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---- . cannot corne out of the money appropriated for low-income housing because those funds have already been earmarked for subsidizing aspects of this and other affordable housing projects. Mr. Rutan wondered if these are the types of projects the council would support with low-income funding. Ms. Bascom said the project was consistent with the council's goal, and it had been reviewed by the Housing Policy Board. Responding to a question from Ms. Ehrman, Ms. Bascom said a report on the Housing Policy Board budget will be made, specifically how the fund has been spent and what the balance is. Responding to a question from Mr. Green, Mr. Bowers said that if the City denies the request, he assumed that rents would be increased to cover the costs--defeating the low-income nature of the project. Mr. MacDonald expressed support for the motion, saying that the project is consistent with City Council goals. He asked that the information forthcoming from the Housing Policy Board include implicit costs absorbed by the three jurisdictions. Mr. MacDonald said he is concerned that if the request is not approved, the project itself will be at risk because losing its low-income status would result in loss of other considerations by the State and Federal governments. He also expressed concern that NEDCO's viability is jeopardized if it has to cover expenses incurred out of its reserves. The motion passed unanimously, 8:0. e Mayor Miller summarized the discussion, saying that it is the consensus of the council that staff develop a policy report on the issue before any more requests are made. Mr. MacDonald suggested the issue be folded into the upcoming budget discus- sion. III. ORDINANCE ADOPTING THE URBAN FOREST MANAGEMENT PLAN Bob Hammitt, Public Works Maintenance Director, recalled that during its previous review of the Urban Forest Management Plan, the council has asked staff to respond to several questions. He noted that memorandums in the meeting packet dated September 23 and October 14, 1992, address those ques- tions. He said staff recommends the modified ordinance language in the October 14 memo. Mr. Hammitt said that the packet also included a letter from the Fire Division addressing the council's fire concerns, and also letters from the Chamber of Commerce and the Home Builders Association supporting staff's recommendation. Mayor Miller polled councilors with regard to staff's recommendation. Mr. Boles, Mr. Nicholson, Ms. Ehrman, and Mr. MacDonald did not support e MINUTES--City Council Work Session October 14, 1992 Page 5 5:30 p.m.