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30i Councilmember Brandes asked does HUD allocation have to make it for the entire project or can project funding be increased to cover additional items. Mrs. Pearson replied that allocation has to cover costs, and that the key is to work closely with the architect to make sure the estimate and original plans will end up costing within the allocation. Councilmember Brandes inquired as to what would happen if the bid came in higher than the allocation. Mrs. Pearson stated the project would have to be scaled down. ~yor Mercer asked if the Housing Authority project would be part of the Camp Parks annexation to DSRSD. Mrs. Pearson stated that it would be and that the Housing Authority will have to pay sewer connection charges. She added that after discussion with DSRSD they are supportive of the project. Councilmember Brandes asked what affect will the replacement project have on rents for current residents of Komandorski. Mrs. Pearson stated that all HUD projects must have a wide range of income residents and that all are limited to a maximum of 25% of income, and that some residents may pay less than they no~ do. Councilmember Brandes asked what are the limits for income categories. ~fr. Parsons stated that for a family of four - $8,500, and that this scale increases and depends on family size also. Councilmember Butler asked what year are the HUD allowable costs based on. Mr. Neely replied he did not Pmow but it probably isn't the current year, and that the allocation does not have an inflation factor. Mr. Parsons stated that prototype costs are the key and it is important as to what area the pro- ject is in. Councilmember Butler stated he felt it was important to proceed as soon as possible because it is obvious that costs go up as time goes on. Councilmember Butler asked about contingency allocation in the contract. Mr. Parsons stated HUD allows 5% and that the architect wants 10%. Mrs. Deleray stated that the project will have some four bedroom units and some allocated for handicapped and elderly. Mayor Mercer inquired as to what will happen to the current tenants. Mrs. Pearson stated the project must be built so that tenants will not be displaced. Mr. Parsons presented the preliminary site development plan and indicated how the project could be phased to eliminate need to displace existing tenants. Councilmember Butler inquired as to the size of the 4 bedroom units. Mr. Parsons stated they were about standard - not very large. Mrs. Pearson added that selection of the architect was very important because the Housing Authority Board was especially interested in an architect that could be creative in the use of small units. Councilmember Brandes inquired as to what would happen in the future with the balance of the land. Mrs. Pearson stated it was designated to be open space and was doubtful if any housing would be allowed by HUD. She added that some residents would like to have a store in the area and that the only limitation is what the County Planning Commission will allow. 2. 10/30/78