‘It’s an enormous deal.’ Merced getting $24M to renovate hotel, provide housing for homeless

Gov. Gavin Newsom’s office announced Wednesday the City of Merced is set to receive $24 million to help provide housing for people experiencing — or at risk of experiencing — homelessness.

The money — one of the biggest homeless grant awards the city’s ever received — is from the latest round of the state’s Project Homekey funding, according to a news release.

The city will use the money to acquire and rehabilitate an existing motel at 1213 V Street with 96 studio units, including a manager’s unit.

Merced Mayor Matthew Serratto called the latest funding an “enormous deal” for addressing homelessness in the city. As of last year, the city had around 224 homeless residents.

Although details of the project are being worked out, Serratto hopes the funding will help take a big chunk out of that number. “If we can get (the number of homeless people) down to 100, that would make an enormous difference,” Serratto said.

Serratto said having services at the site will also be key to helping participants become successful — resources like on-site management, job training and mental health outreach. “Hopefully people can start getting back on their feet so they can be self-sufficient,” Serratto said.

Assemblyman Adam Gray, D-Merced, said the funding is the culmination of years of work toward addressing homelessness in the region. “This is a tremendous win for Merced and will get people into permanent supportive housing and of the streets,” Gray said in a City of Merced news release.

The City of Merced will contribute $1.69 million in local funds from the City Council’s Affordable Housing Set-Aside. “We are fortunate to have collaborative partnerships involved in these essential developments that offer shelter and supportive services to individuals living on the streets,” said Merced City Manager Stephanie Dietz, in the release.

The project will provide permanent supportive housing to homeless and chronically homeless households with incomes equal to or less than 30 percent of Area Median Income, according to the news release.

Fifteen units will be accessible for those with mobility disabilities. Each unit will be furnished and pre-wired for cable and internet access.

Off-site amenities located within one-half mile of the project include a public bus stop, grocery store, health facility, and pharmacy.

There will be several partnerships with providers to provide an array of supportive services to tenants, including the on-site case management.

Project collaborators include UP Holdings California, LLC., RH Community Builders, LP, Merced County Human Services Agency, Merced County Housing Authority, and Merced County Continuum of Care, according to the release.

Other projects in the works

It’s not the first time the state has awarded Project Homekey funds to the city.

Earlier this month it was announced the City of Merced would receive $4.42 million in Project Homekey funds to build 21 units of permanent supportive housing for veterans experiencing chronic homelessness, the release said.

The city will partner with local groups to construct the homes at South R Street near Childs Avenue in Merced’s District 2.

The latest funds for Merced are among $136.6 million in awards for 10 new Homekey projects across California, according to the release.

Those 10 projects combined are expected to provide 488 housing units.

Since the announcement of $2.75 billion in new funding to scale Project Homekey in September 2021, the state has so far approved projects that, when completed, will create nearly 3,000 housing units for Californians most in need of a place to call home.

The state has funded 49 projects statewide so far this year, for a total allocation of approximately $830 million, the release said.

This story will be updated

This story was originally published March 30, 2022 at 10:40 AM.