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128 Regular Meeting October 13, 1997 Page 7 correct. The Council then voted unanimously for adoption of the Resolution. Mayor Moore introduced for consideration Item 10.C.(10), removed from the consent agenda, adoption of a Resolution, the caption which was read as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, APPROVING THE CITY'S PARTICIPATION IN A GRANT APPLICATION TO THE CAPITAL AREA PLANNING COUNCIL FOR A HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM; COMMITTING CITY FUNDING TO THE PROGRAM; AND DECLARING AN EFFECTIVE DATE. Ms. Hughson requested this item be considered after Executive Session and the Council agreed. Mayor Moore introduced a discussion regarding the San Marcos Housing Authority for contribution from City Affordable Housing Funds towards Low Income Home Construction Program. Albert Sierra, Housing Authority, stated there were three areas of participation in which he would like the City to be involved: 1) infill development requirements waived 2) acquire City owned available lots and 3) the properties will be strictly used for application for applicants for homes. Mayor Moore stated CAPCO has restructured and revitalized its housing corporation and asked if they work with the Housing Authority. Mr. Sierra stated they could work with CAPCO; however, CAPCO was limited to the number of houses available for this area. Mayor Moore asked if the Housing Authority would be willing to do a match with the City in funding this program. Mr. Sierra stated it was something the Authority would consider. He explained the Authority would expend their own funds with an average of $55,000 per home and were asking the Federal Home Loan Bank to give them $15,000. This would make a total of $70,000 which would be the cost of the home. He stated they would apply the $15,000 grant against the $70,000 to allow the lower income families to be able to purchase the home and sell the $55,000 loan to the bank and get the money back to the Authority in order to keep the fund revolving. Mayor Moore asked Mr. Taylor if the City should pursue the County and School District to advocate these properties and get the dispensation against their taxes. Mr. Taylor stated City owned property the staff requests to sell is property from the urban renewal days. Mr. Hart stated he would like an update on lease purchase property. Mr. Sierra stated he had a board meeting on Tuesday and would be meeting with H.U.D.; however, he felt the properties were averaged at $70,000 and he would ask the Board to sell them for $55,000 and take a $15,000 loss. He stated the intent of the Housing Authority is to sell these homes to the occupants. Mr. Hart stated he would like to pursue the option of continuation of the housing project through C.D.B.G. funding. Mr. Sierra stated the Authority has $700,000 available for interim construction to go back into fund when the home is built. Mr. Hernandez asked if the infill areas were looked at on a case by case basis. Mr. Sierra stated that was correct. Mayor Moore stated the Council would like staff to work with the Housing Authority to develop a plan and bring to the Council for consideration. Mr. Gilley stated the City could waive the infill development requirements, waive the fees and check the available lots; however, would the Council be willing to use funds from our Affordable Housing Project to fund the Housing Authority. Mr. Hart stated staff would need to inform the Council which would give the City the greatest return on its 1.7 0 money. Mr. Gilley stated the City could possibly have the Housing Authority administer construction of the houses and still have the funds remain with the City. Discussion ensued. It was consensus of the Council to commit to the funds. Mayor Moore introduced a discussion regarding the Experimental Aircraft Association request for 1998 "Fly-In". Mr. Mihalkanin stated he would like to express to the Airport Commission the Council's support. Mr. Doughty stated the Commission requested Council draft a letter to the Experimental Aircraft Association of support. Mayor Moore asked if the City had any dialogue with the E.A.A. Dr. Northcutt, Airport Commission, stated we are one of the three finalists to be considered by E.A.A. and we were in the negotiating stages at this time. He stated there is a deadline to be meet and he felt everyone was in the process of negotiating the best deal for themselves. Dr. Northcutt stated he has directed the Airport Director to address questions on how this program would be mutually beneficial to the Airport and the City. For example the fees and how the fees would be used. Dr. Northcutt stated the Commission was trying to keep the Council apprised where we are in this project.