This story was originally published by The Merced FOCUS.
Miguel Castillo made Planada his home in 1978, living in a modest sanctuary that he paid off after working more than 30 years at Foster Farms.
Despite those years of hard work and effort, Castillo’s home was destroyed when floodwaters tore through the farmworking community in January 2023.
Millions in state dollars were allocated to help the small incorporated town recover. But more than two years after the flood, many residents like Castillo say they are still waiting for that promised assistance to arrive.
“Es el legado para mis hijos – it’s the legacy I’ll leave my children,” Castillo said in Spanish. “I want to be able to live in my home since I just finished paying it off. It was one of the first things I ever owned.”
While Merced County reports that over $10 million of the $20 million relief fund has been spent or earmarked, community members describe a process marked by confusion, partial repairs and long silences.
Interviews with residents whose homes remain uninhabitable say there’s no transparency or communication with county officials or the local Habitat for Humanity, the organization responsible for rebuilding homeowners’ properties.
The organization, however, says it’s made significant progress, has only been working with state funds for a short period of time, and that channels of communication with residents are open.
How recovery money has been spent so far
The $20 million flood recovery program in Planada was divided among several departments, each tasked with a specific fund for residents.
A breakdown of how the funds were spent was presented to the Merced County Board of Supervisors during its April 8 meeting.
A total of 1,009 unique applications were received: 843 for direct assistance, 47 business requests, 287 for lost wages and 350 for housing repairs. Some of those applications were counted across multiple funding categories depending on the type of assistance awarded.
Direct assistance was handled by the county’s Human Services Agency.
About $2.83 million of the $4 million budgeted for direct assistance was distributed to 858 residents, including $1.77 million for personal property, $687,000 for food loss, and $385,000 for vehicle repairs.
The Department of Workforce Investment oversaw business losses and wage replacement. Eric Serrato, the department’s director, said $855,000 was distributed in 33 paid claims, well beyond the expected $500,000 earmarked for this specific fund.
For lost wages, the department used a system inspired by the Employment Development Department, independent of immigration status, with average payouts of $1,383 with a $1,500 cap per worker on 195 paid claims.
The home repair program, the largest slice of the budget at $8 million, was led by the Community & Economic Development Department in partnership with Habitat for Humanity of Merced and Stanislaus Counties for homeowners and Self-Help Enterprises for renters.
Mark Mimms, Community and Economic Development Department director, told supervisors that $4.6 million had been spent or committed out of the $8 million allocated during the presentation.
Of 350 applications for home repairs, 48 homes had been completed, 185 were in progress, and 119 were withdrawn or denied, he told supervisors.
A graph published on a Merced County webpage that tracks Planada flood recovery expenditures shows the latest numbers as of May 1.
The chart shows increased spending in key areas like housing repairs, which rose from $4.6 million to $5.5 million, while other categories, such as business loss and direct assistance, remained relatively unchanged since the April 8 presentation.
One man’s fight to reclaim his home
Castillo remembers Jan. 9, 2023, vividly. He got home at around 6 p.m. after a long shift at Foster Farms.
As the rain started coming down, he didn’t give it much thought and went to bed. In the middle of the night, he was awakened by his family. “It was 4:30 a.m.,” he said. “We got out and we each had a bag (with clothes and necessities). The water was up to our waists.”
As Castillo returned to salvage what he could from his property in the days that followed, he stepped on a slippery piece of lumber and fell, injuring his knees.
“I was out of work for three months,” he said. “Then work started sending me letters (saying) that I had to go back to work.”
Returning to his warehouse job was not an option, as his knees no longer responded as they had before his injury. Castillo’s only option, he said, was to get early retirement due to a disability and start collecting Social Security benefits.
“I was better off when I was working,” said Castillo. “(Social Security benefit checks) are monthly and I was used to making more and getting paid each week. I get about half of what I used to.”
Habitat for Humanity was assigned to rebuild his home, which needed to be torn down after the flood. Castillo said he was last told work would begin in April, but when interviewed at his property in early May, there were no signs of construction.
“I’m still waiting,” he said.
A family living with mold
Liza Espinoza and Steven Vasquez had just achieved their dream of homeownership in August 2021 when floodwaters submerged their home only five months later.
As a result, the residence is still plagued by unresolved mold damage. The family of six, including two disabled members, applied for funds at the Planada Community Center about a year ago to replace lost items.
“Everything was very unorganized,” said Espinoza, whose face was covered in a rash she attributed to a mold allergy and the harsh cleaning products she uses. “There was no privacy whatsoever. We didn’t get copies of our applications.”
During the application process, she learned she had to go through her homeowner’s insurance before applying for any money earmarked for the people of Planada. After a denial from her insurance, her family applied for aid through the fund and received about $9,000 to cover the loss of their personal belongings, food and wages.
When it came time to fix their house, the family waited as their attempts to communicate with the county were ignored, said Espinoza.
She later learned that Habitat for Humanity could not find their applications for repairs to the home.
Email exchanges between Espinoza and Habitat for Humanity in February show that after more than a month of waiting, her application was located and her home would be assessed for damage. That happened after Espinoza had raised concerns at a Board of Supervisors meeting.
Espinoza said the assessment was done in haste, as when the mold was discovered, one of the representatives said they could not be inside the house if mold was present.
“I don’t know how she can assess, or put a price on something when she or anybody hasn’t even taken a look behind the wall or to see what’s going on,” she said.
Later, she was presented with a contract from the organization saying she was approved for $41,000 to fix her home.
The contract, however, seemed odd to Espinoza, who said it included pages and language that made it seem as if she was getting a loan to get her house fixed. Espinoza also said that she was rushed into signing the contract without having a chance to understand it fully.
Espinoza said communication about the repairs has been lacking, and workers have stopped by her house unannounced without any identifying markers or paperwork showing they’re from the organization.
In the meantime, she keeps her windows open 24 hours a day to alleviate the mold smell that permeates the house.
“You can smell, it’s so bad,” Espinoza said. “We always have to have the house airing out because of how bad it is. You can wipe it off all you want, but what’s inside those walls?”
A closer look at Habitat’s role
Anita Hellman, CEO of Habitat for Humanity of Merced and Stanislaus Counties, said the organization operates as a nonprofit focused on improving housing security, homeownership, and housing conditions for low-income families.
During an in-person interview, she mentioned that the organization’s model is built on community participation. Families contribute sweat equity by helping build or repair their homes and repay the cost through a zero-percent interest loan. Those repayments are then reinvested to help future families.
However, in Planada, Habitat for Humanity is not operating under its usual model.
“The funders (Merced County) get to dictate what the terms are,” said Hellman. “We’re just basically a contractor that’s helping to get the labor done and leveraging what we know how to do.”
Habitat for Humanity was chosen to handle the project, she said, in part for their experience working with government entities.
Her organization was awarded $3 million for home repairs in three $1 million installments.
The first $1 million was received around November, but it wasn’t until December that the organization was ready to begin working on homes through that funding, according to Hellman.
“We’re not very far into it, but it’s a huge machine now,” she said. “We have 40 houses under construction. So I feel like we have a really good pace. We have crews out there that are working every day.”
During the interview, Hellman denied that residents were being offered loans as part of the home repair process, that there were any loan applications in the paperwork used by the organization or that anyone was rushed to sign any documentation.
“I have no idea what you’re talking about,” responded Hellman. “There’s no loan for anybody. I think what you might have seen was the budget and the scope of work.”
Hellman provided a sample 10-page agreement her organization uses for home repair projects.
The Merced FOCUS reviewed a separate 17-page contract provided by Espinoza, which included additional documents not present in the sample agreement.
One of the extra pages, titled Authorization To Release Information, referenced the Right to Financial Privacy Act, mentioning Habitat for Humanity’s right to access applicants’ financial records “in connection with the consideration or administration of the rehabilitation loan for which you have applied.”
In a follow-up call with Hellman, where she was presented the page with the loan language, she asserted that it was for demographic collection purposes.
When asked again about the page referencing loan language, she said it was simply a standard form used by the United States Department of Housing and Urban Development (HUD).
She added that any further pages that differed from the one she shared were for people who would need other assistance beyond the scope of the $20 million.
“We need to know at the point, which people would be eligible for which types of grants,” said Hellman. “At the end of the year, we always have to report to those sources of grants how many people we serve. That’s just a way for us to capture (demographics).”
She said she meets with people regularly to alleviate doubts and help clear any misconceptions.
“There is a lot of misinformation in the community,” she said. “The people who are talking crap, they don’t know what’s going on. They need to come and talk and meet.”
As residents continue to raise concerns about the lack of updates and visibility in Planada’s flood recovery process, Hellman rejected the idea that her organization is operating in the dark.
“One of the commitments that people got when they filled out their applications was that we would respect their privacy,” she said.
“So when (someone) calls me and says, ‘Hey, how much work, how much money did you write a check for the people here?’ I can’t disclose that. That’s not being transparent. That’s crossing the line. But we’re being fully transparent with the people that we’re required to be transparent with.”
Some residents, however, say they have struggled to get updates about their applications or repair status.
Esmeralda Macias, a counselor for Habitat for Humanity and a native Spanish speaker, was assigned by Hellman to speak directly with the residents who need to talk to someone in their native tongue.
Macias, Hellman said, is in constant communication with the residents of Planada, letting them know who will be visiting their homes and at what times.
When asked whether residents are consistently informed before Habitat for Humanity crews or contractors arrive at their homes, Hellman acknowledged that while the intention is to communicate clearly, delays and shifting schedules can cause confusion.
“It might be that we’re waiting for something to dry out or something to set up,” she said. “That’s when you start to have people going, ‘I thought they were going to do it today.’”
Still, Hellman emphasized that staff work to notify residents in advance and that Habitat for Humanity employees and subcontractors are clearly marked.
She said concerns were raised at community meetings about people pretending to be affiliated with her organization.
“I can’t control that,” Hellman said. “We’re never gonna go into a house if we haven’t asked to go in.”
She also advised that residents should not allow anyone inside if someone without identification or a Habitat for Humanity logo attempts to enter a home.
Supervisor defends spending, calls for stronger preparedness
District 1 Supervisor Jim Pacheco, who represents the community of Planada, defended the county’s flood relief efforts in an email interview.
“I believe the funds have been well spent, and many residents and businesses have already benefited,” he said. “Prioritization is often the trickiest part of relief efforts. It’s possible that some areas may feel underserved, but I think the county generally did a good job of putting together a plan.”
He acknowledged frustration in the community and said he’s pushing staff to communicate better.
“Some of the residents did not feel they were getting all the information they needed,” Pacheco said. “We are making improvements, doing more outreach, having bilingual staff, and making sure our information is updated.”
With a portion of funds potentially being reprogrammed toward infrastructure improvements, Pacheco said he planned to reach out to community leaders for input and help disseminate information.
“I want a plan so this type of disaster does not happen again, and if it does, Planada is better prepared to handle it,” he said. “The most incredible opportunity I see is a better Planada, with better homes and better infrastructure. My vision, with the help of the residents, is a better Planada than before this devastating flood.”
Assemblymember expresses frustration about slow pace
Assemblymember Esmeralda Soria, D-Merced, who helped secure the $20 million flood relief funding alongside state Sen. Anna Caballero, said she’s been monitoring the situation closely and has growing concerns.
“Honestly, I’m a little frustrated this money has been slowly distributed out to one of the most underserved communities in our district,” Soria said.
She said residents in Planada initially expressed gratitude for the state’s funds, but that appreciation has faded for many.
“Some are rightfully frustrated that it’s been almost two years, and they still need home repairs and additional relief to get them back on their feet,” said Soria. “This needs to become a priority.”
While some at the April 8 Board of Supervisors meeting floated the idea of extending the December 2025 deadline to spend the funds, Soria instead stressed the need for swift action.
“We urge the county to work more expeditiously to get these funds disbursed to the residents before December because Planada has waited long enough,” she said.
And if the funds aren’t used up by that deadline?
“It should go to the community of Planada. End of discussion,” said Soria. “These funds were intentionally earmarked for Planada residents and its community. That is the expectation.”
Caballero’s office was contacted for comment on this story. After an initial email exchange with her staff requesting the deadline, no further response was provided prior to publication.
Advocates say community deserves better
Alicia Rodriguez, a longtime Planada resident and volunteer advocate, said she’s been monitoring the county’s spending closely and expressed concerns about how the $20 million was handled.
She said unfairness was prevalent during the distribution of direct assistance payments, lost wages claims, infrastructure and the expansion of the business relief spending.
“I know that there were some residents denied for not having enough proof of their personal property,” she said. “The committee did not receive a copy of what format they were using for lost wages. There’s major road damage with giant potholes from the running waters of the flood.”
Rodriguez’s top concern was the housing repair program, where she said supervisors reported during the April 8 presentation that about $4.6 million had been spent or committed without a clear breakdown of completed projects, pending repairs, or a timeline for completion.
When asked whether people still trust the process, Rodriguez didn’t mince her words.
“They had it for a short time and lost it; there is a bigger gap than before,” she said. “If they don’t take action quickly, they are going to have another lawsuit due to keeping the residents in an unhealthy home environment.”
Rodriguez said she believes families in Planada were treated unfairly before the flood and continue to be underserved with the money intended to help them rebuild.
“The county is causing more emotional distress to families by not giving them peace of mind,” she said. “The county has had this money for over a year. Not to put priority on the homes first was a bad, irresponsible decision.”
Alicia Rivera, a policy advocate with the Leadership Counsel for Justice and Accountability, said her organization continuously hears concerns from residents about transparency in the distribution of funds.
“While some residents have received claim payments, many others still have unanswered questions, particularly about how their claim amounts were determined, what the process looks like moving forward, and how any additional funds will be used,” she said.
Among the top complaints her organization hears is a lack of responses after applying for assistance.
“A key issue is that the current system relies on calling a hotline or sending emails, which isn’t always accessible or effective for everyone,” Rivera said.
She also criticized the lack of details for online reporting, which includes an overview of spending but lacks detailed breakdowns or the status of applications.
“Transparency isn’t just about posting data,” she said. “It’s about making sure the information is accessible and understandable to the people it affects. Financially, people are still wondering how they’ll come out of debt. Logistically, clearer and more consistent communication is critical to ensure that everyone is on the same page.”
Rivera said the path forward needs to be more about building long-term resilience.
“There’s still work to do, and the community should be part of shaping what comes next,” she said.
Meanwhile, as Castillo waits for a home he can once again call his own, he pays $1,400 a month in rent – money that long outlasted the $16,000 he said he received for rental assistance, which ran dry after the first year.
“I’m going on three years now,” he said. “All this time, I’ve had to rent.”