Report Prepared by: Kimberly Nutt, Housing Program Supervisor, and Erica Stafford, Housing Program Specialist, Housing Division/Development Services Department
Title
SUBJECT: Report and Adoption of a Resolution Approving the U.S. Department of Housing and Urban Development (HUD) Consolidated Annual Performance and Evaluation Report (CAPER) for Program Year 2024-25 and Authorizing Submittal of the CAPER to HUD
REPORT IN BRIEF
Review and approve Housing Division activities as reported in the Draft 2024 Consolidated Annual Performance and Evaluation Report (CAPER) and authorize its submission to HUD.
RECOMMENDATION
City Council- Adopt a motion:
A. Adopting Resolution 2025-57, a Resolution of the City Council of the City of Merced, California, approving the 2024 Program Year Consolidated Annual Performance and Evaluation Report (CAPER); and,
B. Authorizing the City Manager to execute and, if necessary, direct staff to make minor modifications to, the above referenced items and all associated documents as attached to this report; and,
C. Authorizing the Finance Officer to make necessary budget adjustments, if any.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to modifications as specified by Council; or,
3. Refer back to staff for reconsideration of specific items as requested by Council; or,
4. Continue item to a future Council meeting that is prior to the HUD required submittal deadline of September 28, 2025 (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Sections 405, 409, 411, and 412 et seq, and Pursuant to 24 CFR 91.520 (Performance Reports) et seq.
CITY COUNCIL PRIORITIES
As provided for in the 2024-2025 City of Merced Adopted Budget.
DISCUSSION
Staff is requesting that the Council consider approving the Program Year 2024 CAPER and authorize its submission to HUD by the due date of September 28, 2025.
Background:
Each year, the City of Merced prepares an Annual Action Plan for submission to HUD, and at the end of each year, prepares a CAPER report to assess efforts made over the course of the program year. The City's annual program years with regard to HUD funding aligns with the City's fiscal year, running from July 1, 2024 through June 30, 2025. The framework for the 2024 Annual Action Plan finds its roots in the 2020-2024 Consolidated Plan.
On a yearly basis, the City Council is asked to approve the CAPER report and the submission of the report to HUD after holding the required public meeting prior to the report being prepared and after making the initial draft of the report available to the public to review and provide comment.
The CAPER describes the results of the activities and expected accomplishments identified in the previously adopted 2024 HUD Annual Action Plan, providing an assessment of these activities, a summary of actual funds spent, and outcomes achieved. The CAPER is generally viewed as a report card for how the City performed in executing its previous year's Annual Action Plan and how the Annual Action Plan followed the 2020-2024 Five-Year Consolidated Plan. In addition, the CAPER catalogs additional activities that are funded through the Housing Division and provides staff an opportunity to highlight changes and improvements to the program that occurred over the course of the year.
The Housing Division used the following grant funding sources during the last year in working to achieve the community's housing and community development goals:
1. Community Development Block Grant (CDBG) - Federal/HUD
2. HOME Investment Partnership Program (HOME) - Federal/HUD
3. Community Development Block Grant Coronavirus (CDBG-CV) - Federal/HUD
4. American Rescue Plan HOME Investment Partnership Program (HOME-ARP) (Administrative Funds only) - Federal/HUD
5. State and Local Fiscal Recovery Funds - American Rescue Plan Act (SLFRF-ARPA)
6. California Housing and Community Development (HCD) CalHome Program - State
7. Program Income (generated from loan payoffs and property resales that originated from Federal and State funding sources)
The common goal of these programs is to make Merced a more livable community for all citizens and to guide funding to activities that help meet that goal. Significant resources are used to assist individuals and families in retaining and enjoying decent, safe, and affordable housing. Other community development efforts have targeted job, financial, and life skills training, food/nutrition programs, public improvements and neighborhood facilities, and economic development.
The 2024 Annual Action Plan underwent one substantial amendment process during the program year to allocate $60,327.87 of unanticipated 2024 Program Year program income and a total of $221,867.37 comprised of reallocations of disencumbered CDBG Prior Year Resources and previous Activity Delivery Costs, to the 2023 program year K/13th Street/Hwy 59 Water-Sewer Main & ADA Improvement Project. The amendment approval also formally confirmed the award of CDBG funding in the amount of $586,381 to Sierra Saving Grace Homeless Project, for acquisition with rehabilitation of a 1-4 unit property within the Merced city limits, as was preliminarily approved with the original 2024 Annual Action Plan approval in August 2024.
Description:
There have been some notable accomplishments from the 2024-25 year, which include:
1. During the 2024-25 program year, the Housing Division received $101,882.31 of HOME program income that will be re-invested back into affordable housing projects. At the beginning of the year, the estimated amount to be received was $60,000.
2. Through HOME administrative funding of $33,552, Project Sentinel, Inc. provided fair housing services to a total of 78 residents through intake and referral calls and distributed 854 educational material via outreach efforts.
3. The Housing Division granted a total of 7 projects and public services programs by the end of the program year, with 1 project withdrawing their funding request, and 2 projects implemented by the awarded organizations on good faith and are currently awaiting contracts and/or expense reimbursements.
4. Sierra Saving Grace provided $51,430.65 in CDBG funds to provide rental/mortgage/utility assistance to 36 low-moderate income residents that were at risk of homelessness due to the potential for eviction.
5. With its $586,381 CDBG funds, Sierra Saving Grace successfully acquired and rehabilitated an existing residential property, converting market rate housing to low-moderate income affordable and permanent supportive housing while relieving the surrounding neighborhood from its previous blighted condition. This property is 2-units and will house 2 families.
6. Harvest Time used $39,994.60 in CDBG funds to provide a food distribution service to low-moderate income and homeless residents. Through the year, they distributed: 5,497 pounds of food to residents, 1,513 lunches to homeless residents in partnership with Merced Rescue Mission, and provided 401 family food boxes.
7. Project Sentinel used $25,000 in CDBG funds to administer a tenant/landlord counseling service for low-moderate income City residents. During the year, a total of 191 residents were assisted, 107 unduplicated calls were taken, 16 cases were opened, and 3,750 total pieces of outreach material was distributed.
8. Lifeline CDC used $19,997.05 in CDBG funds to provide an afterschool support/job training center for Loughborough area low-moderate income families. A total of 1,066 residents were provided emergency food bags, resume preparation, and job search assistance. An average of 15 youth were provided 830 hours of direct youth engagement. Lifeline also provided Loughborough area residents with tax return preparation assistance and helped bring $138,108 back into the Loughborough community through tax refunds.
Public Outreach/Citizen Participation:
The City is required to meet its adopted Citizen Participation Plan (CPP) requirements for the annual CAPER process and dissemination of information to the Public.
The Housing Division held a public meeting on August 7, 2025, from 5:30-7:30 p.m. in the Sam Pipes Room in the Merced Civic Center. At the meeting, accomplishment and expenditure information was provided about programs that had been completed during the year. One member of the public attended.
A 15-day Public Review and Comment Period was held from August 11 to August 25, 2025. The Draft 2024 CAPER was posted on the Housing Division webpage and was available for viewing in person at the Housing Division office, as well as available to be emailed directly to requestors. The City received no comments on the CAPER during the public comment period.
Public notices were published in English, Spanish, and Hmong languages on July 31, 2025, in the Merced County Times and on July 27, 2025, in the Merced Sun-Star. The notices were posted on the Housing Division's Federal Public Notices webpage and at City Hall. The notices advised residents of the public meeting, the 15-day review and comment period, and advised the public of the Council meeting for which the report was scheduled for approval.
A public hearing is not required per the adopted CPP prior to approval of the CAPER, but Council may choose to accept public comment prior to their approval action.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed.
ATTACHMENTS
1. Draft 2024 CAPER Report
2. Draft Resolution 2025-57
3. Presentation