TAHOE CITY, Calif. – Placer County’s potential Dollar Creek Crossing Affordable Housing Development continues to meet funding challenges, according to an update at a county supervisors meeting on Tuesday.

In 2019, the county bought vacant parcels in Tahoe City across N Lake Blvd. from the 7-11 with the intention of developing housing there.

The county and a selected developer have explored potential mixed-use, mixed-income, and mixed-tenancy plans for the property over the last seven years.

In April of last year, the board directed county staff to pursue a development agreement for an affordable-only project with at least 80 lower-income units.

A development agreement would mark the next step in the process; however, staff did not have one to present to the board due to funding challenges.

The developer, Related Norcal Development, LLC, is currently working with the county under a preliminary agreement (set to expire at the end of this month) and has conducted public outreach and provided a revised site plan, a milestone schedule and a financial report for an 80-unit low-income housing development.

The financial report indicates that, to make it feasible, the county would likely need to contribute $18.5 million.

Staff explained at the meeting that if the current developer’s agreement were allowed to expire, the county would be required to submit another request for proposals no later than July of next year.

While some residents during public comment questioned the project’s viability and whether to pull the plug, certain board members expressed support for allowing the project to continue on its current course.

Both Supervisor Cindy Gustafson and Bonnie Gore said obtaining funds may require creativity, with Gustafson mentioning a bond or some type of borrowing.

Additionally, staff mentioned the team is working closely with the county’s Ad Hoc Committee for Housing Funding and Fee Implementation, which may identify funding sources.