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Ms. Dennis asked for clarification on the Human Services Commission's recommendation. Ms. Acosta recommended Council reconsider the lower income housing ordinance. A policy could still be set this year. She did not believe that the City was in a position to use General Fund monies. There was considerable discussion regarding the Human Services Commission's recommendation and staffs recommendation. In response to Mr. Pico, Ms. Bengtson stated that those projects that do not get approval with the Block Grant money will still have an opportunity to be considered at the Human Services Commission meeting. Mr. Tarver declared the public hearing open on the item. Christine Steiner, 596 Hamilton Way, Human Services Commissioner, explained that the Commission considered the restrictions that the City was under in its recommendation. She recently met with Congressmen regarding a bill that is making its way through Congress this time and the effects it would have on Pleasanton. She acknowledged that the low/moderate income housing needs to be maintained as well as the need for more of this type of housing. She asked that Council consider the possibility of funding a Housing Counseling Agency out of the Housing Fund. She concurred with staff recommendation concerning maintenance of the Kottinger Place and Pleasanton Gardens through the Housing Fund. Ms. Mohr asked Ms. Steiner to thank the Commission for Council for making the decisions that need to be made in recommending which agencies will receive the funding. Jennifer Castle, Project Heritage Alzheimer's Program Coordinator, 5353 Sunol Boulevard, supported the Commission's recommendation. She described the Heritage Program. She asked that Council change the current ordinance to include funding for this type of housing. Robert Cordtz, 262 W. Angela, spoke in concern about the use of funding. He referred to the affordable housing project on 4334 Railroad Avenue and explained that there is no follow- up requirements and some things were never completed (i.e. the termite report). Ms. Bengtson confirmed that the interior and exterior of the building have been redone by Alameda County Department of Rehabilitation, but the grounds have not been completed. The building has been fully occupied for approximately 9 months and it was her understanding that the apartments are quite pleasing. Ms. Steiner added that the Human Services Commission does monitor the projects that the City funds. A six month and an annual report are expected. She asked that Council not deny funding for this project because of the past problems it has had. 04/05/94 5