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<br />Mr. McCoy explained that HUD 202 programs are almost 100 percent Federally <br />financed, but apply only to seniors and the disabled. He said laurel Grove <br />and the Uhlhorn Apartments were financed by this program. He explained the <br />Laurel Grove financing process. <br /> <br />Mr. Van Landingham pointed out that having control over a site was important <br />in the HUD 202 process. <br /> <br />Mr. Bowers said the City would probably work with nonprofit developers in the <br />future. He said the Cranston-Gonzalez Act, possibly effective in October, <br />has changed the way the Federal government will finance housing. He said the <br />act is an entitlement program, which means there is a block of money which <br />would be eligible for new construction in Eugene, but in order to get this <br />money the City must have secured non-Federal matching funds. <br /> <br />Mr. Bowers said future housing projects will require subsidized financing. <br />He said staff has created a concept for an affordable housing fund which <br />would be a replicable financing program with local control. He said the <br />program could be financed through a General Obligation (GO) Bond which would <br />be partially revenue-backed. He said the revenue would come from rent col- <br />lected from projects the program had financed. <br /> <br />Mr. Bowers said the GO Bond would require a public vote and its size could be <br />from $2-$10 million. He said the bond would be tax- exempt and could be sold <br />for 6-7 percent. He said the money would be used to provide mortgage financ- <br />ing for projects which met criteria such as a commitment to servicing those <br />~ with very low incomes. <br /> <br />Mr. Bowers said the rents collected from the project would cover a minimum of <br />40 percent of the total debt service on the bond. He said taxpayers would <br />pay up to 60 percent of the remainder of the cost. He said this program <br />could be combined with other subsidies, such as tax credits and private mort- <br />gages. However, the affordable housing fund would have the ability to fi- <br />nance 100 percent of any given project. <br /> <br />e <br /> <br />e <br /> <br />Mr. Bowers said the advantages of the fund were that it would result in new <br />housing units, is replicable, would be under local control, and the public's <br />share in its financing would serve as match money and qualify the program for <br />Cranston-Gonzalez Act moneys. <br /> <br />Mr. Gleason said the tax from a $2 million GO bond could be $.15 per $1,000, <br />and for a $10 million bond $.40 per $1,000. He said the public would pay a <br />relatively low amount on the debt service. <br /> <br />Mr. Boles asked if it would make sense to pursue the new housing policy <br />county-wide since it was being undertaken interjurisdictionally. Second, he <br />asked if there was any way that reemployment of the structurally unemployed <br />could be linked to the construction of new housing units. Mr. Van Landingham <br />said it would probably be easier to convince voters in the City to fund a <br />program such as this than to convince voters county-wide. Mr. Boles said he <br /> <br />MINUTES--Eugene City Council <br /> <br />February 25, 1991 <br /> <br />Page 4 <br />