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Mr. Erickson said there is no limit. The figure of $150,000 was selected because it was enough to create a reasonable program to see how it works. Ms. Michelotti felt single-family dwellings had less risk to start the program. Mr. Erickson believed that the Commissioners felt the single-family and duet housing market was quicker to rebound from the economic slump of the early 90's, whereas townhomes and condominiums have been slower to rebound. There was a sense of having a greater likelihood of seeing appreciation among those, thereby protecting the City' s interests as well as the borrowers' interests. Ms. Michelotti asked if the program would be open to a variety of household incomes. Mr. Erickson said townhomes were definitely on the lower end of the price scale, so by restricting the program to single-family and duets, the program is raising the lower end of the price scale. The higher end is targeted at homes priced at $230,000 for moderate income households. Ms. Dennis pointed out that there are new townhomes at $250,000. It seems the program would include older single-family homes. It does not appear that people would be able to qualify for new condominiums. Mr. Erickson explained that one of the reasons the Commission was excited about the program is that it creates a new element to the housing programs by incorporating a means of getting affordability to existing housing stock. All prior homeownership programs have focussed on new construction. Mr. Pico asked if the analysis considered the condition of a house and whether it was a fixer upper. That could be beyond the means of a buyer in this program. Mr. Erickson indicated NEH insures that the homes are inspected and that the buyer's income is sufficient to make whatever repairs might be necessary. Ms. Michelotti asked if there were any speakers on this item. Tiffany Tarver, 1144 Arak Court, spoke in support of this program. However, she felt many people could be excluded because the program is based on a four person household. There are many single parent families and young couples who are just starting out. She hoped Council would amend this to include families of less than four people. She also supported including condominiums and townhomes in the program. Her dream was to buy a condominium, build equity, then buy a single-family home in Pleasanton. She thought this program was to help people buy a home, not for the City to turn a profit. She suggested designating a small portion of the fund for condominiums; the single-family homes can still be used to generate some profit to keep the program going. She is a responsible adult who wants 24 12/03/96