2005-12-08 TLava Kuakini - Laserfiche WebLink

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$450,000. So when this goes to market theres going to be a certain series of $250,000 homes now can you or I buy those? Can somebody from Long Beach California buy them? Or you know is there any way that wed know that these homes go to the people who really can only afford them? And then if maybe its like, if then if somebody buys one of them they can turn around and sell it for $450,000 you know a week later if they want. I presume. So really you know were just giving them a little windfall. Am I wrong to think in that direction? YUEN:There are, theres going to be an eligibility restriction based on income and typically theres also a first time home buyer kind of restriction then if you cant fill the project off the eligibility list then you drop away some of the criteria. And the other, theres, theres, and the other thing about the ordinance thats built in is that you can be, you can earn up to-. You can earn somewhat more than the 120 percent of median and still qualify to buy the house. Or you can earn say the 140 percent, you can earn somewhat more than that and still qualify. Cause otherwise you end up with too narrow a window of people who qualify. You, if you have to, if you, if youre too, if you earn too little youre not going to qualify for the loan but if we set the eligibility too strict then you earn just a little bit too much and then you cant buy theunitcauseyouearntoomuchmoney.Butthereareboth,theresaeligibilityrequirementand these parts are still in the works but there will be buy back or shared appreciation or some other kind of limitation on speculation by the initial buyer. These are, these parts are not fully worked out in the rules right now and, but they, theyve been, mechanisms like this have been applied before to other affordable housing requirements and there will be these kinds of controls. GRAHAM:And, so even though we dont write all what you said into this law can we all assume that in this project and all other projects that have affordable housing requirements all of that kind of eligibility process will always be in place? YUEN:Yes thats, its another, its a Council and Office of Housing Agency issue but those are, those are parts of what, those are parts of what are in place, yes. Its, certainly you want to have a targeted, you have to have a qualified, you have to have a qualified group of buyers. And they have to meet certain, these qualifications and then there will be restrictions on somebody just coming in and flipping the unit. GRAHAM:Okay. And then I think this is my final one. When I read the material, the background material on this project, even though we have like behind Jeff there a diagram of how they propose the development to look. When we read the numbers in here thats you know 4-1/2 million dollars theyre going to spend on infrastructure and they have a timetable for providing the infrastructure and all that. But theres really nothing about whats going to take place in the development other than that picture. Im wondering since I am developing, I am devoting my attention to affordable housing now does that have any impact on the affordable housing assuming that maybe theyre not going to develop and somebody else will and whatever. Because what theyve really speaking to in their application is doing the infrastructure, the 4-1/2 million-dollar project. Should I be concerned about any of the linkage between that and what it finally winds up when somebody does build the houses which may or may not be like whats in that plan? EXHIBIT B 6