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51 <br /> <br />The roll call vote was as follows: <br />AYES: Councilmembers Butler, Mohr, Scribner, Tarver and Mayor <br /> Mercer <br />NOES: None <br />ABSENT: None <br />ABSTAIN: None <br /> <br />Item l~c <br />Workinq Paper for General Plan Housinq Element Update Re~ardin~ the <br />Preservation of Assisted Low Income Housin~ (IR92:39) <br /> <br /> Ms. Mohr asked staff if there was a way to use the money in <br />the Low Income Housing Fund to establish a Section 8 concept, using <br />the interest from the Fund. It seems a $100 a month on a rental <br />could allow the City to put a unit into the low income category, <br />which over the long term would be cheaper than trying to build a <br />unit. <br /> <br /> Ms. Acosta replied that there are many different options to <br />look at with respect to the units due to expire. The problem is <br />the fund is not large enough to create the kind of revolving <br />situation you are talking about. We could use principal for a <br />period of time if the Council wanted, in effect, to front block <br />grant money that might become available in the future. <br /> <br /> Ms. Mohr indicated that when projects were approved with 10-15 <br />year low income requirements, the premise was that when a project <br />ages, the ability to command top dollar also decreases. So the <br />older the development got, the lower the rental rates, <br />proportionate to the market, would become. As these requirements <br />begin to expire, she had anticipated that the rents would also be <br />getting lower relative to market rate. She asked if there was <br />anything to indicate that is happening. <br /> <br /> Mr. Swift stated there is not much yet to indicate that is <br />happening. On the other hand, it is clear that in older apartment <br />buildings, the rent is lower and closer to the lower income <br />threshold. <br /> <br /> Ms. Mohr inquired whether there was any anticipation that as <br />projects hit the end of their requirements for quaranteeing low <br />income units, would such rental units be within the standards for <br />low income rentals. Mr. Swift indicated it makes more sense for <br />the City to look at acquiring the units. There are many things <br />possible to do to make these units permanently lower income units, <br />but all possibilities will be looked at for incorporation into the <br />City's policies. <br /> <br /> There was no action required or taken on this item. <br /> <br /> <br />