Report Prepared by: Erica Stafford, Housing Program Specialist II, Housing Division/Development Services Department
Title
SUBJECT: Approval of Community Development Block Grant Program (CDBG) Subrecipient Agreements with Harvest Time ($63,539), Project Sentinel ($43,875), and Merced County Human Services Agency ($50,000), Consistent with the Respective Programs Previously Approved by the City Council in the U.S. Department of Housing and Urban Development (HUD) 2026 Annual Action Plan
REPORT IN BRIEF
Considers approval and authorization of Program Year 2026-27 Community Development Block Grant (CDBG) Subrecipient Agreements with Harvest Time ($63,539), Project Sentinel ($43,875), and the Merced County Human Services Agency ($50,000).
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Subrecipient Agreement for the program identified in the 2026 Annual Action Plan using Fiscal Year 2026-27 CDBG public service funds with Harvest Time in the amount of $63,539 for the “Food 4 You” Program; and,
B. Approving a Subrecipient Agreement for the program identified in the 2026 Annual Action Plan using Fiscal Year 2026-27 CDBG public service funds with Project Sentinel for the “Tenant-Landlord Counseling” program in the amount of $43,875; and,
C. Approving a Subrecipient Agreement for the program identified in the 2026 Annual Action Plan using Fiscal Year 2026-27 CDBG administrative funds with Merced County Human Services Agency as the Administrative Entity for the Merced County and City Continuum of Care “Point in Time Count” project 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 2026 HUD Annual Action Plan; and Title 24 Part 570 of the U.S Code of Federal Regulations, the HUD regulations concerning the governance and use of CDBG funds.
CITY COUNCIL PRIORITIES
As provided for in the 2026-27 Adopted Budget.
DISCUSSION
Housing Division staff requests the approval and subsequent execution of three subrecipient agreements for programs that were awarded HUD CDBG funding by the City Council with approval of the 2026 Annual Action Plan on June 1, 2026.
The subject programs with Harvest Time, Project Sentinel, and Merced County Human Services Agency may have already been implemented by each organization, in order to provide City residents with seamless and necessary services. Approval and execution of the agreements will enable any eligible costs that may have been incurred since July 1, 2026, the start date of the program year, to be reimbursed back to the organizations.
Harvest Time - Food 4 You Program
Harvest Time is a 501(c)(3) nonprofit organization that operates as a food bank/food distribution program on property owned by a local church, Calvary Assembly of God, which is located at 1021 R Street in Merced. Harvest Time’s 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 who reside within the City of Merced.
The City Council awarded $63,539 of CDBG funding to Harvest Time with approval of the 2026 Annual Action Plan.
Funds will be used to reimburse the organization for eligible costs for staff hours spent on the program, supplies necessary for food distribution, electric utilities for cold storage, mileage costs for food pickup and delivery, and required insurances.
Project Sentinel - Tenant/Landlord Counseling Program
Project Sentinel is a 501(c)(3) nonprofit 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).
The City Council awarded $43,875 of CDBG funding to Project Sentinel with approval of the 2026 Annual Action Plan.
Execution of the agreement will enable reimbursement of eligible costs that have been incurred during delivery of tenant/landlord conciliation, mediation, and education services 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.
Merced County Human Services Agency - Merced City and County Continuum of Care
The Collaborative Applicant is the business entity of the Merced City and County Continuum of Care (CoC) Program through the Merced County Human Services Agency (HSA). The CoC is a group of governmental agencies and nonprofit organizations that work to prevent and reduce homelessness through the county region, including within the City of Merced City limits. The Collaborative Applicant, overseen by the HSA, is responsible for ensuring implementation of CoC programs and activities.
The majority of the County’s homeless population lives within the city limits, both sheltered and unsheltered. On its own, the City of Merced lacks the vast resources needed to strategize for and combat the homelessness crisis within its jurisdictional boundaries - thus, the City’s partnership with and fiscal support of the Human Services Agency staff, through sharing of administrative costs and funding, is vital for planning and data collection activities aimed at addressing the needs of homeless City residents.
The City Council awarded $50,000 of CDBG funding to Merced County Human Services Agency with approval of the 2026 Annual Action Plan.
The Collaborative Applicant/HSA will be provided administrative support for:
1. Assisting in planning, administering, and collaborating between County-wide agencies to coordinate resources that address homelessness.
2. Sharing the cost of necessary actions that will properly ensure data-gathering and reporting goals are met, including, but not limited to, preparing and completing the Annual Grant Inventory Worksheet, the Annual Homeless Point in Time Count, Housing Inventory Count, and the Annual Homeless Assessment Report.
Federal 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
All three agreements do not involve General Funds. They are CDBG fund subgrants allocated in the current year budget (Fiscal Year 2026-27), and funds are available within Account 511038 (Community Support) and Account 511012 (Professional Services).
ATTACHMENTS
1. Draft PY2026 Subrecipient Agreement - Harvest Time
2. Draft PY2026 Subrecipient Agreement - Project Sentinel
3. Draft PY2026 Subrecipient Agreement - Merced County Human Services Agency