Yuba City Merriment Village Phase II Wins Nearly $40.6 Million for 138 Supportive Apartments

YUBA CITY, Sutter County — October 26, 2026. A planned affordable housing community in Yuba City has received a major state funding commitment. California’s October 26 Homekey+ announcement identifies Merriment Village Apartments Phase II for a grant of just under $40.6 million, intended to help create 138 new apartments across four buildings.

The state says 70 apartments will be reserved for eligible veterans who have experienced homelessness and a behavioral health challenge. Supportive services and property management are expected on site. The listed project partners include a city government and Habitat for Humanity of Yuba/Sutter Inc.

Why this matters to Yuba City residents

Supportive housing aims to provide a permanent home linked to assistance rather than a time-limited shelter placement. For a community serving both Sutter and Yuba county residents, the project may become an important part of the regional response to homelessness, though the announcement does not quantify current local homelessness or set a guaranteed move-in date.

Awarded funding is not the same as completed construction. Residents seeking future eligibility and applications should monitor the developers and local housing agencies; the state has not said these 138 units are currently available to rent.

The city name in the state release is abbreviated in one section, but the actual project is explicitly identified as being in Yuba City. This report is geographically assigned to Yuba City News, with the appropriate county newsroom link.

Primary source: California governor’s Homekey+ award announcement, October 26.

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