Merced housing crisis: Leaders approve project to help veterans, plans to increase volume

From unsheltered veterans to students desperately seeking homes within their budget, city leaders this week made moves to alleviate housing stress upon Merced’s vulnerable residents.

The Merced City Council considered the new projects and policy updates aimed at addressing Merced’s long-standing housing difficulties during Monday’s meeting. Each were unanimously supported by the Council.

Continuing efforts spurred nearly a year ago last September, city leaders adopted another set of policy changes intended to streamline housing production.

The policy adjustments unanimously approved by the Council will generally allow developments more flexibility in design and increase efficiency for prospective developers, according to city staff.

Merced Director of Development Services Scott McBride noted progress made since September, as well as ongoing work to further facilitate a variety of development. “This goes a long way to do that,” he said of the new changes approved by the Council Monday. “This isn’t the entirety of the updates that need to be done.”

The relatively simple changes are part of a larger initiative slated to kick off in the coming months that will include major updates to the city’s general plan and zoning ordinance to address those policies. Those updates will also be targeted toward promoting increased housing production and commercial development.

Changes adopted by Monday include reforms to the city’s zoning ordinance involving duplexes, the level of review required for various land uses in commercial zoning districts, density requirements for residential uses in commercial districts, the minimum size and design standards for residential planned developments, residential design standards and more.

Merced Downtown Neighborhood Association President Diana Odom Gunn voiced her organization’s approval for the proposed changes prior to the Council’s vote.

“Residents are happy with more flexibility,” she said. “We are supportive of the changes.”

A complete list of policy updates can be found in Monday’s City Council documents.

Housing projects target unhoused veterans, students

Merced leaders also green-lit several projects that aim to dismantle housing hurdles for vulnerable residents.

One affordable housing development approved Monday is geared toward sheltering unhoused veterans. Affordable units have costs fixed so that lower-income occupants spend no more than 30% of their income on housing.

The project is on track to use container units to home roughly 20 unsheltered veterans and includes permanent supportive services assisted by the Veterans Administration and the Merced County Rescue Mission, according to the city.

Plans for the development show four apartment units and an accessory dwelling unit, as well as one on-site manager’s unit. The project will include a total of 22 beds and baths.

The homes are expected to open to residents sometime this fall or winter, McBride said.

Located on the west side of R Street, south of Childs Avenue, the project is slated to provide permanent supportive housing to tenants whose income is less than 30% of the area median income.

Permanent supportive housing refers to housing intervention that combines rental assistance with supportive services such as health and mental health care for chronically homeless households, according to the city.

The units will be targeted toward aiding chronically unsheltered individuals ⁠— specifically homeless veterans who may fall in the acutely low and extremely low income levels. According to the project’s stipulations, the units will remain affordable for at least 55 years.

The homes will be developed by CC915 Merced, Inc., formerly Custom Containers 915, and partner with with the Merced County Rescue Mission for on-site management and other services.

A grant of $4.2 million was awarded to help fund the project by the California Department of Housing and Community Development’s Homekey Program.

In a bid to reduce the city’s student housing woes, Merced leaders this week also approved preliminary steps to build 900-plus housing units near UC Merced. At least 12.5% of those homes will be affordable, if the project comes to fruition.

Often cited as a “crisis” by city leaders, the scarcity of housing within an average student’s budget was made clear last year when UC Merced was forced to delay the first day of in-person classes. Roughly 1,000 students were still struggling to secure homes less than a month before the start of the school year.