Formula Grant M25MC060227

The City of Merced received a formula grant award of $447,510.24 from the U.S. Department of Housing and Urban Development (HUD) under the Home Investment Partnerships Program (HOME, CFDA 14.239), effective January 13, 2026, with a completion date of September 30, 2034. This funding supports the expansion of affordable housing supply for low- and very low-income households in Merced, California through eligible HOME activities including rehabilitation of owner-occupied housing, homebuyer assistance, acquisition and construction of rental housing, and tenant-based rental assistance.

Under the HOME program, the City of Merced is required to deploy these funds in compliance with HUD's income targeting and affordability requirements, ensuring that assisted housing units remain affordable to low-income households for a period of 5 to 20 years depending on the activity type and funding contribution level. The city may undertake housing projects directly or distribute HOME funds to developers, nonprofit organizations, and other community partners to achieve program objectives. As a participating jurisdiction, Merced must submit annual action plans to HUD detailing fund deployment strategies and maintain comprehensive records documenting compliance with program requirements for the duration of the grant period.