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Mr. Pico asked if the guidelines required the for sale units to be low income on a permanent basis. Mr. Bocian said the low income restriction runs with the property in perpetuity and is incorporated in the ordinance. Mr. Pico referred to the fact that low income housing fees can be used to reimburse the general fund for loss of revenue from the waived fees and he felt this was double-dipping. Not only does the city lose the fee, but the low income fund is depleted by the same amount. He wanted the guidelines to be thoroughly reviewed by the Affordable Housing Commission. He was also concerned about rental units that are now reaching the end of the 25 year requirement to remain affordable and felt there was a need for a mechanism to make the rental units more permanently affordable. Ms. Michelotti wanted to proceed with these guidelines. She referred to the funding already spent for the Case Avenue project and felt Scott Erickson could present to Council the report given to the Affordable Housing Commission. She believed flexibility should be part of the guidelines. Mr. Tarver felt some developers may feel their projects qualify for the fee waiver and invest a lot of time and money on a project that may not be acceptable to Council. He felt Council needs to clearly define examples of for sale units and how the guidelines apply and what projects would qualify. Ms. Michelotti believed it was more difficult to adapt these guidelines to a for sale product, but the guidelines are definitely needed because it is difficult to find affordable units in this Valley. Ms. Dennis suggested that because the guidelines refer to the growth management ordinance by reference, perhaps the growth management ordinance needs review. She felt the guidelines were important for Council to see how a project would rate if the guidelines were applied. If Council wants more than 15% of a project to be affordable and to have the affordability last longer than 25 years, perhaps it should change the ordinance. Mr. Bocian did not want the guidelines to conflict with the ordinance. Staff tried to link the two. Ms. Michelotti felt staff should come back with more information before Council adopts the guidelines and to get information from the Tri-Valley Affordable Housing Committee. She also felt that the only way to really produce affordable houses is to forget the for sale units and put more effort into the rental market. However, if you piggy-back some of these programs, it may be a way for individuals to get affordable housing. 6 2/04/97