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<br />Planning Commission <br />Meeting Minutes <br />NOVEMBER 9, 2006 <br />Page 3 of 9 <br /> <br />Keany stated that the LHA plans to promote down payment assistance and assistance to the <br />developer to market the housing options. <br /> <br />Dalton asked how many affordable units are currently in Louisville. <br /> <br />Keany stated there are no permanently for purchase affordable housing units in Louisville. <br /> <br />Dalton inquired what keeps the developer from raising the prices of the other homes to offset the <br />cost for affordable housing. <br /> <br />Keany stated there is no guarantee. <br /> <br />Lipton stated there could be other ramifications to other housing if affordable housing is <br />considered. <br /> <br />Frank Alexander, Boulder County Housing Authority Director, discussed how the developers <br />manage such a program and there is a marketing effect that controls the housing purchase price. <br />He also provided the following numbers for affordable rental housing units managed by the <br />Housing Authority: 146 total units, 116 in Louisville, 30 in Boulder County. <br /> <br />Lipton stated to make this work; one would need to allow for more density. <br /> <br />McA vinew inquired if you build 5 houses and 10% is the requirement how do you build 1Iz of an <br />affordable unit? <br /> <br />Keany stated that any fraction would be rounded up to the next whole number of units. <br /> <br />Deborski inquired how the equity cap is established. <br /> <br />Keany requested that another member ofLHA, Callan Childs, share her personal experience with <br />the program in Boulder. <br /> <br />Childs provided a brief background of her experience. She stated that the equity is allowed a 3% <br />increase in value per year. The increase is subject to the property value for the entire City. As the <br />homeowner she was offered an incentive to sell the property without a realtor, which allowed an <br />increase of $1,000 in the sale price. The housing authority also has a list of allowable <br />improvements that can be used to create equity credit, such as, energy efficient washer / dryer, <br />energy efficient ceiling fans. Major appliances are given a life span for improvement cost <br />replacement. She stated that she purchased the unit for $93,000 and sold it for $101,000. The <br />equity of approximately $10,000 was used as a down payment by her and her husband for a <br />home in Louisville. <br /> <br />Lipton asked if the terms of allowables are established by covenant or ordinance. <br /> <br />Alexander stated they are approved as covenants. The City Council would approve the <br />covenants. The covenants would define the rules and regulations. <br /> <br />Childs summarized by stating that as a first time homeowner it was a very easy process from the <br />purchase through the re-sale. There is a lot to be said for a person's self-esteem when one is able <br />to purchase a home and show a profit. <br /> <br />Deborski asked who takes the hit if the market goes down. <br /> <br />Alexander stated that the home owner takes the hit. <br /> <br />Lipton and Keany discussed how the price of a unit is established. They sited different scenarios. <br />