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Mayor Pico pointed out the fact that if the units cost more than $199,000, the increased price will go to Greenbriar and the City gets nothing. He felt that was contrary to the intent of making the units available to low and very low income families. Ms. Ayala expressed concerns about the possibility that some buyers use dishonest means to qualify for a house, such as moving assets. Once a person is in a home there is never a review of their income status. She believed many cities are looking at a sunset clause to force reevaluation of the income levels of the occupants. Mayor Pico felt that was trying to engineer something that forces people to remain at a lower income level artificially. He did not like accusing people of falsifying information and the process evaluates all information to make sure those who purchase are truly eligible. Ms. Ayala said she wanted Council to look at the opportunity for rental versus home ownership. She felt if staff were asked to find out how heavily the units were subsidized, it would be clear the City would be better off letting those people go offsite. She suggested letting the developer sell the units and give the City the money it would have spent to subsidize the units. It was moved by Mayor Pico, seconded by Mr. Campbell, that no changes be made to the affordable housing program for the Bernal Property. Ms. Hosterman supported the motion because there is a need for this type of housing. She understood Ms. Ayala's concerns and felt the City would use whatever measures legally available to insure that the purchasers truly qualify. The discussion will continue regarding turnover of the ownership. However, this does not address the needs of the entire community and she supported asking the Housing Commission to provide more information on affordable housing programs. Ms. Ayala reiterated the fact that the Bemal Property is unique and wanted people to be aware of the total amount of subsidy for the units. Mr. Bocian said the rental units have a sigrfificantly greater subsidy than the for sale units. There is an ongoing monthly subsidy for rentals and to calculate that staff would have to review the subsidy over the next forty years and what the subsidy for ownership homes is for that forty year period. He felt the subsidy for the ownership home would be about $150 a month. Mr. Brozosky said the City will not get that money back. He did not think the developer would sell the home for more and give the City the difference. Ms. Ayala felt the question should be asked. Mayor Pico did not want to ask the question. He felt it would be saying the City did not want inclusionary housing and did not want to mix $200,000 houses with million dollar houses. Pleasanton City Council 15 05/20/03 Minutes