The Santa Barbara City Council unanimously approved a $500,000 increase in its loan to a proposed mental-health housing project located at 617 Garden Street. Developers of the 51-unit project cited escalating construction costs as the basis of their request. Since the project was first approved, the Mental Health Association — which is working in conjunction with Bermant Development — reported that construction costs had increased by $3.1 million. Of the project’s 51 units, 26 are slated for very low-income mental-health clients. The other 25 are for low-income people who work downtown.

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