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� � o then have the option of availing themselves of a low interest loan in order to do all rehabilitation necessary to bring the building up to the Code requirements, or they may take care of only safety requirements now and delay other rehabilitation until the building is sold. The property owner who delays will have to take the chance that when ' the building is to be sold, there will be equally "attractive money" available for the rehabilitation he must make at that time. (Councilman Norris arrived at 9:55 a.m.) General discussion followed concerning the fact that beneficiaries of the low interest loans may iimiediately sell the repaired residence for a substantial profit which is � not the intent of the program; that rehabilitation can move properties out of the low/ moderate income category, reducing the amount of that kind of property available; the desirability of achieving housing goals without creating windfalls or hardships, recog- � nizing that some of both will occur; the possibility of making the low interest loan carry early prepayment penalties which will make immediate resale less attractive; the fact that for public purposes such acceleration clauses may be permitted by law; the immediate need to halt physical deterioration of neighborhoods whether or not some property owners may realize unintended benefits; and the programs available for con- struction of much needed new housing. In response to question, Mr. Schroeter advised that it is expected implementation of the Marks-Foran program will take about one and one-half years. He distributed copies of "Strategy for Selecting a Neighborhood Preservation Area." He advised that all residents will receive copies of the letter regarding the program and an attempt will be made to determine from the replies if there is a neighborhood where interest is concentrated which can be designated for the first program. Personal interviews would then be conducted to make the necessary determinations before the rehabilitation pro- gram ►vould comnence. It was pointed out that use of the term "mandatory" Code enforcement is redundant and should not be used, since Building Code requirements are presently in the law and should be expected to be enforced. The program merely offers financial assistance to property owners to help them meet existing requirements and thereby enhance the safety and value of the property. In response to questions, Mr. Schroeter advised that repairs and rehabilitation to a residence would not increase the property tax since no reappraisal rrould occur. The rehabilitation program does not anticipate added rooms, etc. Discussion continued and Mr. Schroeter and Mr. Smith comnented and replied to questions regarding the necessity of employing staff for the program who are sensitive in dealing with the persons involved and offer assistance and persuasion in order to obtain cooperation. � In response to question, Mr. Schroeter advised that commercial properties such as small stores, etc. which might exist in the rehabilitation target area would also qualify for """� the low interest loans, noting that the intent is to rehabil9tate the entire area. Mr. Smith and Mr. Schricker coimiented concerning the manner in which the City might work with the County in offering bonds. Discussion continued and it was reco�miended that the Marks-Foran Program should be supported at a level which can be monitored closely and its success constantly evalu- ated; the fact that Block Grant funds are hopelessly small to be expected to have any real impact on the deteriorating neighborhoods; and the need to make sufficient funds available to be effective. Mr. Schroeter then commented concerning the use of S699 and other funds far new con- struction and displayed photographs of the architect's design of "Two Worlds", a Pleasant Hill development which combines ground level shops with residences above th�n. Mr. Schricker noted that in such developments the commercial portion must be an integral part of the development. Ad3.Reg.Mtg. E 3/12/79 j Page 2 ,f � � i � F( r t °' '+f ; } � y�.,..,.�y � t � .��,�-��., � .�I J T i