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Regular City Council Meeting Monday, April 20, 2009 • Page 5 viewed the units previously converted from existing 1 bedroom to non-compliant 2 bedroom units; but the need to convert those units back to 1 bedroom units due to HVAC limitations. Ms. Ciganak reviewed the permanent relocation require- ments for several residents, utilizing a third party relocation specialist as per Housing and Urban Development (HUD) requirements; and the limited impact when reviewing the entire project. Councilmember Ihlan questioned whether Aeon would be receptive to including documentation of any relocation and displacement details as addendums to and Development and/or other agreements, should tax increment financing (TIF) be considered as part of the funding package. Ms. Ciganak expressed Aeon's willingness for as much transparency as possible; and advised that management had been meeting with residents for some time to keep them up-to-date on events, and to keep communication lines open. MS. Ci- ganak offered to share information with the City Council as requested. Councilmember Pust requested an update on how many units would be staying af- fordable housing units; and how that determination was defined; and changes be- tween original intent and current market realities. • Ms. Ciganak advised that in the evolution of the development process, things had changed, based on restrictions after discussions with Fire officials, accessibility issues, building sprinklers, and other variables. Ms. Ciganak advised that, since Phase I was an older building, making changes for accessibility were not feasible; however, Phase II had been revised to make sure those units were available, and advised that Aeon anticipated 20-30 two bedroom units in Phase II. Ms. Ciganak addressed affordability definitions, based on state and federal guide- lines, and area median incomes based on family size; location; market rates and dictates; and restrictions of market rate versus affordable units; and reality of square footage per unit. Ms. Ciganak advised that 20 market rate units in Phase I were anticipated, with the remainder remaining affordable to households at rents set at 50-60% of area median income; and further noted that some Section 8 units would also be available and should serve to accommodate some households that were cost-burdened and could qualify for metropolitan area HRA funds. Further discussion included funding timelines based on federal criteria and fund- ing for projects in process and their guidance to the State; impacts of changes to tax market credit funding; financing gaps and how to fill those gaps; keeping resi- dents aware of the process; and interest of residents in the project moving for- ward.