Appendix G: City of Merced - Housing Element — City Council/Public Finance and Economic Development Authority/Parking Authority, July 20, 2026 (part 2 of 2)

Source: MCAG, 2022. Final Regional Housing Needs Plan.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-2
G6.2 Meeting the RHNA
Each jurisdiction must identify adequate land with appropriate zoning and development standards to fulfill its share of the RHNA. Jurisdictions can use planned and/or approved projects, estimated accessory dwelling unit (ADU) production, and vacant and/or underutilized sites to accommodate the RHNA. In some cases, rezoning must occur to ready sites for future residential development.

Once the City has demonstrated in the Housing Element that it has the development capacity to accommodate the RHNA, it has two implementation-related obligations during the planning period:

1. Maintain a “no net loss” policy of its residential development capacity over the housing element planning period, meaning that sites listed in the adopted Housing Element land inventory may not be down-zoned to a lower-density residential zone or rezoned to a nonresidential zone, unless the City up-zones or rezones alternative sites prior to the density reduction or rezone on the inventoried site.

2. Continue to allocate available funding resources to and facilitate the development of affordable housing.

G6.2.1 RHNA Credits
The City may use units in approved and/or permitted residential developments which will be completed within the planning period, and anticipated ADU production, as credit towards fulfillment of its RHNA.

Planned and Approved Projects
Residential developments approved and permitted, but not yet built (also called “pipeline projects”) can be credited towards the City’s RHNA provided it can be demonstrated that the units can be built by the end of the 6
th cycle planning period. Similarly, units that are under construction but have not yet received a building permit as of June 30, 2023, can also be credited towards the RHNA. Affordability (the income category in which the units are counted) is based on the actual or projected sale prices, rent levels, or other mechanisms establishing affordability of the units within the project. Pipeline projects that can count toward the City’s 6
th cycle RHNA are listed in Table G6-3 and the locations of these projects are shown on Figure G6-1. For the purpose of analysis in this Housing Element, the city is divided into six districts.

These pipeline projects are scattered throughout the city, but mostly concentrated in District 6, and consist of single-family and multi-family projects. Ten pipeline projects (19, 20, 22, 22, 27, 28, 29, 30, 31, and 34) are sites that are currently in the process of being annexed into the city. Based on the status of these projects, all units are expected to receive Certificates of Occupancy during the 2024-2032 planning period. All projects with extremely low-, very low-, and low-income households were able to attain affordability through either deed restrictions or through other financing likely administered through HCD. Typically, it takes three to six months for projects to initiate construction following building permit issuance. Known barriers to construction include supply shortages, electrical provider issues, and cold weather that could delay construction on damp clay soil until it dries. Entitlements typically do not expire and are not considered a barrier to development. There are no other known barriers that would impede the completion of these projects.

The Virginia Smith Trust (VST) project was annexed into the City of Merced in September 2024. The annexation included the adoption of a specific plan, a planned development establishment, and a general plan amendment. VST submitted a Vested Tentative Subdivision application in 2025 to City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-3
implement the specific plan and planned development. Based on details provided by the City’s Project Engineer in February 2025, the City anticipates that all Phase 1 units (2,541 units) and Phase 2 units (2,316 units) will be constructed during the planning period. Of the total units, 500 units are anticipated to be affordable to lower-income households through a workforce housing program, self-help housing program, or multifamily new construction of deed-restricted units. The anticipated number of units and affordability for each phase of this project are show on Table G6-2.

Table G6-2 Anticipated Phase 1 Buildout of the Virginia Smith Trust Land Use Type Phase 1A Phase 1B Phase 1C Phase 1D Phase 1E Phase 1
Total
Phase 2
Total Total
R-1 109 226 0 141 186 662 615 1,277
R-2 36 0 64 24 131 255 225 480
R-3 0 0 364 0 0 364 140 504
R-4 696 0 456 0 0 1152 336 1,488
Mixed Use 0 0 108 0 0 108 0 108
Total Units by Zone 841 226 992 165 317 2,541 1,316 3,857 Affordable Units
Workforce Housing 25 0 25 0 25 75 75 150
Self Help Housing 0 13 0 0 12 25 0 25
Multifamily New Construction 100 0 125 0 0 225 100 325
Total Affordable Units 125 13 150 0 37 325 175 500

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-4
Table G6-3 Pipeline Projects
Map
ID Project Name
Assessor’s
Parcel
Number
(APN)1
Extremely
Low-
Income
Units
Very
Low-
Income
Units
Low-
Income
Units
Moderate-
Income
Units
Above
Moderate-
Income
Units
Total
Units Status
1 Bandoni Property
Apartments
060-030-045 0 0 0 0 180 180 Approved August 2015. Undergoing negotiations with adjacent landowners. Estimated building
permit issuance 2027. Estimated completion date
2028.
2 Yosemite Village
Apartments
206-070-011,
-002
0 0 0 0 220 220 Approved June 2020. Currently constructing retail on adjacent property. Estimated building permit
issuance 2027. Estimated completed date 2029.
3 Devonwood
Apartments
058-470-001 31 16 107 0 2 156 Approved August 2021. Certificate of Occupancy 8/2025.
4 Up Holdings—Park
Ave
007-350-018 65 0 0 0 1 66 Approved January 2022. Applied for Homekey + 2025, award announcement pending. Estimated
building permit issuance 2026. Estimated
completion date 2027.
5 Emeral Village
Apartments
206-050-017 0 0 0 0 132 132 Approved March 2019. Permits issued 2025.

Estimated completion date 2025.
6 Gateway Terrace II 031-323-002 50 0 0 0 0 50 Awaiting Permit Issuance. Applicant currently seeking financing. Estimated building permit
issuance 2029. Estimated completion date 2030.
7 Isaac Sargiz 058-030-028 0 0 0 0 161 161 Approved June 2022. Estimated building permit issuance 2028. Estimated completion date 2030.
8 Bella Vista –
Visionary Homes
061-390-027 0 0 106 0 2 108 Approved May 2022. Pending financial close 8/2025. City has committed financial assistance
to this affordable project. Starting construction
September 2025. Estimated completion date
2026.
9 Royal Woods
Apartments
206-010-012 0 0 0 0 72 72 Approved June 2022. Estimated building permit issuance 2027. Estimated completion date 2028.
10 Maracor
Development, Inc.
206-030-019 0 0 0 0 396 396 Approved June 2022. Estimated building permit issuance 2027. Estimated completion date 2028.
11 CR Consulting
Group
058-030-023 0 0 0 0 24 24 Approved December 2022. Estimated building permit issuance 2027. Estimated completion date
2028.

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-5
Map
ID Project Name
Assessor’s
Parcel
Number
(APN)1
Extremely
Low-
Income
Units
Very
Low-
Income
Units
Low-
Income
Units
Moderate-
Income
Units
Above
Moderate-
Income
Units
Total
Units Status
12 Linc Housing 031-074-012 0 54 0 0 0 54 Financing, applied for TCAC and granted REAP grant funding, in escrow with City. Estimated
building permit issuance 2026. Estimated
completion date 2026.
13 4500 G ST 060-030-039 0 0 0 0 216 216 Approved August 2015. Estimated building permit issuance 2027. Estimated completion date 2028.
14 507 Cardella Rd 206-010-010 0 0 0 0 72 72 Approved April 2022. Estimated building permit issuance 2027. Estimated completion date 2028.
15 1449 Pettinotti Rd 206-010-011 0 0 0 0 113 113 Approved June 2022. Estimated building permit issuance 2027. Estimated completion date 2028.
16 3720 Horizons Ave 206-070-009 0 0 0 0 64 64 Approved January 2016. Under construction.

Estimate completion date 2026.
17 3664 Compass
Pointe Ave
206-070-010 0 0 0 0 64 64 Approved January 2016. Under construction.

Estimate completion date 2026.
18 Winder Ave 259-130-045 0 0 0 0 108 108 Approved May 2022. Under construction.

Estimated completion date 2026.
19 Yosemite/Gardener
Annexation
060-890-001,
-002, -004, -
005, -006, -
007, -008, -
010, -011, -
012, -013, -
014
21 22 22 0 455 520 Estimated annexation Fall 2026. Estimated building permit issuance 2027. Estimated
completion date 2028.
20 Rogina Annexation 170-100-002 16 17 17 0 350 400 Pending annexation, estimated completion 2027.

Estimated building permit issuance 2029.

Estimated completion date 2031.
21 M Street
Annexation
170-080-007 8 8 9 0 175 200 Pending annexation, estimated December 1, 2026. Estimated building permit issuance 2028.

Estimated completion date 2031.
22 University Vista
Annexation
170-180-006 14 15 15 0 306 350 Pending annexation completion 2026. Estimated building permit issuance 2027. Estimated
completion date 2029.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-6
Map
ID Project Name
Assessor’s
Parcel
Number
(APN)1
Extremely
Low-
Income
Units
Very
Low-
Income
Units
Low-
Income
Units
Moderate-
Income
Units
Above
Moderate-
Income
Units
Total
Units Status
23 Virginia Smith Trust
(VST) Specific
Plan/Annexation
060-020-048,
060-010-004
166 167 167 0 3,357 3,857 Annexation completed September 2024.

Tentative map applications submitted. Estimated
building permit issuance 2027. Estimated
completion date 2031.
24 Massasso St 059-330-026 0 0 0 0 7 7 Tentative maps approved Summer 2024.

Estimated building permit issuance 2026.

Estimated completion date 2027.
25 Massasso St 059-581-040 0 0 0 0 7 7 Tentative maps approved Summer 2024.

Estimated building permit issuance 2026.

Estimated completion date 2027.
26 BRW Village 21 224-300-010,
011
0 0 0 60 155 215 SM #1330 was approved by PC on May 8, 2024.

Under construction. Estimated completion date
2026.
27 Branford Point 060-020-044 0 0 46 46 558 650 Annexation pending, estimated completion 2026.

Estimated building permit issuance 2028.

Estimated completion date 2030.
28 UC Villages 060-590-016,
-017, -019, -
025, -026,
060-020-016
0 0 16 16 623 655 Annexation pending, estimated completion 2026.

Estimated building permit issuance 2028.

Estimated completion date 2030.
29 Yosemite Lakes 170-100-022 0 0 68 68 2,572 2,708 Annexation estimated completion 2028.

Estimated building permit issuance 2029.

Estimated completion date 2031.
30 Old Dominion 170-140-015,
-021, -028, -
029, -033
0 0 22 22 830 874 Annexation estimated completion 2028.

Estimated building permit issuance 2029.

Estimated completion date 2031.
31 Yoesmite/Parsons 006-050-068,
-072
0 0 0 0 28 28 Planned Development subdivision pending 2025.

Estimated building permit issuance 2026.

Estimated completion date 2027.
32 Merced Gateway 061-710-009,
-023, 061-
680-001
0 0 0 0 587 587 Planned Development subdivision pending 2025.

Estimated building permit issuance 2026.

Estimated completion date 2028.

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-7
Map
ID Project Name
Assessor’s
Parcel
Number
(APN)1
Extremely
Low-
Income
Units
Very
Low-
Income
Units
Low-
Income
Units
Moderate-
Income
Units
Above
Moderate-
Income
Units
Total
Units Status
33 Lacava Road 206-030-001,
-002, 206-
020-027
0 0 5 5 196 206 Annexation estimated completion 2026.

Estimated building permit issuance 2027.

Estimated completion date 2029.
34 The Hunt Property 060-050-032,
060-060-005,
238-010-013,
-014, -015
0 0 145 145 5,533 5,823 Annexation estimated completion 2027.

Estimated building permit issuance 2029.

Estimated completion date 2032.
35 Cardella & El
Redondo
206-030-017 0 0 0 0 160 160 Pre-CUP approved in 2025. Estimated building permit issuance 2026. Estimated completion date
2028.
36 1250 W. 9th St. 032-121-005 0 0 0 0 8 8 Approved in 2024. Estimated building permit issuance 2026. Estimated completion date 2027.
37 800 E. Cardella Rd 231-010-021 0 0 0 0 104 104 Approved in 2025. Estimated building permit issuance 2026. Estimated completion date 2028.

Total 371 299 745 362 17,838 19,615
1 An assessor's parcel number is a series of digits used to identify property. Each parcel is assigned an APN that corresponds to a location on a page in a book of maps maintained by the County Assessor's Office.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-8
Figure G6-1 Pipeline Projects

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-9
Accessory Dwelling Units
Based on an analysis of ADU production in Merced over the last five years (2018 through 2022), ADU production that will occur during the 6th housing cycle has been estimated and assumed against the City’s RHNA obligation.

The City issued an average of two ADU building permits per year during the last five years. Extrapolated over the 2024-2032 Housing Element planning period, the City can assume the production of 16 ADUs.

ADUs permitted in previous years have been reported in the very low and low-income categories without deed restrictions. While it is likely that some ADUs may be affordable to lower- or moderate- income households, due to the relatively small sample size of permitted ADUs, all anticipated ADUs were conservatively assigned to the above moderate-income category. Table G6-4 shows the recent history of ADU permit issuance.

Table G6-4 Accessory Dwelling Unit Production, City of Merced Reporting Year ADU Building Permits Issued
2018 0
2019 0
2020 1
2021 2
2022 7
Total 10
Annual Average 2
G6.3 Summary of RHNA Credits
The City can satisfy all of its above moderate-income RHNA and approximately 29 percent of its very low-, low, and moderate-income RHNA requirement with planned and approved units and projected ADU development. To achieve the remaining RHNA, the City must demonstrate the availability of sites with appropriate zoning and development standards that allow and encourage the development of 4,346 units. This unit count is broken down by household income level. As shown on Table G6-5, Merced has a remaining RHNA of 1,873 units affordable to very low-income households, 997 units affordable to low-income households, and 1,476 units affordable to moderate-income households.

Table G6-5 Remaining Share of RHNA
Affordability Category
(Percent of AMI) RHNA Allocation
Units Pending or Approved
or under Construction Estimated ADUs Remaining RHNA
Very-Low 2,543 670 0 1,873
Low 1,742 745 0 997
Moderate 1,838 362 0 1,476
Above Moderate 4,394 17,838 16 0
Total 10,517 19,615 16 4,346
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-10
G6.4 Methodology
G6.4.1 Suitable Sites for Affordable Housing
State law requires that jurisdictions demonstrate in the Housing Element that the land inventory is adequate to accommodate that jurisdiction’s share of the regional growth. State law has established “default” density standards for the purpose of estimating potential units by income range. In a suburban jurisdiction, a density standard of 20 or more units per acre (primarily for higher density multi-family developments) would facilitate the development of housing in the low- and very low-income category.

In addition to default density standards, the California Legislature established size requirements for parcels intended to support the development of lower-income units. Government Code Section 65583.2 establishes that sites between 0.5 and 10 acres in size which are zoned for residential development at greater than 20 units per acre are suitable for lower-income projects. Very small parcels, even when zoned for high densities, may not facilitate the scale of development required to access competitive funding resources. Conversely, typically lower-resource affordable housing developers may be unable to finance the scale of project necessitated by very large parcels. No standalone parcels smaller than 0.5 acres are assumed to accommodate lower-income units.

G6.5 Nonvacant Sites
Nonvacant sites included in the Site Inventory have comparable predevelopment characteristics to developed residential projects in the region. As discussed in Chapter 4, Regional Development Trends, residential development in Merced County has occurred primarily on vacant sites and sites used for agriculture.

The Housing Element must analyze the extent to which existing uses may impede additional residential development. The Site Inventory accommodates approximately 95 percent of its lower- and moderate- income RHNA and 100 percent of its above moderate-income RHNA on vacant sites. As a result of insufficient available vacant land, the City identified the remaining lower- and moderate-income RHNA on nonvacant sites.

G6.5.1 Adequacy of Nonvacant Sites
Of the 86 sites included in the Site Inventory, 83 are vacant and three are nonvacant. In considering sites, the City has identified sites currently occupied by a motel, parking lot, and commercial uses that could facilitate the development of a variety of housing types throughout the city. All identified nonvacant sites were selected for their redevelopment potential and higher probability of turnover. All nonvacant sites are shown on Table G6-6.

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-11
Table G6-6 Nonvacant Sites in the Site Inventory
Site Address Description
Size
(Acres)
Capacity
(Units) Aerial Image
3033 G St This 5.44-acre parcel is currently
developed with an office building and
is in a zone where residential is also
allowed. With its current zoning
designation, the site could
accommodate 146 dwelling units. The
office buildings were previously
occupied by the Merced Sun Star but
are currently vacant. In addition, the
site is underutilized with building lot
coverage of approximately 20 percent.

Development trends with similar
predevelopment characteristics:
 Retreat Apartments (total units:
119, parcel size: 5.07 acres)

5.44 146

564 W 15
th St This 3.77-acre parcel is currently used
as a parking lot in Midtown. Through
rezoning this site to high density
residential, the site could
accommodate 124 dwelling units.

The parking lot is currently
underutilized and is surrounded by
multiple other parking lots in Midtown.

In addition, nearby commercial uses
have their own private parking lots that
serve their customers.

Development trends with similar
predevelopment characteristics:
 Sandstone Way Planned
Development (parcel size: 3.95,
unit total; 122)
 Nebela Drive Planned
Development (parcel size: 4.48,
unit total: 127)

3.77 124

1407 W 16th St This 0.73-acre parcel is currently a
marginally used motel. The existing
buildings are older and in disrepair. In
addition, the site is underutilized with
existing uses covering approximately
30 percent of the site. Through
rezoning this site to high density
residential, the site could
accommodate 24 dwelling units.

Development trends with similar
predevelopment characteristics:
 Twelve Thirteen V Street Housing
Project (previous use: motel)

0.73 24

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-12
G6.5.1.1 Redevelopment of Existing Uses
The City conducted the following analysis to determine the redevelopment potential of the three nonvacant sites detailed above. Nonvacant sites meeting criteria 1 or 2 are included in the Site Inventory. For sites not meeting criteria 1 or 2, they must meet both criteria 4 and 5 to be included in the Site Inventory. It should be noted that not all factors are applicable to all sites. Nonvacant Sites Criteria

1. Surface Parking
Large surface parking lots have potential for redevelopment as these properties have limited existing structures to impede redevelopment in the near term. One site, APN 031-231-005 (Map ID P), is currently used for surface parking in Midtown Merced. There is sufficient parking in the area and this lot is not necessary to accommodate parking in the area.

2. Vacant Buildings
Vacant buildings have potential for redevelopment as these properties are often underutilized with no existing leases. Substantial improvements may be needed to turn around the profitability of the existing uses. One site, APN 007-350-009 (Map ID 48), currently includes a vacant building with no imminent tenant.

3. Age and Condition of Structure
The age of a structure is useful in demonstrating that a site has a higher likelihood of redevelopment.

New construction on the site indicates that a property owner is unlikely to invest in additional improvements or redevelop the site in the upcoming housing cycle. The existing motel APN 031-094-005 (Map ID Q) was built in 1941 and is over 80 years old. The structure on this site is also in poor condition.

4. Building Intensity
Parcels with existing single-story buildings and low lot coverage offer significant potential for redevelopment to maximize the utilization of the sites. The Site Inventory identifies one nonvacant site (APN 031-094-005, Map ID Q) in the R-4 zone, which allows structures up to 60 feet in height and a lot coverage of 70 percent of the site. The existing use on this site includes only one story (around 14 feet) and covers only about 20 percent of the site. Therefore, the existing building intensity is much lower than what is allowed in the zone.

Table G6-7 shows the analysis of nonvacant site based on these criteria. Existing uses on these sites would not impede residential redevelopment. All nonvacant sites are located in centralized areas of the city (e.g. Midtown) and are prime opportunities for infill development. Given the characteristics of these nonvacant sites, the City does not anticipate existing uses to impede residential development.

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-13
Table G6-7 Nonvacant Site Analysis
Map
ID
Site
Address APN Existing Use
Meets
Criteria (1 or
2, or 3 & 4
Criterion
1: Surface
Parking
Criterion
2: Vacant
Building
Criterion 3:

Age and
Condition
Criterion 4:

Building
Intensity
48 3033 G ST 007-350-009 Vacant
office
building
Yes No Yes Yes N/A
P 564 W
15th St
031-231-005 Parking Lot Yes Yes N/A N/A N/A
Q 1407 W
16th St
031-094-005 Single-story
motel
Yes No No Yes Yes
G6.6 Development Trends
As discussed in detail in Chapter 4, Regional Development Trends, the development characteristics in the region indicate that most of the recently developed residential projects, or projects that are planned to be developed, are on vacant land. Out of the 17 projects identified, 13 are single-family developments, and four are multi-family developments. Approximately 12 percent of these projects include affordable units.

The densities of these projects range from 1.64 to 51.34 dwelling units per acre due to the various zoning requirements in each jurisdiction. The average density of projects with affordable units is approximately 37 dwelling units per acre, and these projects typically achieved a density of 135 percent of the maximum density allowed by the zoning district.

Projects located in low, medium, and high-density residential zones typically achieved a density of 67, 60, and 84 percent, respectively, of the maximum density allowed by the zoning district. Overall, the average achieved density is 8.8 dwelling units per acre, which is low. This can be attributed to the predominance of single-family residential developments in the region.

Of the projects discussed in Chapter 4, Regional Development Trends, four projects used to determine regional development trends are in Merced: Retreat Apartments, Twelve Thirteen V Street Housing Project, Lantana, and Stoneridge South. Three out of the four projects are multi-family developments, and both Retreat and Twelve Thirteen V Street with affordable units. These projects have an average density of approximately 21 units per acre with an average achieved density of 87 percent of the maximum density allowed by the zoning district, as shown in Table G6-8.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-14
Table G6-8 Merced Development Trends
Project Name
Total
Units Acreage Density Zoning District
Zoning
District
Density
(du/ac)
Number
of Units
Allowed
Percent
Density
Achieved
Retreat
Apartments
119 5.07 23.47 Multi-family (medium density) 24 121.68 98% Twelve Thirteen V
Street Housing
Project
96 1.87 51.34 Multi-family (high density) 30 56.10 171% Lantana 99 20.6 4.81 Single-Family (low density) 8 164.80 60% Stoneridge South 160 29.75 5.38 Multi-family (high density) 30 892.50 18% Merced Average 21.25 87%
Regional Average 8.80 70%
G6.6.1 Realistic Development Capacity
To create a realistic development assumption, the City assumes that the development capacity on each site will be less than the full development capacity allowed by the parcel's zoning or land use designation. Sites do not always develop to their full capacity potential due to factors such as site- specific conditions and development standards such as open space or parking requirements. To determine a realistic development achievement on the sites in the inventory, the City reviewed the development achievement of pipeline and recently developed projects in the region. On average, the pipeline projects in Merced, as shown in Table G6-3, achieved an average density of 87 percent of the maximum density allowed on the site based on the site’s zoning and development standards. As discussed in 4, Regional Development Trends, the average achieved density for projects collectively in the region is 70 percent. Based on the local and regional trends, the City conservatively assumes the realistic capacity of each site would be 75 percent of the maximum allowable density in each zone.

The Site Inventory includes parcels in 12 zoning districts with varying allowable densities and development standards. The City’s Zoning Code classifies each site into the following zones:
 Low Density Residential (R-1-5): This zoning district allows for detached single-family dwellings, duplexes, and other land uses typically compatible with or authorized by state law for a low-density residential setting. It allows for one unit per 5,000 square feet of lot area, equal to a maximum residential density of 8.71 dwelling units per acre.
 Low Density Residential (R-1-6): This zoning district allows for detached single-family dwellings, duplexes, and other land uses typically compatible with or authorized by state law for a low-density residential setting. It allows for one unit per 6,000 square feet of lot area, equal to a maximum residential density of 7.26 dwelling units per acre.
 Low-Medium Density Residential (R-2): This zoning district allows for single-family dwellings, duplex homes, limited multi-family dwellings with one unit per 2,000 square feet of lot area, equal to a maximum residential density of 14.52 dwelling units per acre.  High-Medium Density Residential (R-3-1.5): This zoning district allows for single-family dwellings, duplex homes, multi-family dwellings, single room occupancy housing with one unit per 1,500 square feet of lot area, equal to a maximum residential density of 29.04 dwelling units per acre.

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-15
 High Density Residential (R-4): This zoning district allows for single-family dwellings, duplex homes, multi-family dwellings, single room occupancy housing with one unit per 1,000 square feet of lot area, equal to a maximum residential density of 43.56 dwelling units per acre.  Central Commercial (C-C): This zoning district allows for a diversity of commercial and residential land use with a maximum density of 36 units per acre.
 Office Commercial (C-O): This zoning district allows for a diversity of commercial and residential land use with a maximum density of 36 units per acre. Residential development in this district requires a conditional use permit.
 Planned Development (P-D): This zoning district allows for a variety of uses and densities. The use and density per parcel are determined by the underlying General Plan Land Use designation.

The distribution of income levels among sites was determined by zone, district, and parcel size. It is typical for units in single-family zones to be affordable only to above moderate-income households.

Within multi-family zones that have a higher density, units are more likely to be affordable to lower- and moderate-income households. Table G6-9 details the realistic capacity of available sites by current zoning district. This list does not include sites identified for rezone.

Table G6-9 Realistic Capacity of Sites by Zoning District Current Zoning
District
Total
Acreage
Maximum
Density
Realistic
Density
Lower-
Income Units
Moderate-
Income
Units
Above
Moderate-
Income Units
Total
Units
R-1-5 168.26 8.71 6.53 0 0 1,097 1,097
R-1-6 95.05 7.26 5.45 0 0 517 517
R-4 1.02 43.56 32.67 0 30 0 30
R-3-1.5 10.85 29.04 21.78 133 95 0 228
C-C 3.22 36 6.25 10 31 0 41
C-O 8.23 36 6.25 40 13 0 53
R-2 1.12 12 9 0 8 0 8
P-D 60.70 varies varies 574 574 119 1,267
Total 348.46 757 751 1,733 3,241
G6.6.2 Likelihood of 100 percent Nonresidential Uses on Sites The City identifies 94 units on 11 sites in the C-O and C-C zones, which allow for 100 percent nonresidential uses. In accordance with State law, the Housing Element must consider the likelihood of nonresidential development on sites that allow for nonresidential uses. In the City of Merced, approximately 75 percent of projects permitted in the C-C zone, and 95 percent of projects permitted in the C-O zone, have developed exclusively with nonresidential uses in the last five years. In the City of Visalia, which is comparable to the City Merced in size and population, residential uses occurred on approximately 18 percent of projects in mixed-use zones between 2019 and 2022. As a result, regional trends indicate that residential uses occur in nonresidential zones on less than one quarter of projects and are not the predominant use in mixed-use zones. To account for the likelihood of nonresidential uses developing on sites, the realistic allowable density was reduced significantly to 6.75 units per acre, which is approximately 17 percent of the maximum allowable density (36 dwelling units per acre).

The Site Inventory accounts for the likelihood of nonresidential uses being developed in zones that allow both residential and nonresidential uses by providing an adequate buffer of units in all income Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-16
categories. If all of the sites in the C-C and C-O zones were developed with 100 percent nonresidential uses, the Site Inventory would still maintain a four percent buffer of lower-income units and a ten percent buffer of moderate-income units.

Table G6-10 shows regional residential projects constructed within the last five years (i.e. 2019 through 2024) that have occurred in zones that allow for 100 percent nonresidential uses. As shown on the table, residential projects have generally averaged densities similar to what is assumed on in the Site Inventory. Residential projects in the region also generally achieved nearly 100 percent of their maximum allowable capacity for each zone. Projects that are similar in size, density, and affordability to the C-O and C-C sites include Andrade Co, Corvina Duplexes, and Reedley. The majority of the other projects achieve higher densities on parcels of similar sizes. Given these trends, the City believes that the assumptions on C-O and C-C zoned sites account for the lower frequency of residential projects developing regionally in mixed-use zones.

Table G6-10 Residential Projects in Zones that allow 100 percent Nonresidential Uses Jurisdiction Project Name Acres Total Units
Dwelling Units
Per Acre
Precent of
Max
Capacity
Income
Category
Merced County
Merced City Childs Court
Apartments

4.01 119 29.68 No Max
Density
Very Low,
Low
Merced City 3136 E Gerard Ave 9.44 200 21.19 No Max
Density
Above
Moderate
Merced City Andrade Co. 1.33 24 18.05 No Max
Density
Above
Moderate
Merced County SPR20-006 0.18 8 44.44 135% Low
Livingston Tierrasanta Villas 3.98 80 20.10 No Max
Density
Very Low,
Low
Tulare County
Visalia Corvina Duplexes 0.5 8 16.00 46% Low
Visalia Lofts at Fort Visalia 1.46 80 54.79 No Max
Density
Very Low,
Low
Visalia Duplex at Murray &
Encina

0.19 2 10.53 No Max
Density
Low
Visalia Rancho Colegio
Affordable Housing

3.47 80 23.05 66% Very Low,
Low
Visalia Camino Del Rio 3.12 94 30.13 86% Very Low
Visalia Senior Housing at N
Highland

2.06 70 33.98 97% Very Low
Visalia Caldwell/Lovers
Apartments

11.41 342 29.97 86% Very Low,
Low
Visalia Demaree/Houston
Apartments

7.62 243 31.89 91% Very Low,
Low
Visalia Lovers Tulare
Apartments

2.78 32 11.51 No Max
Density
Low
Visalia Cameron Creek
Garden Units

4.81 30 6.24 18% Moderate
City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-17
Jurisdiction Project Name Acres Total Units
Dwelling Units
Per Acre
Precent of
Max
Capacity
Income
Category
Visalia S Stonebrook St & W
Cameron Ave

11.77 276 23.45 156% Moderate
Fresno County
Reedley Paseo 55 1.76 55 31.25 108% Moderate
Reedley Reedley I Mixed Use 4.25 80 18.82 127% Low
Reedley Kashian Mixed Use:

Workforce Housing

2.11 70 33.18 115% Extremely
Low
Kingsburg Stone Plaza Mixed
Use Project

0.28 10 35.71 145% Above
Moderate
Average 3.82 95.15 26.20
Although residential development is not the prevailing trend in mixed-use zones, the City anticipates that the selected sites have high potential of residential development. All sites included in the C-O and C-C zones are vacant and do not have existing uses that would impede development. Additionally, Sites are generally located along the City's main arterials (e.g., M Street and G Steet) and are located in a pedestrian-friendly environment with a close proximity to goods, services, and transportation.

Under Program 7, the City commits to expand affordable housing options across all income categories through contacting non-profit and private developers to facilitate housing production and pursue funding opportunities. Under Program 2, the City will establish a performance standard for mixed-use inventory sites to ensure sites develop at the densities anticipated in the Housing Element Site Inventory. The City will continue to evaluate all future mixed-use development to determine how often development has a residential component and make adjustments, as necessary, to maintain adequate sites throughout the planning period.

G6.7 Large Sites for Lower-Income Units
The Site Inventory identifies four large sites (larger than 10 acres) that are expected to offer affordable housing opportunities for lower-income households. Three of these sites (Map ID X, Z, and AA) are between 10 and 11 acres, and one site is approximately 23 acres (Map ID 56). As discussed in Chapter 4, Regional Housing Resources, Merced County shows strong trends of residential development on large sites. However, these trends support market-rate development, while affordable units have typically occurred on smaller parcels. As a result, the City assumed no more than 170 lower-income units on each site, which is consistent with the average number of lower-income units on large sites in the San Joaquin Valley (see Table G6-12). The four large parcels with lower-income units are shown on Table G6-11.

These sites would likely need to be subdivided into appropriate sizes (e.g., 1-10 acres) to accommodate development similar to typical state and federally funded developments (e.g., 50 to 150 units). These sites assume a mix of incomes to support a variety of housing types.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-18
Table G6-11 Large Sites with Lower-Income Units
Map
ID Address APN
Propose
d Zone Acres
Existing
Use
Lower-
Income
Moderate-
Income
Above
Moderate-
Income
Total
Units
56 Bellevue Rd &
Barclay Way
170-060-033 P-D (CO) 23.29 Vacant 170 458 0 628
X Pacific Dr and R St 206-040-020 R-4 10.31 Vacant 170 109 0 279 Z BRE V 22 E (Lot W) 224-020-006 R-4 10.64 Vacant 170 156 0 326 AA BRE V 22 E (Lot X) 224-020-008 R-4 10.13 Vacant 170 156 0 326 A summary of recent developments on large sites in the San Joaquin Valley is listed on Table G6-12.

Large sites with deed-restricted units are prevalent in Merced County, specifically in the city of Merced.

Large sites in Merced County average 347 units, which is similar to what is assumed on four large sites included in the Site Inventory. The total capacity on the large sites between 10 and 11 acres is reasonably similar to typically developed affordable housing and is consistent with some larger affordable developments (e.g. greater than 150 units) in the San Joaquin Valley. For example, the Ben Maddox-K property (292 lower-income units on 10.8 acres) and the Lovers-Caldwell property (342 lower-income units on 11.4 acres) are similar size to these sites yet yield significantly more units than what is assumed on each site. Additionally, Site 56 has similar size and lower-income unit totals to the Vineyards and the Parc Grove Commons. Given the wide range of development trends on large sites in the region, the City anticipates that the assumed capacities on these large sites are realistic.

Table G6-12 Summary of Recent Developments on Large Sites in San Joaquin Valley Project Acres
Deed-Restricted
Units
Market Rate
Units
Total
Units
Merced County
Linc Housing 36.00 54 0 54
Merced Crossing Annexation (Pending) 28.60 65 455 520
Rogina Annexation 147.40 50 350 400
M Street Annexation 37.00 25 175 200
University Vista Annexation 290.60 44 306 350
Virginia Smith Trust (VST) Specific Plan (Merced County Project) 654.00 325 2,215 2,540 Average 198.93 93.83 583.5 677
Tulare County
the Ben Maddox-K 10.80 292 3 295
Lovers-Caldwell 11.40 342 4 346
Average 11.10 317 3 320
Fresno County
Fancher Creek Town Center 91.00 420 240 660
The Vineyards 38.90 158 0 158
West Creek Village 120.0 120 135 255
Parc Grove Commons 24.00 213 2 215
Avalon Commons 17.80 104 1 105
Average 58.34 203 75 278
Regional Average 115.96 170 298 469
City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-19
To facilitate and incentivize affordability units on these large sites, the City will implement Program 2 through the following actions:
 Provide technical assistance, incentives, and strategies as appropriate to facilitate development of affordable housing, including parceling at appropriate sizes or other site planning tools such as clustered development, allowing flexibility for the transferring of densities within the property.  Promote the potential subdivision of large sites into multiple parcels for future development through technical assistance, incentives, and strategies during the development phases and when applications are submitted to the City for the identified parcels.  Annually meet with property owners and developers to encourage the development of mixed income housing with a mix of unit sizes, types, and prices.  Promote the development of large sites at the densities and affordability levels identified within the housing element.
 Allow the development in phases within 8 years of the Housing Element planning period.  Offer expedited processing and fee deferrals, reductions, or waivers for affordable units in development on large sites identified in the Sites Inventory.

G6.7.1 Subdivision Processing for Large Sites
To facilitate residential development on these sites, large parcels may be subdivided by utilizing the City’s Tentative Subdivision Map entitlement process. The Site Plan Review Committee is comprised of three City Staff members: the Director of Development Services, the City Engineer, and the Chief Building Official. Applications involving the subdivision of land shall include a tentative parcel map or tentative subdivision map as required by Title 18 (Subdivisions) of the Merced Municipal Code. The proposed parcels shall have, at least, minimum parcel area and minimum parcel dimensions.

Program 2 will promote and incentivize the subdivision of large sites to create parcels at appropriate sizes to support affordable housing projects. Incentives would potentially include, expedited approval of lot splits or creation of new parcels, waiving of the public hearing requirement related to parcel maps, waiving of the public hearing requirement related to approval of large multifamily uses (provided the project is affordable by deed-restriction), additional density bonus, lot coverage, or allowable height, and fee waivers, reductions, or deferral. By the end of 2027, if development of housing affordable to lower income households (as assumed in the inventory) is not feasible on these large sites or sites are not parceled at appropriate sizes (e.g., 1-10 acres), within six months (by July 2028) the City will identify additional incentives and planning tools or alternative strategies if necessary to ensure adequate capacity at appropriate sizes for the RHNA.

G6.8 Site Inventory
The Site Inventory lists all sites or parcels that are intended to accommodate residential development in fulfillment of Merced’s RHNA. The inventory is broken up into six distinct geographic areas of the city:
 District 1
 District 2
 District 3
 District 4
 District 5
 District 6
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-20
The sites included in the inventory are listed in Table G6-13. The table of sites includes the following items in the column heading order from left to right:
 Map Identification number (a unique reference number assigned by the City to reference the parcel on each map)
 Address or nearest cross street
 APN (Government Code Section 65583.2(b)1))
 Size in acres (Government Code Section 65583.2(b)(2))  General Plan land use designation (Government Code Section 65583.2(b)(2))  Zoning designation (Government Code Section 65583.2(b)(2))  Description of existing uses (Government Code Section 65583.2(b)(3))  Minimum allowable density by zone
 Maximum allowable density by zone
 Inventoried income level (units appropriate for lower-, moderate-, above moderate-income households) (Government Code Section 65583.2(c))
 Total number of units realistically assumed on the site  Opportunity category as designated by the California Tax Credit Allocation Committee (TCAC)1 The current zoning of the selected sites is shown geographically in Figure G6-2 and the proposed zoning of the selected sites are shown in Figure G6-3. There are no known barriers outside of financing that would preclude development of these parcels in the planning period.

These sites are also assessed by TCAC Opportunity area which range from areas of High Segregation and Poverty to the Highest Resource areas. The more positive economic, educational, and health outcomes for lower-income families, particularly long-term outcomes for children, the higher the score. The scores in each district are listed below and a breakdown of each opportunity category is discussed in Chapter G5, Assessment of Fair Housing.

District 1
District 1 is in the southeast portion of Merced and is bounded by East CA-140 to the north, Martin Luther King Jr. Way to the west, and city boundaries to south and east. This district primarily consists of commercial, low density, and medium density residential zones. District 1 does not have any fire hazards and is in an area of moderate flood hazard. District 1 can accommodate 13 sites with an assumed capacity of 124 lower-income units, 49 moderate-income units, and 92 above moderate-income units.

All sites identified in this area are currently vacant. All sites are in an area of the city that has a TCAC designation of Low Resource and High Segregation and Poverty. Through rezoning six sites from low- density and general commercial to high-density residential and central commercial, District 1 can accommodate an additional 350 lower-income units and 91 moderate-income units. Overall, this totals to 474 lower-income units, 140 moderate-income units, and 92 above moderate-income units in this district.

1 Resource levels designated by TCAC/HCD denote access to economic and educational opportunities such as low-cost transportation, jobs, and high-quality schools and the quality of environmental factors in the area such as proximity to hazards and air quality. TCAC has a composite opportunity score for each census tract. Source: https://www.treasurer.ca.gov/ctcac/opportunity/2023/methodology.pdf City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-21
District 2
District 2 is bounded by Highway 99 to the north, Martin Luther King Jr. Way to the east, and city boundaries to the south and west. This district primarily consists of commercial, industrial, low density, medium density, and high-density residential zones, including the Merced Municipal Airport. District 2 doesn’t have any fire hazards and is in an area of moderate flood hazard. District 2 can accommodate 13 sites with an assumed capacity of 60 moderate-income units. All sites identified in this area are currently vacant. All sites are in an area of the city that has a TCAC designation of Low Resource and High Segregation and Poverty. Through rezoning two sites from low-density to high-density residential and general commercial to central commercial, District 2 can accommodate an additional 42 lower-income units and 12 moderate-income units. Overall, this totals 42 lower-income units and 72 moderate-income units in this district.

District 3
District 3 is bounded by E. North Bear Creek Drive to the north, Highway 99 to the south, city boundaries to the east, and V Street to the west. This district primarily consists of industrial and commercial zones, with some residential areas. District 3 does not have any fire hazards and is in an area of moderate flood hazard

2. District 3 can accommodate 12 sites with an assumed capacity of 10 lower-income units and 47 moderate-income units. All but one site identified in this area is currently vacant, with the other one currently occupied by office uses. All sites are in an area of the city that has a TCAC designation of Low Resource, High Resource, and High Segregation and Poverty. Through rezoning eight sites from low- density to high-density residential and general commercial to central commercial, District 3 can accommodate an additional 338 lower-income units and 89 moderate-income units. Overall, this totals to 348 lower-income units and 136 moderate-income units in this district.

District 4
District 4 is bounded by Mercy Avenue to the north, E. North Bear Creek Drive to the south, city boundaries to the east, and G Street to the west. This district primarily consists of low density residential. District 4 does not have any fire hazards and is in an area of minimal flood hazard. District 4 can accommodate four sites with an assumed capacity of 25 lower-income units, nine moderate-income units, and 51 above moderate-income units. All sites identified in this area are currently vacant. All sites are in an area of the city that has a TCAC designation of Highest Resource. Through rezoning one site from low-density to high-density residential, District 4 can accommodate an additional 123 lower- income units and 31 moderate-income units. Overall, this totals 148 lower-income units, 40 moderate- income units, and 51 above moderate-income units in this district.

District 5
District 5 is bounded by Buena Vista Drive to the north, E. North Bear Creek Drive to the south, city boundaries to the west, and G Street to the east. This district primarily consists of low density residential. District 5 does not have any fire hazards and is in an area of minimal flood hazard. District 5 can accommodate four sites with an assumed capacity of 191 lower-income units and 56 moderate- income units. All sites identified in this area are currently vacant. All sites are in an area of the city that has a TCAC designation of Low or High Resource. Through rezoning three sites from low-density to high-

2 The City has the Flood Hazard designation of “AH”. Zone AH are areas with a 1 percent annual chance of shallow flooding, usually in the form of a pond, with an average depth ranging from 1 to 3 feet. The City has the Flood Hazard designation of “AO”. Zone AO are river or stream flood hazard areas, and areas with a 1 percent or greater chance of shallow flooding each year, usually in the form of sheet flow, with an average depth ranging from 1 to 3 feet.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-22
density residential, District 5 can accommodate an additional 145 lower-income units and 37 moderate- income units. Overall, this totals 336 lower-income units and 93 moderate-income units in this district.

District 6
District 6 is bounded by city boundaries to the north, east, and west, and Buena Vista Drive to the south.

This area primarily consists of planned developments and low density residential zones. District 6 does not have any fire hazards and in an area of minimal flood hazard3. This district can accommodate 11 sites with an assumed capacity of 407 lower-income units, 530 moderate-income units, and 1,590 above moderate-income units. All sites identified in this area are currently vacant. All sites are in an area of the city that has a TCAC designation of Highest Resource. Through rezoning nine sites from planned developments to high medium-density residential, high-density residential, and inner village residential, District 6 can accommodate an additional 1,356 lower-income units and 688 moderate-income units.

Overall, this totals to 1,763 lower-income units, 1,218 moderate-income units, and 1,590 above moderate-income units in this district.

3 The City has the Flood Hazard designation of “X”. Zone X is the area determined to be outside the 500-year flood and protected by levee from 100- year flood.

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-23
Figure G6-2 Merced Site Inventory (Current Zoning)

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-24
Figure G6-3 Merced Site Inventory (Proposed Zoning)

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-25
Table G6-13 Merced Site Inventory – Opportunity Sites
Map
ID
Site Address or
Street APN Acres
Land
Use Zoning
Current
Use
Minimum
Density
Maximum
Density
Lower-
Income
Capacity
Moderate-
Income
Capacity
Above
Moderate-
Income
Capacity
Total
Capacity
TCAC Opportunity
Category
District 1
1 2832 E

CHILDS AVE
061-261-010 14.18 FSCH R-1-5 Vacant 0 8.712 0 0 92 92 High Segregation & Poverty
2 Kelly Ave
034-240-029 2.84 HMD R-3-1.5 Vacant 0 29.04 48 13 0 61 Low Resource 3 E 13th St 035-020-030 2.69 HMD R-3-1.5 Vacant 0 29.04 46 12 0 58 High Segregation & Poverty
4 1988 KELLY
AVE
034-240-034 0.10 HMD R-3-1.5 Vacant 0 29.04 0 2 0 2 Low Resource 5 G St 035-031-012 0.12 HMD R-3-1.5 Vacant 0 29.04 0 2 0 2 High Segregation & Poverty
6 170 E 13TH ST 035-033-004 0.17 HMD R-3-1.5 Vacant 0 29.04 0 3 0 3 High Segregation & Poverty
7 E 10TH ST 035-042-012 0.11 HMD R-3-1.5 Vacant 0 29.04 0 2 0 2 High Segregation & Poverty
8 224 E 10TH ST 035-043-004 0.11 HMD R-3-1.5 Vacant 0 29.04 0 2 0 2 High Segregation & Poverty
9 E 10TH ST 035-043-005 0.11 HMD R-3-1.5 Vacant 0 29.04 0 2 0 2 High Segregation & Poverty
10 245 9TH ST 035-043-017 0.11 HMD R-3-1.5 Vacant 0 29.04 0 2 0 2 High Segregation & Poverty
11 555 S

PARSONS AVE
061-285-001 2.08 CO C-O Vacant 0 36 11 3 0 14 High Segregation & Poverty
12 33 PARSONS
ST
035-140-018 0.15 LMD R-2 Vacant 0 12 0 1 0 1 High Segregation & Poverty
13 173 E

MISSION AVE
259-130-021 0.92 CO P-D
(CO)
Vacant 12 36 19 5 0 24 Low Resource
Total 23.71 124 49 92 265
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-26
Map
ID
Site Address or
Street APN Acres
Land
Use Zoning
Current
Use
Minimum
Density
Maximum
Density
Lower-
Income
Capacity
Moderate-
Income
Capacity
Above
Moderate-
Income
Capacity
Total
Capacity
TCAC Opportunity
Category
District 2
14 363 W 12TH
ST
031-331-014 0.17 HD R-4 Vacant 0 43.56 0 5 0 5 High Segregation & Poverty
15 345 W 12TH
ST
031-331-012 0.17 HD R-4 Vacant 0 43.56 0 5 0 5 High Segregation & Poverty
16 112 W 12TH
ST
031-342-007 0.17 HD R-4 Vacant 0 43.56 0 5 0 5 High Segregation & Poverty
17 106 W 12TH
ST
031-342-008 0.17 HD R-4 Vacant 0 43.56 0 5 0 5 High Segregation & Poverty
18 21 W 11TH ST 031-344-009 0.17 HD R-4 Vacant 0 43.56 0 5 0 5 High Segregation & Poverty
19 111 W 11TH
ST
031-342-010 0.17 HD R-4 Vacant 0 43.56 0 5 0 5 High Segregation & Poverty
20 CHILDS AVE 032-222-007 0.23 HMD R-3-1.5 Vacant 0 29.04 0 5 0 5 High Segregation & Poverty
21 501 CANAL ST 032-222-001 0.23 HMD R-3-1.5 Vacant 0 29.04 0 5 0 5 High Segregation & Poverty
22 Canal St 032-212-038 0.23 HMD R-3-1.5 Vacant 0 29.04 0 5 0 5 High Segregation & Poverty
23 1251 W 12TH
PL
031-283-004 0.17 HMD R-3-1.5 Vacant 0 29.04 0 3 0 3 High Segregation & Poverty
24 912 W 13TH
ST
031-301-022 0.17 HMD R-3-1.5 Vacant 0 29.04 0 3 0 3 High Segregation & Poverty
25 292 N ST 032-221-017 0.11 HMD R-3-1.5 Vacant 0 29.04 0 2 0 2 Low Resource 26 N St 032-221-035 0.34 HMD R-3-1.5 Vacant 0 29.04 0 7 0 7 Low Resource Total 2.52 0 60 0 60
City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-27
Map
ID
Site Address or
Street APN Acres
Land
Use Zoning
Current
Use
Minimum
Density
Maximum
Density
Lower-
Income
Capacity
Moderate-
Income
Capacity
Above
Moderate-
Income
Capacity
Total
Capacity
TCAC Opportunity
Category
District 3
27 W 19th St 031-032-004 0.42 HMD R-3-1.5 Vacant 0 29.04 0 9 0 9 Low Resource 28 1115 W 18TH
ST
031-032-009 0.52 RC C-C Vacant 0 36 2 1 0 3 Low Resource 29 W 15th St 031-360-068 1.56 RC C-C Vacant 0 36 8 2 0 10 Low Resource 30 W 16th St 031-360-006 0.21 RC C-C Vacant 0 36 0 5 0 5 Low Resource 31 1616 MARTIN

LUTHER KING
JR WAY
031-154-012 0.34 RC C-C Vacant 0 36 0 9 0 9 Low Resource 32 4 E MAIN ST 034-201-001 0.25 RC C-C Vacant 0 36 0 6 0 6 Low Resource 33 1835 MARTIN

LUTHER KING
JR WAY
031-072-008 0.17 RC C-C Vacant 0 36 0 4 0 4 Low Resource 34 344 W 19TH
ST
031-072-003 0.17 RC C-C Vacant 0 36 0 4 0 4 Low Resource 35 W 19th St 031-011-014 0.25 LMD R-2 Vacant 0 12 0 2 0 2 Low Resource 36 W 19th St 031-023-013 0.17 LMD R-2 Vacant 0 12 0 1 0 1 Low Resource 37 Glen Ave 034-162-020 0.37 LMD R-2 Vacant 0 12 0 3 0 3 Low Resource 38 E Main St 034-193-008 0.17 LMD R-2 Vacant 0 12 0 1 0 1 Low Resource Total 4.61 10 47 0 57
District 4
39 McKee Rd
and Arden Ln
108-010-010 9.43 LD R-1-6 Vacant 0 7.26 0 0 51 51 Highest Resource 40 462 MERCY
AVE
231-200-005 2.52 CO C-O Vacant 0 36 12 4 0 16 Highest Resource 41 2958 N G ST 007-131-001 1.01 CO C-O Vacant 0 36 4 2 0 6 Highest Resource 44 Yosemite
Avenue &
231-040-023 0.70 HMD P-D
(HMD)
Vacant 0 24 9 3 0 12 Highest Resource
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-28
Map
ID
Site Address or
Street APN Acres
Land
Use Zoning
Current
Use
Minimum
Density
Maximum
Density
Lower-
Income
Capacity
Moderate-
Income
Capacity
Above
Moderate-
Income
Capacity
Total
Capacity
TCAC Opportunity
Category
Mansionette
Drive
Total 13.66 25 9 51 85
District 5
45 2434 N HWY
59 058-150-002 2.27 HMD R-3-1.5 Vacant 0 29.04 39 10 0 49 Low Resource 46 Bear Creek Dr 058-150-003 0.30 HMD R-3-1.5 Vacant 0 29.04 0 6 0 6 Low Resource 47 3180 M ST 236-230-011 1.71 CO P-D
(CO)
Vacant 0 36 36 10 0 46 High Resource
48 3033 G ST 007-350-009 5.44 CO P-D
(CO)
Office 0 36 116 30 0 146 High Resource
Total 9.72 191 56 0 247
District 6
49 G St and
Merrill Pl
060-030-038 11.37 VR R-1-5 Vacant 0 8.712 0 0 74 74 Highest Resource 50 G St and
Merrill Pl
060-030-055 26.25 LD R-1-5 Vacant 0 8.712 0 0 171 171 Highest Resource 51 G St and
Foothill Dr
060-880-006 11.54 LD R-1-5 Vacant 0 8.712 0 0 75 75 Highest Resource 52 Gardener Ave
and Destiny
Dr
231-010-009 104.93 LD R-1-5 Vacant 0 8.712 0 0 685 685 Highest Resource 53 3878 N G ST 231-010-001 85.62 LD R-1-6 Vacant 0 7.26 0 0 466 466 Highest Resource 55 3603 M ST 230-220-055 2.62 CO C-O Vacant 0 36 13 4 0 17 Highest Resource 56 Bellevue Rd &
Barclay Way
170-060-033 23.29 CO P-D
(CO)
Vacant 0 36 150 359 119 628 Highest Resource
58 Freemark Ave 224-300-012 7.78 HMD P-D
(HMD)
Vacant 0 24 111 28 0 139 Highest Resource
59 M St 224-300-013 9.29 HMD P-D
(HMD)
Vacant 0 24 133 34 0 167 Highest Resource
City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-29
Map
ID
Site Address or
Street APN Acres
Land
Use Zoning
Current
Use
Minimum
Density
Maximum
Density
Lower-
Income
Capacity
Moderate-
Income
Capacity
Above
Moderate-
Income
Capacity
Total
Capacity
TCAC Opportunity
Category
60 Horizons Ave
and Lehigh Dr
206-030-013 11.48 LMD P-D
(LMD)
Vacant 0 12 0 103 0 103 Highest Resource
61 1310

BELMONT DR
206-176-026 0.10 VR P-D
(VR)
Vacant 0 30 0 2 0 2 Highest Resource
Total 294.26 407 530 1,590 2,527
Merced Total 348.46 757 751 1,733 3,241

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-30
G6.8.1 Rezone Sites
The City is obligated to rezone suitable land to facilitate additional residential development and accommodate the RHNA shortfall. The Site Inventory includes 29 sites that were rezoned in April 2025 to facilitate additional residential development. These sites were rezoned from low density residential, general commercial, and planned development to high-density residential and central commercial.

These sites encompass approximately 98 acres and can accommodate a total of 2,354 lower-income units and 948 moderate-income units. Rezone sites are seen throughout the city with the most units in District 6, as seen in Figure G6-2. Table G6-14 summarizes the acreage and unit assumptions for sites proposed for rezoning per district. The rezoned sites shall include the following components pursuant to Government Code Section 65583.2(i):
 Permit owner-occupied and rental multi-family uses by-right for developments in which 20 percent or more of the units are affordable to lower-income households. By-right means approval without discretionary review.
 Permit the development of at least 16 units per site.  Establish a minimum density of 20 units per acre and a maximum density of at least 20 units per acre for all rezone sites to accommodate lower-income RHNA.  Ensure that either: a) at least 50 percent of the shortfall of low- and very-low-income regional housing need can be accommodated on sites designated for exclusively residential uses; or b) if accommodating more than 50 percent of the low- and very-low-income regional housing need on sites designated for mixed uses, all sites designated for mixed uses must allow 100 percent residential use and require that residential uses occupy at least 50 percent of the floor area in a mixed-use project.

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-31
Table G6-14 Proposed Rezone Sites to Accommodate RHNA Shortfall Map ID Site Address or Street APN Acres
Current
Land Use
Proposed
Land Use
Existing Zoning
District
Proposed Zoning
District Current Use
Minimum
Density
Maximum
Density
Lower-Income
Capacity
Moderate-Income
Capacity
Above Moderate-
Income Capacity
Total
Capacity TCAC Opportunity Category
District 1
A 125 N Parsons Ave 035-140-016 2.07 LMD HD R-2 R-4 Vacant 20 43.56 53 14 0 67 High Segregation & Poverty B Crist Ave 035-160-016 0.52 CG RC C-G C-C Vacant 20 36 11 3 0 14 High Segregation & Poverty E 1075 Martin Luther King Jr Way 032-072-011 2.77 LD/CG HD/RC R-2-6/C-G R-4/C-C Vacant 20 43.56 68 17 0 85 High Segregation & Poverty F 2850 E Gerard Ave 061-710-016 4.93 LD HD RP-D R-4 Vacant 20 43.56 128 33 0 161 High Segregation & Poverty O Baker Dr 061-310-006 1.62 LD HD RP-D R-4 Vacant 20 43.56 41 11 0 52 Highest Resource U 1600 N Coffee Rd 061-600-001 1.91 LD HD RP-D R-4 Vacant 20 43.56 49 13 0 62 Highest Resource Total 13.82 350 91 0 441
District 2
C 832 W 11th St 032-054-003 0.68 LD HD R-1-6 R-4 Vacant 20 43.56 17 5 0 22 High Segregation & Poverty D 259 S N St 059-270-008 0.99 LD HD R-1-5 R-4 Vacant 20 43.56 25 7 0 32 Low Resource Total 1.67 42 12 0 54
District 3
H O St 030-163-008 1.03 LD HD R-1-6 R-4 Vacant 20 43.56 26 7 0 33 High Segregation & Poverty I N Parsons Ave 033-060-024 3.79 LMD HD R-1-6 R-4 Vacant 20 43.56 98 25 0 123 High Resource J N Parsons Ave 033-210-062 2.23 LMD HD R-1-6 R-4 Vacant 20 43.56 57 15 0 72 High Resource K 205 E 23rd St 034-021-002 0.50* LD HD R-1-6 R-4 Vacant 20 43.56 12 4 0 16 Low Resource L 8 E 21st St 034-072-030 0.55 LD HD R-1-10 R-4 Vacant 20 43.56 13 4 0 17 Low Resource M 160 W 15th St 031-251-030 0.69 CG RC C-G C-C Vacant 20 36 14 4 0 18 High Segregation & Poverty P 564 W 15th St 031-231-005 3.77 CG HD C-G R-4 Parking Lot 20 43.56 99 25 0 124 High Segregation & Poverty Q 1407 W 16th St 031-094-005 0.73 CG HD C-G R-4 Motel 20 43.56 19 5 0 24 High Segregation & Poverty Total 13.29 338 89 0 427
District 4
T Paulson Rd 231-040-010 4.73 LD HD R-1-6 R-4 Vacant 20 43.56 123 31 0 154 Highest Resource Total 4.73 123 31 0 154
District 5
N 1536 Massasso St 059-330-021 2.11 LD HD R-1-5 R-4 Vacant 20 43.56 54 14 0 68 Low Resource V NW Bear Creek Dr 058-110-044 2.28 LMD HD R-2 R-4 Vacant 20 43.56 59 15 0 74 Low Resource W Rambler & College Green 007-250-029 1.23 CO HD P-D (CO) R-4 Vacant 20 43.56 32 8 0 40 High Resource Total 5.62 145 37 0 182
District 6
X Pacific Dr and R St 206-040-020 10.00** LD HMD P-D R-4 Vacant 20 36 170 109 0 279 Highest Resource Y Cardella & M 230-010-016 8.33 CN HD P-D R-4 Vacant 20 43.56 170 102 0 272 Highest Resource Z BRE V 22 E (Lot W) 224-020-006 10.00**** HMD HD P-D (HMD) P-D (HD) Vacant 20 36 170 156 0 326 Highest Resource AA BRE V 22 E (Lot X) 224-020-008 10.00***** HMD HD P-D (HMD) P-D (HD) Vacant 20 36 170 156 0 326 Highest Resource BB BRN 36 A 170-060-050 8.11 HMD HD P-D R-4 Vacant 20 43.56 170 94 0 264 Highest Resource CC BRN 36 B 170-060-051 5.16 HMD HD P-D R-4 Vacant 20 43.56 168 0 0 168 Highest Resource DD BRN 36 C 170-060-052 6.09 HMD HD P-D R-4 Vacant 20 43.56 170 28 0 198 Highest Resource EE BRW 19 A 224-300-007 5.55 OS-P HMD P-D PD (HMD) Vacant 20 24 88 23 0 111 Highest Resource Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-32
Map ID Site Address or Street APN Acres
Current
Land Use
Proposed
Land Use
Existing Zoning
District
Proposed Zoning
District Current Use
Minimum
Density
Maximum
Density
Lower-Income
Capacity
Moderate-Income
Capacity
Above Moderate-
Income Capacity
Total
Capacity TCAC Opportunity Category
FF BRW 19 B 224-300-008 5.00 OS-P HMD P-D PD (HMD) Vacant 20 24 80 20 0 100 Highest Resource Total 68.24 1,356 688 0 2,044
Merced Total 96.82 2,354 948 0 3,302
* This parcel is 0.63 acres; however, the Site Inventory assumes only 0.50 acres are developable. ** This parcel is 10.31 acres; however, the Site Inventory assumes only 10.00 acres are developable. **** This parcel is 10.64 acres; however, the Site Inventory assumes only 10.00 acres are developable. ***** This parcel is 10.13 acres; however, the Site Inventory assumes only 10.00 acres are developable.

City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-33
G6.8.2 Sites used in Previous Planning Periods
In accordance with Government Code Section 65583, vacant parcels from both the 4th and 5th RHNA cycles, and nonvacant parcels from the 5th RHNA cycle, may be reused in this Housing Element to accommodate lower-income housing, provided they are rezoned to allow projects that have at least 20 percent of the units set aside as affordable for lower-income households, to be allowed by-right (i.e., can be approved administratively without requiring Planning Commission or City Council approval). Sites proposed for rezone as part of this Housing Element Update are considered new sites and are not subject to this requirement. The Site Inventory does not include any sites that meet these criteria.

G6.8.3 Adequacy of Residential Site Inventory in Meeting RHNA The Site Inventory identifies 3,111 lower-income units, 1,699 moderate-income units, and 1,733 above moderate-income units on 86 sites.

Of the identified sites 83 are vacant while the remaining three are located on land currently used for parking, lodging, or commercial space. All 29 identified rezone sites are to allow for high medium density residential, high density residential, village residential, or central commercial.

With rezoning, the Site Inventory includes a surplus of 241 lower-income units, giving the City an six percent buffer for this income category above the RHNA requirement, and a surplus of 223 moderate- income for a 12 percent buffer. The summary of the residential Site Inventory is presented by district in Table G6-15.

Table G6-15 Adequacy of Residential Site Inventory
Lower-Income Moderate-Income Above Moderate-Income Total City’s Share of RHNA 4,285 1,838 4,394 10,517
Planned and Approved Units 1,415 362 17,838 19,615
ADUs Anticipated 0 0 16 16
Remaining RHNA 2,870 1,476 0 4,346
Opportunity Sites (District 1) 124 49 92 265
Opportunity Sites (District 2) 0 60 0 60
Opportunity Sites (District 3) 10 47 0 57
Opportunity Sites (District 4) 25 9 51 85
Opportunity Sites (District 5) 191 56 0 247
Opportunity Sites (District 6) 407 530 1,590 2,527
Rezone Sites 2,354 948 0 3,302
Total Units on Sites 3,111 1,699 1,733 6,543
Total Unit Surplus 241 223 19,587 20,051
Percent Buffer over RHNA 6% 12% 446% 191
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-34
G6.9 Availability of Infrastructure and Services
The City’s Public Works Department provides a wide variety of services, including Fleet Services for City- owned vehicles, Facilities Maintenance for City-owned buildings, Refuse/Recycling/Green Waste garbage services, Parks and Trees maintenance, Streets, Water, Wastewater, Sewer/Storm Drains, and Water Quality Control. As such, the City will ensure adequate capacity of all infrastructure and utilities to accommodate the housing growth discussed in this Housing Element. All sites included in the inventory have existing and available capacity that can support residential development. Within one week of adoption, the City will provide a copy of the adopted 2024-2032 Housing Element to the City’s Public Works Department Division, pursuant to Government Code Section 65589.7.

G6.9.1 Wastewater System
The City of Merced operates a wastewater treatment facility (WWTF) with an operational capacity of 12 million gallons per day (MGD). Merced’s average daily sewer load is 7.0 MGD, and its peak daily load is

19.5 MGD. The WWTF's current capacity meets the City’s average daily flows but is not adequate for peak flows. The City intends to upgrade the existing system to accommodate up to 35 MGD.

Merced’s sanitary sewer collection system consists of approximately 400 miles of gravity pipeline ranging from six to 48 inches in diameter. The City’s sewage collections system is adequate for its current needs but will need upgrades to accommodate future growth. A report conducted by MKN & Associates for the Merced County Association of Governments recommends interim Capital Improvement Projects (CIPs) that will increase the system’s capacity to accommodate up to 34,628 additional housing units, which exceeds the City’s RHNA of 10,517 units.4 G6.9.2 Potable Water System
The city’s water system includes 20 groundwater wells with a total well capacity of 54,400 gallons per minute (gpm). According to the City’s 2020 Urban Water Management Plan, the City pumped 20,076 acre-feet (AF) of potable water in 2020. Potable water demands are projected to increase to 31,825 AF by 2040 due to increases in the City and UC Merced population. In the future, if the surface water treatment plant (SWTP) is constructed, the City will use the contractual amount of surface water available and supplement the remaining demand with groundwater. The City’s water supply is projected to sufficiently meet expected demands through 2040 through the installation of additional groundwater wells and construction of a 10 MGD SWTP. The SWTP is projected to use surface water supplied by Merced Irrigation District (MID) and begin operation by 2030. With existing and planned water system infrastructure, the City anticipates adequate capacity to accommodate the City’s RHNA of 10,517 units. 4 G6.9.3 Storm Water and Drainage
The Wastewater Collection Department also operates and maintains the City’s storm drainage collection system. The storm drainage system consists of an underground storm drain system, detention ponds, underground storage pipes, pump stations, and open channels. The City anticipates the storm drainage collection system has adequate capacity to accommodate the RHNA.

4 Merced County Infrastructure Capacity Assessment, June 2023 City of Merced
Merced Housing Resources

2024-2032 Housing Element G6-35
G6.9.4 Dry Utilities
Dry utilities are defined as electricity, natural gas, cable, and telephone services. In Merced, each dry utility has one provider: Pacific Gas & Electric (PG&E) provides natural gas, MID provides electricity services, and Xfinity provides telecom services. The City does not anticipate any connection issues with these utilities and future residential development sites during the planning period.

G6.10 Environmental Considerations
A city’s environmental setting and characteristics can greatly affect the feasibility and cost of developing housing. As noted in Chapter G4, Housing Constraints Analysis, environmental factors in Merced include potential impacts from wildfire, drought, and flood. There are no known barriers related to shape, access, contamination, property conditions, easements, conservation easements, overlays and airport or military compatibility that could impact housing development on identified sites in the planning period.

Wildfire
Merced is not located in a Very High Fire Hazard Severity Zone, as designed by California Department of Forestry and Fire Protection. Future wildfire occurrences are highly likely, but the severity is estimated to be negligible. The City of Merced requires all new development and subdivisions to comply with the most recent California Fire and Building Code requirements for health and safety. As a result, wildfire is not considered a constraint to development. The potential impacts of a wildfire would not preclude development of housing in Merced.

Drought
As for the impacts of a drought, there will be minimal impact on the physical structures of buildings and facilities across Merced, however there may be less reliability on infrastructure. The potential impacts of a drought would not preclude development of housing in Merced.

Flood
The City of Merced is at risk for flooding and flood related losses. The City’s Building Code includes provisions to reduce the risk of flooding. While these provisions add an additional requirement in the development process and additional costs to a project, these provisions are necessary for the health and safety of residents. The potential impacts of flooding would not preclude development of housing in Merced.

G6.11 Opportunities for Energy Conservation
Affordable energy is crucial for affordable housing, as energy costs can account for more than 25 percent of overall housing expenses. With California’s energy conservation standards, many new homes have improved energy efficiency. The City of Merced Housing Rehabilitation Loan Program has made significant improvements for energy efficiency in older homes (built pre-1975). In addition, through the State and PG&E’s Forgiveness Loan Program, homeowners can obtain funds to make energy conservation upgrades to their homes. In addition, the City adopted a adopted a “Climate Action Plan” in 2012 that spells out strategies and policies to encourage energy conservation throughout the City.

The City has also participated in the Home Energy Renovation Opportunity (HERO) program, offering low-interest loans through the State to property owners to make energy efficient upgrades to their home. The City will implement Housing Program 12 to continue to provide rehabilitation assistance for energy conservation and weatherization improvements to homeowners.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G6-36

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City of Merced
Housing Plan

2024-2032 Housing Element G7-1
Housing Plan
This eight-year Housing Plan (2024-2032) sets forth a strategy, including goals, policies, and programs, to address housing issues identified in the City of Merced.

G7.1 Goals and Policies
Goal 1: Regional Collaboration Work collaboratively with jurisdictions in the county to efficiently address housing issues and find regional solutions.

Policy 1.1 Proactively coordinate with cities, Merced County, and other agencies and organizations to create effective policies and programs and respond to opportunities for achieving common housing goals.

Policy 1.2 Participate in, as appropriate, pursuit of state and federal housing funds to address regional housing issues.

Goal 2: Housing Development Provide an adequate supply and range of housing types to meet the diverse needs of residents.

Policy 2.1 Provide adequate sites for new housing development to accommodate the regional housing needs allocation (RHNA) throughout the planning period.

Policy 2.2 Facilitate a range of housing development that will meet the needs of all income levels including extremely low, very-low, low-, moderate- and above moderate households.

Policy 2.3 Encourage a range of housing types and sizes in large-scale development and annexations.

Policy 2.4 Promote infill development on vacant and underutilized sites within developed areas.

Policy 2.5 Encourage higher density and mixed-use residential development along major transportation and transit corridors and/or near existing or planned community facilities and services.

Policy 2.6 Enact programs that facilitate well-designed, energy efficient development and flexible standards to encourage high quality projects.

Goal 3: Affordable Housing Options Facilitate the development of affordable housing and protect the existing supply of affordable housing to extremely low, very low-, low- and moderate-income households.

Policy 3.1 Provide a range of incentives and tools to encourage affordable housing for all lower-income levels, including extremely low-income.

Policy 3.2 Support the Merced County Housing Authority (MCHA) by promoting Housing Choice Voucher (HCV) opportunities.

Policy 3.3 Ensure permit processing procedures to ensure streamlining is available for affordable housing development projects (SB 35).

Policy 3.4 Support the development of Accessory Dwelling Units (ADUs) as an affordable housing option.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-2
Policy 3.5 Promote home ownership for lower- and moderate-income households by pursuing grant funding for downpayment assistance and other homeownership loan programs.

Policy 3.6 Monitor existing affordable housing developments and pursue preservation strategies to maintain their affordability.

Goal 4: Housing and Neighborhood
Preservation
Maintain and improve the city’s existing housing stock.

Policy 4.1 Preserve existing residential neighborhoods by promoting balanced design and architecture.

Policy 4.2 Support code enforcement efforts to work with property owners with repairs and rehabilitation of housing to preserve existing housing stock.

Policy 4.3 Utilize Capital Improvement Programs for repairs and improvements of public infrastructure and facilities in existing neighborhoods.

Goal 5: Housing for Persons with
Special Needs
Support and provide housing and services for people with special needs in the community. People with special needs include, but are not limited to, seniors, families with children, people with disabilities, single-parent families, farmworkers, and people who are experiencing homelessness or at risk of becoming homeless.

Policy 5.1 Assist in local and regional efforts that address the housing needs of special needs residents.

Policy 5.2 Provide reasonable accommodation for individuals with disabilities to access housing opportunities.

Policy 5.3 Support the development of affordable housing units for farmworkers and farmworker families by encouraging the use of federal, state, and local resources.

Policy 5.4 Coordinate with regional agencies and local non-profit/private developers on housing options and services for people who are experiencing homelessness or at risk of becoming homeless.

Policy 5.5 Proactively apply for and utilize available resources to provide and maintain housing for special needs groups.

Goal 6: Resource Conservation and
Sustainable Development
Utilize energy conservation and sustainable measures for new and rehabilitated housing.

Policy 6.1 Support and, as appropriate, incentivize the use of green building techniques for new housing and rehabilitation.

Policy 6.2 Promote energy conservation and efficiency in residential developments.

City of Merced
Housing Plan

2024-2032 Housing Element G7-3
Goal 7: Affirmatively Furthering Fair
Housing
Promote housing opportunities and access for residents
regardless of age, race, religion, sex, marital status, ancestry, national origin, color, disability, or economic level in compliance with local, state, and federal fair housing laws.

Policy 7.1 Promote meaningful and informed participation of residents, community groups, and governmental agencies in all local housing and community development activities.

Policy 7.2 Comply with federal, state, and local fair housing anti-discrimination laws ensuring equal access to housing regardless of circumstances as protected by fair housing laws.

Policy 7.3 Provide fair housing services to city residents and ensure that residents are aware of their fair housing rights.

Policy 7.4 P rovide residents with housing mobility options by facilitating the development of a variety of housing types and expanding access to housing services.

Policy 7.5 Protect tenants from discriminatory housing practices and displacement.

Policy 7.6 Promote the integration of affordable and special needs housing in existing and planned neighborhoods.

G7.2 Implementing Programs
Program 1: Regional Collaboration
Collaborate with other jurisdictions in the region on housing efforts, including funding opportunities, best practices, and other efforts to address housing, transit, economic development, and homeless issues in Merced County.

Regional collaboration efforts can include, but are not limited to:
 Affordable housing development opportunities
 Regional housing programs and outreach efforts
 Economic development opportunities
 Consider creation of a regional Housing Trust Fund
 Coordination on funding applications and administration  Identification of transit opportunities and access near new and established residential areas  Development of environmental mitigation that can improve the quality of life for residents  Efforts for the development of emergency shelters, low barrier navigation centers, transitional and supportive housing as well as support services for persons experiencing homelessness or at risk of becoming homeless in the county, including participation in services offered by the County Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-4
Specific Actions, Objectives, and Timelines  Starting in 2026, at least annually participate in regional meetings related to housing and homeless issues to pursue funding and coordination opportunities. Annually pursue funding opportunities for regional housing issues in coordination with nonproﬁts and local community- based organizations.
 Starting in 2026, at least annually partner with the Merced County Human Services Agency, Behavioral Health Recovery Services and/or the Merced County Community Action Agency to proactively address shelter, housing and support services for people experiencing homelessness.  Continue to be an active participant with the Merced County Association of Governments (MCAG) and coordinate on regional planning and policy eﬀorts to advance shared goals throughout Merced County.  Annually work with the Merced Continuum of Care to complete and implement the 10-Year Plan to End Homelessness during the planning period.
 Starting in 2026, annually collaborate and coordinate regionally to ensure the eﬀective implementation of the Housing Element. This collaboration will include regular meetings (at least annually), and will consider resource sharing, and joint eﬀorts to address regional housing needs and achieve the goals outlined in the Housing Element. This collaboration will include regular meetings (at least annually), and will include resource sharing, joint eﬀorts with internal and external partners to address regional housing needs and achieve the goals outlined in the Housing Element, including aﬃrmatively furthering fair housing and farmworker needs.
 Starting in 2026, participate in a regional collaboration with developers and aﬀordable housing advocates to support the development of housing.
 By 2027, establish a working group that meets annually to identify regional housing challenges, including but not limited, to aﬃrmatively furthering fair housing eﬀorts and farmworker housing, funding opportunities, and consider input from the working group to coordinate eﬀorts to develop aﬀordable housing and implement the housing element, including making adjustments as appropriate to better achieve the goals and objectives of the housing element.

Primary Responsible Departments Department of Development Services Funding Sources General Fund; federal, state, and local grant funds Relevant Policies 1.1, 1.2
AFFH Themes  Outreach and Education
 Housing Mobility
 New Housing Opportunities in Areas of Higher Resources  Anti-Displacement and Tenant Protection
AFFH Geographic Targeting Citywide
AFFH Outcomes Assist with the completion of the 10-Year Plan to End Homelessness and identify regional strategies to address homelessness during the planning period
City of Merced
Housing Plan

2024-2032 Housing Element G7-5
Program 2: Adequate Sites for RHNA and Monitoring of No Net Loss For the 6th Cycle Housing Element, Merced has been assigned a RHNA of 10,517 units, including:
 Very Low-Income: 2,543 units
 Low-Income: 1,742 units
 Moderate-Income: 1,838 units
 Above Moderate-Income: 4,394 units
The City is committed to ensuring that adequate sites at appropriate densities remain available during the planning period, as required by law. As of August 2025, the City has identified capacity for 19,615 units through projects under construction, approved, or permitted, that will be available during the RHNA projection period. Ten pipeline projects (19, 20, 22, 22, 27, 28, 29, 30, 31, and 34) are sites that have been or are currently in the process of being annexed into the city. Based on the status of these projects, all units are expected to receive Certificates of Occupancy during the 2024-2032 planning period. Zoning across the annexed parcels will accommodate single-family and multi-family projects that have capacity for 6,563 units (341 lower-income, 157 moderate-income units, and 6,065 above moderate-income units). Tables G6-2 and G6-3 in the Housing Resources Chapter describe the annexation status and estimated building permit issuance dates and completion dates of the ten projects.

The Virginia Smith Trust (VST) project (Site #23) was annexed into the City of Merced in September 2024. The annexation included the adoption of a Specific Plan, a Planned Development Permit, and a General Plan Amendment. A Vested Tentative Subdivision application was submitted in 2025 to implement the Specific Plan and Planned Development Permit. Based on details provided by the City’s Project Engineer in February 2025, the City anticipates that all Phase 1 units (2,541 units) and Phase 2 units (2,316 units) will be constructed during the planning period. Of the total units, 500 units are anticipated to be affordable to lower-income households through a workforce housing program, self- help housing program, or multifamily new construction of deed-restricted units.

The City also projects 16 ADUs affordable to above moderate-income households will be developed during the planning period. Accounting for these units, the City has a remaining RHNA of 4,346 units (1,873 very low-income, 997 low-income, and 1,476 moderate-income) for which the City must identify adequate sites for potential development.

The City has identified vacant and nonvacant sites with potential for development/redevelopment, or adaptive reuse of existing uses over the next eight years. The City is divided into six geographic districts for the purpose of the Site Inventory. A total of 57 opportunity sites have been identified throughout the six districts that do not require rezoning and have a capacity of 3,241 units (757 lower-income, 751 moderate-income and 1,733 above moderate-income). An additional 29 sites have been identified for rezoning to meet the RHNA, with a potential capacity totaling 3,302 units (2,354 lower-income and 948 moderate-income). None of the 86 sites described above were used during previous Housing Element cycles. However, the sites identified for rezoning will be subject to by-right approval requirements of AB 1397 as the zoning was not in place as of the beginning of the statutory deadline of the Housing Element (January 31, 2024).

This program describes the actions the City will take to ensure that adequate sites are designated consistent with Government Code Section 65583c)(1)(A) and 65583.2. The rezoned sites shall include the following components pursuant to Government Code Section 65583.2(I):

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-6
 Permit owner-occupied and rental multi-family uses by-right for developments in which 20 percent or more of the units are affordable to lower-income households. By-right means approval without discretionary review.
 Permit the development of at least 16 units per site.  Establish a minimum density of 20 units per acre and a maximum density of at least 24 units per acre for all rezone sites to accommodate lower income RHNA.  Ensure that either: a) at least 50 percent of the shortfall of low- and very-low-income regional housing need can be accommodated on sites designated for exclusively residential uses; or b) if accommodating more than 50 percent of the low- and very-low-income regional housing need on sites designated for mixed uses, all sites designated for mixed uses must allow 100 percent residential use and require that residential uses occupy at least 50 percent of the floor area in a mixed-use project.

During the planning period, the City will be reviewing the list of opportunity sites and will add or remove specific sites while maintaining RHNA goals. By making amendments to the Zoning Code, the City may add additional sites to the list, such as making residential principally permitted in all commercial (and equivalent PD zones), as well as aggressively pursuing annexations with large amounts of housing.

Evaluation of the feasibility of these additional sites will be consistent with the criteria used in developing the original site inventory as outlined in the Housing Resources section of this Housing Element.

To ensure that the City complies with SB 166 (No Net Loss), the City will monitor the consumption of residential and mixed-use acreage to ensure an adequate inventory is available to meet the City’s RHNA obligations. To ensure sufficient residential capacity is maintained to accommodate the RHNA, the City will develop and implement a formal ongoing (project-by-project) evaluation procedure pursuant to Government Code Section 65863. Should an approval of development result in a reduction in capacity below the residential capacity needed to accommodate the remaining need for lower and moderate- income households, the City will identify and if necessary, rezone sufficient sites to accommodate the shortfall and ensure “no net loss” in capacity to accommodate the RHNA.

Specific Actions, Objectives, and Timelines  Facilitate the development of 10,517 units over 8 years (2,543 very low income, 1,742 low income, 1,838 moderate income, and 4,394 above moderate-income units).
 By July 31, 2025, rezone properties as outlined above and detailed in the Housing Resources section of this Housing Element to fully accommodate the remaining RHNA of 4,346 units (2,870 lower income and 1,476 moderate income units). As part of the rezoning, establish appropriate development standards (including parking, height, setback, lot coverage, etc.) to ensure maximum allowable densities at the respective zones can be achieved.
 By December 2027, if the annexations listed in the Site Inventory are not occurring per the schedule listed in Table G6-3, the City will identify alternative sites to satisfy the RHNA within six months.  Facilitate the development of 16 ADUs during the planning period.  Maintain an inventory of available vacant and prospective sites that can accommodate new housing and update annually. Make this inventory available to the public and interested developers on the City website.  Annually meet with property owners and interested developers to pursue housing development in the city.

City of Merced
Housing Plan

2024-2032 Housing Element G7-7
 By July 31, 2026, develop a formal procedure to monitor no net loss in capacity pursuant to SB 166.
 Commit to developing pre-approved plans for duplexes and triples, similar to the pre-approved ADU program, by the end of 2026, to allow applicants to save on design and permit costs.
 In December 2027, the City will evaluate the progress of pending projects counted toward the RHNA to ensure that development of housing units is occurring as projected. If it is determined after consultation with developers that the projects are not proceeding as planned and would result in a shortfall in RHNA sites, the City will identify alternative sites or strategies (including potential rezoning) within six months.
 By January 2027, amend the Zoning Ordinance to establish a performance standard for mixed-use inventory sites to require residential uses that align with assumptions in the Housing Element Site Inventory that allow mixed-use development.
 In December 2027, and annually thereafter, the City will evaluate the aﬀordability of new housing development within the city. If lower- income housing development is occurring at a slower than expected pace and RHNA levels are not being met, the City will commit to identifying additional strategies to promote lower-income housing development within six months, such as revising funding strategies and conducting outreach to nonproﬁt developers.
 To facilitate and incentivize aﬀordable units on large sites, the City will:
 Provide technical assistance, incentives, and strategies as appropriate to facilitate development of aﬀordable housing, including parceling at appropriate sizes or other site planning tools such as clustered development, allowing ﬂexibility for the transferring of densities within the property.
 Promote the potential subdivision of large sites into multiple parcels for future development through technical assistance, incentives, and strategies during the development phase and when applications are submitted to the City for the identiﬁed parcels.
 Annually meet with property owners and developers to encourage the development of mixed income housing with a mix of unit sizes, types, and prices.
 Promote the development of large sites at the densities and aﬀordability levels identiﬁed within the Housing Element.  Allow development in phases within 8 years of the Housing Element planning period.
 Oﬀer expedited processing and fee deferrals, reductions, or waivers for aﬀordable units in developments on large sites identiﬁed in the Sites Inventory.
 Subdivision of Large Sites: The City shall consider the following options to promote and incentivize the subdivision of large sites to create parcels at appropriate sizes to support aﬀordable housing projects:
 Expedited approval of lot splits or creation of new parcels;  Waiving of the public hearing requirement related to parcel maps;  Waiving of the public hearing requirement related to approval of large multifamily uses (provided the project is aﬀordable by deed- restriction);
 Additional density bonus, lot coverage, or height allowances;  Fee waivers, reductions, or deferral.
 By the end of 2027, if development of housing aﬀordable to lower- income households (as assumed in the Site Inventory) is not feasible on Merced County Association of Governments
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these large sites or sites are not parceled at appropriate sizes (e.g., 1-10 acres), within six months (by July 2028) the City will identify additional incentives and planning tools or alternative strategies if necessary to ensure adequate capacity at appropriate sizes for the RHNA.

Primary Responsible Departments Department of Development Services Funding Sources General Fund
Relevant Policies 2.1, 2.2, 2.4, 3.1
AFFH Themes  Housing Mobility
 New Housing Opportunities in Areas of Higher Resources Geographic Targeting Citywide
AFFH Outcomes 3,459 units in high-/highest-resource areas (District 1, District 4) Program 3: By-Right Approval
Pursuant to Government Code Section 65583.2, reusing the following types of sites in the City’s site inventory for lower-income RHNA are subject to by-right approval exempt from CEQA and subject only to design review based on objective standards when a project includes 20 percent of the units affordable to lower-income households and no subdivision is proposed:

Reuse Sites (No Rezoning Required):
 Vacant sites that were identified in the City’s 4th and 5th Cycle Housing Elements as sites for lower income RHNA; and
 Nonvacant sites that were identified in the City’s 5th Cycle Housing Element as sites for lower income RHNA.

The by-right approval requirement of reuse sites is effective January 31, 2024. Currently, the site inventory does not contain any reuse sites.

Rezoning of sites past the statutory deadline of the Housing Element to meet the lower income RHNA are subject to the by-right approval requirement. The by-right approval requirement of rezone sites is triggered by the rezoning.

By-right shall mean the local government’s review shall not require:
 A conditional-use permit
 A planned unit development permit
 Other discretionary, local-government review or approval that would constitute a “project” as defined in Section 21100 of the Public Resources Code.

This provision does not preclude local planning agencies from imposing design review standards.

However, the review and approval process must remain ministerial, and the design review must not constitute a “project” as defined in Section 21100 of the Public Resources Code.

No parcels in the City’s 6
th Cycle Site Inventory are subject to by-right approval pursuant to state law.

City of Merced
Housing Plan

2024-2032 Housing Element G7-9
Specific Actions, Objectives, and Timelines Concurrent with the Development Code update to provide adequate sites for the RHNA (see Program 2), update the Development Code to address the by-right approval requirements.

Primary Responsible Departments Department of Development Services Funding Sources General Fund
Relevant Policies 2.1, 2.2, 3.1
AFFH Themes  Housing Mobility
 New Housing Opportunities in Areas of Higher Resources Geographic Targeting Citywide
AFFH Outcomes N/A
Program 4: Replacement Housing
Development on non-vacant sites with existing residential units is subject to replacement requirements, pursuant to AB 1397. Specifically, AB 1397 requires sites occupied with a residential use within the last five years to replace these units affordable to the same or lower income level, as a condition of any development on a non-vacant site consistent with those requirements set forth in state Density Bonus Law.

Specific Actions, Objectives, and Timelines Concurrent with the Development Code update, amend the Zoning Code to address the replacement housing requirements.

Primary Responsible Departments Department of Development Services Funding Sources General Fund
Relevant Policies 2.2, 3.6
AFFH Themes  Housing Mobility
 New Housing Opportunities in Areas of Higher Resources  Anti-Displacement and Tenant Protection
Geographic Targeting Citywide
AFFH Outcomes Replace all units as required pursuant to AB 1397.

Program 5: Accessory Dwelling Units
ADUs provide an important affordable housing option in the city. The City’s ADU Ordinance was updated in September 2023. In addition, the City has launched a Pre-Approved ADU program that includes pre- approved plans, a “how-to” guide, and a design workbook. The City also has permitted the development of tiny homes and tiny homes on wheels as ADUs.

Consistent with Government Code Sections 66310 – 66344 (ADU and JADU Statutes) and Health & Safety Code Section 50504.5 City will continue to encourage the production of ADUs and work to provide affordable units for lower-income households.

Specific Actions, Objectives, and Timelines  Facilitate the development of 32 ADUs over 8 years, with the goal of at least four aﬀordable to lower-income residents and 16 located in high- resource areas.
 By July 31, 2026, facilitate the production of ADUs through eﬀorts including, but not limited to:
 Updating ADU webpage to include available resources for ADU production, such as grants for pre-development costs available to lower-income homeowners through California Finance Agency (CalHFA).

Merced County Association of Governments
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 Conduct three educational workshops, campaigns, or outreach events to promote ADU development.
 Include information about the beneﬁts of smaller ADUs (no impact fees for units under 750 square feet), locating ADUs in inﬁll areas (opportunity zones) with reduced fees, and the variety of ADU construction that is available, such as junior ADUs and tiny homes on wheels. Participate in regional collaboration eﬀorts regarding pre- approved ADU plans.
 Explore an ADU amnesty program. If feasible, establish an ADU amnesty plan by December 2026.
 Continue to provide information about ADUs and their beneﬁts via the City’s website, monthly newsletter and brochures at the front counter.  Provide technical assistance when requested.
 As needed, update the City’s ADU Ordinance to fully comply with State law.
 Develop and include a Fair Housing Factsheet, especially on Source of Income protection (i.e., use of public subsidies such as Housing Choice Vouchers for housing payments) in the ADU application packet.  Beginning in 2025, and annually thereafter, pursue available funding sources to enhance ADU aﬀordability with the goal of creating 4 aﬀordable ADUs and promoting assistance to target lower density neighborhoods.
 By January 2028, conduct a mid-term review of the City’s ADU construction trends to determine the City’s progress in meeting projected ADU units. If the construction activity falls behind projection, develop additional incentives, resources, and/or tools to encourage ADU development.
 By December 2027, if ADU production is not occurring at anticipated levels, adopt the following Zoning Code amendments to enhance ADU production during the planning period:
 Increase the by-right ADU size to further incentivize ADU creation  Allow for an increase in the permitted height up to the height of the primary residence for ADUs built above a garage in single- family zones
 Allow for reduced setback requirements where privacy is not compromised.

Primary Responsible Departments Department of Development Services Funding Sources General Fund
Relevant Policies 2.2, 2.3, 3.1, 3.4
AFFH Themes  Outreach and Education
 Housing Mobility
 New Housing Opportunities in Areas of Higher Resources Geographic Targeting Citywide with emphasis on high resource, single-family neighborhoods (Districts 4 and 6)
AFFH Outcomes Support the development of at least 32 ADUs in Merced during the planning period, with 4 of these units affordable to lower-income residents and at least 16 located in high-resource areas (District 1 and District 4).

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

City of Merced
Housing Plan

2024-2032 Housing Element G7-11
Specific Actions, Objectives, and Timelines Complete the following Zoning Code Amendments by July 2026, unless otherwise indicated:
 Adequate Sites: At the time of Housing Element Adoption revise the City’s Zoning Map to upzone Low Density Residential zones throughout the city to allow for additional density to accommodate a range of housing types.
 SB 35: Establish procedure for implementing SB 35.
 Permit Streamlining Act: Establish written procedures in accordance with the Permit Streamlining Act.
 SB 330: Amend the required ﬁndings for Site Plan Permits, CUPs, Design Review Permits, MUPs, and minor modiﬁcations, to remove subjective judgments from the review process, in accordance with SB 330.
 Development Standards: Review and revise the City’s development standards (including parking and height), particularly in relation to higher density affordable housing:
 Revise the Zoning Ordinance to reduce parking requirements for mobile homes, senior citizen housing, one-bedroom units, and studios to require no more than one space per unit.  For the R-3 and R-4 zones, either (1) increase the allowable maximum lot coverage or (2) revise the definition of “lot coverage” to exclude surface parking. This will allow smaller lots to achieve maximum allowed densities.
 Increase the height limit in the R-4 zone, allowing multifamily buildings to exceed the 1:1 height and setback ratio up to 45 feet. Proposed projects will need to demonstrate that no significant impacts will occur on adjacent properties.
 Reasonable Accommodation Procedures: Revise the Zoning Ordinance to remove subjective language in the required ﬁndings, including (a) the requested accommodation will not result in a fundamental alteration in the nature of the City’s zoning program and (b) whether the requested accommodation would
fundamentally alter the character of the neighborhood. Also establish timelines for issuing written determinations on received accommodation requests.
 Transitional and Supportive Housing: Revise the Zoning Ordinance to permit Permanent Supportive Housing without discretionary action in zones that permit multifamily housing and comply with Government Code section 65651, including but not limited to, processing and parking requirements for projects located within half-mile from transit. In addition, revise the zoning ordinance, as appropriate, to permit transitional/supportive housing as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone.
 Single-Room Occupancy (SRO) Housing: Revise the Zoning Ordinance to allow the development of SROs in zones allowing hotel or motel uses (C-T and C-G zones).
 Emergency Shelters: At the time of Housing Element adoption, revise the Zoning Ordinance to amend:
 The deﬁnition of emergency shelters per AB 2339 to include interim housing options such as navigation centers, bridge housing, and respite and recuperative care.
 Allowing for emergency shelters as a permitted use without a conditional use or other discretionary permit in the CG zone, Merced County Association of Governments
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 Parking standards for emergency shelters to be based solely on staﬃng levels pursuant to AB 139,
 Requirements for emergency shelters, ensuring that they are objective.
 Low Barrier Navigation Centers: Amend the Zoning Code to explicitly allow the development of Low-Barrier Navigation Centers, by-right, in residential use and mixed-use districts and nonresidential districts permitting multi-family uses.
 Residential Care Facilities: Revise the Zoning Ordinance to permit residential care facilities for seven or more people (regardless of licensing) in all zones allowing residential use similar to other residential uses of the same type in the same zone.
 Farmworker Housing: Review and revise the Zoning Code to ensure compliance with the Employee Housing Act (H&S Code Section 17021.6 and 17021.8), which requires that any farmworker housing consisting of no more than 36 beds in a group quarter or 12 units or spaces designed for use by a single family or household shall be deemed an agricultural land use for the purposes of this section.

For all local ordinances, farmworker housing shall not be deemed a use that implies that the farmworker housing is an activity that diﬀers in any other way from an agricultural use. No conditional use permit, zoning variance, or other zoning clearance shall be required of this farmworker housing that is not required of any other agricultural activity in the same zone. The permitted occupancy in farmworker housing in a zone allowing agricultural uses shall include agricultural employees who do not work on the property where the farmworker housing is located.
 Employee Housing: Review and revise the Zoning Code to ensure compliance with the Employee Housing Act (Health and Safety Code Section 17021.6), which requires that housing provided by an employer for up to six employees is considered a residential use, subject to the same standards as single-family residences.  Accessory Dwelling Units: Review and amend the Zoning Ordinance if needed to comply with state law.
 Density Bonuses: Review and amend the Zoning Ordinance to comply with state law.
 Inﬁll Development: Incorporate the recommendations detailed in the Multi-Family Residential Inﬁll Study.
 Planning Document Review: Review the General Plan, applicable Speciﬁc Plans, and Zoning Code, and Zoning Map to evaluate opportunities for removing barriers to housing production, adding housing capacity, and accommodating a greater mix of dwelling types and sizes households (e.g., duplexes, triplexes, fourplexes, townhouses, courtyard buildings), prioritizing opportunities and sites in high-resource areas (Districts 4 and 6). Present results of ﬁndings in a public forum by June 2026 and implement any changes by January 2027.

Primary Responsible Departments Department of Development Services Funding Sources General Fund
Relevant Policies 2.2, 3.1, 3.4, 5.2, 5.3, 7.4
AFFH Themes  Housing Mobility
 New Housing Opportunities in Areas of Higher Resources  Anti-Displacement and Tenant Protection
City of Merced
Housing Plan

2024-2032 Housing Element G7-13
Geographic Targeting Citywide
AFFH Outcomes Facilitate the development of 50 units for special needs populations during the planning period.

Facilitate the development of 2,000 units of a variety of multifamily housing types, e.g., duplexes, triplexes, fourplexes, townhouses, courtyard buildings in high-resource areas (Districts 4 and 6).

Program 7: Facilitating Affordable Housing Development
The City is committed to expanding affordable housing options for households of all income levels using development tools such as density bonus provisions, waiving development fees and streamlining the application process. The City will contact local non-profit and private developers to facilitate the production of this housing as well as pursue funding opportunities available at the local, regional, state and federal levels and allocate monies to the City’s Affordable Housing Program.

On a case-by-case basis, the City will provide opportunities for public, private and non-profit groups to develop affordable housing by constructing off-site improvements and physical infrastructure as Capital Improvement Projects. Assistance provided by the City may include traffic, street and sewer upgrades as well as other pedestrian and mobility improvements.

Specific Actions, Objectives, and Timelines  Beginning in January 2026, annually identify and pursue funding at the local, regional, state, and federal levels such as state CDBG, CalHome, PLHA, and Project Homekey funds.
 By December 2026, work with other jurisdictions in Merced County to create a regional list of aﬀordable housing developers. Annually conduct outreach to these developers with information on potential sites, available regulatory concessions and incentives, and potential funding opportunities.
 Connect grant opportunities with eligible projects and pursue partnerships as aﬀordable opportunities arise.
 By July 2026, amend the Zoning Code to allow for waivers on improvements for qualiﬁed aﬀordable housing projects, pursuant to state Density Bonus Law.
 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, including for special needs housing (see Program 11).
 Facilitate the development of aﬀordable housing through the provision of the following regulatory concessions and incentives:
 Density increases under the City’s Density Bonus Ordinance.  Potential fee waivers/reductions/deferrals.
 Reduced parking requirements.
 Continue to review permit fees annually to ensure fees do not inhibit the development of aﬀordable housing.
 Ensure infrastructure is in place to accommodate new housing.  Adopt an ordinance that establishes speciﬁc procedures to grant priority service within a year of the certiﬁcation of the Housing Element to housing with units aﬀordable to lower-income households whenever capacity is limited.
 Utilize the Citywide 2023 RFP list of aﬀordable housing developers for notiﬁcation for the City’s streamlining review processes, the available properties for multifamily development (see Program 2) and potential Merced County Association of Governments
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funding opportunities for aﬀordable housing development opportunities.

Hold three workshops during the planning period.
 By the end of 2027, pursue the following housing mobility options to expand aﬀordable housing options in Merced:
 Establish a Home-Sharing Program: home-sharing can be an additional source of income for homeowners while also providing options for those looking for affordable housing.
 Residential Development Standards for Religious Facilities (SB 4): This could provide opportunities for housing in a variety of locations throughout the City, providing mobility options for residents. To promote these opportunities, the City will create an outreach and technical advisory program that would consist of:
− Conducting a workshop in 2027 and 2029 to explain SB 4, AB 1851 and how it can apply to religious facility properties in Merced; − Invite religious facility owners and local nonproﬁt developers to participate;
− Provide informational materials on the development process; − City staﬀ will provide technical assistance to religious facility property owners to assist with the project entitlements; and − Review the General Plan and applicable zoning regulations, and revise as necessary, to facilitate aﬀordable housing on religious facility sites.
 Promote inﬁll development on sites with high Inﬁll scores (see Multi- Family Residential Inﬁll Study) and in areas where public infrastructure is in place to help reduce the cost of development projects that occur from on- and oﬀ-site improvements.
 Provide letters of support to funding applications by developers if the proposed projects are consistent with the goals and objectives of this Housing Element, as requested.
 Establish a requirement that, in conjunction with development and/or funding applications, aﬀordable housing project sponsors submit an Aﬃrmative Fair Housing Marketing Plan to ensure that residents of lower-resource neighborhoods outside the immediate project neighborhood are targeted with multilingual outreach, culturally relevant media, and partnerships with local community organizations, in full compliance with HUD regulations (24 CFR § 92.351) to ensure equitable access to housing opportunities for groups least likely to apply.

Primary Responsible Departments Department of Development Services Funding Sources Local, state and federal resources, General Fund, CDBG Relevant Policies 2.1, 2.2, 2.3, 3.1, 4.1, 4.3, 7.4
AFFH Themes  Housing Mobility
 New Housing Opportunities in Areas of Higher Resources Geographic Targeting Citywide
AFFH Outcomes Increase the percentage of the city’s housing stock that is multi-family from 30 percent to 33 percent by December 2030, using 2017-2021 ACS data as a baseline.

Facilitate the construction of new rental housing in areas with high rates of overpayment (441 units in District 1, 54 units in District 2, 427 units in District 3, 154 units in District 4, and 182 units in District 5). Through the development of new housing, strive to reduce rates of overpayment by 10 percent in District 3 and District 4.

City of Merced
Housing Plan

2024-2032 Housing Element G7-15
Program 8: Preservation of At-Risk Housing
There are 1,472 assisted units in the city, and 233 units are at risk of conversion to market-rate units by 2033. The City will work to preserve these units and will proactively monitor all other units to encourage continued affordability beyond existing covenants and work proactively with owners of affordable units to assist in rehabilitation needs.

Specific Actions, Objectives, and Timelines  Prioritize the preservation of at-risk units with a goal of preserving 1,472 aﬀordable units, including 233 at-risk units.
 Monitor aﬀordable units during the planning period.
 By July 2026, create a list of established and potential housing purchasers, including nonproﬁts, developers, and tenants of potentially converting aﬀordable properties. Proactively engage and provide technical assistance to potential purchasers of at-risk units.  Starting in 2026 and annually, apply for funding and support funding application for acquisition and/or rehabilitation of aﬀordable units throughout the planning period. Contact potential purchasers of at-risk units to discuss aﬀordability preservation at least one year prior to the expiration of at-risk units.
 Continue support preservation purchasers using the City’s Aﬀordable Housing Fund (AHF) and reimbursement agreements to ensure the preservation purchaser can repay any use of AHF funds to preserve the aﬀordable housing and avoid the displacement of lower-income tenants.  Maintain annual contact with property owners of aﬀordable housing regarding any change in status/intent or need for assistance, such as rehabilitation assistance.
 Maintain the AB 987 database to include detailed information on all subsidized units, including those that have aﬀordability covenants.

Update annually.
 Ensure tenants are properly noticed by the property owners should a Notice of Intent to opt out of low-income use is ﬁled. Notices must be ﬁled three years, one year, and six months in advance of conversion.

Additionally, the City shall provide tenants with information about available resources and their tenant rights during the Notice of Intent period.

Ensure that tenants understand their rights to remain in the units and that they receive information and referrals regarding available relocation assistance and resources.
 By the beginning of 2026, or in the event of potential conversion, conduct outreach and coordination with qualiﬁed aﬀordable developers and community partners that can acquire and manage at-risk developments. As funding permits, assist in funding acquisition or support funding applications by nonproﬁt providers.

Primary Responsible Departments Department of Development Services Funding Sources General Fund
Relevant Policies 3.6, 5.5
AFFH Themes Anti-Displacement and Tenant Protection
Geographic Targeting Citywide
AFFH Outcomes Preserve all affordable housing units.

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Program 9: Housing Preservation and Rehabilitation
Approximately 46 percent of the housing stock in Merced is more than 40 years old (built before 1980).

The City’s Code Enforcement Officers and the Inspection Services Department works with citizens in a cooperative manner to achieve compliance with the Municipal Code. Additionally, the City continues to investigate potential funding sources for rehabilitation programs to determine the most applicable for the City. The City Housing Program Supervisor, Management Analyst, and Development Services Director review funding opportunities and apply for funds when appropriate. The City currently receives CDBG and HOME funds to assist in the rehabilitation and conservation of existing housing units for income-eligible households through the City’s Housing Rehabilitation Grant Program.

The City Housing Department continues to provide information on energy efficiency and to refer homeowners to the Community Action Agency for assistance with energy conservation and weatherization. The City will 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.

Specific Actions, Objectives, and Timelines  Annually, utilize the Code Enforcement Division to track areas where rehabilitation needs are heightened (e.g., Downtown Merced).  By July 2026, amend the Code Enforcement procedure to comply with AB 838 by requiring timely inspections in response to tenant complaints.

Ensure inspection reports are provided to both tenants and property owners, and schedule follow-up inspections to verify that any identiﬁed violations have been corrected. Review procedures and municipal code to ensure compliance with other relevant state laws, including Health & Safety Code sections 17920.3 and 17920.10, 17970.5, and 17970.7.  By July 2026, adopt Inspection Procedure Policy for Multi-Unit Residential Buildings Pursuant to California Health and Safety Code Section 17970.7.
 Beginning in 2026, and annually thereafter, review funding opportunities and apply for funds when appropriate. The City currently receives CDBG and HOME funds to assist in the rehabilitation and conservation of existing housing units for income eligible households.
 Conduct a housing conditions survey by December 2026.  Utilize 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.
 By July 2026, amend the Municipal Code to include a Repeat Housing Code Violators Program that establishes standards and procedures to penalize rental property owners who demonstrate a pattern of neglect, unresolved violations, or unsafe conditions for tenants to preserve rental housing supply.
 Prioritize the improvement of existing parks and other community spaces by adequately maintaining and improving existing facilities and amenities (lighting, playground equipment, pools, community centers etc.) and provide new amenities where feasible, speciﬁcally in R/ECAP areas (e.g., Joe Herb Park). In 2026, and annually thereafter, explore and secure grant funding opportunities to conduct improvements and ADA updates.

Primary Responsible Departments Department of Development Services Funding Sources General Fund
Relevant Policies 3.6, 4.1, 4.2, 4.3, 5.5
City of Merced
Housing Plan

2024-2032 Housing Element G7-17
AFFH Themes  Outreach and Education
 Place-Based Strategy for Neighborhood Improvements
Geographic Targeting Citywide with emphasis on tracts with larger proportions of aging housing units (District 3)
AFFH Outcomes Partnership with Self-Help Enterprises: 20 owner-occupied rehabs, 10 manufactured home rehabs and 10 ADU/JADU rehabs.

Partnership with Habitat for Humanity: 12 rehab projects.

Assist five units annually through the Weatherization Program.

Program 10: Lower-Income and Special Needs Housing
To assist in the development of housing to meet the needs of extremely low, very low- and low-income households, the Housing Authority of Merced County (HACM) offers the following programs:
 Housing Choice Vouchers (HCVs): Offers affordable, decent, and safe housing in open market rentals selected by voucher holders. Voucher holders receive a fixed subsidy, which the Housing Authority pays directly to the landlord, and tenants are responsible for payment of the remainder of the rent.
 Public Housing: Provides rental assistance to low- and moderate-income families and individuals.

The HACM owns and manages all 421 rental units offered under this program, which are located in communities throughout Merced County.
 Project-Based Voucher Program (PBVs): The Housing Authority released a Request for Proposal (RFP) for the PBV Program in November 2023, seeking proposals from owners/developers who will commit up to 150 units of their rental housing to receive assistance through project-based vouchers.

The City will continue to work with the Housing Authority to obtain HCVs and provide information to the community about other available programs.

Specific Actions, Objectives, and Timelines  Assist 3,110 Merced households through HCVs annually.  Beginning in 2026, annually meet with the Housing Authority to ensure that housing assistance is meeting the needs of the community and discuss ways to address gaps.
 Develop an inventory of aﬀordable housing, with contact information and the number of aﬀordable units, and publish the inventory on the City’s website by January 2026.
 Connect low-income residents with housing assistance resources, including the HCV program.
 Add information on the HCV Program and other housing assistance programs to the City’s website by January 2026.
 Promote the availability of assistance programs through all City’s social media pages at least twice per year.
 Attend at least two community events during the planning period to spread awareness and distribute fact sheets on available financial assistance programs.
 In collaboration with the Housing Authority, provide education to property owners and managers to expand awareness of the HCV program to increase acceptance of tenant-based HCVs and to facilitate mobility and provide choices for lower-income households throughout the city. Identify and address challenges that property owners/managers have with existing or prospective HCV holders.
 Starting in 2026, annually conduct one outreach event for landlords on the HCV program, for a total of seven events Merced County Association of Governments
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during the planning period (i.e., workshops, community
events, mailings, etc.).
 Include education regarding laws prohibiting source-of- income discrimination (Fair Employment and Housing Act).  Amend the Zoning Code by July 2026 to allow a 50 percent density bonus in medium- and high-density zones dedicated exclusively for Senior Housing, if at least 50 percent of the units are aﬀordable to very low- income households.
 Complete the following steps toward a University of California (UC), Merced Student Housing Plan:
− Develop a scope for the UC Merced Student Housing Plan by the end of 2025 and share with UC Merced;
− Utilize SB 4 (residential density up to 20 units per acre) on institutionally zoned land without rezoning);
− Include the commercial land owned by UC Merced that allows multifamily housing; and
− Ensure that any annexations around UC Merced are subject to 5 percent aﬀordable housing plan requirements
− If UC Merced moves forward with the plan, begin implementation by the end of 2027.
 Consistent with state law that mandates the provision of housing for ELI households, the City will prioritize processing and funding allocation for projects that include units for ELI households, especially farmworker housing.
 Consistent with state law that mandates the provision of housing for special needs households, the City will prioritize processing and funding allocation for projects that include units for special needs households.  Beginning in 2025 and annually thereafter, pursue funding available at the state and federal levels for aﬀordable housing development.

Speciﬁcally, pursue funding programs that target the needs of extremely low- and very low-income households.
 Provide letters of support to funding applications by developers if the proposed projects are consistent with the goals and objectives of this Housing Element, as requested.
 For extremely low-income housing projects, provide information referral, consultation regarding applications and assisting private individuals and nonproﬁt organizations in applying for state and federal funds.  Identify and procure funding for extremely low-, very low-, and low- income rental programs. 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.
 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.
 Take the following actions for persons experiencing homelessness:
 Starting in 2026, and at least annually, partner with the Merced County Human Services Agency and/or the Merced County
Community Action Agency to proactively address shelter, housing and support services for people experiencing homelessness.
 Work with the New Direction Outreach and Engagement Center to help identify gaps in services and needs. Focus outreach in the following areas: East 15th Street under the freeway and West 16th Street near Bear Creek, Bear Creek creekbeds, Highway 99 onramps City of Merced
Housing Plan

2024-2032 Housing Element G7-19
and offramps at G Street, R Street and D Streets, near the County Public Health and Mental/Behavioral Health Department and the Navigation Center.
 When funding is available the City shall apply for grants on behalf of local nonprofit organizations and partner with faith-based programs to assist in providing housing opportunities for the homeless.

Prioritize smaller projects that can provide services.
 Over the 8-year planning period, subsequent to each Point-in-Time Count, conduct workshops for the Planning Commission and City Council to share the data. Invite staff from the County’s Human Services Agency and the County Community Action Agency to attend.  Starting in 2026, and every two years thereafter, partner with local nonprofits and/or agencies that conduct general financial literacy training and educational workshops on homeownership opportunities to expand these resources to black communities and very low-income households.
 Annually assess the City’s capacity to accommodate individuals experiencing homelessness by comparing the most recent homeless point-in-time count to the number of shelter beds available citywide on a year-round and seasonal basis, the number of beds that go unused on an average monthly basis, and the percentage of those in emergency shelters that move to permanent housing. If capacity is not sufficient, amend the Zoning Ordinance as necessary to continue to meet the city’s need.
 Utilize federal and state funds, as available, to support homeless service providers that operate emergency shelters and transitional, and supportive housing programs for the homeless to expand the number of beds available to meet the need citywide.
 Beginning in 2026 and annually thereafter, if a viable developer/ development is identiﬁed, pursue available funding at the state and federal levels that target the needs of the disabled for aﬀordable housing development.
 Continue to be part of the Merced Family Resource Center to disseminate information on aﬀordable housing to community members.

Primary Responsible Departments Department of Development Services Funding Sources HUD, Self-Help Enterprise funding sources Relevant Policies 3.2, 5.1, 5.4, 5.5, 7.4
AFFH Themes  Outreach and Education
 Housing Mobility
 New Housing Opportunities in Areas of High Resources
 Anti-Displacement and Tenant Protection
Geographic Targeting Citywide
AFFH Outcomes Promote, with the goal of expanding, the use of HCVs in the city by 10 percent by December 2030, using 2023 data as baseline.

Conduct one HCV outreach event annually for a total of 7 events during the planning period.

Complete at least one housing project annually for persons with special needs.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-20
Program 11: Farmworker Housing
Merced had 2,781 farmworkers in 2021, representing 22.6 percent of the total farmworker population across the county. The Housing Authority manages four Migrant Centers throughout the County. The Migrant Housing Centers provide temporary housing to migrant farmworkers available to them during the peak growing and harvest season, which is typically April through November. Migrant Centers managed by the Housing Authority are located in Atwater, Merced, Los Banos, and Planada.

Specific Actions, Objectives, and Timelines  Apply for or support applications for funding for farmworker housing with the goal of developing 2 farmworker housing projects during the planning period.
 Annually review available funding programs to identify additional funding sources for farmworker housing including the Federal USDA program and the California Joe Serna, Jr. Farmworker Housing Grant Program. Coordinate with nonproﬁt developers and other interested parties for funding opportunities.
 Conduct a survey of 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. Check in with farm owners on an annual basis.
 By July 2026, provide fast-track permit processing: oﬀer a reduction in the number of parking spaces required based on the number of vehicles used for transportation.
 By July 2026, amend the Zoning Code to allow for modiﬁed site development standards for farmworker housing (e.g., street widths, paving, curbs/gutters, placement of public works improvements, or landscaping).
 Create and distribute informational materials to raise awareness about farmworker housing programs and opportunities by the end of 2026 and annually thereafter. This should include the City’s low interest loans for water and sewer services for farmworker housing.
 Provide technical assistance to developers working on farmworker housing projects.
 Annually coordinate with the County Housing Authority on options to expand the Migrant Housing program, including the possibility of opening another location in the City. Pursue intergenerational housing for multiple generations of farmworkers (retirees, working adults, and children) to create opportunities for mutual self-reliance, such as provision of childcare and elder care.
 Annually work with partners to seek funds for the upkeep of current farmworker housing in the City.

Primary Responsible Departments Department of Development Services Funding Sources General Fund
Relevant Policies 2.1, 3.3, 3.5, 5.1, 5.3
AFFH Themes  Housing Mobility
Geographic Targeting Citywide
AFFH Outcomes Assist with the development of 2 farmworker housing projects during the planning period.

City of Merced
Housing Plan

2024-2032 Housing Element G7-21
Program 12: Water and Sewer Service
The City of Merced operates a wastewater treatment facility with an operational capacity of 12 million gallons per day (MGD). The treatment facility’s current capacity meets the City’s average daily flows but is not adequate for peak flows. The City intends to upgrade the existing system to accommodate up to 35 MGD.

The city’s water system includes 20 groundwater wells with a total well capacity of 54,400 gallons per minute (gpm). According to the City’s 2020 Urban Water Management Plan, the City pumped 20,076 acre-feet (AF) of potable water in 2020. Potable water demands are projected to increase to 31,825 AF by 2040 due to increases in the City and UC Merced population. In the future, if the surface water treatment plant is constructed, the City will use the contractual amount of surface water available and supplement the remaining demand with groundwater. The City’s water supply is projected to sufficiently meet expected demands through 2040 through the installation of additional groundwater wells and construction of a 10 MGD treatment plant. The treatment plant is projected to use surface water supplied by Merced Irrigation District and begin operation by 2030. With existing and planned water system infrastructure, the City anticipates adequate capacity to accommodate the City’s RHNA of 10,517 units.

Pursuant to SB 1087, as the City’s water/sewer service provider, the City must adopt a policy to prioritize the allocation of water/sewer services to affordable housing projects in the event capacity is limited.

Specific Actions, Objectives, and Timelines  By the end of 2026, complete update to water and sewer master plans.

As part of the master plan updates, adopt a policy to prioritize the provision of water and sewer services for aﬀordable housing development applications when capacity is limited and warrants allocation.
 Carry out the following actions in the City’s Annual CIPs to help meet the wastewater, sewer and water capacity needs for the RHNA:
 Upgrades to the wastewater treatment facility to
accommodate 35 MGD.
 Incorporate the interim projects recommended in the MKN & Associates report to increase the sewer system’s capacity.  Installation of groundwater wells and the construction of the 10 MGD Surface Water Treatment Plant for adequate capacity of the City’s RHNA units.
 Annually partner with the Public Works Department develop standards for water conservation methods (e.g., low ﬂow ﬁxtures, instant hot water heaters, cisterns/rain gardens) to augment water for new development projects. Annually, conduct outreach and education on water conservation measures through a social media campaign.
 Annually, conduct outreach and education on water conservation measures through a social media campaign.
 Pursue/provide rehabilitation assistance that includes energy conservation and weatherization improvements as eligible activities.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-22
 By July 31, 2026, adopt a policy to prioritize the allocation of water and sewer services to aﬀordable housing projects (SB 1087).

Primary Responsible Departments Development Services Department; Public Works Department Funding Sources General Fund
Relevant Policies 3.1, 4.4
AFFH Themes N/A
Geographic Targeting Citywide
AFFH Outcomes Complete 10 rehabilitation assistance projects for energy conservation and weatherization improvements.

Program 13: Community and Economic Development
Well-maintained infrastructure creates a safe and accessible urban environment, fostering a sense of community and belonging. Moreover, investing in such improvements attracts businesses and investments, contributing to economic growth and ensuring equal access to essential services. The City will implement the following actions to expand community and economic development citywide.

Upon adoption, the City of Merced will follow the requirement to prioritize water and sewer service allocation for new affordable housing development (Government Code Section 65589.7).

Specific Actions, Objectives, and Timelines  Annually, coordinate with the Public Works Department to review the City’s Capital Improvement Projects (CIP) to ensure public facilities and infrastructure are supportive of the needs of underserved communities.  Annually coordinate with Public Works to utilize the CMAQ grants the department has received to help fund infrastructure and sidewalk improvements.
 Work with MCAG on a Multi-Jurisdictional Active Transportation Plan and Local Road Safety Plan. If development occurs within the MJATP’s 21 priority project areas in the city, coordinate with MCAG on implementation.
 As housing developments occur, incorporate connected street and pedestrian/bicycle networks, with many connections between new and older neighborhoods and the Downtown area. Utilize standards from the City’s Bicycle Transportation and Active Transportation Plan in all new developments, with the goal of initiating two connected street/network during the planning period.
 SB 244 Disadvantaged Unincorporated Communities Analysis:
 By the end of 2026, update the General Plan to incorporate an SB 244 compliant Disadvantaged Unincorporated Communities (DUCs) analysis to identify the needs of DUCs.
 By 2026, establish funding policies to prioritize capital improvement projects in DUCs to address identiﬁed needs (e.g., sewer and water infrastructure, sidewalks, ﬁre hydrants). Apply for funding annually and aim to complete six projects during the planning period.  At least every other year, apply for funding beyond the CIP for community development and revitalization projects such as infrastructure, neighborhood revitalization, parks, safe routes to school, community facilities, and pollution burden mitigation. Establish a goal of allocating 20 percent of the CIP budget for projects in R/ECAP areas, including districts 1, 2, 3, and 5.
 Environmental Justice / SB 1000 Compliance: By January 2027, develop a comprehensive Environmental Justice Report to identify and address disparities in access to key community resources and environmental City of Merced
Housing Plan

2024-2032 Housing Element G7-23
conditions. The report will include strategies to improve food access, open space access, pollution exposure, public facilities access, physical activity opportunities, clean water and resilient infrastructure, and safe and sanitary housing. Target strategies in low resource and disadvantaged communities (e.g., South Merced). Annually implement the strategies and commitment in the report.
 Displacement Protections: By March 2027, seek direction from City Council to conduct a feasibility study to explore and identify displacement strategies which may include but is not limited to the development of local regulations that establish a “ﬁrst right of return” for tenants displaced by redevelopment, rehabilitation, of properties with existing occupied residential units and other displacement pressures. This study will assess legal, ﬁnancial, administrative, and equity considerations involved in conserving the existing housing stock for lower-income households and guaranteeing displaced tenants the opportunity to return to newly constructed or rehabilitated replacement housing units. The study will be presented to the City Council in a public forum by July 2027. The City will establish an overall displacement strategy which may include ﬁrst-right-of-return program by July 2028.  In partnership with Merced County, create a community stabilization handbook where residents can ﬁnd resources for lower-income families to prevent displacement. Resources include homelessness assistance, housing rehabilitation programs, legal services, rental assistance, utility assistance, homeownership programs, fair housing resources, and aﬀordable housing. Identify governmental and private/nonproﬁt service providers and include their contact information. Make the handbook available on the City's website by July 2027.
 Place-Based Strategies: As part of the City’s 2024-2029 Capital Improvement Program, the City shall allocate budget to complete the following improvements in areas of High Segregation and Poverty during the planning period:
 Childs Multiuse path, from Parsons Ave. to Coﬀee St. - completed 2025  B St. Improvements (roadway improvements, ADA ramps, bus pullouts, sidewalks) – completed 2023
 Stowell Sidewalks (sidewalk repair, new ADA ramps, E 11th St., D St., E St.) – completed 2025
 G St. Improvement, from Childs to 13th St. (road rehab, striping, bike lanes) – completed 2024
 R, S, T & Stewart Sidewalks (new sidewalks between Childs Ave. and Stuart Dr.) – completed 2024
 Motel Drive multiuse path (from Merced Ave. to Carol Ave.) – completed 2024
 CDBG Mini Park Improvements (ADA pathway from city sidewalk to play structures) – completed 2024
 McNamara Park lights – completed 2024
 Stephen Leonard Park Community Center ﬁre rebuild – completed 2025
 Childs Ave./Canal St. Infrastructure improvements (sidewalk, storm drain, realign intersection) – anticipated completion 2027  12th/13th St. Infrastructure (water/sewer main replacement between MLK Way & K St.) – anticipated start date Spring 2026
 Loughborough Traﬃc Calming Study – started 2022
 Zoo remodel – anticipated completion Spring 2026
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-24
Primary Responsible Departments Department of Development Services Funding Sources General Funds
Relevant Policies 3.1, 4.4
AFFH Themes Place-based Strategies for Neighborhood Improvement Geographic Targeting Citywide with emphasis on South Merced and other high poverty/high segregation areas of the City.

AFFH Outcomes  Complete 5 CIP projects during the planning period, including 3 in South Merced.
 Develop plan to address needs of disadvantaged unincorporated communities by the end of 2026.

Program 14: Fair Housing Outreach and Enforcement
The City of Merced has a webpage for Fair Housing that includes information and resources for tenants, immigrants, families with children, veterans, licensed daycares, persons with service animals and retaliation concerns. Many of these resources are provided in multiple languages including Spanish, Vietnamese, Chinese, Korean, and Russian. Through federal funding provided by HUD, the City contracts with Project Sentinel, Inc. to assist the City with fair housing education, discrimination investigation and dispute resolution and advocacy. Contact information for Project Sentinel is included on the City’s fair housing webpage.

Specific Actions, Objectives, and Timelines  Continue to provide information on the Housing Department website regarding available programs, current plans, and other information for tenants, landlords, and property owners.
 Continue to 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.
 Continue to contract with Project Sentinel for fair housing enforcement.  In coordination with Project Sentinel, or equivalent organization, conduct housing workshops/outreach events to educate the public about fair housing rights.
 As funding opportunities arise, apply for grant funding to help local nonproﬁt partners expand their capacity to provide housing-related legal assistance and representation to residents.
 Ensure that all fair housing services (workshops, enforcement, counseling, training) are conducted in Spanish and English.  Support homeownership opportunities and home-buying education, particularly for racial and ethnic groups underrepresented in the homebuying market.
 Coordinate community group coordination to disseminate information about fair housing resources, including tenant/landlord relationships.

This can include, but not limited to, the following:
 Senior Center, Boys and Girls Clubs
 Peach Jar subscription - school flyer advertising
 Radio conversations (Community Conversations show)
Primary Responsible Departments Department of Development Services Funding Sources General Fund
Relevant Policies 3.1, 4.4
City of Merced
Housing Plan

2024-2032 Housing Element G7-25
AFFH Themes Enforcement and Outreach
Geographic Targeting Citywide with emphasis on low resources areas and areas of high poverty and segregation in southern Merced (Districts 1, 2, 3, 5) AFFH Outcomes Assist at least 30 residents and landlords with fair housing services annually, throughout planning period.

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

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-26
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics Fair Housing Enforcement and Outreach
Program 14: Fair
Housing Outreach
and Enforcement
 Continue to provide information on the Housing Department website regarding available programs, current plans, and other information for tenants, landlords, and property owners.  Continue to 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.  Continue to contract with Project Sentinel for fair housing enforcement.
 In coordination with Project Sentinel, or equivalent organization, conduct housing workshops/outreach events to educate the public about fair housing rights. As funding opportunities arise, apply for grant funding to help local nonproﬁt partners expand their capacity to provide housing-related legal assistance to residents.  Ensure that all fair housing services (workshops, enforcement, counseling, training) are conducted in Spanish and English.  Support homeownership opportunities and home-buying
education, particularly for racial and ethnic groups
underrepresented in the homebuying market.
 Coordinate community group coordination to disseminate information about fair housing resources, including
tenant/landlord relationships. This can include, but not limited to, the following:
 Senior Center, Boys and Girls Clubs
 Peach Jar subscription- school ﬂyer advertising
 Radio conversations (Community Conversations show)
Annually Citywide with
emphasis on low
resources areas and
areas of high poverty
and segregation in
southern Merced
(Districts 1, 2, 3, 5)
Assist at least 30 residents and
landlords with fair housing
services annually, throughout
planning period.

Conduct one outreach event
annually to disseminate fair
housing information (workshop,
community event, etc.)
Housing Mobility
Program 1: Regional
Collaboration
Continue to be an active participant with the Merced County Association of Governments (MCAG) and coordinate on regional planning and policy eﬀorts to advance shared goals throughout Merced County.
 Starting in 2026, annually collaborate and coordinate regionally to ensure the eﬀective implementation of the Housing Element. This collaboration will include regular meetings (at least annually), and Annually, 2026,
2027
N/A Establish a working group that
meets annually to identify
regional housing challenges,
funding opportunities, and
coordinate eﬀorts to develop
aﬀordable housing.

City of Merced
Housing Plan

2024-2032 Housing Element G7-27
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics will consider resource sharing, and joint eﬀorts to address regional housing needs and achieve the goals outlined in the Housing Element. This collaboration will include regular meetings (at least annually), and will include resource sharing, joint eﬀorts with internal and external partners to address regional housing needs and achieve the goals outlined in the Housing Element, including aﬃrmatively furthering fair housing and farmworker needs.  Starting in 2026, participate in a regional collaboration with developers, and aﬀordable housing advocates to support the development of housing.
 By 2027, establish a working group that meets annually to identify regional housing challenges, including but not limited to aﬃrmatively furthering fair housing eﬀorts and farmworker housing, funding opportunities, and consider input from the working group to coordinate eﬀorts to develop aﬀordable housing and implement the housing element, including making
adjustments as appropriate to better achieve the goals and objectives of the housing element.

Program 5:

Accessory Dwelling
Units
 Amend the Zoning Ordinance in compliance with state law.  Facilitate the production of ADUs through promotional eﬀorts and incentives outlined in Program 5.
 Establish an ADU amnesty plan by December 2026
 If ADU production is not occurring at anticipated levels, amend the Zoning Code to enhance ADU production during the planning period:
 Increase the by-right ADU size to further incentivize ADU creation
 Allow for an increase in the permitted height up to the height of the primary residence for ADUs built above a garage in single-family zones
 Allow for reduced setback requirements where privacy is not compromised.

December
2026
Citywide with
emphasis on high
resource, single-
family
neighborhoods
(Districts 4 and 6)
Support the development of at
least 32 ADUs in Merced during
the planning period, with the goal
of at least four aﬀordable to
lower-income residents and 16
located in high-resource areas
(District 1 and District 4.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-28
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics Program 11:

Farmworker
Housing
 Apply for or support applications for funding for farmworker housing with the goal of developing 2 farmworker housing projects during the planning period.
 Annually review available funding programs to identify additional funding sources for farmworker housing. including the Federal USDA program and the California Joe Serna, Jr. Farmworker Housing Grant Program. Coordinate with nonproﬁt developers and other interested parties for funding opportunities.  Conduct a survey of 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. Check in with farm owners on an annual basis.
 By July 2026, provide fast-track permit processing: oﬀer a reduction in the number of parking spaces required based on the number of vehicles used for transportation
 By July 2026, amend the Zoning Code to allow for to allow for modiﬁed site development standards, e.g. - street widths, paving, curbs/gutters, placement of Public Works improvements, or landscaping for farmworker housing.
 Create and distribute informational materials to raise awareness about farmworker housing programs and opportunities by the end of 2026 and annually thereafter. This should include the City’s low interest loans for water and sewer services for farmworker housing.
 Provide technical assistance to developers working on farmworker housing projects.
 Annually coordinate with the County Housing Authority on options to expand the Migrant Housing program, including the possibility of opening another location in the City. Pursue intergenerational housing for multiple generations of farmworkers (retirees, working adults, and children) to create opportunities for mutual self- reliance, such as provision of childcare and elder care.  Annually work with partners to seek funds for the upkeep of current farmworker housing in the City.

Annually, July
2026
Citywide Assist with the development of 2
farmworker housing projects
during the planning period.

City of Merced
Housing Plan

2024-2032 Housing Element G7-29
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics Program 10: Lower
Income and Special
Needs Housing
 Develop an inventory of aﬀordable housing, with contact information and the number of aﬀordable units, and publish the inventory on the City’s website.

July 2025, 2026 Citywide Expand the use of HCVs in the city by 10 percent by December 2030,
using 2023 data as baseline.

Conduct one HCV outreach event
annually for a total of 7 events
during the planning period.

Complete at least one housing
project annually for persons with
special needs.
 Connect low-income residents with housing assistance
resources, including the HCV program by:
 Adding information to the City’s website by July 2025  Promoting the availability of assistance programs through social media twice per year
 Attending at least two community events during the planning period to distribute fact sheets
 In collaboration with the Housing Authority, provide education to property owners and managers to expand awareness of the HCV program to increase acceptance of tenant-based HCVs and to facilitate mobility and provide choices for lower-income households throughout the city. Identify and address challenges that property owners/managers have with existing or
prospective HCV holders.
 Starting in 2026, annually conduct one outreach event for landlords on the HCV program, for a total of seven events during the planning period (i.e., workshops, community events, mailings, etc.).
 Include education regarding laws prohibiting source-of-income discrimination (Fair Employment and Housing Act).
 Amend the Zoning Code by July 2026 to allow a 50 percent density bonus in medium- and high-density zones dedicated exclusively for Senior Housing, if at least 50 percent of the units are aﬀordable to very low-income households.

 Develop a scope for the UC Merced Student Housing Plan by the end of 2026 and share with UC Merced;
 Utilize SB 4 (residential density up to 20 units per acre) on institutionally zoned land without rezoning).
 Include the commercial land owned by UC Merced that allows multifamily housing.
 Ensure that any annexations around UC Merced are subject to 5 percent aﬀordable housing plan requirements

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-30
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics  If UC Merced moves forward with the plan, begin
implementation by the end of 2026.
 Partner with local nonproﬁts and/or agencies that conduct general ﬁnancial literacy training and educational workshops on homeownership opportunities to expand these resources to black communities and very low-income households.
 Seek public input from the community, Building Industry Association (BIA), and the Board of Realtors on options for an Inclusionary Zoning Ordinance Requirement.
 Provide letters of support to funding applications by developers if the proposed projects are consistent with the goals and objectives of this Housing Element, as requested.
 For extremely-low income housing projects, provide information referral, consultation regarding applications and assisting private individuals and nonproﬁt organizations in applying for state and federal funds.
 Identify and procure funding for extremely-low, very-low, and low- income rental programs. 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
 Take the following actions for persons with disabilities:
 Beginning in 2026 and annually thereafter, if a viable developer/development is identiﬁed, pursue available funding at the state and federal levels that target the needs of the disabled for aﬀordable housing development.

Starting in
2025, every
two years
during the
planning area

End of 2027
LMI Areas (Districts
1, 2, 3, 4, 5)

Citywide
Hold 2 workshops during the
planning period.

Hold 2 workshops for the public
and other interested parties by
January 2027. If determined
appropriate, adopt Inclusionary
Ordinance by end of 2027.

New Housing Opportunities in Higher Opportunity Areas
Program 2:

Adequate Sites for
RHNA
 Maintain an inventory of available vacant and prospective sites that can accommodate new housing and update annually. Make this inventory available to the public and interested developers on the City website.
 Annually meet with property owners and interested developers to pursue housing development in the city.
 By July 31, 2026, develop a formal procedure to monitor no net loss in capacity pursuant to SB 166.
2024-2032
July 31, 2026
December
2026, End of
2027
Citywide Facilitate the development of
3,132 units including 1,370 units
aﬀordable to lower income
households.

City of Merced
Housing Plan

2024-2032 Housing Element G7-31
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics  Commit to developing pre-approved plans for duplexes and triples, similar to the pre-approved ADU program, to allow applicants to save on design and permit costs.
 By the end of 2027, if the annexations listed in the Sites Inventory are not occurring per the schedule listed in Table G6-3 , the City will identify alternative sites to satisfy the RHNA within six months.  In December 2027, the City will evaluate the progress of pending projects counted toward the RHNA to ensure that development of housing units is occurring as projected. If it is determined after consultation with developers that the projects are not proceeding as planned and would result in a shortfall in RHNA sites, the City will identify alternative sites strategies (including potential rezoning) within six months.
 By January 2027, amend the Zoning Ordinance to establish a performance standard for mixed-use inventory sites to require residential uses that align with assumptions in the Housing Element Site Inventory that allow mixed-use development.  To facilitate and incentivize aﬀordable units on large sites, the City will:
 Provide technical assistance, incentives, and strategies as appropriate to facilitate development of aﬀordable housing, including parceling at appropriate sizes or other site planning tools such as clustered development, allowing ﬂexibility for the transferring of densities within the property.
 Promote the potential subdivision of large sites into multiple parcels for future development through technical assistance, incentives, and strategies during the development phases and when applications are submitted to the City for the identiﬁed parcels.
 Annually meet with property owners and developers to
encourage the development of mixed income housing with a mix of unit sizes, types, and prices.
 Promote the development of large sites at the densities and aﬀordability levels identiﬁed within the Housing Element.  Allow development in phases within 8 years of the Housing Element planning period.
2027 Citywide Facilitate the development of
housing units on large sites
identiﬁed to meet the RHNA.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-32
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics  Oﬀer expedited processing and fee deferrals, reductions, or waivers for aﬀordable units in development on large sites identiﬁed in the Site Inventory.
 Subdivision of Large Sites: The City shall consider the following options to promote and incentivize the subdivision of large sites to create parcels at appropriate sizes to support aﬀordable housing projects:
 Expedited approval of lot splits or creation of new parcels;  Waiving of the public hearing requirement related to parcel maps;
 Waiving of the public hearing requirement related to approval of large multifamily uses (provided the project is aﬀordable by deed-restriction),
 Additional density bonus, lot coverage, or allowable height; .  and fee waivers, reductions, or deferral.
 By the end of 2027, if development of housing aﬀordable to lower income households (as assumed in the inventory) is not feasible on these large sites or sites are not parceled at appropriate sizes (e.g., 1-10 acres), within six months (by July 2028) the City will identify additional incentives and planning tools or alternative strategies if necessary to ensure adequate capacity at appropriate sizes for the RHNA.

Program 6: Zoning
Code Amendments
 Complete Zoning Ordinance Amendments outlined in Program 6 to facilitate the development and remove constraints to the development of housing for special needs populations.
 Review the General Plan, applicable Speciﬁc Plans, and Zoning Code, and Zoning Map to evaluate opportunities for removing barriers to housing production, adding housing capacity, and accommodating a greater mix of dwelling types and sizes households (e.g., duplexes, triplexes, fourplexes, townhouses, courtyard buildings), prioritizing opportunities and sites in high- resource areas (Districts 4 and 6). Present results of ﬁndings in a public forum by June 2026 and implement any changes by January 2027.

June 2026,
January 2027
Citywide Facilitate the development of 50
units for special needs
populations during the planning
period.

Facilitate the development of
2,000 units of a variety of
multifamily housing types, e.g.,
duplexes, triplexes, fourplexes,
townhouses, courtyard buildings
in high-resource areas (Districts 4
and 6).

City of Merced
Housing Plan

2024-2032 Housing Element G7-33
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics Program 7:

Facilitating
Aﬀordable Housing
Development
 Beginning in January 2026, annually identify and pursue funding at the local, regional, state, and federal levels such as state CDBG, CalHome, PLHA, and Project Homekey funds.
 By December 2026, work with other jurisdictions in Merced County to create a regional list of aﬀordable housing developers.

Annually conduct outreach to these developers with information on potential sites, available regulatory concessions and incentives, and potential funding opportunities.
 Amend the Zoning Code by July 2026 to allow for waivers on improvements for qualiﬁed aﬀordable housing projects, pursuant to state Density Bonus Law.
 Facilitate the development of aﬀordable housing by allowing improvements to be negotiated.
 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, including for special needs housing (see Program 11).
 Facilitate the development of aﬀordable housing through the provision of the following regulatory concessions and incentives:
 Density increases under the City’s Density Bonus Ordinance.  Potential fee waivers/reductions/deferrals.
 Reduced parking requirements.
 Continue to review permit fees annually to ensure fees do not inhibit the development of aﬀordable housing.
 Ensure infrastructure is in place to accommodate new housing.  Adopt an ordinance that establishes speciﬁc procedures to grant priority service within a year of the certiﬁcation of the Housing Element to housing with units aﬀordable to lower-income households whenever capacity is limited.
 Utilize the Citywide 2023 RFP list of aﬀordable housing developers for notiﬁcation for the City’s streamlining review processes, the available properties for multi-family development (see Program 2) and potential funding opportunities for aﬀordable housing development opportunities.
 By the end of 2027, pursue the housing mobility options below in order to expand aﬀordable housing options in Merced:

Annually

Beginning in
2025 and every
two years
thereafter

End of 2027
Citywide

Aﬃrmative
marketing targeted
to low-resource areas
(e.g., southern
Merced, Districts 1,
2, 3, 5)
Increase the percent of the city’s
housing stock that is multifamily
from 30 percent to 33 percent by
December 2030, using 2017-2021
ACS data as a baseline.

3 workshops during the planning
period.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-34
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics  Establish a Home-Sharing Program: home-sharing can be an additional source of income for homeowners while also
providing options for those looking for aﬀordable housing.  Residential Development Standards for Religious Facilities (SB 4):

This could provide opportunities for housing in a variety of locations throughout the City, providing mobility options for residents. To promote these opportunities, the City will create an outreach and technical advisory program that would consist of:
− Conducting a workshop in 2027 and 2029 to explain SB 4, AB 1851 and how it can apply to religious facility properties in Merced;
− Invite religious facility owners and local nonproﬁt developers to participate;
− Provide informational materials on the development
process;
− City staﬀ will provide technical assistance to religious facility property owners to assist with the project entitlements; and − Review the General Plan and applicable zoning regulations, and revise as necessary, to facilitate aﬀordable housing on religious facility sites.
 Promote inﬁll development in areas where public infrastructure is in place to help reduce the cost of development projects that occur from on- and oﬀ-site improvements.
 Provide letters of support to funding applications by developers if the proposed projects are consistent with the goals and objectives of this Housing Element, as requested.
 Establish a requirement that, with development and/or funding applications, aﬀordable housing project sponsors submit an Aﬃrmative Fair Housing Marketing Plan to ensure that residents of lower-resource neighborhoods outside the immediate project neighborhood are targeted with multilingual outreach, culturally relevant media, and partnerships with local community
organizations, in full compliance with HUD regulations (24 CFR §

92.351) to ensure equitable access to housing opportunities for groups least likely to apply.

City of Merced
Housing Plan

2024-2032 Housing Element G7-35
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics Place-Based Strategies for Neighborhood Revitalization
Program 9: Housing
Preservation and
Rehabilitation
 By July 2026, amend the Code Enforcement procedure to comply with AB 838 by requiring timely inspections in response to tenant complaints. Ensure inspection reports are provided to both tenants and property owners, and schedule follow-up inspections to verify that any identiﬁed violations have been corrected. Review procedures and municipal code to ensure compliance with other relevant state laws, including Health & Safety Code sections 17920.3 and 17920.10, 17970.5, and 17970.7.
 By July 2026, adopt Inspection Procedure Policy for Multi-Unit Residential Buildings Pursuant to California Health and Safety Code Section 17970.7.
 Beginning in 2026, and annually thereafter, review funding opportunities and apply for funds when appropriate. The City currently receives CDBG and HOME funds to assist in the rehabilitation and conservation of existing housing units for income eligible households.
 Conduct a housing conditions survey by December 2026.  Utilize 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.
 By July 2026, amend the Municipal Code to include a Repeat Housing Code Violators Program that establishes standards and procedures to penalize rental property owners who demonstrate a pattern of neglect, unresolved violations, or unsafe conditions for tenants to preserve rental housing supply.
 Prioritize the improvement of existing parks and other community spaces by adequately maintaining and improving existing facilities and amenities (lighting, playground equipment, pools, community centers etc.) and provide new amenities where feasible, speciﬁcally in R/ECAP areas (e.g., Joe Herb Park). In 2026, and annually thereafter, explore and secure grant funding
opportunities to conduct improvements and ADA updates.

Starting 2026
Annually
December
2026
Citywide with
emphasis on tracts
with larger
proportions of aging
housing units
(District 3)
Partnership with Self-Help
Enterprises: 20 owner-occupied
rehabs, 10 manufactured home
rehabs and 10 ADU/JADU rehabs.

Partnership with Habitat for
Humanity: 12 rehab projects.

Assist ﬁve units annually through
the Weatherization Program.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-36
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics Program 12: Water
and Sewer Service
 By the end of 2026, complete update to water and sewer master plans. As part of the master plan updates, adopt a policy to prioritize the provision of water and sewer services for aﬀordable housing development applications when capacity is limited and warrants allocation.
 Carry out the following actions in the City’s Annual CIPs to help meet the wastewater, sewer and water capacity needs for the RHNA:
 Upgrades to the wastewater treatment facility to accommodate 35 MGD.
 Incorporate the interim projects recommended in the MKN & Associates report to increase the sewer system’s capacity.  Installation of groundwater wells and the construction of the 10 MGD Surface Water Treatment Plant for adequate capacity of the City’s RHNA units.
 Annually partner with the Public Works Department develop standards for water conservation methods (e.g., low ﬂow ﬁxtures, instant hot water heaters, cisterns/rain gardens) to augment water for new development projects.
 Annually, conduct outreach and education on water conservation measure through a social media campaign.
 Pursue/provide rehabilitation assistance that includes energy conservation and weatherization improvements as eligible activities.
 By July 31, 2026, adopt a policy to prioritize the allocation of water and sewer services to aﬀordable housing projects (SB 1087).

Annually, 2026 Citywide Complete 12 CIP projects during the planning period, speciﬁcally
in areas identiﬁed as DUC and/or
High Segregation and Poverty
Program 13:

Community and
Economic
Development
 Annually, coordinate with the Public Works Department to review the City’s Capital Improvement Projects (CIP) to ensure public facilities and infrastructure are supportive of the needs of underserved communities.
 Annually coordinate with Public Works to utilize the CMAQ grants the department has received to help fund infrastructure and sidewalk improvements.
 Work with MCAG on a Multi-Jurisdictional Active Transportation Plan and Local Road Safety Plan. If development occurs within the Annually Citywide Complete 12 CIP projects during
the planning period, speciﬁcally
in areas identiﬁed as DUC and/or
High Segregation and Poverty
City of Merced
Housing Plan

2024-2032 Housing Element G7-37
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics MJATP’s 21 priority project areas in the city, coordinate with MCAG on implementation.
 As housing developments occur, incorporate connected street and pedestrian/bicycle networks, with many connections between new and older neighborhoods and the Downtown area. Utilize
standards from the City’s Bicycle Transportation and Active Transportation Plan in all new developments, with the goal of initiating two connected street/network during the planning period
 SB 244 Disadvantaged Unincorporated Communities Analysis:
 By the end of 2026, update the General Plan to incorporate a SB 244 Disadvantaged Unincorporated Communities (DUCs) analysis to identify the needs of DUCs.
 By 2026, establish funding policies to prioritize capital improvement projects in DUCs to address identiﬁed needs (e.g., sewer and water infrastructure, sidewalks, ﬁre hydrants). Apply for funding annually and aim to complete six projects during the planning period.
 At least every other year, apply for funding beyond the CIP for community development and revitalization projects such as infrastructure, neighborhood revitalization, parks, safe routes to school, community facilities, and pollution burden mitigation.

Wstablish a goal of allocating 20 percent of the CIP budget for projects in R/ECAP areas, including districts 1, 2, 3, and 5  Environmental Justice / SB 1000 Compliance: By January 2027, develop a comprehensive Environmental Justice Report to identify and address disparities in access to key community resources and environmental conditions. The report will include strategies to improve food access, open space access, pollution exposure, public facilities access, physical activity opportunities, clean water and resilient infrastructure, and safe and sanitary housing. Target strategies to low resource and disadvantaged communities (e.g., South Merced). Annually implement the strategies and
commitment in the report.
 Place-Based Strategies: As part of the City’s 2024-2029 Capital Improvement Program, the City shall allocate budget to complete Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-38
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics the following improvements in areas of High Segretation and Poverty during the planning period:
 Childs Multiuse path, from Parsons Ave. to Coﬀee St. - completed 2025
 B St. Improvements (roadway improvements, ADA ramps, bus pullouts, sidewalks) – completed 2023
 Stowell Sidewalks (sidewalk repair, new ADA ramps, E 11th St., D St., E St.) – completed 2025
 G St. Improvement, from Childs to 13th St. (road rehab, striping, bike lanes) – completed 2024
 R,S,T & Stewart Sidewalks (new sidewalks between Childs Ave. and Stuart Dr.) – completed 2024
 Motel Drive multiuse path (from Merced Ave. to Carol Ave.) – completed 2024
 CDBG Mini Park Improvements (ADA pathway from city sidewalk to play structures) – completed 2024
 McNamara Park lights – completed 2024
 Stephen Leonard Park Community Center ﬁre rebuild –
completed 2025
 Childs Ave./Canal St. Infrastructure improvements (sidewalk, storm drain, realign intersection) – anticipated completion 2027  12th/13th St. Infrastructure (water/sewer main replacement between MLK Way & K St.) – anticipated start date Spring 2026  Loughborough Traﬃc Calming Study – started 2022
 Zoo remodel – anticipated completion Spring 2026
Tenant Protection and Anti-Displacement
Program 1: Regional
Collaboration
 Participate in regional meetings related to housing and homeless issues to pursue funding and coordination opportunities. Annually pursue funding opportunities for regional housing issues in coordination with nonproﬁts and local community-based
organizations
 Partner with the Merced County Human Services Agency, Behavioral Health Recovery Services and/or the Merced County Community Action Agency to proactively address shelter, housing and support services for people experiencing homelessness.

Annually Citywide Assist with the completion of the
10-Year Plan to End Homelessness
and identify regional strategies to
address homelessness during the
planning period.

City of Merced
Housing Plan

2024-2032 Housing Element G7-39
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics  Work with the Merced Continuum of Care to update and
implement the 10-Year Plan to End Homelessness during the planning period.

Program 4:

Replacement
Housing
 Amend the Zoning Ordinance to address the replacement housing requirements.

With
Development
Code Update
N/A Replace all units as required
pursuant to AB 1397.

Program 8:

Preservation of At-
Risk Housing
 Monitor aﬀordable units during the planning period.
 Create a list of established and potential housing purchasers, including nonproﬁts, developers, and tenants of potentially converting aﬀordable properties. Proactively engage and provide technical assistance to potential purchasers of at-risk units.  Starting in 2026 and annually, apply for funding and support funding application for acquisition and/or rehabilitation of aﬀordable units. Contact potential purchasers of at-risk units to discuss aﬀordability preservation at least one year prior to the expiration of at-risk units.
 Continue support preservation purchasers using the City’s Aﬀordable Housing Fund (AHF) and reimbursement agreements to ensure the preservation purchaser can repay any use of AHF funds to preserve the aﬀordable housing and avoid the displacement of lower-income tenants.
 Maintain contact with property owners of aﬀordable housing regarding any change in status/intent or need for assistance, such as rehabilitation assistance.
 Maintain the AB 987 database to include detailed information on all subsidized units, including those that have aﬀordability covenants
 Ensure tenants are properly noticed by the property owners should a Notice of Intent to opt out of low-income use is ﬁled.

Notices must be ﬁled three years, one year, and six months in advance of conversion. Additionally, the City shall provide tenants with information about available resources and their tenant rights during the Notice of Intent period. Ensure that tenants understand their rights to remain in the units and that they receive information and referrals regarding available relocation assistance and resources.

Annually Citywide Preserve all 1,472 existing
aﬀordable housing units in
Merced, including 233 at-risk
units.

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-40
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics  By the beginning of 2026, or in the event of potential conversion, conduct outreach and coordination with qualiﬁed aﬀordable developers and community partners that can acquire and manage at-risk developments. As funding permits, assist in funding acquisition or support funding applications by nonproﬁt providers.

Program 10: Lower-
Income and Special
Needs Housing
 Take the following actions for persons experiencing homelessness:
 Starting in 2026, at least annually partner with the Merced County Human Services Agency and/or the Merced County
Community Action Agency to proactively address shelter, housing and support services for people experiencing
homelessness.
 Work with the New Direction Outreach and Engagement Center to help identify gaps in services and needs. Focus outreach in the following areas: East 15th Street under the freeway and West 16th Street near Bear Creek, Bear Creek creekbeds, Highway 99 onramps and oﬀramps at G Street, R Street and D Streets, near the County Public Health and Mental/Behavioral Health
Department and the Navigation Center.
 When funding is available the City shall apply for grants on behalf of local nonproﬁt organizations and partner with faith- based programs to assist in providing housing opportunities for the homeless. Prioritize smaller projects that can provide services.
 Beginning in 2026, annually meet with the Housing Authority to ensure that housing assistance is meeting the needs of the community and discuss ways to address gaps.
 Beginning in 2026 and annually thereafter, subsequent to each Point-in-Time Count, conduct workshops for the Planning Commission and City Council to share the data. Invite staﬀ from the County’s Human Services Agency and the County Community Action Agency to attend.
 Starting in 2026, and every two years thereafter, partner with local nonproﬁts and/or agencies that conduct general ﬁnancial literacy training and educational workshops on homeownership opportunities to expand these resources to black communities and very low-income households.
 Annually assess the City’s capacity to accommodate individuals experiencing homelessness by comparing the most recent
Starting in
2026
East 15th Street
under the freeway
and West 16th Street
near Bear Creek,
Bear Creek
creekbeds, Highway
99 onramps and
oﬀramps at G Street,
R Street and D
Streets, near the
County Public Health
and
Mental/Behavioral
Health Department
and the Navigation
Center.

Promote, with the goal of
expanding, the use of HCVs in the
city by 10 percent by December
2030, using 2023 data as
baseline.

Conduct one HCV outreach event
annually for a total of 7 events
during the planning period.

Complete at least one housing
project annually for persons with
special needs.

City of Merced
Housing Plan

2024-2032 Housing Element G7-41
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics homeless point-in-time count to the number of shelter beds available citywide on a year-round and seasonal basis, the number of beds that go unused on an average monthly basis, and the percentage of those in emergency shelters that move to permanent housing. If capacity is not suﬃcient, amend the Zoning Ordinance as necessary to continue to meet the city’s need.
 Utilize federal and state funds, as available, to support homeless service providers that operate emergency shelters and
transitional, and supportive housing programs for the homeless to expand the number of beds available to meet the need citywide.
 By January 2027, hold a workshop to seek public input from the community, Building Industry Association (BIA), and the Board of Realtors on options for an Inclusionary Zoning Ordinance Requirement. If determined appropriate, consider adoption of a revised RHNA Unit Production Plan or a form of an Inclusionary Ordinance by the end of 2027.
 Continue to be part of the Merced Family Resource Center to disseminate information on aﬀordable housing to community members.
 Displacement Protections: By March 2027, seek direction from City Council to conduct a feasibility study to explore and identify displacement strategies which may include but is not limited to the development of local regulations that establish a “ﬁrst right of return” for tenants displaced by redevelopment, rehabilitation, of properties with existing occupied residential units and other displacement pressures. This study will assess legal, ﬁnancial, administrative, and equity considerations involved in conserving the existing housing stock for lower-income households
and guaranteeing displaced tenants the opportunity to return to newly constructed or rehabilitated replacement housing units. The study will be presented to the City Council in a public forum by July 2027. The City will establish an overall displacement strategy which may include ﬁrst-right-of-return program by July 2028.  Create a community stabilization handbook where residents can ﬁnd resources for lower-income families to prevent displacement.

Resources include homelessness assistance, housing rehabilitation Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-42
Aﬃrmatively Furthering Fair Housing Action Matrix
Program Speciﬁc Commitment Timeline Geographic Targeting Eight-Year Metrics programs, legal services, rental assistance, utility assistance, homeownership programs, fair housing resources, and aﬀordable housing. Identify governmental and private/nonproﬁt service providers and include their contact information. Make the handbook available on the City's website by July 2027.

Program 13:

Community and
Economic
Development
 Conduct studies to identify the needs of disadvantaged communities.
 Apply for funding that focus on addressing distressed communities.
 At least every other year, apply for funding beyond the CIP for community development and revitalization projects such as infrastructure, neighborhood revitalization, parks, safe routes to school, community facilities, and pollution burden mitigation.

Establish funding policies to prioritize projects in disadvantaged communities.

End of 2026
Annually if
applicable
Districts 1, 2, 3, 5, 6 Develop a plan to address needs of disadvantaged communities by
the end of 2026.

City of Merced
Housing Plan

2024-2032 Housing Element G7-43
G7.3 AFFH Actions Summary
Government Code §8899.50 requires “meaningful actions” well beyond combating discrimination to overcome patterns of segregation and foster inclusive communities. Actions to affirmatively further fair housing include:
 Enhancing housing mobility strategies
 Encouraging development of new affordable housing in high resource areas  Increasing fair housing enforcement and fair housing outreach capacity  Improving place-based strategies to encourage community conservation and revitalization, including preservation of existing affordable housing
 Protecting existing residents from displacement
Actions to affirmatively further fair housing are summarized below.

G7.4 Quantified Objectives
Merced has established quantified objectives for housing production and rehabilitation for the Housing Element. These objectives are based upon expected availability of resources to address the City’s housing needs, expectations regarding future housing development, as well as prior objectives established in earlier housing plans. Table G7-1 below summarizes the City’s quantified objectives for implementing its various programs and actions outlined above.

Table G7-1 Quantified Objectives 2024-2032
Target Income and Affordability Level New Construction Rehabilitation Conservation1 Extremely Low 1,488 5 1,078
Very Low 1,055 10 1,068
Low 1,742 16 1,081
Moderate 1,838 – 50
Above Moderate 4,394 – 106
Total 10,517 31 3,383
1 Conservation units include units at-risk of converting to market-rate (233 units), HCVs (3,110 units), and weatherization (40 units).

Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032)

G7-44

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City Council/Public Finance and Economic Development Authority/Parking AuthorityJuly 20, 2026

City Council/Public Finance and Economic Development Authority/Parking Authority
July 20, 2026