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6 CHAPTER 34 (ZONING) OF THE CHARLOTTESVILLE CITY CODE, 1990, AS AMENDED, RELATING TO DENSITY IN MIXED USE DISTRICTS” (carried over) PUBLIC HEARING/ORDINANCE : AFFORDABLE HOUSING TAX GRANTS Ms. Lisa Kelley, Deputy City Attorney, explained that the City has new authority in its Charter that allows it to offer grants to assist people with homeownership. She said th Council discussed the criteria at its May 11 work session and tentatively agreed to the following: income limit of $50,000; maximum home assessment value of $238,200; eligible applicants may not own any other real estate; applicants must be occupants of the property; and applicants may not participate in any other tax relief program. Responding to a question from Mr. Caravati, Ms. Kelley said applicants must submit an application annually. Mr. Caravati asked if there is any way to control or limit the time allowed in a nursing home, etc. by a qualifying applicant. Responding to a question from Mr. Caravati, Ms. Kelley said that the bulk of the financial information required will come from federal tax returns, but some people may not be required to file a federal tax return, so the Commissioner of Revenue needs some discretion in requiring other information that will pass muster with auditors. Mr. Lynch said he does not recall discussing the restriction on owning other real estate. He said rent from other property could be counted in the applicant’s income. The public hearing was opened. Mr. Overton McGee, Executive Director of Habitat for Humanity, said he thinks this is a wonderful first step. He said his one concern is that the home value may be a little low as some Habitat houses have assessed for more than that amount. Mr. McGee said he also wants Council to consider allowing a 50% tax deferral until property is sold for people with incomes under $25,000. Mr. Caravati asked what the median value is of Habitat houses. Mr. McGee said he is more familiar with appraised values, and said their most recent three bedroom attached unit was appraised for $166,000. Ms. Colette Hall, 101 Robertson Lane, asked that when the ordinance is passed that it be tweaked carefully so there are not conflicts as has occurred with other ordinances. Ms. Alison Ruffner, 735 Grove Street, said she sees the opportunity for people to be able to take advantage of the program when they do not qualify by allowing undocumented information to be submitted. As there were no further speakers, the public hearing was closed. Mr. Schilling said he would agreed that this is a short-term fix to a long-term problem, and is not viable beyond a few years. He said he has previously expressed his concern with this program. He asked what is meant by a “natural person.” Ms. Kelley said a natural person is not a corporation or a trust. Mr. Schilling asked if citizenship is required to receive the grant, and Ms. Kelley said as drafted no. Mr. Schilling said he thinks that is a problem for our residents to be subsidizing non citizens. Mr. Schilling asked how the grant will be applied.