Merced awarded $31 million from state to help build new affordable housing
Merced officials say the city has been awarded more than $31 million by the state to help build affordable housing that will include 264 new multifamily homes for individuals and families.
According to a city news release, the funds are from the Department of Housing and Community Development in the first round of Multifamily Finance Super Notice of Funding Availability awards.
“We thank Governor (Gavin) Newsom and HCD for this investment,” City Manager Stephanie Dietz said in the release.
“This funding, along with the accompanying streamlined approval process, eliminates the need for multiple housing applications, allowing the city to focus on efficient solutions for the development of affordable housing in our community.”
“As we demand more housing to be built at the local level, it is incumbent upon the state to re-imagine and modernize our own approval process,” said Governor Newsom. “State applications that were once redundant, and overly bureaucratic are now streamlined to ensure projects are not stalled in an endless bureaucracy that favored process over production.”
Some of the housing projects who will benefit include:
Bella Vista - A 108-unit project at 1808 Parsons Ave. that will offer 1–4-bedroom units with an onsite manager. Units will be available to individuals and families with incomes equal to or less than 60% of the area median income.
The project consists of $25 million of HCD funding, $5.2 million of city matched funds, $28.5 million in tax credits, and $1.6 million in a private equity loan for a total project cost of $60.5 million, the release said.
Devonwood Apartments - A 156-unit project on Devonwood Drive that will offer 123 units for individuals and families and 31 units for special needs individuals and families.
The project is funded by $6.5 million in city matched funds, a $6.5 million allocation from Housing and Community Development Program, $44.1 million in additional federal and state funding, and $16.8 million in tax credits for a total project cost of $73.9 million, the release said.
“California continues to advance our commitment to building 2.5 million homes – with one million affordable homes – by 2030, as outlined in our Statewide Housing Plan,” said HCD Director Gustavo Velasquez said in the release.
“Our simple approach to funding helps us accelerate much-needed construction and ensure the lowest-income Californians have access to quality homes near jobs, transit, schools, and other necessities that will make our communities more inclusive for decades to come.”
“The California Multifamily Super NOFA transformed a once burdensome and lengthy funding application process into an accessible and smart one-stop shop that will get more housing built faster,” Lourdes Castro Ramírez, Business, Consumer Services and Housing Agency secretary, said in the release.
“This results in new homes for struggling working families, veterans, farmworkers, and people exiting homelessness. California will continue to act with urgency to find new, innovative solutions to fast track housing development.”