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Mr. Bocian confirmed that is completely within the control of the Council. Mr. Brozosky believed the City was doing a good job with subsidized housing, but still needed to do more to get affordable housing by design. He was concerned that by requiring more for the subsidies, it forces the rest of the housing stock to higher prices. He had suggested the second mortgage with a balloon payment requiring recertification, so that as people move up in income levels they don't hold on to the subsidized housing trait that could be made available to someone else who needs it. Mayor Pico believed that person would find a second mortgage to pay off the City's mortgage and remain in that property. All that would happen then is that the City's housing fund would be refunded the amount of the second mortgage, but the person would not be forced to sell the home or move out. That is contrary to his intent when for sale housing was included in the affordable housing program. He did not feel it was wrong for a person in an affordable unit to make more money in the future and still live in the home they bought. The intent is to allow people to buy a house that they would otherwise never be able to afford and to have the benefits and lifestyle of home ownership. He also noted the second mortgage program that is available for other existing housing in the City. Scott Erickson described the various programs for second mortgages, including the CASA (Community Assisted Shared Appreciation) Program. New programs are being contemplated, including using state funds through the HELP program. A loan program will be brought to the Housing Commission and City Council for approval. It would provide more realistic assistance ($40-$60,000). It is a challenge because of the constantly moving home prices and the small stock of less expensive houses. Mayor Pico indicated discussion continues with every project that has come before Council. Every program has been slightly different and the desire to help more people is appropriate. The question for this agenda item is whether the affordable housing program on the Bemal Property should be modified. Whether to amend the inclusionary zoning ordinance is a secondary decision for this agenda item. Mayor Pico was not interested in making any major revisions to the inclusionary zoning ordinance. It was just adopted and we need time to see how it will work. Ms. Ayala said the number of affordable units required by the state are unrealistic, but acknowledged there is a need for affordable housing in every community. Two years ago, she remembered the developers of the Bernal Property saying the units in the central portion were going to be about $300,000 and she hoped the prices would stay at that because that was the price range lacking in Pleasanton. Those houses are now selling at $875,000. She believed the purpose of the inclusionary zoning ordinance was vague. The City's affordable housing goals are huge because of the unfunded mandate set by the state. The only way to get close to achieving those numbers was through rental units. It seems the City is spending most of its lower-income housing funds on a small number of people. She had thought the City was getting housing that could be recycled to serve more people. Instead it is a windfall for 56 families. For the Bemal property, she wanted more restrictions on the houses and to re-evaluate the $199,000 price on some of the units. Pleasanton City Council 14 05/20/03 Minutes