Report Prepared by: Kimberly Nutt, Housing Program Supervisor, Housing Division/Development Services Department
Title
SUBJECT: Approval of Subrecipient Agreements Using U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) Funds with the Dr. Jennifer M. Jones Foundation ($44,059), Harvest Time ($74,955), and Project Sentinel ($50,000) for the Respective Programs Approved with the 2025 HUD Annual Action Plan
REPORT IN BRIEF
Considers approval and authorization of Program Year 2025-26 Community Development Block Grant (CDBG) Subrecipient Agreements with Dr. Jennifer M. Jones Foundation for $44,059, Harvest Time for $74,955, and Project Sentinel for $50,000.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Subrecipient Agreement for the program identified in the 2025 Annual Action Plan using Fiscal Year 2025-26 CDBG funds with Dr. Jennifer M. Jones Foundation for the “Legacy Fund” program in the amount of $44,059; and,
B. Approving a Subrecipient Agreement for the program identified in the 2025 Annual Action Plan using Fiscal Year 2025-26 CDBG funds with Harvest Time for the “Food 4 You” program in the amount of $74,955; and,
C. Approving a Subrecipient Agreement for the program identified in the 2025 Annual Action Plan using Fiscal Year 2025-26 CDBG funds with Project Sentinel for the “Tenant-Landlord Counseling” program in the amount of $50,000; and,
D. Authorizing the City Manager to execute, and if necessary, direct staff to make non-material modifications to the agreements described above and as attached, and all associated documents and exhibits.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; or,
3. Deny; or,
4. Refer to City staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Section 200 of the City of Merced Charter adopted City of Merced 2025 HUD Annual Action Plan, and Title 24 of the U.S Code of Federal Regulations, Part 570 (the HUD regulations concerning the governance and use of CDBG funds).
CITY COUNCIL PRIORITIES
2025-26 Council Goals and Priorities in general support of community servicing, housing and homelessness prevention, and quality of life.
DISCUSSION
Housing Division staff requests the approval and execution of three subrecipient agreements for programs that were awarded HUD CDBG funding by the City Council with approval of the 2025 Annual Action Plan (PY2025 AAP).
The subject programs with Dr. Jennifer M. Jones, Harvest Time, and Project Sentinel may have already been implemented by each organization, in order to provide City residents with seamless and necessary services. Approval and final execution of the agreements will enable any eligible costs that may have been incurred since July 1 to be reimbursed back to the organizations.
Associated Activity Delivery Costs (ADC) amounts based on the Housing Division’s direct staff hours spent on program implementation and management are also relevant to these agreements. ADC is separately charged in cooperation with the Finance Department.
Dr. Jennifer M. Jones Foundation - “Legacy Fund” Program
The Dr. Jennifer M. Jones Foundation is a 501(c)(3) non-profit charity organization and will be using CDBG funds to expand their current “Legacy Fund”, which includes Enhanced Care Management (ECM) and Community Support Services to Medi-Cal recipients through a partnership with Central California Alliance for Health. The program benefits homeless and at-risk individuals and families who are Merced residents.
CDBG funds in the amount of $44,059 will be used to reimburse the organization for payments made to electric utility providers and landlords for up to a maximum of three consecutive months of gas/electric utilities and/or rental housing fees, including all arrears that have become overdue and are putting the resident at risk of homelessness or loss of gas/electricity services, or both. Case management services will also be provided to clients, which will assist them in overcoming personal and logistical barriers to housing. Funds may also be used to reimburse staffing, liability insurance, and transportation/mileage costs.
Harvest Time - “Food 4 You” Program
Harvest Time is a 501(c)(3) non-profit organization that operates as a food bank/food distribution program out of a local church, Calvary Assembly of God, located at 1021 R Street in Merced, and whose mission is that people should have access to food that nourishes the mind, body, and spirit. The program benefits homeless and food insecure low to moderate income individuals and households within the City of Merced.
CDBG funds in the amount of $74,955 will be used to reimburse the organization for eligible costs for staff hours and payroll costs spent on the program, supplies necessary for food distribution, electric and gas utilities for refrigeration, mileage costs for food pickup and delivery, and liability insurance.
Project Sentinel - “Tenant/Landlord Counseling” Program
Project Sentinel is a 501(c)(3) non-profit organization that was founded in 1971 and is now the largest agency of its type - corporate, educational, labor, and community fair housing advocacy - in Northern California, serving approximately 3.5 million people in total, including Merced residents with its fair housing discrimination protection services (separate from the proposed agreement).
CDBG funds in the amount of $50,000 will enable reimbursement of eligible costs that have been incurred during delivery of tenant/landlord conciliation and mediation services and education materials to City residents, including staff hours spent on the program and certain fringe benefits, supplies, publications/printing/postage, mileage, and other allowable costs incurred during delivery of the program to City residents.
Environmental Clearance
As required, Housing staff has completed all National Environmental Policy Act (NEPA) clearances necessary to allow Federal funds to be committed and spent on each of the projects.
IMPACT ON CITY RESOURCES
None of the subject agreements involve General Funds. They are CDBG fund subgrants allocated in the current year budget (Fiscal Year 2025-26), and funds are available within Account 511038 (Community Support).
HUD distributed the allocated CDBG funds to the City in January 2026 after their approval of the Consolidated Plan and first year 2025 Annual Action Plan and the signing of necessary agreements and certifications with the City.
The receipt of HUD funds has occurred much later than usual due to a series of delays on the federal side, including Congressional shutdowns, HUD staffing cuts, and internal processing changes. The 2025 Annual Action Plan was submitted to HUD for approval on August 13, 2025.
ATTACHMENTS
1. PY2025 Subrecipient Agreement - Dr. Jennifer M. Jones Foundation
2. PY2025 Subrecipient Agreement - Harvest Time
3. PY2025 Subrecipient Agreement - Project Sentinel