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147 MINUTES of THE MEETING of THE CITY COUNCIL June 2, 1982 CALL TO ORDER Mayor Robert Butler called the Adjourned Regular Meeting of the City Council to order at 7:30 P.M. ROLL CALL The roll call is recorded as follows: Councilmembers Brandes, Mercer, Mohr, Wood, and Mayor Butler were present. Mr. Walker, CityManager, and Mr. Swift, Acting City Attorney, were present. EXECUTIVE SESSION Mayor Butler recessed the meeting at 7:35 P.M., to an Executive Session to discuss personnel. Mayor Butler reconvened the meeting at 10:00 P.M. REPORTS OF THE CITY MANAGER Consideration of modification of term for RAP Exemption for Joe Madden's Shadow Creek Pro3ect Mr. Walker presented his report (SR 82:194) dated May 28, 1982, regarding this matter. Mayor Butler asked if the Council had any questions concerning the report. He then asked if anyone in the audience would like to speak on the report. Mrs. Donna Graves, Pleasanton Housing Authority Commissioner, speaking on behalf of the Housing Authority, disapproved the modification of the term of the RAP exemp- tion. Mrs. Graves also objected to the waiver of the conditions personally, stating that Mr. Madden and Mr. Adams took the risks involved when they accepted the exemp- tion and that the free enterprise system should be allowed to work. Mr. Madden summarized why the changes were needed and stated the modifications were slight and all of the units in his project would still be priced below $100,000 and, therefore, more affordable than anything else in the community. Councilmember Mohr asked Mr. Madden if the reason for the modification was that interest rates had remained high and, therefore, lower income families could not qualify for loans. Mr. Madden gave several examples of what payments would be on different prices units at different interest rates, showing the minimum yearly in- come necessary to qualify, and indicating the difficulty of qualifying for even the least expensive unit in the project. He concluded that the original plan to offer co-ownership plans to lower-income households is economically infeasible due to the high monthly payments necessary to cover the high interest rate mortgages available, even at "bought down" rates. Councilmember Mercer reviewed the history of how the conditions on the project were finally determined. He stated that he agreed with the staff recommendation and thanked Mr. Madden and Mr. Adams for doing a good job of bringing lower cost housing units to Pleasanton.