City of Merced Secures $31 Million in State Funding for Affordable Housing  

City Manager Stephanie Dietz today announced that Merced has been awarded more than $31 million in funding from the California Department of Housing and Community Development (HCD) in the first round of Multifamily Finance Super Notice of Funding Availability (Super NOFA) awards. 

This award will provide funding to support construction of affordable housing projects to offer approximately 264 new multifamily homes for individuals and families. 

Bella Vista - A 108-unit project at 1808 Parsons Avenue. Bella Vista will offer 1–4-bedroom units with an onsite manager and will be available to individuals and families with incomes equal to or less than 60 percent of Area Median Income (AMI). Visionary Home Builders of Stockton is the affordable housing developer. https://visionaryhomebuilders.org/

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. 

Devonwood Apartments - A 156-unit project on Devonwood Drive. The complex will offer 123 units for individuals and families and 31 units for special needs individuals and families. The Richman Group | America's 7th Largest Rental Apartment Owner

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. 

“We thank Governor Newsom and HCD for this investment,” stated City Manager Stephanie Dietz. “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 reimagine 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.”

“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. “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,” said Business, Consumer Services and Housing Agency Secretary Lourdes Castro Ramírez. “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.”