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Ms. Michelotti was concemed about the precedent that was being set. This project started with 100% of the median income, was reduced to 80% of the median income, and there were complaints from some people in the area who felt these units would be incompatible with the rest of the project and the surrounding neighborhood. Council is now proposing to take action without any notice to the neighborhood. Mr. Pico said the house construction and design is not being changed, it is just being made available to a broader range of families. Mayor Tarver referred to previous comments about whether a developer can really produce affordable housing, especially very low income housing. He felt a development of 36 units could add one unit without adding the costs for fees and infrastructure and sell it for the cost of construction, or $90,000. He believed that should be done more often. The problem is this usually cannot be done because the neighbors do not want the density. Ms. Michelotti pointed out that this project started with 62 units and Council only approved 33. Ms. Dennis understood the rationale of Mr. Pico's motion, but if Council is serious, it must provide housing at a density required to allow the affordability. That must be considered as a community. She did not think Council can approve medium density housing and expect to provide affordability. She agreed this proposal is setting a precedent but did not believe this is the way to solve the problem. If Council continues to allocate funds from the $11 million, soon there will not be that fund to rely on. She supported reducing the housing prices as much as possible. The silent second mortgages could be done all over the City with existing housing. Mayor Tarver wanted to do something. He did not want $11 million sitting in a bank and the City not doing anything to provide affordable housing. Ms. Michelotti pointed out that the priorities list included an assisted living facility which will need quite a bit of the City' s money. Ms. Ayala inquired whether the changes requested warranted further staff analysis. Ms. Acosta did not think so. Ms. Michelotti inquired what staff would say when someone else comes to the City and asks for this. Council obtained another unit from a project on Ray Street by using city funds. The silent second program is already in place and she felt there were opportunities to get a lot more for the money. Pleasanton City Council 18 Minutes 04/18/00