Merced blocks homeless housing project

City leaders denied a homeless-services project in Merced on Monday, essentially quashing it, according to the developer.

The City Council voted 5-2 on Monday to block a zoning change that would have allowed the 41 units of permanent supportive housing to move forward at 205 16th St. Councilmen Michael Belluomini and Noah Lor cast the votes to allow the zone change.

The year-old Merced Community Development Corp. applied in March for approval of the $6.5 million project called Esperanza, the Spanish word for “hope.” The project looked to provide housing to the most fragile of Merced’s homeless, as well as access to supportive services, according to developer Daniel Kazakos.

“I’m thoroughly disappointed,” Kazakos told the Sun-Star. “I understand their arguments. ... I did not feel like this was a bad location for the project.”

Detractors of the project said it would have been too close to downtown businesses and area schools. Cindy Morse, president of the Downtown Neighborhood Association, said the project was moving too fast and had not identified its funding sources.

“Funding should be the first item a developer checks off his list,” she said.

The developer said the project needed approval, such as the zoning change, before he could solidify its funding. He had pointed to low-income tax credits, housing vouchers, grants and cap-and-trade dollars as potential funding sources.

While the association, also called DNA, and several members of the council questioned the project’s location, several local residents spoke in favor of the project, which also had plans for a clinic and community center on site.

The city of Merced has 218 people living on the streets, according to a January tally.

Javier Fuentes, a 20-year resident of Merced, said the city needed to jump at an opportunity to deal with the city’s homeless issues. “This is an opportunity where investors are making an effort,” he said.

The project would not have used city or county dollars, according to the developer.

Detractors also noted that the facility would have been for-profit. But supporters argued the real issue was a “NIMBY” reaction – “Not in my back yard.”

Gloria Sandoval, a Merced resident, said a homeless project doesn’t need to come from a nonprofit to be worthwhile. “(It) is honorable even if it is a business,” she said.

This story was originally published June 7, 2016 at 5:23 PM with the headline "Merced blocks homeless housing project."