CITY OF MERCED
HOUSING DIVISIO N
Final Public Hearing
for the
2025-2029 Consolidated Plan and
2025 Annual Action Plan
City Council Meeting
June 16, 2025
ATTACHMENT 6
CONSOLIDATED PLAN
ANNUAL ACTION PLAN
2025-2029 Consolidated Plan (Con Plan)
• Specific to HOME and CDBG funds
• Spans period of July 1, 2025 – June 30, 2030
• Includes structured long and short-term goals
and objectives for:
• Public Services
• Economic Development
• Housing
• Public facilities and infrastructure needs
• Provides overview of potential program types
and objectives that may be carried out over 5
years
2025 Annual Action Plan (AAP)
• Specific to HOME and CDBG funds
• Covers the Program Y ear spanning July 1, 2025 –
June 30, 2026 (aligned with city fiscal year)
• Includes needs and priorities to implement the
first year of the Con Plan
• Includes HUD’s PY 2025 annual allocations of
CDBG/HOME announced May 14, 2025
• Provides recommendations with allocations of
funding to specific projects and activities
• Includes one-year goals and expected outcomes
EXAMPLE OF ELIGIBLE USES
Community Development Block Grant (CDBG)
• Community projects
• Certain housing developments
• Infrastructure and parks improvements
• Property & site acquisition, rehabilitation,
improvements, and demolition
• Public service projects
• Economic development including job training
• At least 70% to benefit low-moderate income
residents
• All activities must meet at least one HUD National
Objective upon completion
HOME Investment Partnership Program
(HOME)
• T enant-based rental assistance (TBRA)
• Site acquisition, new construction, and
rehabilitation for affordable rental and for-sale
housing
• Homebuyer assistance (example: down payment
assistance)
• Site improvements & demolition
• 100% to benefit low-moderate income residents
upon completion
COMMUNITY
ENGAGEMENT
• 3 Community Meetings were held on January 8th,
January 16th, and Feb 25th
• 2 Stakeholder Meetings were held on January 9th and
January 17th
• A total of 103 Comments were received
• In our feedback received to date:
• The Community Needs survey received a total of
92 participants
• The Stakeholder survey received 9 participants
• Two 3 0-day Public Review and Comment periods
received 1 comment from the community
• First Public Hearing (Feb 18) – 3 comments were
received
• Housing staff attended all three 2025 T own Hall
meetings to collect general community need comment
PY 2025 -2029 CONSOLIDATED PLAN
GUIDING PRINCIPALS
1. Enhance housing opportunities by increasing the availability of affordable housing options and improving the efficiency and cost-effectiveness of existing housing.
2. Promote housing stability for the city’s most vulnerable residents by supporting a range of programs and services that address needs across the housing spectrum, from emergency to permanent housing.
3. Improve quality of life throughout communities by improving and expanding access to essential services, community infrastructure, and economic development opportunities.
PY 2025 -2029 CONSOLIDATED PLAN
PRIORITY NEEDS CATEGORIES
The Guiding Principles combined with the Con Plan needs assessments were then used to develop the structured Five-Year Priority Needs listed in the Strategic Plan (Table SP-25):
1. Increase economic development and job opportunities
2. Expand and improve public infrastructure and facilities
3. Affordable housing, shelter, and housing stability
4. Quality of life services for low-moderate income residents
5. Increase and rehabilitate owner housing
Then, these numbered Priority Needs were further broken down into measurable Five-Year Goals that will enable annual projects to be categorized (next slide).
PY 2025 -2029 CONSOLIDATED PLAN GOALS
• 1A: Provide community-based job
training
• 1B: Provide business assistance
• 2A: Invest in community facilities &
centers
• 2B: Invest in public infrastructure &
ADA improvements
• 2C: Invest in parks & rec facility
improvements
• 3A: Increase affordable rental housing
opportunities
• 3B: Rehabilitation of existing affordable
housing
• 3C: Assistance for shelter, supportive,
overnight and transitional housing
• 3D: Provide housing stability & homeless
prevention services
• 3E: Fair housing and dispute resolution
services
• 4A: Provide vital public services for
individuals and families with low to moderate
incomes
• 5A: Increase and rehabilitate existing
homeowner housing
• 5B: Create new opportunities for
homeownership
• 6: Administration and planning
CDBG AND HOME ALLOCATIONS
Resource T ype PY 25-26
Amounts PY 24-25 Amounts Difference
CDBG $1,089,413 $1,056,567 +$32,846
HOME $ 447,510 $450,563 -$3,053
T otal Both Allocations: $1,536,923 $1,507,130 +$29,793 Program Income &
Carryover Funds
(CDBG+HOME)
$ 1,409,295* $1,973,147* -$563,852
* Includes estimated amounts for expected program income
CDBG PUBLIC SERVICES PROJECTS - ACTUALS
(AS PRESENTED AT 4/21 COUNCIL MEETING + COUNCIL DIRECTION) Organization Description HUD Project T ype REQUESTED PRELIMINARY Maximum Available for Public Services = $189,118
Calculation = CDBG Allocation $1,089,413 + prior year program income $171,376.26 (as of 3/25/25) x 15% Harvest Time Food distribution to LMI/homeless 05W/Food Bank/Distribution $ 75,820 $ 69,751
Project Sentinel
Inc
T enant/landlord counseling service for city
residents
05K/T enant Landlord
Counseling $ 50,000 $ 50,000
Dr. Jennifer Jones
Foundation
Short term emergency rental/utility assistance;
security deposits; mental/health/substance abuse
services; employment training
05Z/Multiple Services $ 450,000 $ 41,000
Love Never
Fails/Bay Valley
Foundation
Employment training in tech industry 05H/Employment T raining $ 120,000 $ 0
(Per Council
Direction 4/21/25)
Housing Division Eligible costs of implementing all public Services activities (Activity Delivery)
Estimated average based
on direct hours N/A $ 28,367
T otal public service funding (proposed/recommended): $ 695,820 $ 189,118
EACH PROJECT INCREASED BY PERCENTAGE OF ALLOCATION, PER THE PUBLISHED CONTINGENCY PLAN
CDBG INFRASTRUCTURE & ADMIN PROJECTS - ACTUALS
CDBG Housing & Infrastructure Activities - No proposals for housing projects received Maximum available = $ 791,406
Infrastructure/ADA
Improvements
Joe Herb Park ADA Improvements –
Includes installation of a new ADA accessible
bathroom and upgrade of existing; repaving of
buckled walkways; installation of ADA ramps
where needed
03B/Facilities for Persons with
Disabilities $ 753,720
Housing Division Activity Delivery Costs (estimated 5%) 03B/Facilities for Persons with Disabilities $ 37,686
T otal Housing & Infrastructure Costs – CDBG: $ 791,406 CDBG Administrative Activities
Maximum available for CDBG administrative activities = $239,482 Calculation = CDBG Allocation $1,089,413 + Estimated 2025 Program Income $108,000 x 20% Housing Division Direct Administration costs Admin $ 81,741 $ 81,741 Housing Division Indirect Administration costs Admin $ 119,741 $ 119,741 Merced County HSA Continuum of Care Admin $ 38,000 $ 38,000 T otal Admin Projects - CDBG: $ 239,482
TOTAL – CDBG – All Projects: $ 1,220,006
HOME HOUSING & ADMINISTRATIVE PROJECTS - ACTUALS
Organization Description Project T ype Project Costs ADC TOTAL Housing Activities - Maximum Available for Housing Activities = $1,681,461.08 CHDO Reserves Required CHDO 15% Reserves
(2023: $85,980; 2024: $67,585)
Single/Multi-
family rehab or
new affordable
housing
$ 67,126.54
$ 2,013.41
(3% of
project cost)
$ 69,139.94
T o Be
Determined
TBD project - new rental housing,
rehab of existing units, and/or
acquisition of property for housing
Multi-family
affordable
rental housing
$ 1,580,707.00
$ 31,614.14
(2% of
project cost)
$ 1,612,321.14
T otal Housing ADC & Project Costs – HOME: $ 1,647,833.54 $ 33,627.55 $ 1,681,461.08
Administrative Activities - Maximum available for HOME administrative activities = $ 44,751.02 Calculation = HOME Allocation $447,510.24 x 10%
Project Sentinel Fair Housing Services Admin Fair
Housing $ 33,206.84 N/A $ 33,206.84
Housing Division Direct Admin costs Admin $ 11,544.18 N/A $ 11,544.18 T otal Admin Projects - HOME: $ 44,751.02
TOTAL - HOME: $ 1,726,212.11
CITY COUNCIL
RECOMMENDED ACTIONS
1. Hold a Public Hearing and receive public comment
2. Determine changes to recommended project funding, if any
3. Approve 2025-29 Consolidated Plan, which includes the 2025 First Year Action Plan
4. Authorize City Manager to make final changes to the plans, as directed by Council and by HUD following submittal, and execute all related agreements and documents; and, authorize Finance Officer to make necessary adjustments and accept funds when disbursed by HUD
Questions?