Yuba City planning commission recommends City Council approve Homekey-funded Merriman Village project

The Yuba City Planning Commission on Aug. 27 voted to recommend that the City Council rescind its earlier approval of Development Plan 23-02 and adopt the updated Development Plan 25-02 for Merriman Village Apartments, a 218-unit, income-restricted housing project proposed for 428 North Walton Avenue.

Development Services Director Doug Libby told commissioners that the project, sited on about 7.7 acres, would average 28 dwelling units per acre and be carried out in phases, with Phase 1 (Building 4, along Walton Avenue) containing 79 units. Libby said the project has a General Plan designation of high-density multi-family residential and an R-3 zoning district with an X overlay that requires a minimum of 20 units per acre; Merriman would exceed that minimum.

"This project is consistent with the general plan," Libby said, adding that the city had secured a Homekey grant of $24,600,000 for phase 1 and that Habitat for Humanity is working to close a remaining funding gap.

Nut graf: The commission’s recommendation asks the City Council to treat Merriman Village as a Homekey-funded, ministerial project under the cited Health and Safety Code provision and to find that CEQA discretionary review does not apply, which would allow the project to proceed without further environmental review at the local discretion level.

Libby explained the legal basis the staff report used: he cited a Health and Safety Code exemption for Homekey projects and related CEQA guidance, telling commissioners that those provisions make Homekey projects ministerial and exempt from discretionary CEQA review. He also said most of the conditions of approval from the council’s September 19, 2023 action would remain in place except for one condition tied to the prior code exemption that is no longer applicable.

Joseph Hale of Habitat for Humanity Yuba Sutter spoke during public comment, saying the project is intended to serve low-income families and individuals and that the Homekey exemption would reduce future reporting burdens. "A lot of what it does is the new CEQA exemption really is going to reduce a lot of future paperwork, reporting, and make it a lot easier on us once the project closes out," Hale said.

Commissioners heard basic design and site details: the tallest building (Building 4) would be four stories and approximately 46 feet tall, within the R-3 height limit cited by staff. The site plan includes on-site roadways, parking, curb and gutter, utilities, a perimeter wall (except along Walton Avenue), and four trash enclosures. Setbacks vary across the site: staff cited roughly 77 feet from property line for a three-story building in one location and smaller single-story setbacks elsewhere.

The staff report and Libby’s presentation listed local contributions and prior actions: the city previously approved a joint application with Habitat for Humanity and authorized a letter committing roughly $1,800,000 in development fee waivers and up to $155,000 per year from the city’s Permanent Local Housing Allocation (PLHA) to support the project. Libby also reviewed the project’s longer history, including a community workshop in February 2023, the council’s earlier approvals and the February 2024 notification that the Homekey application was selected for funding.

Formal action: a commissioner moved to adopt the resolution recommending the City Council rescind Development Plan 23-02 and approve Development Plan 25-02 as reflected in the staff report. The motion passed unanimously among the four commissioners present (Vice Chair Joe Hall was noted as excused). The commission did not record individual yes/no votes in the transcript beyond the roll call-style “Aye” responses; the clerk closed the public hearing and the motion was carried.

Commission staff also reported briefly on other affordable housing activity in the area. Development Services Director Libby said the Regional Housing Authority’s Richland Village — a 133-unit affordable multifamily development originally approved in January 2021 with extensions through January 2027 — now has full funding and may begin construction soon. Libby said the combined pipeline in Yuba City could mean about 351 new affordable units for the city by the end of the decade.

The commission’s recommendation will go to the Yuba City Council for final action. The planning commission also confirmed scheduling changes: the Sept. 10 meeting was canceled and three items are scheduled for Sept. 24, including a tentative subdivision map (Elmer West), a general plan amendment/rezone/planned development with tentative map for The Ridges, and an accessory dwelling unit (ADU) ordinance update to align with state law.