Merced second-guesses nonprofit that oversees homeless efforts, wants changes

The Merced City Council made a few decisions this week related to U.S. Department of Housing and Urban Development funding, which included a step toward booting the nonprofit that oversees homeless-related issues in the area.

The council asked city staffers to return to a future meeting with a resolution to express its lack of support for Urban Initiatives, a Pasadena-based nonprofit that oversees homeless efforts through the Merced County Continuum of Care.

The council voted 5-1 to put it on a future agenda. Councilman Noah Lor voted “no,” and Mayor Stan Thurston was absent.

The Merced County Association of Governments contracts with the nonprofit, which gets about $38,000 for the Continuum through Merced’s HUD funding.

“I’d like to see it go out to bid to someone who’s local,” said Councilman Tony Dossetti.

He went on to say the resolution should leave room for staying with Urban Initiatives but demand more from the nonprofit.

If passed, the resolution would inform the Merced County Association of Governments that the city no longer supports the nonprofit, according to the council’s request. The association would make the ultimate decision on the funding.

Earlier this year, the coalition of advocates in the Continuum of Care reported that nearly 900 people are homeless in the county, an increase of 17 percent from the same time last year. Leaders from the Continuum also said 232 people had been housed in the last half of 2014, and they expected the trend to continue.

Business owners and residents often complain to the council about panhandling and related issues that are visible downtown. Dossetti said it was unclear that the Continuum has helped to clean up downtown. “I am not happy with the Continuum of Care,” he said.

The council has toyed with moving the contract to a local nonprofit, but none has expressed a desire to immediately step into the role.

Lor, who opposed seeking a resolution, said the vote will just take the council down a dead-end road it’s already traveled. “If we pull it, do we have any other organization to step up to the plate?” Lor asked.

A resolution from the council would not be necessary to express displeasure with the nonprofit, city staffers said.

Councilman Mike Murphy said if the council disapproves of the nonprofit, the resolution could make that clear. “I just think a stronger message needs to be sent,” he said.

The city’s staff will bring the resolution to the council in the coming months.

Also during the meeting, the council unanimously approved the 2015-16 HUD Annual Action Plan.

The plan lays out how the city plans to use funds related to nonprofits and rehabilitation efforts that must fit a HUD-approved national objective. That means the activities must directly benefit low- and moderate-income people; aid in prevention and elimination of slums or blight; or meet an urgent need, such as flood, or other natural disaster, cleanup and repair.

Up to 15 percent of the dollars can be awarded to public services.

The funding for the Continuum remained in place with that vote.

This story was originally published May 4, 2015 at 8:46 PM with the headline "Merced second-guesses nonprofit that oversees homeless efforts, wants changes."