The Yuba City Council voted to authorize a joint application with Habitat for the State Department of Housing and Community Development’s Homekey Plus program to finance Phase 2 of the Merriment Village Apartments.

Development Services Director Doug Libby said Phase 1 had received roughly $24.6 million in grant funding, and staff are pursuing additional Homekey Plus funds for Phase 2. Libby described the proposed scope as 139 units located at 428 North Walton, and said Habitat (the project partner) is preparing a joint application to be submitted within the month. He said State HCD indicated unspent Homekey funds are being made available on a first‑come, first‑served basis and that once submitted the state review would take roughly 40–90 days.

Habitat representative John Nicoletti said Phase 2 would be veteran‑focused with 70 units dedicated to veterans; he added that veterans generally score highly in HCD scoring and that partnering with federal veteran programs increases priority. Nicoletti said the Veterans Affairs Office has agreed to provide $2.1 million in funds to support veteran services for up to 10 years if the application is successful. He also said pursuing the funding promptly could build momentum and open other funding opportunities.

Council and public commenters asked about contractor selection and resident eligibility; Nicoletti said local contractors could participate and that veterans typically prefer local placements but federal programs can house veterans from nationwide lists. A member of the public urged consideration for precariously housed seniors in addition to veterans. After public comment, a council member moved and the council approved authorization of the joint application; Libby and Nicoletti will proceed with application preparation and submittal.