Cities Index.
Option 1 - AAP Budget With Recommended Public Service Funding

City Council/Public Finance and Economic Development Authority/Parking Authority
June 1, 2026

Document
Option 1 - AAP Budget With Recommended Public Service Funding
Meeting
June 1, 2026
Body
City Council/Public Finance and Economic Development Authority/Parking Authority
Pages
2
Original file
235 KB
Text extracted from the city's file for reading and search. Open the original on cityofmerced.legistar1.com. That file is the official record.

2026 Annual Action Plan
Final Budget as of 4/23/2026 (WITH PUBLIC SERVICES STAFF RECOMMENDATION - OPTION #1) Funding Source: CDBG
Available Resource: Amount of Resource = Total CDBG Available =

HUD CDBG
Allocation $ 1,045,361.00
$1,360,072.38 Estimated 2026
Program Income $ 108,000.00
Prior Year Carryover
(as of 4/24/26) $ 206,711.38
Organization/Agency Description HUD Project Type REQUESTED RECOMMENDED Award * 83.5% of Requested
Public Service
Activities
Maximum Available for Public Services = $194,863.92
Calculation = CDBG Allocation $1,045,361 + unallocated prior year program income $253,731.84 X 15% * ESTIMATED RECOMMENDED PROJECT AMOUNTS ARE CALCULATED AT 83.5% OF REQUESTED (Rounded) ** $7.84 BALANCE TO SIERRA SAVING GRACE. *** PS HOUSING ADC CALCULATED AT 8.7% OF PS CAP.

Harvest Time Food distribution to LMI/homeless 05W/Food Bank/Distribution $ 75,750 $ 63,251.25
Project Sentinel, Inc Tenant/landlord dispute resolution service for residents
05K/Tenant Landlord
Counseling $ 52,307.40 $ 43,676.67
Sierra Saving Grace
Short term emergency
rental/mortgage/utility assistance +
deposits
05Q/Subsistence
Payments $ 40,000 ** $ 33,407.84
Boys and Girls Club of
Merced County Teen workforce readiness program 05H/Employment Training $ 45,000 $ 37,575.00 Youth for Christ
Central Valley
Youth 11-19 years life skills training,
mentoring, career development 05D/Youth Services $ 24,000 0 Housing Division Direct per-hour Activity Delivery Costs of implementing all above PS activities
Estimated average based
on direct hours
Shown: 8.7%
of Cap -> *** $ 16,953.16
Total public service funding (proposed/recommended): $ 237,057.40 $ 194,863.92 PUBLIC SERVICES 15% CAP : $ (194,863.92) $ 194,863.92
Over/Under public service cap: $ 42,193.48 ----
Housing & Facility/Infrastructure Projects
Sierra Saving Grace Acquisition with Rehabilitation 14G-Rehabilitation: Acquisition $ 500,000 Housing Division Activity Delivery Costs (estimated 5%) ADC: same $ 25,000 City of Merced/Parks
and Community
Services
Supplemental Funding to the PY2025
Joe Herb Park Improvement project,
specifically to address park lighting.
03F-Parks/Recreational Facility
Improvements $352,035.00
Housing Division Activity Delivery Costs (estimated 3%) ADC: same $ 17,601.46 Total Housing & Infrastructure ADC & Project Costs – CDBG: $ 894,636.46 Economic Development
UC Merced Monarch
Small Business Center Small Business Technical Assistance 18B-Econ Development: Technical Assist $ 38,000.00 Housing Division Activity Delivery Costs (estimated 5%) ADC: same $ 1,900.00 Total Economic Development Project Costs – CDBG: $ 39,900.00 Administrative
Activities
Estimated maximum available for CDBG administrative activities = $230,672 Calculation = CDBG Allocation $ 1,045,361 + Estimated 2026 Program Income $108,000 x 20% Allowance Housing Division Direct Administration costs Admin Remaining $ 160,672.00 Housing Division Indirect Administration costs Admin 10% alloc + est ’26 PI $ 20,000.00 Merced County HSA Continuum of Care Admin Requested $ 50,000 $ 50,000.00 Total Admin Projects - CDBG: $ 230,672.00
TOTAL - CDBG: $ 1,360,072.38
ATTACHMENT 1
2026 Annual Action Plan
Final Budget as of 4/23/2026
Funding Source: HOME
Organization/Agency Description Project Type Requested/Project Costs
Activity
Delivery

RECOMMENDED
Award
Housing Activities Maximum Available for Housing Activities = $755,119.15 Merced Community Action
Agency
Homeowner
Rehabilitation-
Weatherization (two years)
Homeowner
Rehabilitation $ 200,000.00
$ 10,000.00
(5% of
project cost)
$ 210,000.00
To Be Determined
TBD project for new rental
housing construction,
rehab of existing rental
units, and/or acquisition of
property for rental housing
Affordable housing $461,388.00
$ 13,840.74
(3% of
project cost)
$ 475,228.74
CHDO Organization To Be
Determined
CHDO-15% mandatory set-
aside Affordable Housing $ 67,854.77
$ 2,035.64
(3% of
project cost)
$ 69,890.41
Total Housing ADC & Project Costs – HOME: $ 729,242.77 $ 25,876.38 $ 755,119.15 Administrative Activities Maximum available for HOME administrative activities = $ 45,236.51 Calculation = $452,365.10 HOME Allocation X 10% Allowance Project Sentinel, Inc Fair Housing Services for
city residents
Admin
Fair Housing $ 37,885.90 N/A $ 37,885.90
Housing Division Direct Administration costs Admin $ 7,350.61 N/A $7,350.61 Total Admin Projects – HOME: $ 45,236.51
TOTAL - HOME: $ 800,355.66

Page 2 ends

Available Resource: Amount of Resource = Total HOME Available = HUD HOME Allocation $ 452,365.10
$800,355.66 Estimated 2025 Program Income $ 60,000.00
Prior Year Carryover (as of 4/24/2026) $ 287,990.56

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