
#11-05
231-040-004
(n/a)
Northeast Corner of
Yosemite Avenue &
G Street
Curb Cut Allowed
(Exception to General
Plan Policy)
January 17,
2012
(CC Res
#2012-07)
GPA
#12-02
59-240-027
&
59-240-036
(5.6 acres)
Southeast Corner of
Childs Avenue &
Canal Street
Low, Low Medium, &
High Medium Density
Residential
(LD/LMD/HMD) to
Neighborhood
Commercial (CN)
November 19,
2012
(CC Res
#2012-81)
GPA
#12-01
58-020-058
(Portion of

8.2 acres)
Building #3 of
Fahrens Park Plaza
at Southeast Corner
of Highway 59 &
Buena Vista Drive
Business Park (BP) to
Neighborhood
Commercial (CN)
January 22,
2013
(CC Res
#2013-03)
GPA
#12-03
231-040-002
(7.5 acres)
Southwest Corner of
Mercy Avenue &
Mansionette Drive
Low Density Residential
(LD) to
Professional/Commercial
Office (CO)
May 6, 2013
(CC Res
#2013-19)

APPENDIX A 2021 General Plan Annual Progress Report

Page A-2

Reference
No.

APN# and
Parcel Size

Location

General Plan
Amendment Approved
City Council
Approval Date
& Resolution #
GPA
#13-01
Citywide Citywide Bicycle Transportation
Plan Adopted; Revisions
to Figure 4.9 and pages 4-
24, 4-25, & 4-26
September 16,
2013
(CC Res.
#2013-44)
GPA
#13-03
034-122-013
034-122-014
(1.4 acres)
South side of E. 21st
Street, 380 feet west
of Yosemite Park
Way
High Medium Density
Residential (HMD) and
Commercial Office (CO)
to Thoroughfare
Commercial (CT)
October 17,
2013
(CC Res.
#2013-46)
GPA
#13-02
34-011-007
&
34-011-024
(1.93 acres)
Northeast corner of
G Street and E. 23rd
Street
Neighborhood
Commercial (CN) and
Low Density Residential
(LMD) to General
Commercial (CG)
November 4,
2013
(CC Res.
#2013-49)
GPA
#13-05
230-220-055
(2.6 acres)
Northwest corner of
M Street and
Yosemite Avenue
Low Density Residential
(LMD) to Professional/
Commercial Office (CO)
January 21,
2014
(CC Res.
#2014-03)
GPA
#14-01
30-163-003;
30-164-008;
030-163-004;
030-164-006
(0.79 acres)
815 W. 23rd Street
820 W. 23rd Street
825 W. 23rd Street
830 W. 23rd Street
Low Density Residential
(LD) to Professional/
Commercial Office (CO)
December 1,
2014
(CC Res.
#2014-47)
GPA
#13-04
007-290-040
(N/A)
West Side of G
Street, 165 Feet
North of Park
Avenue
Curb Cut Allowed
(Exception to General
Plan Policy)
December 15,
2014
(CC Res.
#2014-48)
GPA
#14-03
Citywide Citywide Merced Hazard
Mitigation Plan Adopted;
Revisions to Safety
Element (pages 11-1, 11-
2, & 11-30)
(Implementing Action

1.1.g also changed to
match page 11-30 in Ch.
14-Policy Index, page 14-
68)
March 16,
2015
(CC Res.
#2015-09)

APPENDIX A 2021 General Plan Annual Progress Report

Page A-3

Reference
No.

APN# and
Parcel Size

Location

General Plan
Amendment Approved
City Council
Approval Date
& Resolution #
GPA
#14-02
APN List
available on
request
(2.4 square
miles)
Area bounded by G
Street, Farmland
Avenue, Lake Road,
and Cardella Road
Adoption of Bellevue
Community Plan;
Revisions to Figures 2.3
(Urban Expansion
Chapter) and 3.1 (Land
Use Diagram); Executive
Summary (page I-viii);
Land Use (pages 3-40,3-
56,3-71,3-72,3-73 & 3-
90); and Circulation
Elements (pages 4-3, 4-
5,4-14,4-20,4-21,4-39,4-
40,4-80,4-88,4-89, & 4-
91).

April 6, 2015
(CC Res.
#2015-11)
GPA
#14-04
206-070-006
(6 acres of a

10.4 acre
parcel)
Southeast corner of
Pacific Drive &
Horizons Avenue
Low Density Residential
(LD) to Village
Residential (VR)
July 20, 2015
(CC Res.
#2015-29)
GPA
#14-06
008-310-038;
008-310-050
(5.42 acres)
Southeast corner of
Yosemite Avenue &
McKee Road
Low Density Residential
(LD) to Neighborhood
Commercial (CN)
August 3, 2015
(CC Res.
#2015-34)
GPA
#15-02
007-250-020
(0.92 acres)
Southeast corner of
West Olive Avenue
& M Street
Professional/Commercial
Office (CO) to
Neighborhood
Commercial (CN)
August 3, 2015
(CC Res.
#2015-31)
GPA
#16-02
Citywide Citywide Revisions to Conservation
(Ch. 7) and Safety (Ch.
11) Elements to Address
Flooding, includes Pages
7-40, 11-10, 11-11, 11-12,
Figure 11.4, New Figure

11.5a, and Pages 11-32
through 11-42.

June 7, 2016
(CC Res.
#2016-18)

APPENDIX A 2021 General Plan Annual Progress Report

Page A-4

Reference
No.

APN# and
Parcel Size

Location

General Plan
Amendment Approved
City Council
Approval Date
& Resolution #
GPA
#16-03
Citywide Citywide Adoption of a New
Housing Element
[Entire Chapter 9
Replaced—Refer to City
Website for complete
Element]
July 18, 2016
(CC Res.
#2016-34)
GPA
#17-01
231-040-021
(4.54 acres)
Northwest corner of
Yosemite Ave &
Mansionette Drive
High Medium Density
Residential (HMD) to
Neighborhood
Commercial (CN);
Revisions to Public
Facilities & Services
Element, including new
page 5-6 and Figure 5.2
on page 5-5.

May 15, 2017
(CC Res.
#2017-28)
GPA
#16-06
008-010-070;
008-010-071
(17.25 acres)
Southwest corner of
Yosemite Ave &
Lake Road
(extended)
Low Density Residential
(LD) to High Medium
Density Residential
(HMD) for 16.25 acres
and Neighborhood
Commercial (CN) for 1
acre
June 5, 2017
(CC Res.
#2017-33)
GPA
#15-03
061-250-092
(77.5 acres)
Northeast and
Southeast corner of
Campus Parkway &
Coffee St
Reconfiguration of the
High Medium Density
Residential (HMD) to 8
acres and Regional
Community Commercial
(RC) to 69.5 acres
August 7, 2017
(CC Res.
#2017-44)
GPA
#18-01
224-030-018
(5.88 acres)
Southwest corner of
M Street &
Arrowwood Drive
Open Space/Park/
Recreation) (OS/PK) to
Low Density Residential
(LD)
Sept. 17, 2018
(CC Res.
#2108-59)
GPA
#15-04
057-200-042
(7.83 acres)
Northwest corner of
Highway 59 & Santa
Fe Drive
Open Space/Park/
Recreation) (OS/PK) to
Thoroughfare
Commercial (CT)
Oct. 1, 2018
(CC Res.
#2018-60)

APPENDIX A 2021 General Plan Annual Progress Report

Page A-5

Reference
No.

APN# and
Parcel Size

Location

General Plan
Amendment Approved
City Council
Approval Date
& Resolution #
GPA
#18-03
206-050-017
(10.73 acres)
Southwest Corner of
San Augustine Drive
& Pacific Drive
Business Park (BP) to
High Medium Density
Residential (HMD)
March 18, 2019
(CC Res.
#2019-09)
GPA
#19-01
N/A
(380 linear
feet of right-
of-way)
Mission Avenue
between Highway
99 and Coffee St
Amend Circulation
Element to Remove
Mission Avenue from
Highway 99 to Coffee St
May 20, 2019
(CC Res.
#2019-25)
GPA
#19-02
008-310-053
(0.52 acres)
Southeast Corner of
McKee Road and
Yosemite Avenue
Low Density Residential
(LD) to Neighborhood
Commercial (CN)
Oct. 7, 2019
(CC Res.
#2019-63)
GPA
#19-03
231-040-004
& -005
(21.5 acres)
Northeast corner of
Yosemite Avenue
and G Street
From “Professional/
Commercial Office”
(CO) to “Neighborhood
Commercial” (CN)
Jan. 22, 2020
(CC Res.
#2020-03)
GPA
#20-02
58-030-037
(3.38 acres)
Northeast corner of
West Olive Avenue
and Highway 59
Professional/Commercial
Office (CO) and
Industrial (IND) to
Business Park (BP)
May 3, 2021
(CC Res.
#2021-32)
GPA
#21-01
32-183-039
through -042
(0.88 acres)
565, 575, 601, &
609 Q Street (South
of W. 6th Street)
Low Density Residential
(LD) to High Medium
Density Residential
(HMD)
July 19, 2021
(CC Res.
#2021-70)
GPA
#20-01
58-470-001
thru -033,-
035,-036; 58-
480-001 thru
-017; 58-
480-034 thru
-044
(6.39 acres)
South Side of
Devonwood Drive
between
Loughborough and
Austin Avenues
Low Medium Density
Residential (LMD) to
High Medium Density
Residential (HMD)
Aug. 16, 2021
(CC Res.
#2021-77)

(Revised—02/17/22)