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13 nd ORDINANCE : AFFORDABLE HOUSING TAX GRANTS (2reading) Mr. Brown said good comments were made by Councilors at the first reading and changes and clarifications were made as a result, including income, threshold of 30% ownership interest, and ownership of other real property. Dr. Brown asked if it would be feasible to tie the grant to the percentage of ownership in the property. Mr. Brown said it could be done from a legal standpoint. Mr. Lee Richards, Commissioner of Revenue, said that a threshold of 30% was suggested because experience has shown that is not an uncommon ownership percentage, especially where a house is inherited by more than one person and only one lives in it. He said the grant could be done on a percentage basis. Dr. Brown suggested that we wait a year to tinker with the ordinance and keep it simple this first year. Ms. Hamilton said that many homes have increased beyond the $238,200 limit, and asked if raising the limit was discussed. Mr. Lynch said Council discussed increasing it beyond what was previously the VHDA loan limit, but the funding in the budget was based on participation at the $238,200 limit. He said if we increase the value we may not have enough money. He said we should work with the Legislature to try to get authority for a differential tax rate. He said we should also look more closely at a tax deferral program which we have authority to do now. Ms. Hamilton said the limits can be revisited next year. On motion by Mr. Lynch, seconded by Mr. Schilling, the amendment reviewed by Mr. Brown were approved by the following vote. Ayes: Dr. Brown, Mr. Caravati, Ms. Hamilton, Mr. Lynch, Mr. Schilling. Noes: None. Mr. Schilling said he thinks there is a fundamental fairness issue that the ordinance does not address, and while the changes make it better, he does not think it will help people who need it and he cannot support it. Mr. Caravati said he thinks this will help a lot of people and he supports it. He said he looks forward to seeing it expanded. The ordinance entitled “AN ORDINANCE TO ESTABLISH A GRANT PROGRAM TO PROMOTE AND PRESERVE HOMEOWNERSHIP BY LOW- AND MODERATE-INCOME PERSONS WITHIN THE CITY OF CHARLOTTESVILLE,” th as amended, which was offered at the June 5 meeting, was approved by the following vote. Ayes: Dr. Brown, Mr. Caravati, Ms. Hamilton, Mr. Lynch. Noes: Mr. Schilling. RESOLUTION : AUTHORIZING PURCHASE OF 407 E. HIGH STREET FROM SANDOLLAR, LTD Mr. Lynch asked for more information including the square footage. th Mr. O’Connell said that the closing is set for June 30, and noted that this has been worked on for a long time. Mr. Lynch said we are splitting the cost 50/50 with the County, and he is concerned about other areas of the court expansion agreement. He said the County is less willing to stick with the original agreement, and we may want to take a closer look at whether it makes sense to pay half if the County is not sticking to its original agreement to pay more in some areas.