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PC MINS 19860408 Workshop 67/o/f,‘ 411/ 1110 MINUTES GOLDEN COVE AFFORDABLE HOUSING CRITERIA WORKSHOP APRIL 8, 1986 PRESENT: LAMPKIN, MC NULTY, NEGENDANK, RUBIN, VON HAGEN ABSENT: ORTOLANO LATE ARRIVALS: HODGE, WIKE During the workshop problems of affordable housing criteria not complying with the State mandates were discussed, that the project is to contain a program the developer is offering, the City totally avoiding the issue was discussed noting the related consequence of the State having the power to terminate the City's ability to issue permits, and using an income/lottery system was suggested to be a good method in order to avoid any possible discrimination problems with as few controls as possible. 30-33% of income as a reasonable factor on which to base buyer qualification, using the same qualification standards as a lender to be backed up with a copy of the buyer's last three tax returns, and looking at the buyer's employ- ment to determine qualification problems or taxable income being much less than buyer's total income when non-taxable monies are included were suggested. Problems with the six month selling time table and related difficulties of the units falling out of escrow due to qualification problems were also discussed. It was noted that, since the program is voluntary as opposed to mandatory the City has the opportunity to define the income levels. Researching other cities standards was mentioned. Issues of the developer being tied to assume 10% down, having the responsi- bility upon initial sale of the units to qualify a buyer making the median income, and being required to sell the units at $150,000 were discussed. The concern of the City creating a precedence was mentioned and the developer volunteering such a program was stated to alleviate any precedent-setting concerns. Setting up an agency to oversee issues related to affordable housing was discussed along with the developer offering $3,000 for the City to handle the locating and establishing of an agency and setting up the City's criteria. It was mentioned that such a responsibility could be contracted out to other cities or to private companies. The necessity of the housing agreement being established at the point of the tentative map was stressed. 110 Minutes - Affordable Housing April 8, 1986 Page 2 Problems with selling the units before the fifteen year resale period were discussed along with possibly adjusting the resale period in order to create earlier returns on investments, thereby providing a greater buying incentive. Difficulties related to Seniors willing the units to relatives and the units being taken back due to lack of owner occupation were mentioned. Also, the fifteen year resale period was noted to have been established as incentive for owners to remain, the units thereby remaining affordable. In addition, the concern of the median income rising and the unit prices remaining at $150,000 upon sale before the end of the fifteen year resale period was mentioned. Also discussed was recommending to City Council for its review that the benefits to the City, while taking into account the remarketing controls, qualification requirements, etc. , may not be worth the efforts and monies involved. At 7:25 PM, the Commission adjourned until 7:30 PM, after deciding by concensus that additional discussion on this topic was needed.