Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
Merced council backs $1.8 million HOME commitment to boost Link Housing senior project
Summary
The Merced City Council unanimously approved a commitment letter reserving roughly $1.8 million in HOME funds to improve Link Housing’s competitiveness for state tax credits on a proposed 54‑unit senior development on I Street. The funding is a reservation, not immediate disbursement, and staff noted a 2029 federal expenditure deadline for the HOME funds.
The Merced City Council voted unanimously April 6 to approve a commitment letter reserving about $1.8 million in HOME funds to help Link Housing secure state tax credits for a proposed 54‑unit senior housing project on I Street.
City staff and the developer described the commitment as a funding reservation designed to improve the project’s “tiebreaker” score in the tax‑credit competition, not a current transfer of cash. City Manager Kim McBride told the council the letter provides the state with proof the city has set funds aside to support the application, which could be decisive for an award that would enable construction.
Joey Shields, senior project manager with Link Housing, told the council the project has secured other grant commitments —“approximately $800,000 from the Federal Home Loan Bank of San Francisco and another $3.4 million from the Central California Alliance for Health” — and that the city’s commitment would “help boost the tiebreaker” that can determine tax‑credit awards. He said construction would begin “in late 2026, early 2027” if credits are awarded, and the team will reapply in future rounds if necessary.
Council members asked how the funds are structured and why this project was the selected candidate. Staff explained the HOME dollars come from HUD allocations the city has held since 2021 and that projects must be “ready” to meet federal expenditure deadlines (first year 2029) to be competitive. Staff said this commitment is intended to preserve the city’s use of those years’ funds and improve the project’s chance of winning tax credits.
Council Member Smith said she supported taking the step so the city would not risk losing the HOME allocation. The motion to approve the commitment letter was moved by Council Member Harris, seconded by Mayor Pro Tem Tim Bole, and passed unanimously.
What happens next: Link Housing will continue applying for tax credits and other funds; if awarded, the commitment letter bolsters financing and the city may later bring specific funding actions back for final appropriation and any required loan or grant agreements.
