2026
HUD ANNUAL ACTION
PLAN
Merced City Council
First Public Hearing – March 16, 2026
Attachment 3
2026 ANNUAL PLAN – TIMELINE
Online
Community
Needs Survey
Jan 7–Feb 17
Public Service
Org
Application
Period
December 24,
2025– February
17, 2026
NOFO
Workshops
Jan 20 &
Feb 3
2 Resident
Community
Input Meetings
Jan 6 & Jan 7
HUD 2026
Allocations
announced
Expected Early
March
Public Agency
Consultation
Survey
Jan 14-Feb 17
1st Public
Hearing
(tonight)
March 16
30-Public
Review &
Comment
Period (32
days)
March 23–
April 22
Second
(Final) Public
Hearing /
Approval
May 18
2026
RESIDENT
SURVEY
Need Top 3 Activities
Housing 1) Housing Opportunities for special needs persons (seniors, disabled, domestic violence victims)
2) Down payment assistance to First-Time Homebuyers 3) Vital safety repairs to homes (owner-occupied)
Neighborhood
Improvements/Infrastructure
1) Water/sewer lines and connections, streets,
sidewalks/crosswalks, storm drainage
2) Getting rid of trash, messy, overgrown areas, and
hazardous items
3) Parks or Recreational Facilities
Economic Development 1) Job training for specific skills or areas 2) Helping small or microbusiness owners with low to
moderate incomes grow and develop their businesses.
3) Street, water, parking, rail transport, or other upgrades to business and industrial areas
Public Services 1) Services for persons with special needs (seniors, disabled, domestic violence victims)
2) Assistance for homeless services
3) Youth programs including counseling, education,
career training
2026
RESIDENT
SURVEY
Rank Greatest Needs
1 Job Training, Skills development, money management programs 2 Affordable homeownership-related assistance
3 Homeless services, prevention, and housing solutions
4 Affordable quality childcare and/or youth centers and services 5 Services and programs for special needs persons (domestic violence victims, seniors, disabled, substance abuse)
• 99 Total responses
• 1-submitted on Spanish language
survey
• 1-submitted on Hmong language
survey
2026-27 HUD ALLOCATIONS
Possible announcement Mid-March
U.S. Congress approved the
Consolidated Appropriations Act
February 3, 2026
HUD has 60 days to announce
allocations
2026 FUNDING REQUESTS & SCORING RESULTS
Organization Name Project Name Funding/Category Score Status Rank Amount Requested
CDBG-Public Services
Sierra Saving Grace Emergency Subsistence 05Q-Subsistence Payments 89.0% Accepted/ Recommended 1 $40,000
Project Sentinel Tenant/Landlord
Mediation
05K-Tenant-Landlord
Counseling 84.5% Accepted/
Recommended 2 $52,307.40
Harvest Time Food 4 You 05W-Food bank/distribution 83.9% Accepted/ Recommended 3 $75,750
Boys and Girls Club of
Merced County
Teen Workforce
Readiness Program 05H-Employment Training 83.3% Accepted/ Recommended 4 $45,000
Youth for Christ Central
Valley Merced City Life 05D-Youth Services 73.6%
Accepted/
Preliminarily Not
recommended
5 $24,000
Sovereign Harmony
Project Harmony Care Closet 05Z-Other Public Services 38.3% Accepted/
Not Passing/
Not recommended
N/A $30,000
CDBG-Economic Development Projects
UC Merced Monarch
Small Business Center Small Business Assistance
18B-Economic
Development: Technical
Assistance
77.5% Accepted/Preliminarily
Recommended N/A $38,000
CDBG-Housing Projects
Sierra Saving Grace Acquisition with
Rehabilitation
14G-Rehabilitation:
Acquisition 78.3% Accepted/
Recommended N/A $500,000
HOME-Housing Projects
Merced Community
Action Agency
Homeowner
Weatherization Program
(Rehab)
14A-Rehabilitation: Single
Unit Residential 73.3%
Accepted / 2-year
program
recommended
N/A $200,000
Administrative Projects (non-competitive)
Merced County Human
Services Agency
Point-in-Time Homeless
Count Administrative N/A Accepted N/A $ 50,000
Project Sentinel Fair Housing Services Administrative N/A Accepted N/A $ 37,885.90 2026 BUDGET – CDBG PUBLIC SERVICES
Organization/
Agency Description HUD Project Type REQUESTED * ESTIMATED Award
Public Service
Activities
Maximum Available for Public Services = $167,814 Calculation = CDBG Allocation $900,000 + unallocated prior year program income $218,766 x 15% * ESTIMATED RECOMMENDED PROJECT AMOUNTS ARE INITIALLY CALCULATED AT 74% OF REQUESTED, WITH $84 BALANCE TO SIERRA SAVING GRACE. ** PS HOUSING ADC CALCULATED AT 6% OF PS CAP.
Sierra Saving
Grace
Short term emergency
rental/mortgage/utility
assistance; security deposits
05Q/Subsistence
Payments $ 40,000 * $ 29,684
Project Sentinel,
Inc
Tenant/landlord counseling
service for city residents
05K/Tenant
Landlord
Counseling
$ 52,307.40 * $ 38,707
Harvest Time Food distribution to
LMI/homeless
05W/Food
Bank/Distribution $ 75,750 * $ 56,055
Boys and Girls Club
of Merced County
Teen workforce readiness
program
05H/Employment
Training $ 45,000 * $ 33,300
Housing Division
Eligible costs of
implementing all public
Services activities (Activity
Delivery)
Estimated average
based on direct
hours
15% of Cap
($25,172) ** $10,068
Total public service funding (proposed/recommended): $ 238,229.40 $ 167,814 PUBLIC SERVICES 15% CAP (Estimated): - $ 167,814 $ 167,814 Over/Under public service cap: $ 70,415.40 ----
2026 BUDGET – OTHER PROJECTS (CDBG)
Housing & Infrastructure Projects
Sierra Saving
Grace
Acquisition with
Rehabilitation 14G-Rehabilitation: Acquisition $ 500,000 Housing Division Activity Delivery Costs
(estimated 5%) 14G-Rehabilitation: Acquisition $ 25,000 Project TBD $ 286,844
Housing Division Activity Delivery Costs
(estimated 5%) 14G-Rehabilitation: Acquisition tbd
Total Housing & Infrastructure ADC & Project Costs – CDBG: $ 811,844 Economic Development
UC Merced
Monarch Small
Business Center
Small Business Technical
Assistance
18B-Economic Development:
Technical Assistance $ 38,000
Housing Division Activity Delivery Costs
(estimated 5%)
18B-Economic Development:
Technical Assistance $ 1,900
Total Economic Development Project Costs – CDBG: $ 39,900 2026 BUDGET – OTHER PROJECTS (HOME)
Organization/
Agency
Description Project Type Project
Costs
Activity
Delivery
ESTIMATED
TOTAL
Housing Activities Maximum Available for Housing Activities = $840,612 Merced
Community Action
Agency
Homeowner
Rehabilitation-
Weatherization
Homeowner
Rehabilitation $ 200,000
$ 10,000
(5% of
project
cost)
$ 210,000
To Be Determined
TBD project: new
rental housing
construction,
rehab existing
rental units, or
acquire property
for rental housing
Affordable
housing $ 559,745
$ 16,792
(3% of
project
cost)
$ 576,537
To Be Determined
CHDO-15%
mandatory set-
aside
Affordable
Housing $ 52,500 $ 1,575 $ 54,075
Total Housing ADC & Project Costs – HOME: $ 812,245 $ 28,367 $ 840,612 2026 BUDGET – CDBG & HOME ADMINISTRATION
Administrative
Activities
Estimated maximum available for CDBG administrative activities = $201,600 Calculation = CDBG Allocation $900,000 + Estimated 2026 Program Income $108,000 x 20%
Description Project Type Requested Estimated Budget
Housing Division Direct Administration costs Admin Remaining $ 131,600 Housing Division Indirect Administration costs Admin 10% alloc + est PI $ 20,000 Merced County HSA Continuum of Care Admin $ 50,000 $ 50,000 Total Admin Projects - CDBG: $201,600
Administrative
Activities
Maximum available for HOME administrative activities = $ 35,000 Calculation
= HOME Allocation $350,000 x 10%
Description Project Type Requested/Available Estimated
Budget
Project Sentinel, Inc Fair Housing Services for
city residents
Admin
Fair Housing
$ 35,000 $ 35,000
Housing Division Direct Administration costs Admin $0 $ 0 Total Admin Projects - HOME: $ 35,000
Total CDBG Budget: $ 1,221,158 Total HOME Budget: $ 875,612 TONIGHT’S ACTIONS & NEXT STEPS
Public Hearing
Tonight:
Hold Public Hearing:
Receive Public
Comment
Council
Direction
Tonight:
Provide Any Council
Comments
Direction regarding
Public Service
Funding Options
Finalization of
AAP Budget
Forward:
Based on Council’s
direction tonight,
Staff will prepare
project lists for
inclusion in:
Public Review Draft –
30 day Public Review
Period March 23-
April 22
May 18, 2026 – 2nd
Public Hearing and
Approval of Final
Draft Plan
QUESTIONS?