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Mr. Dolan noted that if the Commission decides to move a proposed change forward to City Council that funding is currently at $100K and the Housing Fund has a total of $8M. He advised that staff has spoken with the City Manager who has suggested that Council may be open to making a change that is reviewed on an annual basis for up to three applications. Mr. Dolan felt it was important that the Commission understand the funding issue when making a recommendation. Commissioner Welsh questioned how applicants would be chosen and Commissioner Gaidos felt any recommendation made by the Commission should include criteria that consideration be given to Pleasanton residents. Commissioner Welsh agreed that Pleasanton residents should be given priority, but again questioned how applicants would be chosen. She was also concerned about how funds would be returned to the Lower Income Housing Fund (LIHF) and if Council would consider taking funds from the General Fund and not the LIHF. Mr. Dolan advised that funds would come from the LIHF. Commissioner Galvin expressed concerns on who would be able to qualify for these loans. Having worked in the mortgage business he was concerned about how lenders look at things in order to provide funding. He felt the City should have a method by which builders should be required to set aside funds to provide loans, and that a Subcommittee needed to be put in place to look at how such a proposal could be put in place. Mr. Dolan advised that what was presented to the Commission in May mirrors an Alameda County implemented program and part of the proposal is to use these funds in tandem with other sources. Mr. Warner provided details about the Alameda County Program and lenders that have been brought along to participate in the program. He felt that with the additional funds from Pleasanton people would be able to qualify. Commissioner Galvin questioned how many homes in Pleasanton would fit into the home sales criteria, and Mr. Warner provide information about homes sold. Commissioner Duggan commented on the strict criteria and felt this would need to be for market rate housing and not below-market housing. She discussed income required for qualifications, shared appreciation and the program offering opportunities, but questioned what would happen if the housing market were to crash. Mr. Dolan advised that the City of Pleasanton would follow whatever steps were taken by the County. Commissioner Duggan discussed funding being provided by the City and felt turnover funds would come back to the City. She indicated she did not see any benefit to changing the Ordinance and felt it should be kept as is and this program would provide loans for moderate income/moderate rate housing opportunities. Commissioner Galvin questioned whether the City has received any funds back from the Bernal properties involved in the current program a few years ago. Mr. Hernandez advised that little funds have been received by the City of Pleasanton. Mr. Dolan discussed with Commissioner Galvin aspects of the Bernal property and felt the Commission should be considering how low-income people can be helped. Commissioner Welsh felt these homes had been a lot less than market -rate at the time. Chairperson Soby was unsure how funds would be regained by the City if there was to be a market crash. Mr. Warner commented on risks in the program, and Chairperson Soby felt if the City were to move forward with these changes that it was important they understand all negative Page - 2 -