HomeMy WebLinkAbout05-03-2016 Item 6, SchmidtCOUNCIL MEETING: 0503 2,0(6
ITEM NO. _ (�
Christian, Kevin
To: Maier, John Paul
Subject: RE: Item 6 -- Highland Drive Affordability Conditions mm�
MAY 02 2016
AC — Item 6
From: Richard Schmidt [mallto:slobuild(ayahoo.com]
Sent: Monday, May 02, 2016 10:46 AM
To: E-mail Council Website
Subject: Item 6 -- Highland Drive Affordability Conditions
Item 6 — 214 Highland Drive
Dear Council Members,
You're probably not receiving much correspondence on this item. So here goes.
have serious policy disagreement with the notion of a 15 -year affordability term for this project.
The city's affordable housing funds are intended to provide for affordable housing that has very long
term affordability conditions attached to its resale. As a long-term student of this subject, I believe that
the city's refusal to institute very long term affordability requirements for its "affordable housing" is one
of the great lost opportunities for this city to actually have a substantial body of genuinely affordable
housing. In the past I have argued in favor of essentially perpetual affordability conditions, on the
order of 100 years or so.
The standard 30 year affordability condition is too short a time. What it provides is a huge bonanza to
the one lucky person who sells the house just after the 30 year term is up. Why should public funds
be used to provide a private bonanza to one individual who happens to be in a lucky place at the right
time? This is neither intelligent nor ethical.
A 15 year affordability condition for this project ups that bonanza absurdity by spades. Somebody's
going to walk away with the public funds invested in this private home, and it's probably going to be
the heirs who benefit, and that's a totally unfair and improper use of public funds.
I have no objection to the grant, but the affordability term should not be lessened. Ideally, the grant
would become essentially an interest free loan, and at sale of the house the funds "granted" would be
recycled back into the city's affordable housing fund for the continuing progress of the city's
affordable housing program. This guaranteed recycling of funds to keep an elderly person in her
home makes a lot of civic sense. A longer affordability condition helps assure that will happen.
Thank you for doing the right thing.
Richard Schmidt