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16 <br /> <br /> Th~ rgll Call vote was as follows: <br /> AYES: Councilmembers Dennis, Mohr, Pico, Scribner and Mayor Tarver <br /> NOES: None <br /> ABSENT: None <br /> ABSTAIN: None <br /> <br /> Item 6b <br /> Reauest of Kaufman and Broad for Waiver of In-Lieu Low-Income Housing Fees for 16 <br /> Moderate-Income Units (SR93:365) <br /> <br /> Mr. Swift presented the staff report. <br /> <br /> Ms. Dennis asked how many points were being charged for processing these loans. <br /> <br /> Mr. Swift did not know. He stated that the qualifying income is approximately <br /> $62,00 0/annually for a family of four. <br /> <br /> Ms. Mohr asked if there could be a condition added which would provide that if the <br /> property resold, the City would get the $1800 returned to it or else the subsequent buyer would <br /> need to meet the same guidelines. <br /> <br /> Mr. Roush answered yes. <br /> <br /> Ms. Mohr referred to a previous project (Pleasanton Village) and explained that when <br /> the first time buyers' homes were sold at market value, monies were not returned to the City. <br /> She felt that those buyers received a gift of public funds and that the City should recover <br /> whatever *gift' its giving. Ms. Mohr then asked for clarification on the 6%, 7% and 8% cap <br /> because the 8 % is one point over current market. She was concerned that these are priced for <br /> more than moderate incomes and perhaps the caps should be reconsidered. <br /> <br /> Ms. Acosta suggested that Council reconsider having a moderate income program which <br /> has any connection to the low-income housing fees because the market has changed dramatically. <br /> <br /> Bo Donovich, Vice-President of Kaufman and Broad, explained that Kaufman and Broad <br /> does not charge points. It offers a closing cost cap; a buyer pays a certain amount down plus <br /> $5,300 which covers all other fees. This is equivalent to approximately one point. He stated <br /> that this program was put together in April 1992 and there is a lot of flexibility built into this <br /> program. Its goal is to offer the first time buyer the best deal possible and if the rate is below <br /> 6 %, 7 % and 8 %, Kaufman and Broad will offer it. <br /> <br /> Mr. Swift indicated that there was no requirement included in the agreement that would <br /> hold Kaufman and Broad to using less than 8 %. Staff could calculate the proposed buy down <br /> with the interest rate of 6 %, 7 % and 8 % and have that same total be met by the best available <br /> total. This could be added as an additional condition. <br /> <br /> 09/07/93 6 <br /> <br /> <br />