MERCED, Calif. [December 30, 2025] - The City of Merced is proud to announce that the California Department of Housing and Community Development (HCD) has awarded the Mercy Village project a Homekey+ Conditional Award totaling $28,257,013. This transformative investment will support new permanent supportive housing in Merced, developed in partnership with UP Holdings California, LLC and Self-Help Enterprises.
The Homekey+ award includes:
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Award Type
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Amount
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|
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Capital Award
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$26,454,012
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|
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Operating Award
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$1,203,001
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|
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Veteran Units Additional Operating Award
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$600,000
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|
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Total Award
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$28,257,013
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The City of Merced and its development partners are now working closely with HCD to complete all required documentation, including the formal Acceptance of Terms and Conditions of Conditional Award and the forthcoming Project Standard Agreement.
“Mercy Village represents a major step forward in expanding long-term affordable and supportive housing in our community,” said Mayor Matthew Serratto. “We thank HCD and the State of California for their continued investment in Merced and in solutions that help our most vulnerable residents.”
State leaders have emphasized that voter-approved Proposition 1 and programs like Homekey+ represent a critical investment in California’s most vulnerable communities, helping rebuild a coordinated system of housing, treatment, and support with measurable results already underway.
The City of Merced looks forward to working with HCD to coordinate any optional press event or in-person announcement. Local event requests will be submitted through HCD’s speaker request portal to ensure participation from state leadership.
For media inquiries, please contact:
Jennifer Flachman
Public Information Officer
City of Merced
(209) 564-0235
flachmanj@cityofmerced.gov