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<br />e committee's second target is to produce at least 100 rental units at a <br /> $200-$250 per month range for eligible low-income families. Mr. Weinman <br /> said the committee is being assisted in pursuing this goal by a number of <br /> other participants from the public and private sector that attend committee <br /> meetings regularly and provide input on various agenda items. <br /> Mr. Weinman reviewed a pro forma for a hypothetical 20-unit project (two <br /> bedroom, 800 square-foot units with one bath) that use modular and <br /> stick-built construction methods. This review illustrated the difficulties <br /> of producing affordable housing. Mr. Weinman reviewed the types of <br /> assistance that might be necessary to achieve rental rates within the <br /> committee's target. These included: land donations or write-downs, property <br /> tax exemptions, Federal and State tax credits, below market-rate financing, <br /> public contributions of equity, and project-based Section 8 certificates. <br /> Mr. Weinman said the potential development entities for low-income housing <br /> include some type of public/private cooperative venture, a nonprofit housing <br /> development corporation, the housing authority, or some combination of these <br /> entities. <br /> Mr. Bennett emphasized the difficulty of achieving the committee's goal of <br /> constructing rental units that will rent for $200-$250. He said another <br /> complicating factor is that the housing units must also meet other community <br /> goals such as the housing dispersal policy. <br /> Mr. Holmer asked if the committee had discussed the possibility of <br /> subsidizing the incomes of low- and moderate-income households rather than <br />e building only 100 units. Mr. VanLandingham said the committee decided to set <br /> its target at the construction of 100 units because it felt this was a <br /> realistic, although ambitious, goal. Mr. VanLandingham emphasized that the <br /> committee has a life of only two years, but hopes to establish a nonprofit <br /> development corporation to continue its work and to continue producing <br /> housing. Mr. VanLandingham added that the Section 8 program subsidizes <br /> earnings of low-income individuals to help them pay for rent; this program is <br /> very expensive. He did not feel the City could afford to duplicate this type <br /> of program. In addition, Mr. Vanlandingham pointed out that the current <br /> rental vacancy rate is so low that there is a need for new construction that <br /> income subsidies alone would not be able to fulfill. <br /> Mr. Gleason asked if the committee has given consideration to the possibility <br /> of rehabilitation of currently underutilized space. Ms. Schue said <br /> rehabilitation is possible in areas where housing stock is not being <br /> utilized. She said this situation does not exist locally. Mr. Boles added <br /> that the committee did hear about the potential for modifying warehouse space <br /> to accommodate single room occupancies. <br /> Mayor Miller asked about the potential for rehabilitating mobile homes. Mr. <br /> Bennett said that over a long period of time, this would not be an ideal <br /> option because older used mobile homes have not been built to the current <br /> code specifications and are not as energy-efficient as desired. He felt the <br /> rehabilitation of mobile homes would serve as a quick-fix solution but would <br /> not be of the same value as new construction. Mr. Green emphasized that <br />e MINUTES--Eugene City Council-- June 12, 1989 Page 2 <br /> Dinner/Work Session <br />