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· 191 , of the bond program, and at this point only had 10 million dollars committed, there- fore another large project is needed in order for the City to qualify for the mortgage revenue bond program. He stated staff felt it would be better if only those projects financed by the bond issue are exempt from RAP. Councilmember Butler stated he felt that if an exemption were given to a project under the mortgage revenue bond program and then the program failed, the project should still be allowed the RAP exemption. He added he strongly favors the bond issue. After discussion, Council approved the following criteria for any project desiring to be exempted from growth management controls under the mortgage revenue bond partici- pation agreements: 1. That each unit within the project to be exempted be priced and sold below the maximum priced unit to be allowed in the mortgage revenue bond program (estimated to be $115,000). 2. That 50% of units participate in the mortgage revenue bond program. 3. Maximum RAP Housing and Capital Improvement fund contributions must be paid on all units not financed with ~ortgage revenue bond proceeds. 4. That the City be empowered to enforce price restrictions by specific performance or other legal measures. Mayor Mercer stated is was now in order to address the question of whether pro- jects exempted under the mortgage revenue bond program should receive the same RAP exemption if the program failed. Mayor Mercer and Councilmember Mohr stated they felt RAP exemption should not be granted to projects if the mortgage revenue bond program fails. Mayor Mercer suggested a phased program be entered into with a developer for his project. Mr. Walker advised that the bond issue is dependent upon the approval of the Daon project and whether they apply for 100 units under the bond issue. If they get approval and proceed and are included in the feasibility study then the City could get a bond rating in February. Mr. Walker stated that as soon as the City gets another project with 10 million dollars then he could proceed immediately with the bond program. Mayor Mercer suggested that exemption be granted only if the mortgage revenue bond program is completed but that if the program should fail, then phasing be considered for the project. Council then addressed the following questions: How many affordable housingunits should be exempted from the growth management program each year? After discussion, Council determined to deal with this matter on each project independently and to be flexible on the number. What percentage of total number of units in a project should be low cost? After considerable discussion, Council determined a minimum of 25% to get a growth manage- ment exemption, and agreed that the 100% housing authority project, soon to be pro- posed, would be exempted. Mayor Mercer asked if Council wanted to act on applications now before them or to see the growth management plan in draft form first. The City Attorney advised he could have the draft growth management plan ordinance completed by January 26, 1982. 4. 12/22/81