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12 <br />5. Northside Community Association <br />The Northside Community Association requested $275,000 of Community Development <br />funds to establish a rehabilitation program for owner-occupied homes in the Northside <br />and Pine Knolls neighborhoods. <br />At the March 26 public hearing, Delores Bailey, Community Organizer for <br />EmPOWERment, Inc. requested that the Council increase the preliminary <br />recommendation for funding for this activity to the amount requested. She also stated <br />that she had received about thirty applications requesting rehabilitation assistance and <br />estimated that each request would cost approximately $5,000. <br />Staff Comment: The preliminary recommendation includes $150,000 for this program <br />for the repair of approximately four homes. Staff will need to develop criteria for the <br />program in consultation with the Northside Association. <br />6. Habitat for Humanity of Orange County <br />Habitat for Humanity requested $40,000 of Community Development funds for planning <br />costs related to the development of property it recently purchased on Sunrise Road. <br />Habitat intends to develop the property and sell homes to first time buyers earning less <br />than 50% of the area median income. <br />At the March 26 public hearing, Executive Director Susan Levy stated that if Community <br />Development funds could not be used for predevelopment expenses that Habitat would <br />request $40,000 from the Housing Loan Trust Fund for this activity. <br />Also at the March 26 public hearing, Rob Nelson, a member of the Sunrise Coalition <br />stated that he was concerned about this proposal for several reasons: zoning issues; <br />the number of units proposed; the impact the project may have on schools; and the <br />sewer pump station. He stated that he believed Habitat should adhere to the current <br />zoning and environmental practices. He also asked that the Council not make decisions <br />about funding for this project until these questions and other questions raised in the <br />Mayor's Committee meeting were addressed. <br />Sandra Cummings and Doug Schworer, also members of the Sunrise Coalition asked <br />that the Council not make funding awards for this project until the Mayor's <br />subcommittee has completed its work. <br />Mark Chilton, Executive Director of EmPOWERment, Inc. stated that funds would not <br />actually be available for three to six months. Therefore, he suggested that the Council <br />budget funds for this project while the discussions with the Mayor's Committee <br />continued. <br />Staff Comment: Payment of architectural design costs for new construction projects is <br />not an eligible Community Development activity. This request could be considered for <br />