City says $5 million for Mountain Townhomes is ready to pass; county PLHA pooling approved
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Summary
City staff told the council the city has $5 million in funds to pass through to developers for the 25-unit Mountain Townhomes affordable housing project, and that the county board approved pooled PLHA funds, clearing the way for a planned building permit in mid‑June.
City staff provided an update on Mountain Townhomes, a proposed 25‑unit affordable housing project. Staff said the city has received $5,000,000 in funds to pass through to the project and that state guidance allows issuing the check in full minus a $250,000 administrative fee for the city’s two-year involvement, with the check to be issued after the developer pulls a building permit.
Staff also said that in 2023 several small cities in Siskiyou County pooled their PLHA (Permanent Local Housing Allocation) funds so each city would have a sufficient sum to participate in projects. The Siskiyou County Board of Supervisors was asked to act as fiduciary and, after discussion, approved the county action by a 5–0 vote, which staff said clears a key funding step for Mountain Townhomes. City staff indicated a targeted date for the developer to pull a building permit is June 18.
In related personnel news, the city’s planning director, Jeff Mitcham, submitted his resignation and will remain through mid‑July; staff said they are arranging contract support to maintain service continuity during recruitment.
Why it matters: $5 million in project funding and county approval of pooled PLHA funds are critical steps toward construction of 25 affordable units in Mount Shasta; a building permit application is the near-term trigger for the city to issue funds.
Staff said they expect to issue the funding check when the developer secures a building permit and will continue to coordinate with lenders, engineers and the California Municipal Finance Authority on closing and construction steps.
