Construction continues at Merriment Village Apartments, located at 428 North Walton Ave. in Yuba City. The development recently received $40.6 million in state funding for its second phase, which will add 138 affordable homes. Photo by Shamaya Sutton

YUBA CITY, CA (MPG) - Habitat for Humanity of Yuba/Sutter and the city of Yuba City have received a $40.6 million state award to support the development of 138 new affordable homes, including housing specifically designated for veterans experiencing homelessness.

The funding, announced Oct. 26, was awarded through California’s Homekey+ program and will support the second phase of Merriment Village Apartments, an affordable housing development located at 428 North Walton Ave. in Yuba City. The latest award of $40,599,999 brings the state's total investment in Merriment Village Apartments to more than $65.2 million, following a previous allocation of $24.6 million for the project's first phase.

Merriment Village Apartments Phase II will consist of 138 homes spread across four buildings, with 70 units reserved for veterans experiencing homelessness who also face behavioral health challenges. In addition to providing affordable housing, the development will offer on-site supportive services and property management intended to help residents maintain long-term housing stability and improve their overall well-being.

“Merriment Village Apartments Phase II represents a meaningful investment in the community's future and a continued commitment to ensuring that veterans and other vulnerable residents have access to safe, stable, and affordable housing,” said Habitat for Humanity CEO and Board President Joseph Hale.

The project is a partnership between Habitat for Humanity of Yuba/Sutter and the city of Yuba City, combining local efforts with state funding to address housing insecurity throughout the region. Yuba City Mayor Marc Boomgaarden emphasized the importance of partnerships in addressing the community's housing needs.

“Our partnership with Habitat for Humanity underscores the importance of collaboration among local government, nonprofit organizations, and state agencies in responding to the region’s housing needs,” Boomgaarden said. “Through the Homekey+ award, Habitat for Humanity of Yuba/Sutter and the City of Yuba City will advance a shared commitment to creating affordable homes and expanding opportunities for people who need them most.”

Construction on Merriment Village Apartments Phase II is anticipated to begin in spring 2027. The funding comes through California's Homekey+ initiative, a statewide effort to expand permanent supportive housing for individuals experiencing homelessness, particularly veterans and people with behavioral health challenges.

Approximately $1.03 billion in Proposition 1 bond funds was made available through Homekey+ to cities, counties, housing authorities and tribal entities for permanent supportive housing projects serving veterans. An additional $1.11 billion was made available for projects serving other eligible populations through a combination of Proposition 1 bond funds and the state's Homeless Housing, Assistance and Prevention program.