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448 Mr. Trevino concluded that he would like to make one thing very clear, this proposal
<br />is not for low income or moderate income housing, this is affordable housing and
<br />people will have to qualify, be working people, and meet certain qualifications in
<br />order to be eligible to purchase these homes.
<br />Councilman Rehrer questioned the formation of an assessment district for this de-
<br />velopment and asked how the amount would be paid off.
<br />Mr. John Brown, of Best, Best and Krieger, explained the procedures of creating an
<br />assessment district for this project, which he stated would be the same as that
<br />used for the Cooley Ranch, the sale of bonds, etc. Mr. Brown stated there would
<br />be two advantages, in that the interest rate could not exceed ten percent, and the
<br />cost of improvements would be spread out over a period of years up to 24 years.
<br />Mr. Ed Sloman, representing Covington Brothers, described the proposed improvements
<br />stating that this subdivision is bounded by Johnston and Citrus Streets, and Rancho
<br />and Grand Avenues. Mr. Sloman'advised that three model homes will be facing Johns-
<br />ton Street. Mr. Sloman said.they are attempting to bring to the community afford-
<br />able housing by utilizing the 1911 and 1913 assessment district bond acts to fund
<br />the off-site improvements for the development of the 113 homes, and the assessment
<br />would appear on the property owner's tax bill, which is tax deductible at the end
<br />of the year, just the way that any other type of assessment is handled.
<br />Mr. Harold Tiffin, of Covington Brothers, reviewed the various plans and costs for
<br />the housing, advising that FHA loans would be utilized for the financing at an in-
<br />erest rate of 11.5 percent. Mr. Tiffin used as an example their model 2O3B, a two-
<br />bedroom, two bath home, with a sales price of $48,000, a total down payment of
<br />$2,650, and a total monthly payment of $533.25. Mr. Tiffin advised these figures
<br />would apply if an assessment district were used. Mr. Tiffin further advised that
<br />the costs for the same home, same model, without the assessment district, would have
<br />a sales price of $60,000, a total down payment of $3,300, and a total monthly payment
<br />of $660.49.
<br />Discussion then followed among Council Members and Mr. John Brown with regard to
<br />the proposed assessment district, the financial responsibility and payment of the
<br />assessment, and the costs to the proposed property owner.
<br />Councilman Hayes asked what the building costs, or construction costs, are to the
<br />contractor.
<br />Mr. Sloman answered somewhere around $28. to $29. per square foot.
<br />Councilwoman Cisneros stated then, in other words, without the formation of the
<br />assessment district, a two-bedroom home would cost someone $60,000.
<br />Mr. Sloman answered basically, that is correct.
<br />Councilwoman Garcia asked the size of the rooms for a home containing 996 square
<br />feet.
<br />Mr. Sloman referred to the two-bedroom, two bath Model 2036, reading the square
<br />footage of each room.
<br />Mr. Sloman then showed the Council Members drawings of their model homes that have
<br />been constructed in other subdivisions in Southern California.
<br />Councilman Hayes stated that although he believes in this concept, he would like
<br />to request a continuance of'this matter so that he can study the figures that have
<br />been presented, and he would also like to visit some of the other sites where
<br />Covington Brothers have constructed these models.
<br />The other Council Members were in agreement with Councilman Hayes.
<br />Mr. Sloman stated he would be happy to provide the Council Members with any other
<br />necessary information they may desire, and they do have other tracts of homes in
<br />Rialto, San Bernardino and Fontana that the Council Members may wish to visit.
<br />On Council consensus, this matter was continued to the next regular Council Meeting,
<br />August 5, 1980.
<br />COMMUNITY SERVICES DIRECTOR'S'REPORTS AND RECOMMENDATIONS:
<br />Bids
<br />Traffic Signals
<br />Director of Community Services Calvin Wang reported from his memorandum dated July 11,
<br />JUL 15 1980
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