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Mount Shasta accepts $250,000 PLHA administrative fee into general fund for Seeing Mountain townhomes project
Summary
Council approved depositing the $250,000 administrative portion of a $5 million PLHA award into the general fund to cover CEQA and loan administration costs and to bolster reserves; the award supports Seeing Mountain townhomes and the $250,000 was described as administrative fees under state program rules.
The council accepted the administrative portion of a Permanent Local Housing Allocation (PLHA) award and directed that $250,000 in administrative fees be deposited into the city's general fund.
Speaker 3 said the city, on behalf of developer Danko, was awarded $5,000,000 from the PLHA program, to be administered as a very low-interest loan to support the Seeing Mountain townhomes project. Speaker 3 explained that $250,000 of the award is allocated to administration for tasks such as CEQA, processing and ongoing loan administration and recommended moving that administrative fee into the general fund to offset expenditures and strengthen reserves. "It's part of the state program under housing and community development...a certain percentage...automatically comes with the city for those administrative fees," Speaker 3 said.
Speaker 3 moved to approve depositing the $250,000 in administrative fees into the general fund; the motion was seconded and approved by unanimous voice vote. Council members asked questions about the long-term loan terms; Speaker 3 said loan repayments would be made over a 55-year period per the program structure.
Staff will proceed with deposit paperwork and continued administration related to PLHA awards and the Seeing Mountain townhomes project.
