Merced County Receives $30 Million for Affordable Housing Project

City Secures Funding for New Affordable Housing

Merced, CA — February 3, 2026 — The city of Merced has been awarded nearly $30 million in state funding to construct Mercy Village, a new affordable housing complex. This marks the fourth Home Key grant the city has received, and its largest award to date.

Project Details

Mercy Village will provide 66 affordable housing units for vulnerable populations, including veterans, the unhoused, and low-income individuals. The development is strategically located on the north side of Park Avenue, offering proximity to essential services such as medical facilities, schools, and grocery stores.

Community Impact

The project aims to address the rising housing costs and provide stable living conditions for those in need. Residents like Richard Bell, a veteran who recently returned to Merced, have expressed appreciation for such initiatives, highlighting the importance of community support in overcoming housing challenges.

Funding and Timeline

The state funding is part of the Home Key program, designed to support the creation of affordable housing across California. The construction of Mercy Village is expected to commence soon, with plans to open the new units in the fourth quarter of this year.

Sources

• Merced granted $30 million from state for another affordable housing complex