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Yuba City to co-apply for Homekey Plus funds to back Merriment Village Phase 1
Summary
The City Council authorized the city to be a co-applicant with Habitat for Humanity on a Homekey Plus application that would seek up to $10 million to backfill financing and support operating costs for Merriment Village Phase 1, a 79-unit affordable housing project under construction at 428 N. Walton Avenue.
YUBA CITY — The City Council on July 7 voted unanimously to authorize a joint application with Habitat for Humanity for Homekey Plus funding to support Merriment Village Phase 1, a 79‑unit affordable housing project now under construction at 428 North Walton Avenue.
Development Services Director Doug Libby told the council the project previously received a Homekey award of $24,600,000, with about $22,600,000 allocated for construction. Libby said Habitat is eligible to apply for up to $10 million in additional Homekey Plus funds to eliminate the developer’s reliance on a private line of credit and to help cover early operating costs once the building is occupied. "Habitat has learned recently that it is eligible to apply for Homekey Plus funding, to support Merriment Phase 1," Libby said.
Libby told the council the city would not be asked to provide additional general‑fund support but would act as a co‑applicant, which carries joint financial responsibility for the grant award and would require contractual amendments if the award is made. He said any such agreements would be brought back to the council for approval.
Council members asked whether the Homekey Plus application would be used to add new units or only to support the Phase 1 building under construction. Libby said the current application would support Phase 1 only; a separate Phase 2 application previously authorized by the council remains separate.
Mayor and council members expressed support for re‑engaging an ad hoc committee to check in on project status and construction coordination with Habitat and the contractor. Councilmember Shaw moved to adopt a resolution authorizing the joint application; the motion was seconded and passed unanimously.
What’s next: If the state awards Homekey Plus funds, staff said the council would need to approve any contract amendments and associated assurances before the city accepts the grant.
