NEWMAN — The Newman City Council on Jan. 13 approved a Memorandum of Understanding with the Stanislaus Council of Governments (StanCOG) that will bring more than $160,000 in state housing‑planning funds to the city as part of California’s Regional Early Action Planning Grant Program, known as REAP 2.0.

The agreement allows Newman to receive $164,061 to support implementation of its state‑mandated 6th Cycle Housing Element, the long‑range planning document that outlines how the city will accommodate future housing needs. The funding comes from a statewide pool administered by the California Department of Housing and Community Development, which made $560 million available to regional agencies for local planning efforts.

StanCOG, the regional transportation planning agency and metropolitan planning organization for Stanislaus County, is responsible for distributing REAP 2.0 funds to local jurisdictions. Once the StanCOG board finalizes allocations, cities throughout the county will be able to draw on the money to complete housing‑related planning work required by the state.

Under the terms of the MOU, Newman may receive up to $168,900, though the city’s current allocation is listed at $164,061. The funds must be used for tasks outlined in the city’s REAP 2.0 application and approved by the state. All work must be completed by Dec. 31, 2026, with final reporting due to StanCOG by Jan. 31, 2027. No extensions will be granted unless authorized by the state housing department.

The agreement also outlines detailed reporting, accounting and compliance requirements. Newman must maintain separate financial records for the grant, follow all state and federal regulations tied to the funding, and submit quarterly progress reports and reimbursement requests to StanCOG. The city is also required to ensure that any contractors hired under the grant are not debarred or suspended from state or federal programs.

City Manager Michael Holland will serve as Newman’s project manager and primary point of contact for the program. StanCOG project manager Michael Sigala will oversee regional coordination and compliance.

City staff recommended approval of the MOU, noting that the funding will have a positive fiscal impact and will help the city meet state housing mandates. The council approved the agreement as part of its consent calendar.