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

Thursday, January 1, 2026
MERCED, Calif. (KFSN) -- The city of Merced received nearly $30 million to build more affordable housing.

This marks the fourth Home Key grant the city has received, and its largest award to date.

Richard Bell sacrificed everything to serve our country. He served two tours in the Air Force and was deployed overseas.

After living out of state for some time, he found himself moving home to the North Valley.

With rising housing costs and trying times, his options were limited.



"Coming back to California in about a year, it seems like everything financially has gone up," he said. "Everything was very expensive, and I wasn't in a position to put down all the money to get an apartment. This was offered to me when I went into the veteran's office, so I accepted it."

Bell is one of the veterans who lives at a Home Key housing complex in Merced.

Each unit is affordable and uniquely made of transformed shipping containers.

It's a lifeline for many who otherwise would've been on the streets.

For Bell, it's peace of mind, a temporary home as he finds his footing.



"There were a lot of homeless people on the street, and my heart went out to them. I thought perhaps this was just a shelter, but they convinced me differently. They were right, it's very nice. It's about time. It's a good effort, and it serves the community well," says Bell.

The City of Merced just received a new Home Key grant, this time over $28 million to build another similar development to the one Bell lives in.

This time, it's not just for veterans, but also the unhoused and low-income.

The project, Mercy Village, will offer 66 affordable units for some of the most vulnerable.

"It's hard to see people struggling, so it matters to our local government. It matters to our citizens to try everything we can to build more affordable housing," says Leah Brown, Management Analyst, City of Merced.



Similar affordable properties have been built over the last several years across the city.

This brand new one will be the fourth paid for through state Home Key funding. It's to be built in a prime location on the north side of Park Avenue.

"Close to services, close to bus lines, close to medical pharmacy, schooling and grocery stores. It's right in the hub, so it's a great location up there on Park Avenue," says Brown.

Amid the state's housing crisis, this new funding could be the helping hand for heroes like Richard and many more across Merced.

"When I came back, I did not have a plan, so this was an easy option for me. I could see there are a lot of people there and soon, they're homeless. They should take the help because it does help," says Bell.

For news and weather updates, follow Brisa Colon on Facebook, X and Instagram.
Copyright © 2026 KFSN-TV. All Rights Reserved.