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Ms. Michelotti asked if the project did not go forward at this time and the project was postponed until Spring or another time, would that force the project back to square one to get the financing? Mr. McClure said that there is funding from CFHA that approved the financing at a staff level for the project when it was in for the tax credits. CFHA is waiting for a commitment from the City and it will be on its agenda for the October meeting. The investors need to provide the letter of commitment. The letter was available when it was submitted to the Tax Allocation Committee and the investors indicated that they will follow through with this project. Ms. Michelotti expressed concern that the City has gone too far out on a limb for this project. If the City wanted to put a call out and ask if there is anyone else who would do this, could this project be picked up again if no one came with a proposal. Has someone set up the non-profit corporation and will there be a Pleasanton representative on the Board? Mr. McClure commented that anytime a project is held up six months or more the costs change. Construction costs can go up, financing can go up, something might not be available, rules can change, HUD rules change, the Tax Credit Allocation Committee criteria might change or eliminate this project; there is no way to foresee what can happen or change. He felt that he knows the business and felt they are experts on mixed income projects. No one else does them because they are difficult to do. The construction can begin in October, but it does need additional financing from the City, which is a loan to be repaid. He has talked with people on the non-profit committee and they agreed it was a good idea to have a Pleasanton representative. Ms. Michelotti inquired about the rent amounts. Mr. McClure stated that there will be 68 units that will always be "affordable". Right now the low and very low incomes in Pleasanton are $200 to $250 below the market rates. Mayor Tarver stated that the rent for very low income households will be $490 to $677 and low income households will be $594 to $821. Ms. Mohr stated that low income per HUD standards is based on the HUD numbers and for the Bay Area; Pleasanton is not cheap. The City has lost the federal tax credits because other communities are more needy. Needy people exist in every community. Mr. McClure commented that it wasn't the fact that HUD was not supporting affordable housing (the tax credits are based on population); it's that the money is going to different areas and not to Pleasanton. The need is based on census data. Ms. Mohr commented that there has been a series of commitments made by the City over the years; one was to assess a low income fee to create the money to do a project like this. The other was to create a citizens committee that initiated the process of getting Council to the point of having a project considered. She was still concerned about the costs for a pool and asked that 08/22/95 -19-