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stated that the HOME funds are usually allocated as part of the annual federal grant <br />allocation process; however, in most years, there are no applicants that are eligible for <br />HOME funds which have more use restrictions than CDBG funds. <br />Chairperson Stark asked about the status of the sale of the subject BMR home. Mr. <br />Erickson responded that staff is working with the seller and has visited the property with <br />a representative from HOUSE, Inc. He further noted that there is not any significant <br />"competition" for this unit at the present time due to changing conditions in the housing <br />market that have even extended to below-market priced units. Staff originally contacted <br />the Tri-Valley Housing Opportunity Center when this unit became available but was <br />advised that prequalified prospective buyers are generally behaving very cautiously right <br />now and are not responding quickly to these types of opportunities when they become <br />available. <br />Norm Hansen, former member of the HOUSE, Inc., board of directors, addressed the <br />Commission. Mr. Hansen noted that HOUSE, Inc., is entirely non-profit and does not <br />have any paid staff. The sole mission of the agency is and has always been to acquire <br />housing for developmentally disabled adults who are able to live independently. Mr. <br />Hansen stated that their agency greatly appreciates all of the financial assistance it has <br />received in the past in order to acquire its existing properties. <br />Chairperson Stark asked Mr. Hansen if the intent for this property is to house specific <br />clients who have already been identified and if the agency anticipates holding on to this <br />property. Mr. Hansen responded that they have a married couple in mind for this <br />property but they are flexible. He also emphasized that the agency's mission is always to <br />hold on to their properties for the long term. He further noted that the current concept <br />proposed by staff is similar to the City of Livermore which set aside one unit specifically <br />for HOUSE, Inc., in a new project with below-market priced homes. That arrangement <br />has worked very well for the agency and its clients. <br />Commissioner Harris asked Mr. Guest if the proposed home could accommodate more <br />people than just the married couple. Mr. Hansen replied that it would be possible; <br />however, their experience is that resident compatibility could be an issue. <br />Chairperson Stark added that he also has a concern regarding the small number of <br />persons who would benefit from this housing if is occupied by only a married couple. He <br />also confirmed with staff that the proposed acquisition of the unit would not benefit the <br />City's Regional Housing Needs Allocation (RHNA) targets because it would not produce <br />a new unit of affordable housing. <br />Chairperson Stark noted that he met with Julie Testa after the August meeting at which <br />time he expressed his concern for creativity and leveraging. He reiterated his concern for <br />using the HOME funds to their maximum benefit, observing that HOME funds would be <br />Page - 3 - <br />