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Mr. Bocian said about $100,000. Mayor Tarver felt $100,000 was too low. He said he had asked the developer how much per square foot it would cost to build the home. Council added five lots to this subdivision to provide affordable housing. Based on the cost of construction, he felt the price of the units should be $120,000. He did not like the idea of selling the affordable units at $180,000. That is not why he approved adding five units. He was not concerned about the homeowners association dues, but wanted an affordable price for the units. All the other infrastructure will be paid for by the market rate units. The five lots were added to get affordable units and $180,000 is not affordable. Keeping in mind the ABAG requirements, this is a chance to get very low income units. Ms. Michelotti said these units were approved by Council to be sold at 80% of the median income. Mayor Tarver remembered the discussion and also remembered the cost of construction, which was a lot less than $180,000. He felt the developer was making a profit on these five houses. Mr. Bocian said the value of these homes on the open market is significantly more than $180,000. Mayor Tarver was not concemed about a mark down from the market rate; he wanted units at as low a price as possible for affordable housing. Mr. Bocian indicated Council had reviewed the 80% of median income level and requested this to come back for review. That is why the draft resolution and agreement are before Council regarding these units. Staff can work with the developer to get the homes to as affordable a price as possible and to insure that buyers can qualify. To be honest, getting qualified buyers for the $180,000 price will be tough at the low income levels and clearly not possible at the very low income levels. Ms. Dennis indicated staff had made it clear that in order to get affordable housing at the very low income levels, a project needs to be a higher density, multi- family project. Mayor Tarver reiterated that he asked the developer what it would cost to build the units and was told $60-70 per square foot. That was less than he thought, or he had estimated it would cost $100 per square foot for a 1,200 square foot house. That means the house would cost $120,000. He felt a price of $180,000 is not the best Council can do when it has added five extra units for this project, especially when it is considering granting a $90,000 rebate on the fees. Ms. Ayala inquired about the homeowners' fees. Pleasanton City Council 15 04/18/00 Minutes