In 2008, the Merced County Department of Mental Health formed a partnership with the Merced County Community Action Agency to provide affordable housing opportunities for the homeless experiencing mental health issues. Funds were made available for this project through the voter-approved Proposition 63, known as the Mental Health Services Act (MHSA). The funds were to be focused on providing housing on the west-side of the County.
In 2011, the Merced County Community Action Agency purchased 8-units located at 232 West J Street in Los Banos, California. The units were restored and eligible residents began moving in during May of 2012.
